As project manager, you have just completed the risk response plan for the multi-million dollar renovation project. What should you do next?

Alexander is new to the organization and has been assigned a complex, multi-year project to deliver a new technology offering to the field offices. As Alexander begins to evaluate the project for risks what area would be most appropriate to consider first?

Jennifer is a publisher. In order to make sure that her writer delivers on time, she inserts a penalty clause for late delivery into her writer’s contract. Jennifer is using which risk response?

David is a senior project manager for the Valentine Manufacturing Company. He is currently assigned a high priority project constrained by a limited budget. What is the most accurate statement regarding the monitoring and controlling of risks on David’s project?

Your team has identified risks on the project, performed a qualitative risk analysis and determined the most appropriate responses for the prioritized risks. Which statement is least accurate regarding the updates to, and communication of, the risk register?

The person responsible for ensuring that an appropriate response strategy is selected and implemented and for determining suitable risk actions to implement the chosen strategy.

This risk response creates changes to the project management plan that are meant to either eliminate the risk or to protect the project objectives from the its impact

Consider the following: You are assigned a project that is underway. Activity B is a difficult activity and has an early start of day 10 and a late start of day 15. The SPI on your project is .72 and the CPI is 1.2. You have 15 stakeholders involved in the project. What are you most concerned about?

You are nearing the completion of your project. Upon evaluation of the previously identified risks, you realize that 18 of the 35 risks can be closed. What is the appropriate handling of closed risks?

You have taken over a project that has been rumored to be behind schedule and over budget. Many of the team members are disengaged and are resentful of working on the project. The previous project manager left the company abruptly and provided no turnover documentation. Your first week on the project your primary vendor shuts down. This was not identified as a risk on the risk register. What is the first step you should take?

This is a plan developed in anticipation of the occurrence of a risk, to be executed only if specific, predetermined trigger conditions or the risk itself arises.

Which risk management technique would be most useful for providing an early warning threshold for sponsor communication and for tracking the spending and release of contingency on the project?

This risk response changes the project management plan to modify the size of the opportunity by increasing the probability and/or positive impacts.

Your sponsor wants to discuss with you the most appropriate estimating technique to use on the project. You know that it’s important to use a form of expert judgment, but your sponsor feels strongly that analogous estimating should be used. What would be the best option?

Your project has a dependency requiring that the design be completed prior to the beginning of manufacturing. This is what type of dependency?

You are developing contingency plans for the risks that are not being addressed with a proactive response. The benefits of a documented and published contingency plan include all of the following except:

This risk response changes the project management plan to reduce the probability of occurrence or impact of a risk to below an acceptable threshold.

There is a 30% probability that the risk event will happen in a given month. The project is a 12 month project. As such, what is the probability of that risk event occurring during the sixth month of the project?

With your key stakeholders and team members, you are determining the various roles and responsibilities for risk management within your project. What is the primary reason for documenting the risk roles and responsibilities?

The project is underway and progressing according to plan. However, when you arrived at the office this morning, a malfunctioning sprinkler head led to destruction of many hard-copy documents as well as the server. This was not identified as a risk during your risk identification for the project. You will now have to take action. A__________is a response to an unidentified negative risk that has occurred.

You have evaluated the stakeholder communication needs generally for the project and now you are specifically evaluating the communication needs as it relates to project risk. When determining the project risk communication needs, the project manager should consider all of the following except:

Exploitation is to opportunities as ________________ is to threats.

Your sponsor advises you that there is enough money in the budget to complete the IT project, however, the project is 40% complete and the cost performance index (CPI) is 0.65. Upon reviewing the original cost estimates you learn that the project was analogously estimated. The analogous estimate was then used to determine the activity estimates. What should have been done to reach a more accurate estimate?

You are determining the appropriate amount of time to dedicate to risk management activities for your new project. The frequency and depth of reviews and updates to the project risk information will depend upon:

As you developed your project schedule, you identified resource constraints as a potential risk cause. As such you decided to utilize the method of planning that leverages time buffers to monitor and manage schedule performance and account for limited resources. This technique is known as:

You have completed all of your risk planning processes and now the project is underway. You are continuing to monitor and control the risk environment of the project. During risk response control, when is additional response development needed?

