Risk Management Basics
What is the purpose of a Risk Register?
A tool to document and track risks, their impact, and mitigation plans
What strategy involves eliminating the threat entirely?
Avoid
What is scope creep?
Uncontrolled changes or continuous growth in a project’s scope
Which step comes after identifying risks in the risk management process?
Performing Qualitative Risk Analysis
What strategy involves reducing the probability or impact of a risk?
Mitigate
What is a residual risk?
A risk that remains after mitigation
What type of risk analysis uses numerical methods to assess impact?
Quantitative Risk Analysis
What strategy involves shifting the risk to another party?
Transfer
What is a common risk during contract execution?
Missed deadlines, scope creep, poor performance etc...
You are a Sr. Project Manager & you are discussing project risk with a new PM. She is having trouble differentiating what is part of the Risk management plan & what is documented in the risk register. Which of the following is NOT a component of the Risk Management Plan?
A. Roles and responsibilities
B. Methodologies used to handle risk
C. Risk responses
D. Risk categories
C. Risk responses
What is the primary purpose of a risk audit?
A. To remove ineffective risks from the register
B. To identify new risks
C. To assess the effectiveness of risk responses
D. To update the project budget
C. To assess the effectiveness of risk responses
What tool helps visualize contract risk over time?
Risk Timeline Graph
You have identified disaster situations (e.g. floods, earthquakes etc.) as potential risks to your project. When discussing with your project sponsor, she mentioned that at the project level, no steps can be taken to deal with such risk & suggested creating a contingency reserve (5% of the project budget) to be used in case of disaster situations. This is an example of:
A. Risk Mitigation
B. Risk Acceptance
C. Risk Avoidance
D. Bad policy decision
B. Risk Acceptance
While Implementing Risk Responses, you find that some of the risk owners are outside of the project team. What is the best way you can encourage their participation?
A. Monetary incentives
B. Telling them that they will be held to account for their actions and inactions
C. Problem solving
D. Influence
D. Influence
What is the impact of poor vendor performance on future funding?
Limited future assignments/fundings