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
How is risk 'probability' defined in a professional risk assessment context?
Answer: The likelihood that a specific risk event will occur
Probability quantifies how likely it is that a risk will materialize, often expressed as a percentage or on a qualitative scale (low, medium, high).
What is a 'risk register' in professional practice?
Answer: A document that records identified risks, their analysis, and planned responses
The risk register is the central repository for all identified risks, including probability, impact, owner, and response strategy.
What is the difference between a 'risk' and an 'issue' in professional risk management?
Answer: A risk is a potential future event; an issue is a problem that has already occurred
Risks are uncertain future events that may affect objectives, while issues are current problems requiring immediate resolution.
What does a 'probability-impact matrix' help professionals do?
Answer: Prioritize risks by combining their likelihood and potential effect into a risk score
The probability-impact matrix visually categorizes risks into high, medium, and low priority zones to focus management attention on the most critical risks.
Which risk analysis technique uses repeated simulations to model the probability distribution of possible project outcomes?
Answer: Monte Carlo simulation
Monte Carlo simulation runs thousands of scenarios with variable inputs to produce a probability distribution of outcomes such as project cost or duration.
What is 'residual risk' in professional risk management?
Answer: The risk that remains after risk responses have been implemented
Residual risk is the exposure that persists even after planned risk responses have been applied; it must be accepted or subject to further treatment.