You have taken over the management of a strategy-critical project that is exceptionally time-sensitive. The team members represent the different divisions that will be most impacted by the implementation of the project and have been known to have very strong opinions about the project requirements and the development of the project deliverables. The previous project manager had difficulty managing conflict within the team and this has caused the project to be delayed. You decide to train the team on conflict resolution strategies. This is an example of:

Your project is high-risk and has significant implications to the growth of the company. In order to monitor and control the project risks, you are adding formal risk items to the status meeting agenda. What would you be least likely to include on the agenda?

Your project involves the implementation of sophisticated infrastructure technology. Upon evaluation of the project requirements, you realize that one of the components will require expertise that you do not currently have in-house. Leveraging a vendor that specializes in producing that component will allow you to deliver the project requirements. You enter into a contractual agreement with a vendor with the expertise you require. This is an example of:

You are assuming the management of a project that was already in progress. Upon conducting a stakeholder analysis, you identify a stakeholder that you would classify as risk-neutral. What is the best approach for risk communication with that stakeholder?

Your project is dependent upon purchasing a piece of equipment from a vendor. The project is operating with an extremely limited budget. To enhance the probability of delivering under budget, you:

You are providing guidance to a peer project manager who has recently joined your project organization regarding risk monitoring and controlling. You advise her that the most effective setting for monitoring and controlling project risks is:

For your park development project, you have hired a vendor to install all of the concrete walkways. In the past, your organization has had some quality issues with this particular vendor. You need to mitigate the risks associated with poor quality. What would be the most appropriate response?

This is the process of numerically analyzing the effect of identified risks on overall project objectives, assigning a numerical rating to those risks individually or evaluating the aggregate effect of all risks affecting the project schedule and budget, and presents an approach to making decisions in the presence of uncertainty.

You are working with your sponsor on a stakeholder analysis for your new project. You have identified a stakeholder who appears to be risk-seeking. What is the best approach for risk communication with the stakeholder?

The engineering department is developing multiple components for the new manufacturing facility. One particular component is very complex and the development of that component is new to the department. You decide to prototype that particular component. Prototyping a risky piece of equipment:

On your corporate infrastructure project, risk management is a key priority given the sensitivity to the market fluctuations. In addition, this is the first project for which formal project and risk management practices are being implemented. You have scheduled quarterly risk audits per the risk management plan. Which statement is least accurate regarding risk audits?

Your team members have escalated issues with the QA analyst and despite providing feedback and asking for improvements, the issues are continuing to be a problem for the project team and are disrupting the work that needs to be done. To avoid the risk associated with the QA analyst, you:

You are the Project Manager for the new marketing campaign project. You need to find out which customer complaints occur most frequently on the product that will be replaced with the new marketing campaign. Which tool should you use to illustrate and rank the most frequently occurring complaints?

Which of the following is not a critical success factor for project risk management?

You are the project manager of a multi-year, international project. The project will have significant implications to the organization’s customer base. Because of the impact and reach of the project, you have identified a number of stakeholders. One of the stakeholders identified is known to be risk-averse. What is the best approach for risk communication with that stakeholder?

The construction project for the new high-rise building is running behind schedule and over budget. Upon evaluation of the project performance to-date, you identify that one key reason for the delays is the inexperienced project foreman. You make a recommendation to the change control board to partner the foreman with a more experienced foreman in order to mitigate the risk associated with his inexperience. Once the change is approved, what is the next thing you should do?

You are conducting a quantitative risk analysis on your project in relation to potential profits earned from a new product. The estimated profit is $350,000. There is a 20% chance that it will exceed expectations at a value of $180,000, there is a 50% chance it will meet expectations at a value of $40,000, and a 30% chance it will not meet expectations at a value of ($140,000). What is the expected monetary value of the risk?

You are working with your team leads to develop the cost estimates for the new website project. Your team members are questioning you regarding the difference between the cost baseline and the project budget. How can you best describe the difference between the project budget and the cost baseline?

