Chapter Eleven

Risks can have both negative and positive effects on meeting project objectives.

• True

• False

The last step in project risk management is deciding how to address the knowledge area for a particular project by performing risk management planning.

• True

• False

Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.

• True

• False

The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups.

• True

• False

The main output of qualitative risk analysis is updating the risk register.

• True

• False

The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value.

• True

• False

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.

• risk-seeking

• risk-averse

• risk-neutral

• risk-indifferent

What process involves deciding how to approach and plan the risk management activities for the project?

• identifying risks

• planning risk management

• performing qualitative risk analysis

• performing quantitative risk analysis

Which process involves determining what risks are likely to affect a project and documenting the characteristics of each?

• identifying risks

• planning risk management

• performing qualitative risk analysis

• performing quantitative risk analysis

_____ are predefined actions that the project team will take if an identified risk event occurs

• Secondary risks

• Workarounds

• Contingency plans

• Management reserves