TITPM Chapter 11|Complete Questions with A+
Graded Answers
/F: Risks can have both negative and positive effects on meeting project objectives.
True
T/F: One possible response to managing negative risk it to accept the potential effects from the risk.
True
T/F: A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a
penalty to take risks.
True
T/F: Unknown risks can be managed proactively.
False
T/F: The last step in project risk management is deciding how to address this knowledge area for a
particular project by performing risk management planning.
False
T/F: Contingency plans are predefined actions that the project team will take if an identified risk event
occurs.
True
T/F: Brainstorming is a systematic, interactive forecasting procedure based on independent and
anonymous input regarding future events.
False
T/F: The psychology literature shows that individuals, working alone, produce fewer ideas than the
same individuals produce through brainstorming in small, face-to-face groups.
False
T/F: The Delphi technique is a systematic, interactive forecasting procedure based on independent
and anonymous input regarding future events.
True
T/F: Risk events refer to specific, certain events that may occur to the detriment or enhancement of
the project.
False
T/F: A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of
a matrix or axis on a chart and the relative impact of the risk occurring on the other.
False
T/F: Top Ten Risk Item Tracking is a quantitative risk analysis tool.
, False
T/F: The Microsoft Solution Framework (MSF) includes a risk management model that includes
developing and monitoring a top-ten master list of risks.
True
T/F: Quantitative risk analysis need not be done for projects that are large and complex.
True
T/F: The lower the earned monetary value calculation for a project, the chances of project success is
higher.
False
T/F: The Monte Carlo analysis can predict the probability of finishing by a certain date or the
probability that the cost will be equal to or less than a certain value.
True
T/F: Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.
True
T/F: The risk register can be created with a simple Microsoft Word or Excel file.
True
Risk utility rises at a decreasing rate for a _____ person.
risk-averse
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more
payoff is at stake.
risk-seeking
A _____ person achieves a balance between risk and payoff.
risk neutral
_____ involves deciding how to approach and plan the risk management activities for the project.
planning risk management
The degree of uncertainty an entity is willing to take on in anticipation of a reward is
risk appetite
_____ involves determining which risks are likely to affect a project and documenting the
characteristics of each.
identifying risks
_____ involves prioritizing risks based on their probability and impact of occurrence.
Graded Answers
/F: Risks can have both negative and positive effects on meeting project objectives.
True
T/F: One possible response to managing negative risk it to accept the potential effects from the risk.
True
T/F: A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a
penalty to take risks.
True
T/F: Unknown risks can be managed proactively.
False
T/F: The last step in project risk management is deciding how to address this knowledge area for a
particular project by performing risk management planning.
False
T/F: Contingency plans are predefined actions that the project team will take if an identified risk event
occurs.
True
T/F: Brainstorming is a systematic, interactive forecasting procedure based on independent and
anonymous input regarding future events.
False
T/F: The psychology literature shows that individuals, working alone, produce fewer ideas than the
same individuals produce through brainstorming in small, face-to-face groups.
False
T/F: The Delphi technique is a systematic, interactive forecasting procedure based on independent
and anonymous input regarding future events.
True
T/F: Risk events refer to specific, certain events that may occur to the detriment or enhancement of
the project.
False
T/F: A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of
a matrix or axis on a chart and the relative impact of the risk occurring on the other.
False
T/F: Top Ten Risk Item Tracking is a quantitative risk analysis tool.
, False
T/F: The Microsoft Solution Framework (MSF) includes a risk management model that includes
developing and monitoring a top-ten master list of risks.
True
T/F: Quantitative risk analysis need not be done for projects that are large and complex.
True
T/F: The lower the earned monetary value calculation for a project, the chances of project success is
higher.
False
T/F: The Monte Carlo analysis can predict the probability of finishing by a certain date or the
probability that the cost will be equal to or less than a certain value.
True
T/F: Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.
True
T/F: The risk register can be created with a simple Microsoft Word or Excel file.
True
Risk utility rises at a decreasing rate for a _____ person.
risk-averse
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more
payoff is at stake.
risk-seeking
A _____ person achieves a balance between risk and payoff.
risk neutral
_____ involves deciding how to approach and plan the risk management activities for the project.
planning risk management
The degree of uncertainty an entity is willing to take on in anticipation of a reward is
risk appetite
_____ involves determining which risks are likely to affect a project and documenting the
characteristics of each.
identifying risks
_____ involves prioritizing risks based on their probability and impact of occurrence.