You just completed the initial analysis phase of your project and reported your findings to the sponsor. The project has significant uncontrollable risks and as such, your sponsor decides to cancel the project. Cancelling a troubled project is an example of:

With your team, you have identified 35 risks. Of the 35 risks, you realize that five of them will have the greatest impact to the project. You would like to illustrate the risks in a format that illustrates this effect. A chart that is useful in prioritizing risk management efforts as it provides the risk causes ranked by their overall influence on the project would be:

A peer project manager has approached you and asked your advice regarding stakeholder communication on their project. One of the key stakeholders that is involved in the project is considered to be risk-tolerant. How would you advise the project manager to communicate regarding project risk management?

You have identified risks with the project team and key stakeholders, analyzed those risks, and implemented the designated risk responses. What is the next thing you should do?

You are three months into a one year project and are evaluating the project schedule. It appears as though there are only few activities coming up within the next reporting period that have float. The float of an activity is determined by:

The construction project is being completed in an area that is at high-risk for fires. As such, the organization has purchased an insurance policy that will cover damages from a fire. The premium for the insurance has cost implications and may cause the project to have cash flow problems. What statement is most accurate regarding this situation?

Mid-way through your project, you are evaluating your project schedule. There have been a number of changes that have affected the project cost and duration. As you analyze the schedule, you realize that there are three critical paths in your project. How will this affect your project?

Your customer has requested a significant scope change to the project. You are evaluating your project management reserve and contingency reserve. Management reserve is different than contingency reserve in that contingency reserve:

You are the project manager for the new customer service system implementation. In association with the launch of the new system, you will also be responsible for implementing a training program. To develop your duration estimate for the development of the training program, you meet with the training team lead that will be on-point for the development work and based on her feedback you decide to use a three-point duration estimate. What is the most commonly used formula for a three-point estimate?

Which of the following would not be a tool / technique used in the monitor and control risks process?

Your PMO offers guidelines on project cost estimation and the evaluation of projects using earned value. For the purposes of earned value analysis, you are instructed to use the cost performance baseline. The difference between the cost estimate and the cost performance baseline can be described as:

You received notification from the sponsor that the new construction project has been approved and the project charter has been signed. As you begin the planning process for the project, you set aside time to develop the risk management plan with the key stakeholders and the sponsor. The risk management plan should be completed and communicated early in the project for all of the following reasons except:

The estimated costs for your project are $795,000. Upon evaluation of the project and the associated project risks, you decide to allocate an additional 10% to account for the uncertainty on the project. The sponsor has allocated 15% above the baseline to account for any major scope changes that may be requested by the customer. What is the project budget?

In an effort to minimize risk on the project, your sponsor has instructed you to use a fixed price contract with any vendors whenever possible. In a fixed price (FP) contract, the fee or profit is:

Which statement is most accurate regarding project risk management?

The customer for your IT renovation project has notified you that they want to add another server and five more software packages to your project. What is the most appropriate handling of this?

You are performing a quantitative risk analysis on your project, specifically evaluating the use of an off-the-shelf software versus developing the software in-house. There is a 30% probability that the in-house product would require additional maintenance and that will cost the organization $9,000. If a risk event has a 30% chance of occurring and the impact of the risk will be $9,000, what does $2,700 represent?

You are kicking off the large company infrastructure project as the project manager. The six month project will involve resources in all of the regional offices, including those offices in 8 different countries. Upon reviewing the resources and key stakeholders involved in the project, you identify 62 team members, other than you. Based upon this information you note that you have ______ communication channels.

The project team is evaluating the project risks and determining the most appropriate risk responses. What two risk responses will most likely generate risk-related contract decisions?

You are mentoring a project manager that is struggling with his project. The project has been running behind schedule and over budget. You suggest that he conducts an ongoing trend analysis in order to:

Critical chain project management (CCPM) adds time buffers to absorb variations of the durations of activities that are not critical path, reducing schedule risk. What is a weakness of using CCPM?

This process determines which risks might affect the project and documents their characteristics:

You and your project management team have identified 73 risks on your project, identified and documented the triggers, plotted the risks on a probability/impact matrix, and evaluated the quality of the data that was used. What did you forget?

