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Risk Management Processes 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 Risk Management Processes flashcards as text
  1. What is the Expected Monetary Value (EMV) of a risk with a 30% probability and a $50,000 negative impact?

    Answer: -$15,000

    EMV = Probability × Impact = 0.30 × (-$50,000) = -$15,000, representing the weighted average outcome.

  2. Which risk process uses the probability and impact matrix as a key tool?

    Answer: Perform Qualitative Risk Analysis

    Perform Qualitative Risk Analysis uses the probability and impact matrix to categorize risks as high, medium, or low priority.

  3. A project manager is using a decision tree to evaluate two alternative courses of action based on risk probabilities. This technique belongs to which process?

    Answer: Perform Quantitative Risk Analysis

    Decision tree analysis is a quantitative technique used in Perform Quantitative Risk Analysis to compare options under uncertainty.

  4. Which risk response strategy involves partnering with another organization to share both the opportunity and the resources needed to pursue it?

    Answer: Share

    Share allocates ownership of an opportunity to a third party who is best able to capture it, such as through a joint venture.

  5. The Risk Report, added in PMBOK 6th edition, differs from the Risk Register in that it primarily provides:

    Answer: Information on overall project risk exposure

    The Risk Report presents information on overall project risk exposure, including a summary of individual risk findings.

  6. A contingency reserve is set aside to address which type of risk?

    Answer: Known unknowns

    Contingency reserves address known unknowns—identified risks with response plans that may still materialize.

  7. Which data representation technique in risk management plots risks on a two-dimensional grid showing probability on one axis and impact on the other?

    Answer: Probability and impact matrix

    The probability and impact matrix maps risks based on their likelihood of occurring and the magnitude of their effect on project objectives.