Risk Management

1.       A Risk is an uncertain event or condition If it occurs

a.       Can create negative outcome

b.      Can create positive outcome

c.       Can create positive or negative outcome

d.      Can never create positive outcome

 [Answer: c]

2.       Risk can only be undertaken only if

a.       It’s negative impacts are nullified

b.      It’s positive impacts are maximized

c.       Its negative impacts are in balance with the positive rewards we get

d.      Stakeholders give assurance that risk reserves are there.

 

[Answer: c]

3.       All of the following are part of Risk Management Plan EXCEPT:

a.       Methodology ,

b.      Roles and Responsibility

c.       Definitions of Probability and Impact

d.      Definitions of Risk Categories

e.      Risk Response Plan for the selected risks.

[Answer: d]

 

4.       All of the below are correct w.r.t. Risk Management EXCEPT

a.       Risk is an uncertain event that may impact positively or negatively to the project objectives

b.      Risks are always towards futuristic. If risk occurred then it becomes an issue.

c.       Risk can be undertaken only when if it’s negative impacts are in balance or less than that of positive impact/reward we get.

d.      Risks and issues are one and the same.

[Answer: d]

 

5.       Which Technique is used to arrive at Risk Management Plan

a.       Planning Meetings and Analysis

b.      Checklist Analysis

c.       Assumption Analysis

d.      Documentation Reviews

 [Answer: a]

6.       You have been assigned as the project manager for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What needs to be done?

a.       Plan Risk Management

b.      Perform Quantitative Risk Analysis

c.       Plan Risk Responses

d.      Monitor and Control Risks

 

[Answer a] – Did you notice that the project has already begun? Risk management is required element of project management.  You must complete the risk management process, starting with Plan Risk Management process.

7.       Risk can be classified based on all of the below EXCEPT

a.       External, Internal, Technical and unforeseeable

b.      Customer, Project Management, Suppliers, Resistance to Change and Cultural Differences

c.       Schedule, Cost, Quality, Scope, Resources and Customer Satisfaction

d.      Risk Response Strategy

[Answer a]

8.       All of the below can be sources of risk identification EXCEPT

a.    Analyse assumed hypothesis, scenarios behind each of the assumptions made for the given project

b.    Risk Checklist analysis to uncover risks for the given project

c.    Diagramming techniques like Cause and Effect Diagram, System process flow charts, influence diagrams for the given project

d.    Other Project’s employee leave record

 

[Answer d]

 

 

9.       Risk Register contains all the below EXCEPT:

a.       Risk Cause/ Assumption

b.      Risk Event and its impact

c.       Potential Risk Response

d.      Enterprise Environmental Factors

 

[Answer d]

 

10.   All of the following are part of Qualitative Risk Analysis  EXCEPT:

a.       High, Medium and Low Ranking Risks Cost, Schedule, Scope and Performance gets identified

b.      Watch list of low priority risks gets documented.

c.       Long Term and Short Term Risks are segregated

d.      Trends in quantitative risk analysis results

[Answer d]

 

11.   All of the below can be used to conduct Qualitative Risk Analysis EXCEPT:

a.       Risk Probability and Impact Assessment

b.      Risk categorization

c.       Risk Urgency Assessment

d.      Contingency Risk Response Strategies

 

[Answer d]

 

12.   Quantified Risk analysis arrives at amount at stake or consequence  in quantified terms. All of the following are true  incase of  Quantified Risk Analysis EXCEPT:

a.       Determine the Quantified probability of meeting project objectives (eg. “We only have an 80% chance of completing the project within six months required by customer” or “We only have 75% chance of completing the project within $80000 budget)

b.      Determine Cost and Schedule Reserves

c.       Create Realistic and achievable cost, schedule or scope targets

d.      Identification of High, Medium and Low category risks

 

[Answer d]

 

13.   41 million is about 12% probability;  50 M budget is 75% likely success. Such Cost Simulation exercise is an example of

 

 

 

 

 

a.       Monte  Carlo Analysis

b.      Pareto Analysis

c.       Ishikawa diagram

d.      Histogram

 

[Answer: a]

 

 

 

14.   If a risk event has 90% chance of occurring and the consequences will be US 10,000. What does $ 9,000 represent

a.       Risk value

b.      Present Value

c.       Expected Monitory Value

d.      Contingency Budget

 

[Answer c]

 

 

15.   A company is trying to determine if prototyping is worthwhile on the project. They have come up with following impacts (see the diagram) of whether the equipment works or fails. Based on the information provided in the diagram, what is the expected monetary value of your decision?

 

 

a.       You take a decision to do the prototyping. [EMV = 35% * 320 + 65% * 200= 242 K]

b.      You take a decision not to prototyping. [EMV = 75% * 450 + 0 * 35% = 315 K]

[Answer: A as the impact is less]

 

 

 

16.   You need to fly from one city to another.  You can take airline A or B. Considering the data provided which airline should you take and what is the expected monetary value of your decision?

 

 

a.       Airline A. [ EMV = 1300 = 90% *900 + 10% * 4900]

b.      Airline B. [EMV = 1500 = 70% * 300 + 30% * 4300]

 

Answer : a as the fee is less

 

 

17.   Name the Risk Response Option

 

No	Strategy Description	Risk Response Category	Answer
1	Remove  a workpackage or activity from the Project	Avoid/Mitigate/Transfer/Accept	Avoid
2	Remove a troublesome resource from the project	Avoid/Mitigate/Transfer/Accept	Avoid
3	Outsource difficult work to  a more experienced company	Avoid/Mitigate/Transfer/Accept	Transfer
4	Move a Work Package to a date when a more experienced resource is available to be assigned to the project	Exploit/Share/Enhance	Exploit

 

18.   During the plan risk management process, your team has come up with 434 risks and 16 major causes of those risks. The project is the last of a series that the team has worked on together. The sponsor is very supportive, and a lot fo time was invested in making sure the project work was complete and signed off by all stakeholders.

 

During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution?

 

a.       Accept the risk.

b.      Continue to investigate ways to mitigate the risk

c.       Look for ways to avoid the risk

d.      Look for ways to transfer the risk

 

               (Answer: a)

 

 

19.   If a project has a 60% chance of a US $100,000 profit and a 40% chance of a US $100,000 loss, the expected monetary value for the project is

a.       $100,000 Profit

b.      $60,000 loss

c.       $20,000 profit

d.      $40,000 loss

 

(Answer: C :: [100,000* 60% + (-100,000) *40%] = $20,000)

 

 

20.   All the below techniques are used to “Monitor and Control the Risks” EXCEPT:

a.       Risk Audits & Variance and Trend Analysis

b.      Reserve Analysis Status Meeting

c.       Technical Performance Measurement

d.      Documentation Reviews

 

(Answer: D)

 

21.   All the below techniques are used to “Monitor and Control the Risks” EXCEPT:

e.      Risk Audits & Variance and Trend Analysis

f.        Reserve Analysis Status Meeting

g.       Technical Performance Measurement

h.      Documentation Reviews

 

(Answer: D)