A scenario analysis defines alternative scenarios and those scenarios are then evaluated for appropriate and cost-effective responses. If the organization has control of the scenarios, the alternatives and responses can be evaluated. If not, the analysis can determine effective and necessary contingency planning. Which statement is least accurate regarding a scenario analysis:

You are the project manager over the project to upgrade all existing patient systems to comply with electronic record requirements, as determined by the US government. What would be the most appropriate technique to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project based upon the remaining level of project uncertainty:

You are evaluating your current project to determine the need for contingency plans. You have 15 team members at three different locations within the US. This is your first project of this type and you are operating with a very limited budget. What statement is least accurate regarding contingency plans:

You have been assigned the management of a project to implement a new customer satisfaction survey mechanism for a large call center. The survey will be completed by customers upon completion of a call with one of the company’s 2,000 service representatives. The leadership of the company will use the results of the customer satisfaction surveys to determine the quarterly bonuses for the team managers. Unfortunately, because of the survey calibration associated with the new mechanism, the team managers feel that they will actually receive smaller bonuses than they did in the past. In this scenario, what is the most obvious negative risk?

You have been assigned the management of a project to implement a new customer satisfaction survey mechanism for a large call center. The survey will be completed by customers upon completion of a call with one of the company’s 2,000 service representatives. The leadership of the company will use the results of the customer satisfaction surveys to determine the quarterly bonuses of the team managers. Unfortunately, because of the new survey calibration associated with the new mechanism, the team managers feel that they will actually receive smaller bonuses than they did in the past.In this scenario, what is the cause of the threat?

Upon conducting a stakeholder analysis for the organizational reward and recognition project, you realize that your stakeholders have very different risk attitudes. Of the risk attitudes, which one is potentially the most dangerous?

You are taking over a project that is nearing completion. You realize that there was no documented risk management approach or documented risk register. Despite resistance from the team and the sponsor, you conduct a brainstorming session to identify risks that may impact the project. You and the team analyze the risks, prioritize the risks, determine the best responses, and update the project documents to reflect the responses. What else needs to happen?

As the project manager over the web development project, you have identified over 80 risks. Using your past experience and available historical data from other projects, you have prioritized the risks based upon their probability of occurring and the impact on the project objectives should the risks occur. What did you do wrong?

You and your team have completed the following analysis: INSERT GRAPH Based on this information, what would be the most appropriate information for you to convey in the project performance report?

In order to comply with the PMO requirements, high priority risks must have a documented risk response. What statement is most accurate regarding risk response planning?

What statement is most accurate regarding overall project risks and individual risks?

Your project is approximately 50% complete. Due to a restructuring within the organization, a new stakeholder has been identified that will be significantly impacted by your project. In discussing the project risks with the stakeholder, he tells you that he is comfortable with the risks identified and believes that there are risks involved with any project and does not feel there is a need to do any further risk assessments or evaluation. How would you describe the stakeholder’s risk attitude?

You are the project manager for the local zoo enlargement project. There have been a number of risks identified and analyzed. One of the risks identified is that the noise from the construction may lead to increased anxiety by the monkeys that are housed closest to the construction site. Your team develops a contingency plan to move the monkeys to a temporary housing location should they exhibit signs of increased anxiety. This is an example of:

Based on past experience, when production is doubled the unit costs decrease by 15%. Using this information, the company determines that production of 800 units will cost $150,000. This illustrates:

You have completed the analysis of the risks facing the project. You would like to include a graphical representation of the risks in your status report. What diagram would best represent the risks depicted in order by their overall influence?

The new project is highly visible and key to delivering on the organization’s strategic goals for the year. The company assigns the most talented resources in order to ensure that the project is delivered as intended. What statement is most accurate:

You are estimating the costs for your project and will be using a couple of different techniques. Including analogous and parametric estimating. Analogous estimating:

This is your first project for your new employer. You are in the process of identifying risks but there are no existing risk register templates available for your use. Given your past project experience, you create a risk register template. What would you not include in the risk register?

Upon evaluation of the project risks you determine that 30 of the risks will be accepted without a proactive risk response. Passive risk acceptance requires:

This technique computes or iterates the project cost or project schedule many times using input values, selected at random, to calculate a distribution of possible total project costs or completion dates.

