RMP - 4. RISK ANALYSIS

Sara is the project manager for her organization. She has hired a subject matter expert to interview the project stakeholders on certain identified risks within the project. The subject matter expert will assess the risk event with what specific goal in mind:

• To determine the level of probability of impact for each risk event.
• To determine the validity of each risk event.
• To determine the probability and cost of the risk event.
• To determine the bias of the risk event based on each person interviewed.

Which of the following tools are used to identify the probability of achieving specifics cost targets?

• Contingent response strategies.
• Sensitivity analysis.
• Monte Carlo analysis.
• Decision tree analysis.

You are the project manager of the AMD project for your organization. In this project, you are currently performing quantitative risk analysis. The tool and technique you are using is a simulation where the project mode is computed many time with the input values chosen at random for each iteration. The goal is to create a probability distribution from the iterations for the project schedule. What technique will you use with this simulation?

• Analogous modeling.
• Monte Carlo Technique.
• Expected Monetary Value.
• Pareto modeling.

Which project reserves should the project manager use to budget for known risks?

• Sponsor reserve.
• Contingency reserve.
• Budget reserve.
• Management reserve.

The project manager for project A was expecting the mobilization of critical equipment from another project, project B. However, a day before the mobilization was scheduled, another project manager notifies project A's project manager that the equipment would not be available for at least another month due to delayed activities for project B. This has jeopardized meeting a critical milestone for project A. How should project A's project manager avoid this situation in the future?

• Request that the other project manager inform if any additional delays are expected.
• Ask the other project manager to officially confirm the new date in writing.
• Request that the other project manager be added to relevant reports.
• Prepare a contingency response plan to implement when delays occur.

What type of reserve should be allocated for the risks that are identified but unclear. How can this risk be proactively managed?

• Cost budget.
• Management.
• Budget.
• Contingency.

A project management team has identified a large number of risks during its risk identification sessions. It was noticed that it would not have the time and resources to quantitatively analyze all of them. The team also agreed that not all of these risks would justify the effort necessary to dig deeply into them. What should the team do next?

• Perform qualitative risk analysis to prioritize the risks.
• Perform quantitative risk analysis to numerically analyze risks.
• Implement agreed upon risk response plans.
• Plan risk responses for each of the identified risks.

A project manager is working on a complex construction project. During the risk identification process, hundreds of risks were identified. The team seems to be confused regarding on which risks to focus. The project manager advises the team to go ahead and start assessing the likelihood and impact of each risk. What process is this part of?

• Plan Risk Management.
• Perform Quantitative Risk Analysis.
• Monitor and Control Risk.
• Perform Qualitative Risk Analysis.

You and your team have done extensive brainstorming and discussion. You have also looked up the organization's process and have come up with a exhaustive list of risk. You and your team members feel fairly confident now that you know all the risks. You decide to prioritize the risks and only focus on the high-priority ones. A team member indicates that a large number of risks have very low priority. What should you do next?

• These risks can be accepted.
• Perform Quantitative Risk Analysis.
• Update risk register.
• These risks can be dismissed.

The expected monetary value of a project is above US$ 1 million. The risk manager is concerned about this situation, and decides to review the related plans and processes to evaluate the degree of variation from the baseline. Next, the risk manager needs to document the results of such an analysis. What is the best document for the project manager to reference to find out where the results of such analysis should be documented?

• Risk management.
• Communication management plan.
• Issue log.
• Lessons learned.