Project Management Risk Management and Mitigation Questions and Answers — Questions and Answers
Question 1: A project manager identifies a risk that could significantly delay the project. The team decides to change the project plan to eliminate the risk entirely by adopting a different technical approach that does not carry this risk. This is an example of which risk response strategy?
- Mitigation
- Avoidance (Correct answer)
- Transference
- Acceptance
Correct answer: Avoidance
Risk avoidance is a strategy that involves changing the project plan to eliminate a threat or protect the project from its impact. In this scenario, the team is not just reducing the risk's impact (mitigation) but removing it completely by changing their approach.
Question 2: During a project to implement a new CRM system, the project team decides to purchase an insurance policy to cover potential data loss during migration. This action is an example of which of the following risk response strategies?
- Mitigation
- Acceptance
- Transference (Correct answer)
- Avoidance
Correct answer: Transference
Risk transference is the strategy of shifting the negative impact of a threat, along with ownership of the response, to a third party. Purchasing insurance is a classic example of transferring the financial impact of a risk to an insurance company.
Question 3: A project team implements a response to a known risk. As a direct result of this action, a new, unforeseen risk emerges. What is the correct term for this new risk?
- Residual Risk
- Secondary Risk (Correct answer)
- Unforeseen Contingency
- Accepted Risk
Correct answer: Secondary Risk
A secondary risk is a new risk that arises as a direct result of implementing a risk response. It is different from a residual risk, which is the amount of risk remaining after a response has been implemented.
Question 4: A project manager is leading a risk analysis session. The team is using a probability and impact matrix to prioritize identified risks by assigning ratings such as 'High,' 'Medium,' and 'Low.' Which risk analysis process is being performed?
- Perform Quantitative Risk Analysis
- Identify Risks
- Plan Risk Responses
- Perform Qualitative Risk Analysis (Correct answer)
Correct answer: Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis is the process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact. This process uses subjective measures like a probability and impact matrix with descriptive ratings.
Question 5: Which of the following components is LEAST likely to be found in a comprehensive risk register?
- A detailed project schedule (Correct answer)
- The assigned risk owner
- The planned risk response
- The probability and impact of the risk
Correct answer: A detailed project schedule
A risk register is a document that captures details of identified individual project risks. It typically includes a risk description, category, probability, impact, a risk score, the assigned owner, and the planned response. A detailed project schedule is a separate, more extensive project document.
Question 6: After implementing a risk response, the project team determines that a small amount of the original risk still remains. The team decides this remaining level of risk is acceptable and does not warrant further action. This remaining risk is known as a:
- Secondary Risk
- Contingency Risk
- Residual Risk (Correct answer)
- Mitigated Risk
Correct answer: Residual Risk
Residual risk is the risk that remains after risk responses have been implemented. It is the 'leftover' risk that the project team has decided to accept.
Project Management Risk Management and Mitigation Questions and Answers
A project manager identifies a risk that could significantly delay the project.
The team decides to change the project plan to eliminate the risk entirely by adopting a different technical approach that does not carry this risk.
This is an example of which risk response strategy?