1. When is it appropriate to accept a project risk?

A. It is never appropriate to accept a project risk.

B. All risks must be mitigated or transferred.

C. It is appropriate to accept a risk if the project team has never completed this type of project work before.

D. It is appropriate if the risk is in balance with the reward.

2. Frances is the project manager of the LKJ Project. Which of the following techniques will she use to create the risk management plan?

A. Risk tolerance

B. Status meetings

C. Planning meetings

D. Variance meetings

3. You are the project manager of the GHK Project. You and the manufacturer have agreed to substitute the type of plastic used in the product to a slightly thicker grade should there be more than 7 percent error in production. The thicker plastic will cost more and require the production to slow down, but the errors should diminish. This is an example of which of the following?

A. Threshold

B. Tracking

C. Budgeting

D. JIT manufacturing

4. An organization's risk tolerance is also known as what?

A. The utility function

B. Herzberg's theory of motivation

C. Risk acceptance

D. The risk-reward ratio

5. The customers of the project have requested additions to the project scope. The project manager notifies you that additional risk planning will need to be added to the project schedule. Why?

A. The risk planning should always be the same amount of time as the activities required by the scope change.

B. Risk planning should always occur whenever the scope is adjusted.

C. Risk planning should only occur at the project manager's discretion.

D. The project manager is incorrect. Risk planning does not need to happen at every change in the project.

6. Which one of the following best describes the risk register?

A. It documents all of the outcomes of the other risk management processes.

B. It's a document that contains the initial risk identification entries.

C. It's a system that tracks all negative risks within a project.

D. It's part of the project's project management information system (PMIS) for integrated change control.

7. _include(s) fire, theft, or injury, and offer(s) no chance for gain.

A. Business risks

B. Pure risks

C. Risk acceptance

D. Life risks

8. Complete this sentence: A project risk is a(n)_

occurrence that can affect the project for good or bad.

A. Known

B. Potential

C. Uncertain

D. Known unknown

9. When should risk identification happen?

A. As early as possible in the initiation process

B. As early as possible in the planning process

C. Throughout the product management life cycle

D. Throughout the project life cycle

10. You are the project manager of the KLJH Project. This project will last two years and has 30 stakeholders. How often should risk identification take place?

A. Once at the beginning of the project

B. Throughout the execution processes

C. Throughout the project

D. Once per project phase

11. Which one of the following is an acceptable tool for risk identification?

A. Decision tree analysis

B. Decomposition of the project scope

C. The Delphi Technique

D. Pareto charting

12. You are the project manager for a project that will create a new and improved Web site for your company. Currently, your company has over eight million users around the globe. You would like to poll experts within your organization with a simple, anonymous form asking about any foreseeable risks in the design, structure, and intent of the Web site. With the collected information, subsequent anonymous polls are submitted to the group of experts. This is an example of_.

A. Risk identification

B. A trigger

C. An anonymous trigger

D. The Delphi Technique

13. Which risk analysis technique provides the project manager with a risk ranking?

A. Quantifiable

B. Qualitative

C. The utility function

D. SWOT analysis

14. A table of risks, their probability, impact, and a number representing the overall risk score is called a_.

A. Risk table

B. Probability and impact matrix

C. Quantitative matrix

D. Qualitative matrix

15. You are presented with the following table:

Risk Event Probability Impact Cost/Benefit EMV

1 .20

- 4,GGG

2 .50


3 .45


4 .22


5 .35

- 4,5GG

What is the EMV for Risk Event 3?

A. $135

16. You are presented with the following table:

Risk Event


Impact Cost/Benefit




- 4,GGG












- 45,GGG

Based on the preceding numbers, what is the amount needed for the contingency fund?

A. Unknown with this information

B. 249,000

C. 117,150

17. The water sanitation project manager has determined that the risks associated with handling certain chemicals are too high. He has decided to allow someone else to complete this portion of the project, and so has outsourced the handling and installation of the chemicals and filter equipment to an experienced contractor. This is an example of which of the following?

A. Avoidance

B. Acceptance

C. Mitigation

D. Transference

18. A project manager and the project team are actively monitoring the pressure gauge on a piece of equipment. Sarah, the engineer, recommends a series of steps to be implemented should the pressure rise above 80 percent. The 80 percent mark represents what?

A. An upper control limit

B. The threshold

C. Mitigation

D. A workaround

19. You are presented with the following table:

Risk Event Probability Impact Cost/Benefit Ex$V



- 4,000






What would Risk Event 6 be based on the following information: Marty is 60 percent certain that he can get the facility needed for $45,000, which is $7,000 less than what was planned for.

20. Which of the following can determine multiple scenarios, given various risks and the probability of their impact?

A. Decision tree

B. Monte Carlo technique

C. Pareto chart

D. Gantt chart

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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