A decision-making technique that uses a diagram to compare available alternatives and the implications of those alternatives.

For the process re-design project, you have identified a risk of failed adoption by the organization’s employees. In order to determine the most appropriate response, you send a questionnaire to the subject matter experts. Their responses are kept anonymous and upon submission are consolidated with the other responses. The consolidated information is then sent back out to the SMEs for further comment. This is an example of:

A type of sensitivity chart where the variable with the highest impact is placed at the top of the chart followed by other variables in descending impact order

You have recently assumed the management of a project that has been underway for six months. Upon review of the risk register, you believe that many project risks have not been identified. As such, you decide to interview the key stakeholders and team members to get their input. Which of the following is a weakness of using interviews for risk identification?

You are working with your project team and key stakeholders regarding three potential options for addressing an identified project risk. Based on the feedback, the options will be evaluated against the weighting of four key criterion: accessibility, price, ease, and implementation. Price is the most important criteria so it has a weighting of 7; ease has a weighting of 6, implementation has a weighting of 4, and accessibility has a weighting of 3. Option A has the following ratings: accessibility 4, price 8, implementation 10, ease 5.
Option B has the following ratings: accessibility 7, price 5, implementation 6, ease 10.
Option C has the following ratings: accessibility 6, price 7, implementation 9, ease 6.
What option is the most appropriate to choose?

A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project by examining the extent to which the uncertainty of each project element affects the objective.

Upon developing your schedule you realize that your project has multiple critical paths. Because of this:

You are conducting a FMEA on your project. The XYZ function is being analyzed and four potential failure modes have been identified. Failure mode A has a severity score of 8, an occurrence score of 5, and a detection score of 10. Failure mode B has a severity score of 6, an occurrence score of 3, and a detection score of 7. Failure mode C has a severity score of 3, an occurrence score of 7, and a detection score of 8. Failure mode D has a severity score of 7, an occurrence score of 4, and a detection score of 9. What is the risk priority number (RPN) for failure mode C?

You are meeting with your project management team and your key stakeholders to evaluate the risks and determine the appropriate risk responses. To increase success in risk response planning, you need all of the following except:

You are conducting a FMEA on your project. The XYZ function is being analyzed and four potential failure modes have been identified. Failure mode A has a severity score of 8, an occurrence score of 5, and a detection score of 10. Failure mode B has a severity score of 6, an occurrence score of 3, and a detection score of 7. Failure mode C has a severity score of 3, an occurrence score of 7, and a detection score of 8. Failure mode D has a severity score of 7, an occurrence score of 4, and a detection score of 9. What is the criticality score for failure mode B?

Workarounds are determined during which risk management process?

You are conducting a FMEA on your project. The XYZ function is being analyzed and four potential failure modes have been identified. Failure mode A has a severity score of 4, an occurrence score of 6, and a detection score of 10. Failure mode B has a severity score of 6, an occurrence score of 3, and a detection score of 7. Failure mode C has a severity score of 3, an occurrence score of 7, and a detection score of 8. Failure mode D has a severity score of 7, an occurrence score of 4, and a detection score of 9. What failure mode has the highest criticality score?

Using this technique allows for all participants to provide their opinions through a tallying process. Each group member gives their opinion and duplicate opinions are removed. The remaining list is ranked by the group members.

Consider the following estimate information:INSERT GRAPH
If the project sponsor wanted to allocate funding based on the mean of the estimates versus the most likely estimate, how much additional funding would need to be allocated above the most likely estimate?

Your project team member is a very high performer and is very committed to the project being successful. However, upon review of the project performance report she realizes that the project is currently running behind schedule. She notices that the delay will cause one of her activities to be scheduled while she is out of the office for her maternity leave and will be unable to work on the activity. How should you handle this situation?

Consider the following estimate information: INSERT GRAPH
Which phase of the project has a mean estimate closest to the most likely estimate?

Mitigation is to threats as _____________________ is to opportunities.

