Risk Assessment and Management Flashcards
6 cards from real 8100 Professional Level Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Risk Assessment and Management flashcards as text
What is a 'secondary risk' in risk management?
Answer: A new risk introduced by implementing a risk response
Secondary risks arise as a direct consequence of a risk response action, and they must be analyzed and managed just like any other identified risk.
In risk management, what does 'risk appetite' describe?
Answer: The amount and type of risk an organization is willing to accept in pursuit of its objectives
Risk appetite reflects organizational culture and strategic direction, guiding decisions about which risks to pursue, tolerate, or avoid.
What is a 'contingency reserve' in project risk management?
Answer: Budget or time set aside to address identified risks that may materialize
Contingency reserves are planned budget or schedule buffers specifically tied to identified risks, drawn upon if those risks occur.
What distinguishes 'qualitative' from 'quantitative' risk analysis?
Answer: Qualitative ranks risks subjectively; quantitative models risk numerically
Qualitative risk analysis prioritizes risks using expert judgment and rating scales, while quantitative analysis uses numerical data and statistical models.
What is a 'trigger condition' (risk trigger) in professional risk management?
Answer: An early warning sign indicating that a risk event is about to occur or has occurred
Risk triggers are observable indicators that alert the team to act on a contingency plan before the full impact of the risk materializes.
Which risk response strategy is most appropriate when a risk has a low probability and low impact?
Answer: Accept
For low-probability, low-impact risks, acceptance is cost-effective since elaborate response planning would consume more resources than the risk is worth.