Project Risk Management - Final Exam

Which of the following best defines project risk?

• An issue that has already occurred

• An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives

• A guaranteed event that impacts cost or schedule

• A change request submitted to the project sponsor

You are managing a marketing campaign. There is a risk that a competitor may launch a similar campaign first. You decide to launch your campaign earlier to guarantee you hit the market before them. What strategy is this?

• Exploit

• Avoid

• Mitigate

• Transfer

A risk that increases project value if it occurs is called:

• Negative risk

• Threat

• Opportunity

• Assumption

Which risk response strategy is most appropriate for threats that must be eliminated entirely?

• Accept

• Avoid

• Transfer

• Mitigate

You are managing a construction project during hurricane season. The team decides to purchase insurance. What strategy is this?

• Mitigation

• Transfer

• Accept

• Avoid

Which process comes first in risk management according to PMBOK?

• Perform Quantitative Risk Analysis

• Plan Risk Management

• Identify Risks

• Plan Risk Responses

You are building a bridge, but heavy storms could delay construction. The team changes the schedule to avoid working in rainy months. What strategy is this?

• Avoid

• Mitigate

• Transfer

• Accept

Which of the following tools is most commonly used for qualitative risk analysis?

• Monte Carlo simulation

• Probability and impact matrix

• Decision tree analysis

• Sensitivity analysis

A software project has a risk that new coding regulations may increase costs. The team purchases insurance that covers compliance changes. What strategy is this?

• Accept

• Transfer

• Mitigate

• Exploit

During quantitative risk analysis, why might a project manager use a simulation model?

• To show how risks interact and affect cost and schedule

• To assign risk owners

• To document mitigation strategies

• To finalize the project scope baseline