The project team has identified 76 risks to the implementation project. With the risk register complete, the team needs to perform an analysis of the risks. Qualitative risk analysis differs from quantitative analysis in that quantitative analysis:

Risk management has never been fully recognized or implemented within your organization. The new director of the PMO, recently hired, feels that risk management should be conducted on all projects within the portfolio. It can be said that project risk management aims to do all of the following except:

Your project team has been selected for the implementation of the new human resource management system. As one of your first steps in evaluating the project, you conduct a brainstorming session with your team members. The benefits of using a brainstorming session to identify risks include of the following except:

Your project team and stakeholders have documented the risk management approach in the risk management plan, have identified risks, and performed a qualitative analysis. You would like to conduct a quantitative risk analysis on a subset of the identified risks. In order to perform a quantitative risk analysis, the following components are needed except:

Karen’s project has been underway for seven months and has moved from the analysis phase into development. Unfortunately, due to changing economic conditions, the organization has undergone a restructuring and layoffs have affected Karen’s project team structure. Three of her management leads have been replaced with individuals who have significantly less experience. The risks associated with the project have been closely scrutinized as there is very little funding available for contingent responses. What would be the most effective technique for monitoring and controlling the risks on her project?

As part of your risk management efforts, you and your team have developed a risk breakdown structure (RBS). A risk breakdown structure provides team members and stakeholders with all of the following except:

You are performing an AHP analysis of various risks. The schedule objective has a weighting of .35. For scheduling implications, risk 1 has an average score of .72, risk 2 has an average score of .31, and risk 3 has an average score of .15. What is risk 3’s overall score against the scheduling objective?

You have been assigned to work on the new marketing campaign project. The project has been progressing very well despite a few shifts in the organization’s priorities. You are finding that your team has been working well together and most of the milestones for the project have been met. Which of the following techniques would be least appropriate to employ at this point in your project?

In evaluating the internal capabilities of the organization, you decide to leverage the use of a vendor for one of the project components. The risk response that allocates ownership to a third party who is best able to capture the opportunity for the benefit of the project is:

Residual risks are:

An uncertain event that may impact the project in the future, either positively or negatively, is called a(n):

As you evaluate a vendor bid of $350,000, you take into consideration the probability and impact of any delays. You determine that there is a 65% probability that the vendor will come in behind schedule at a cost of $125,000 and there is a 35% probability that the vendor will come in early for a savings of $50,000. What is the total value of the bid?

The risk response that can be categorized as either passive or active is:

Used in modeling and simulation, these represent the uncertainty in values, such as durations of schedule activities and costs of project components:

This analysis technique is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen:

You are the project manager for a construction project. A risk has been identified that the installation of the electrical components presents a safety hazard to the workers. You decide to make the area impassable to all workers during the installation. What type of risk response is this?

You are the project manager for the development of the new community park. The residents of the community have requested that a portion of the area be used for a dog park. If implemented, the dog park would require the use of a two-gate system in order to reduce the risk of a dog escaping the defined area. What is the most accurate statement regarding the double-gate system?

Your product development project is creating a new children’s toy. There has been extensive component testing of the parts for the toy. While most of the components tested were satisfactory, piece B has been determined to be a significant choking risk to the target age group. What would be the most appropriate risk response to piece B?

Exploitation is to opportunities as _________ is to threats.

Which statement is most accurate regarding contingency and fallback plans?

You are evaluating the following information to understand the implications of risk on the estimate. There is 40% chance it will take 12 days, a 25% chance it will take 18 days, and a 35% chance it will take 10 days. What is the best estimate?

A workaround is considered:

An employee performing consistent with Maslow’s self-actualization concept would most likely be McGregor’s:

One of your team members recently lost their spouse and the performance on the project has suffered as a result. His inability to perform his job is based on his current focus on his social needs according to which theory?

Which contract type places increased risk on the seller?

You have been presented with three options for purchasing materials for your project. Option A will cost $40,000. With Option A, there is a 30% probability additional support will cost $12,000 and 70% probability additional support will cost $18,000. Option B will cost $38,000. With Option B, there is a 60% probability additional support will cost $15,000 and a 40% probability additional support will cost $30,000. Option C will cost $25,000. With Option C, there is a 75% probability additional support will cost $18,000 and a 25% probability additional support will cost $40,000. There is a 30% probability the organization will pursue Option A and a 40% probability the organization will pursue Option C. Based on the probability of the selection process, what is the value of Option B?

