Managing Project Risks Flashcards
7 cards from real PMBOK practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Managing Project Risks flashcards as text
Which risk response strategy involves shifting the negative impact of a risk to a third party?
Answer: Transfer
Transfer shifts risk ownership and financial impact to another party, such as through insurance or subcontracting.
A project manager discovers a new risk after the risk register has been finalized. What is the BEST next step?
Answer: Add it to the risk register and analyze it
Risks can be identified at any project phase; newly discovered risks must be added to the risk register and analyzed.
What is the purpose of a risk audit in project management?
Answer: To evaluate the effectiveness of risk responses
Risk audits examine and document the effectiveness of risk responses and the risk management process itself.
A project team uses a decision tree to evaluate two options. Option A has a 60% chance of a $200K gain and 40% chance of a $50K loss. Option B has a guaranteed $80K gain. Which option has a higher Expected Monetary Value (EMV)?
Answer: Option A with EMV of $100K, making it preferable
Option A EMV = (0.6 × $200K) + (0.4 × -$50K) = $120K - $20K = $100K, which exceeds Option B's $80K.
Which document lists all identified risks, their root causes, potential responses, and owners?
Answer: Risk Register
The risk register is the primary artifact for capturing identified risks, analysis results, response plans, and ownership.
Residual risks are BEST described as:
Answer: Risks remaining after risk responses have been implemented
Residual risks are those that remain after planned risk responses have been applied and are still monitored.
During project execution, a previously low-priority risk escalates in probability. What should the project manager do FIRST?
Answer: Update the risk register and re-analyze the risk
The first step is to reassess and update the risk register to reflect the new probability before deciding on a response.