CPL Risk Management & Compliance Flashcards

In program risk management, what is the primary difference between a risk and an issue?

Answer: A risk is an uncertain future event, while an issue is a risk that has already occurred

A risk is an uncertain future event that may impact the program, whereas an issue is a risk event that has already materialized and requires immediate action.

Which risk response strategy involves shifting the negative impact of a risk to a third party, such as through insurance or outsourcing?

Answer: Transfer

Risk transfer shifts the financial or operational consequence of a risk to another party, though it does not eliminate the risk itself.

A program manager is assessing risks by multiplying probability by impact to prioritize them. This technique is referred to as:

Answer: Probability and Impact Matrix analysis

The Probability and Impact Matrix multiplies the likelihood of a risk occurring by its potential impact to rank and prioritize risks for response planning.

Which of the following BEST describes a residual risk in program management?

Answer: A risk that remains after risk responses have been implemented

Residual risks are those that remain after mitigation or other responses have been applied and must continue to be monitored throughout the program.

A program manager discovers that a new federal regulation will require significant changes to several component projects. This is BEST classified as which type of risk?

Answer: Compliance risk

Compliance risk arises from potential violations of laws, regulations, or standards, and regulatory changes that affect program delivery fall squarely into this category.

What is the purpose of a risk register in program management?

Answer: To record identified risks, their analysis, and planned responses

The risk register is a central document that captures identified risks, their probability and impact scores, owners, and planned response strategies.