Multiple Choice Questions

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
  • Risk transference
  • Risk enhancement
  • Risk avoidance
  • Risk mitigation
_____ involves eliminating a specific threat, usually by eliminating its causes.
  • Risk mitigation
  • Risk sharing
  • Risk avoidance
  • Risk exploitation
_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.
  • Monte Carlo
  • Contingency plans
  • Risk acceptance
  • Workarounds
_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
  • Risk enhancement
  • Risk avoidance
  • Risk transference
  • Risk mitigation
_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.
  • Controlling risk
  • Risk enhancement
  • Risk mitigation
  • Identifying risks
A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
  • decision tree
  • Controlling risk
  • influence diagram
  • Contingency plans
Risk utility rises at a decreasing rate for a _____ person.
  • risk-averse
  • Risk avoidance
  • Risk sharing
  • Risk acceptance
A _____ person achieves a balance between risk and payoff.
  • Risk sharing
  • risk-neutral
  • risk-averse
  • risk-seeking
The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.
  • Planning risk responses
  • sensitivity analysis
  • Planning risk management
  • probability/impact matrix
Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.
  • planning
  • procurement
  • Workarounds
  • Planning risk responses
What is the first step in a Monte Carlo analysis?
  • Risk sharing
  • risk-averse
  • Performing quantitative risk analysis
  • Assess the range for the variables being considered.
_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.
  • Identifying risks
  • Risk enhancement
  • Risk transference
  • Controlling risk
_____ are predefined actions that the project team will take if an identified risk event occurs.
  • Contingency plans
  • sensitivity analysis
  • Risk transference
  • Identifying risks
_____ involves deciding how to approach and plan the risk management activities for the project.
  • Performing qualitative risk analysis
  • Planning risk responses
  • Planning risk management
  • Identifying risks
_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
  • Identifying risks
  • Planning risk management
  • Planning risk responses
  • Risk transference
_____ risks refer to those that are direct results of implementing risk responses.
  • Secondary
  • Risk avoidance
  • Risk exploitation
  • Risk sharing
_____ involves doing whatever you can to make sure the positive risk happens.
  • Risk transference
  • Risk exploitation
  • Risk avoidance
  • Risk mitigation
_____ involves numerically estimating the effects of risks on project objectives.
  • Performing quantitative risk analysis
  • Planning risk management
  • Planning risk responses
  • Performing qualitative risk analysis
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
  • risk-neutral
  • Risk sharing
  • Risk acceptance
  • risk-seeking
Identifying risks is a subprocess of the _____ process of project risk management.
  • planning
  • risk-averse
  • Secondary
  • Planning risk management
A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
  • decision tree
  • Interviewing
  • influence diagram
  • sensitivity analysis
_____ involves allocating ownership of the risk to another party.
  • Risk mitigation
  • Risk exploitation
  • Risk avoidance
  • Risk sharing
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Multiple Choice Questions
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