Risk data can be used for all of the following except:

Which statement is most accurate regarding risk management?

The kitchen remodel project for the Jones family appears to be running behind. As the project manager, you evaluate the construction team’s work performance information. Based on the information you received, the $30,000 project appears to be about 40% complete. Work billed to date was $10,000 although the project budget indicates that anticipated costs were to be $12,000 by this date. When you follow-up with the construction team lead, he estimates that there will be approximately $15,000 in remaining costs. The status of the project is:

Project risk can best be defined as:

All of the following statements about risk management are true except:

Why is risk identification an iterative process?

Purchasing insurance is best considered an example of risk:

Which of the following is a true statement regarding negative risks?

All of the following statements are accurate about project risk except:

Along with your sponsor, you are working with your key stakeholders regarding the approach to risk management on the construction project. After extended discussion, one of your key stakeholders approaches you to discuss their concerns. She states that renovating the work area of her team will be extremely disruptive and she is concerned that if the work is not completed on time, it will have a negative impact on her team during the busy holiday season. What should you do next?

In order to ensure that your team receives the incentive offered for completing the project early, you decide to fast-track a number of activities that are on the critical path. This is an example of what risk response strategy?

Your project team and key stakeholders have identified over 100 risks for the project. Those risks have been analyzed and prioritized. Proactive risk responses have been validated and approved. For the remaining risks, without a proactive response, you may:

If a risk event has a 90% chance of occurring, and the consequence will be $10,000, what does $9,000 represent?

Commonly used with a decision tree, it is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the products together.

Your $85,000 project is estimated to take 12 weeks and you are 30% complete. What will the planned value (PV) be at the end of the project?

You are gathering the cost estimates for the renovation project. Upon reviewing cost data on previous projects, you find that for 20-member teams, the average equipment cost was $3,800. You anticipate a 15-person team. Which statement is most accurate?

What is the benefit of involving stakeholders outside of the project team in identifying risks?

Which contract type places increased risk on the buyer?

One of your stakeholders is very resistant to adding a new feature to the existing software. To validate her resistance, she continually brings up data she has found through her research showing that the feature can cause issues in existing systems. This is an example of:

A black swan risk is:

Also known as a rectangular distribution, is a distribution that has constant probability

Risk funding allocation for unknown-unknown risks, controlled by the project sponsor

An emergent risk:

A computerized simulation that applies a stratified approach, selecting a limited set of values from each strata or segment versus pulling all random variables

The critical path

This diagram that provides a graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes.

PESTLE, TECOP, and SPECTRUM are all

Using earned value to evaluate risk exposure, is an example of leveraging ¬¬¬¬¬¬___________.

A particular application of influence diagrams, used to identify risks within a project situation by using feed-back and feed-forward loops.

A bowtie analysis:

Consider the following data set: 8, 9, 11, 11, 14, 14, 14, 15, 15, 17, 19, 20, 22
What is the mean?

The planned, systematic distortion or misstatement of facts in response to incentives. This can include deliberately underestimating costs and overestimating benefits in order to get project approval.

Consider the following data set: 8, 9, 11, 11, 14, 14, 14, 15, 15, 17, 19, 20, 22
What is the median?

Your project is estimated to cost $32,000. After conducting a Monte Carlo simulation, you have the following information: Probability % Forecast
P0 $29,000
P10 $32,000
P20 $34,000
P30 $37,000
P40 $40,000
P50 $43,000
P60 $44,000
P70 $47,000
P80 $51,000
P90 $55,000
P100 $57,000
The maximum contingency allowed to be allowed is 20%. With that contingency, what is the approximate confidence level?

Detailed, computer-intensive simulation approach to determining the value and probability of possible outcomes of a project objective such as a project schedule or cost estimate

The action of misremembering their predictions, exaggerating in hindsight what they knew in foresight. This happens when they see past events as being more predictable than they were before they took place.

A function that represents the distribution of many random variables as a symmetrical bell-shaped graph

An organization’s risk taxonomy may define all of the following except:

The element of the sample that occurs most often in a set of values

A probability distribution with a negative skew: