RISK MANAGEMENT QUESTIONS AND
ANSWERS
A project manager has just started the risk management process on a project. Which
of the following statements accurately describes the objectives of risk management
on a project?
A) Risk management is done to increase the probability and/or impact of positive
risks.
B) Risk management is done to decrease negative risks' probability and/or impact.
C) Risk management is done to minimize all risks.
D) Risk management increases the probability and/or impact of positive risks and
decreases the probability and/or impact of negative risks. - answer- D) Risk
management increases the probability and/or impact of positive risks and decreases
the probability and/or impact of negative risks.
The objectives of project risk management include increasing the probability and/or
impact of positive risks and decreasing the probability and/or impact of negative
risks.
While discussing risk management with a team member, what should the project
manager say about the different risk levels?
A) There are two levels: individual project risks and overall project risks.
B) There is only one level of risk: individual project risks.
C) There is only one level of risk: overall project risks.
D There are two levels: project risks and operations risks. - answer- A) There are two
levels: individual project risks and overall project risks.
The risk management process in the PMBOK lists two levels of project risks:
individual and overall project risks.
Which of the following statements is false regarding how risk will affect the project?
A) Risk will continue to emerge during the lifetime of the project
B) Risks should be monitored and managed as the project progresses
C) Risk identification should only be done at the beginning of the project
D) Risk identification is done throughout the project - answer- C) Risk identification
should only be done at the beginning of the project
Risk identification is done throughout the project. As the project progresses, new
risks will emerge and will have to be assessed by the project team.
The project manager knows managing risks is an important part of a project. One of
the most important aspects is documenting the stakeholders' risk appetite. Where
would the project manager document the stakeholders' risk appetite?
, A) In the stakeholders' engagement plan
B) In the scope management plan
C) In the risk management plan
D) In the risk register - answer- C) In the risk management plan
The stakeholders' risk appetite is documented and stored in the risk management
plan. The stakeholders' risk appetite is an important component of the plan since it
will help determine what risks will be acceptable.
The project team members are reviewing the risk in the risk register to determine
which risks will have the greatest impact on a project. One risk, in particular, has a
very high impact, but the team has determined that this risk should be ranked very
low on the project. What statement best describes why this risk is ranked so low?
A) The probability of the risk occurring is low
B) The project team is not familiar with the risk
C) The risks will take place in the far future of the project
D) They are using the wrong methods to assess the risks - answer- A) The
probability of the risk occurring is low
Some risks may likely have a high impact and a low probability, leading to the risk
being ranked very low. An example is an earthquake in New York City.
The impact may be high, but the probability of it occurring may be very low, which
leads to the risk being ranked lower.
The project team members are currently doing the process of performing a
qualitative risk analysis. They would like to use a tool that could not only display the
probability of the risks or impact but the overall likelihood of the risks. What tool can
be used to display the three parameters?
A) Probability and impact matrix
B) Probability and impact assessment
C) Bubble chart
D) Ishikawa diagram - answer- C) Bubble chart
A bubble chart is part of the tool data representation. It is used to display three
dimensions of data. All other choices may only display two dimensions.
While conducting a brainstorming session with the team to rank the risks, the project
manager is worried about the data the team uses to rank the risks. The project
manager feels that some team members may only be speculating about the
probability of risks. What tool can best help the project manager in this scenario?
A) Risks probability and impact assessment
B) Risk data quality assessment
C) Probability and impact matrix
D) Hierarchical charts - answer- B) Risk data quality assessment
ANSWERS
A project manager has just started the risk management process on a project. Which
of the following statements accurately describes the objectives of risk management
on a project?
A) Risk management is done to increase the probability and/or impact of positive
risks.
B) Risk management is done to decrease negative risks' probability and/or impact.
C) Risk management is done to minimize all risks.
D) Risk management increases the probability and/or impact of positive risks and
decreases the probability and/or impact of negative risks. - answer- D) Risk
management increases the probability and/or impact of positive risks and decreases
the probability and/or impact of negative risks.
The objectives of project risk management include increasing the probability and/or
impact of positive risks and decreasing the probability and/or impact of negative
risks.
While discussing risk management with a team member, what should the project
manager say about the different risk levels?
A) There are two levels: individual project risks and overall project risks.
B) There is only one level of risk: individual project risks.
C) There is only one level of risk: overall project risks.
D There are two levels: project risks and operations risks. - answer- A) There are two
levels: individual project risks and overall project risks.
The risk management process in the PMBOK lists two levels of project risks:
individual and overall project risks.
Which of the following statements is false regarding how risk will affect the project?
A) Risk will continue to emerge during the lifetime of the project
B) Risks should be monitored and managed as the project progresses
C) Risk identification should only be done at the beginning of the project
D) Risk identification is done throughout the project - answer- C) Risk identification
should only be done at the beginning of the project
Risk identification is done throughout the project. As the project progresses, new
risks will emerge and will have to be assessed by the project team.
The project manager knows managing risks is an important part of a project. One of
the most important aspects is documenting the stakeholders' risk appetite. Where
would the project manager document the stakeholders' risk appetite?
, A) In the stakeholders' engagement plan
B) In the scope management plan
C) In the risk management plan
D) In the risk register - answer- C) In the risk management plan
The stakeholders' risk appetite is documented and stored in the risk management
plan. The stakeholders' risk appetite is an important component of the plan since it
will help determine what risks will be acceptable.
The project team members are reviewing the risk in the risk register to determine
which risks will have the greatest impact on a project. One risk, in particular, has a
very high impact, but the team has determined that this risk should be ranked very
low on the project. What statement best describes why this risk is ranked so low?
A) The probability of the risk occurring is low
B) The project team is not familiar with the risk
C) The risks will take place in the far future of the project
D) They are using the wrong methods to assess the risks - answer- A) The
probability of the risk occurring is low
Some risks may likely have a high impact and a low probability, leading to the risk
being ranked very low. An example is an earthquake in New York City.
The impact may be high, but the probability of it occurring may be very low, which
leads to the risk being ranked lower.
The project team members are currently doing the process of performing a
qualitative risk analysis. They would like to use a tool that could not only display the
probability of the risks or impact but the overall likelihood of the risks. What tool can
be used to display the three parameters?
A) Probability and impact matrix
B) Probability and impact assessment
C) Bubble chart
D) Ishikawa diagram - answer- C) Bubble chart
A bubble chart is part of the tool data representation. It is used to display three
dimensions of data. All other choices may only display two dimensions.
While conducting a brainstorming session with the team to rank the risks, the project
manager is worried about the data the team uses to rank the risks. The project
manager feels that some team members may only be speculating about the
probability of risks. What tool can best help the project manager in this scenario?
A) Risks probability and impact assessment
B) Risk data quality assessment
C) Probability and impact matrix
D) Hierarchical charts - answer- B) Risk data quality assessment
