8. Risk Management

What is the primary goal of risk management?

• To eliminate all risks entirely

• To identify and assess potential risks

• To accept all risks without mitigation

• To increase the likelihood of risks occurring

Which of the following best defines a "risk" in risk management?

• A known and resolved issue

• A potential future event or situation

• A risk that has already caused significant damage

• An opportunity for profit

What is a common technique for qualitative risk assessment?

• Monte Carlo simulation

• Sensitivity analysis

• Risk matrix

• Expected monetary value analysis

What does the term "contingency planning" refer to in risk management?

• Preparing for and responding to potential risks

• Eliminating all risks entirely

• Accepting all risks without any response

• Monitoring risks without taking action

What is the primary purpose of a Risk Management Plan?

• To document resolved issues

• To prepare for unforeseen events

• To outline strategies for proactive risk management

• To respond to known risks

Which risk response strategy involves shifting the risk to another party, such as through insurance?

• Risk avoidance

• Risk transfer

• Risk acceptance

• Risk mitigation

What does the term "likelihood" refer to in risk assessment?

• The potential impact of a risk event

• The frequency or probability of a risk event occurring

• The severity of a risk event

• The cost associated with a risk event

What is the primary objective of risk monitoring and review?

• To identify new risks

• To eliminate all existing risks

• To transfer all risks to external parties

• To accept all risks without action

In the context of risk management, what is the purpose of a risk register?

• To eliminate all identified risks

• To provide a list of all project stakeholders

• To document and track identified risks

• To transfer all project risks to a third party

Which risk response strategy involves accepting the risk without taking any specific actions to mitigate it?

• Risk avoidance

• Risk mitigation

• Risk acceptance

• Risk transfer