CPM Risk Management & Contingency Planning Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPM Risk Management & Contingency Planning flashcards as text
Which risk response strategy involves shifting the negative impact of a risk to a third party?
Answer: Transfer
Transferring risk shifts the financial or operational impact to a third party, such as through insurance or outsourcing.
In the CPM framework, what is a contingency reserve primarily used for?
Answer: Covering identified risks that may occur
Contingency reserves are budget set aside to address identified risks included in the risk register that may materialize during the project.
A project manager is evaluating risks by multiplying probability by impact. Which technique is being used?
Answer: Expected monetary value (EMV)
Expected Monetary Value (EMV) is calculated by multiplying the probability of a risk event by its monetary impact to quantify risk exposure.
Which of the following best describes a residual risk?
Answer: A risk that remains after risk responses have been applied
Residual risks are those that remain after planned risk responses have been implemented and are typically accepted and monitored.
During risk identification, which tool involves team members independently generating ideas before sharing them with the group?
Answer: Nominal Group Technique
The Nominal Group Technique has participants generate ideas independently first, then share and prioritize them as a group to reduce groupthink bias.
What is the primary purpose of a risk register in project management?
Answer: To document identified risks, responses, and owners
A risk register is a project document that records all identified risks, their analysis, planned responses, and the individuals responsible for managing each risk.