PMP - Risk Management
About the Lecture
The lecture PMP - Risk Management by Whizlabs Software is from the course Project Management Professional - Training. It contains the following chapters:
- Introduction
- Plan Risk Management
- Identify Risks
- Perform Qualitative Risk Analysis
- Perform Quantitative Risk Analysis
- Plan Risk Responses
- Control Risks
Included Quiz Questions
The amount of contingency reserve required for a project is calculated as part of which of the following processes?
- Perform Quantitative Risk Analysis
- Perform Qualitative Risk Analysis
- Determine Budgets
- Plan Risk Management
In a s/w development project, the application has been deployed in a test environment to observe the performance of the application. This is an example of which technique?
- Monte Carlo technique
- Design of experiment
- SWOT analysis
- Delphi
The project management team is defining the scale of impact analysis of the risk factors. Which process is being performed here?
- Plan Risk management
- Perform Qualitative Risk Analysis
- Perform Quantitative Risk Analysis
- Identify risks
Risk factors arising from the risk response strategies of another risk factor is called:
- Primary risks
- Residual risks
- Qualified risks
- Secondary risks
The risk factors for which the project team creates a predefined strategy to respond is called:
- Qualified risks
- Residual risks
- Primary risks
- Secondary risks
John has joined as the Project Manager of a project. One of the project documents available to John identifies all the risks in a hierarchical fashion. What is this document called?
- Risk Breakdown Structure
- Monte Carlo diagram
- List of risks
- Risk Management Plan
Which of the following statements is true about risks?
- Risk register documents all the risks in detail.
- Risks if they happen always have negative impact and not positive.
- When evaluating risks their impact should be considered, however probability of occurrence is not important.
- Risk response plan is another name for Risk Management Plan
An organization has a non-linear cardinal scale for risk impact. This means:
- The organization wants to avoid high impact risks
- The organization gives equal weightage to all the risks
- The organization is risk averse
- The organization prefers to transfer the risk
A project lost 10 productive days due to bad weather. In order to make up for the lost time, the project management team calls for an emergency meeting and decides to apply Fast-tracking as a schedule compression technique. This is an example of:
- Work-around
- Accept strategy
- Risk avoidance
- Risk Mitigation
You are deciding whether to execute a project in-house or contract it out. If you decide to do the project yourself, there is a 40% probability of making a profit of $20000, a 50% probability of making a profit of $24000 and a 10% probability of making a loss of $10000. What is the EMV (Expected monetary value) of the Self execute decision?
- $19000
- $21000
- $24000
- $20000
You have bought an annual-maintenance-contract for out-of-warranty test equipment. This is an illustration of which type of risk response strategy?
- Transfer
- Accept
- Avoid
- Mitigate
The project management team has decided to delay the start of execution phase of a building construction project siting the probable disruption of work during the rainy season. This is an illustration of which type of risk response strategy?
- Avoid
- Transfer
- Accept
- Mitigate
In the last project that a building construction company took up, there was a major design flaw identified after the build phase began. For a similar project, the project management team has decided to hire a team of experienced architects to review the design of the building before the design phase is complete. This is an illustration of which type of risk response strategy?
- Mitigate
- Avoid
- Transfer
- Accept
The project team is performing ‘Quantitative risk assessment’. All the following factors are to be considered, except:
- Cost of procuring an insurance policy
- Risk probability
- Potential impact in terms of schedule delay
- Potential impact in terms of cost
The project team is performing ‘Quantitative risk assessment’. The team comes across a risk factor that has 50% probability of occurrence and a potential loss of 2000$ if occurred. What does the amount 1000$ would represent in this scenario.
- Expected monetary value
- Contingency budget
- Amount of “Management reserve: to be kept aside
- Planned value of the risk factor being analyzed.
Risk reassessment is part of which of the following risk management processes?
- Control Risks
- Perform Quantitative Risk Analysis
- Perform Qualitative Risk Analysis
- Plan Risk management
A prioritized list of “qualified risk” is part of which of the following?
- Risk register
- Risk management plan
- Organizational process assets
- Watch list
Who can participate in the risk identification process?
- All the stakeholders
- Customers/Sponsors
- The project team
- The project manager
During the ‘Control Risks’ process, we observe that most of the contingency budget has been consumed while responding to the very first risk that triggered. What’s the next course of action for the project manager?
- Risk Reassessment
- Risk audits
- Variance and trend Analysis
- Reserve analysis
The potential strategies to respond to risk factors are identified initially as part of which process?
- Identify Risks
- Perform Quantitative Risk Analysis
- Perform Qualitative Risk Analysis
- Plan Risk Responses
Author of lecture PMP - Risk Management
Whizlabs Software
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Excerpts from the accompanying material
... Risks may be good or bad. 11.1 Plan Risk Management ... and execute the risk management activities for a project. The primary output of this process a Risk management plan, which should be based on features of a project, such as size, complexity ...
... creating a list of risks in a Risk register, and then documenting their causes and potential responses. Various information gathering techniques & diagramming techniques are used for this process. Such as: Brain Storming: Collection and categorization of comprehensive list of project risks. Delphi Technique: Project experts participate anonymously; Facilitator solicits ideas about project risks. Interviewing of Subject Matter Experts, experienced project managers. Root Cause Identification: Grouping ...
... The components, at this stage are: List of Identified risks, List of potential responses, Root causes of risk, Updated risk categories. This document is further updated with qualitative & quantitative risk analysis processes and finally response strategies. 11.3 Perform Qualitative Risk Analysis ...
... Examination of impact of uncertainty of each project element is done by keeping all other uncertain elements at their baseline values. One typical display of sensitivity analysis is the tornado diagram, which is useful for comparing relative importance of variables that have a high degree of uncertainty to those that are more stable. Expected Monetary Value Analysis: In this is technique, a statistical concept is used to calculate the average outcome of threats ...
... Transfer: Transferring the risk gives another party responsibility for its management; it does not eliminate it. This is also called Deflection. Example: The use of a fixed price contract transfers the risk to the seller from buyer. This strategy is most effective when dealing with financial risk. Mitigation: An action to reduce the probability and/or impact of an adverse risk event to an acceptable threshold. ...
... Work Around: An unplanned response to get over/mitigate the risk. Workarounds should be less frequent than contingency plans. Risk Trigger: An indication that a risk has occurred or is about to occur. Risk Response: The planned series of efforts or events that are to occur in the event of a risk trigger being recognized or identified. ...
