Answers to Review Questions

1. B. The cause-and-effect flowcharts—also called fishbone diagrams or Ishikawa diagrams— show the relationship between the causes and effects of problems.

2. C. The purpose of Perform Qualitative Risk Analysis is to determine what impact the identified risk events will have on the project and the probability they'll occur. It also puts risks in priority order according to their effects on the project objectives and assigns a risk score for the project.

3. B. The risk management plan details how risk management processes will be implemented, monitored, and controlled throughout the life of the project. The risk management plan does not include responses to risks or triggers. Responses to risks are documented in the risk register as part of the Plan Risk Responses process.

4. C. Distributions graphically display the probability of risk to the project objectives as well as the time or cost elements.

5. D. The information-gathering techniques in the Identify Risks process are brainstorming, the Delphi technique, interviewing, and root cause analysis.

6. C. Perform Quantitative Risk Analysis analyzes the probability of risks and their consequences using a numerical rating. Perform Qualitative Risk Analysis might use numeric ratings but can use a high-medium-low scale as well.

7. C. Probability of achieving time and cost estimates is an update that is produced from the Perform Quantitative Risk Analysis process.

8. B. This risk event has the potential to save money on project costs, so it's an opportunity, and the appropriate strategy to use in this case is the exploit strategy.

9. D. This risk event has the potential to save money on project costs. Sharing involves using a third party to help assure that the opportunity take place.

10. A. The best answer is A. Triggers are warning signs of an impending risk event.

11. C. The probability and impact matrix multiplies the probability and impact to determine a risk score. Using this score and a predetermined matrix, you determine if the scores is a high, medium, or low designation.

12. B. Monte Carlo analysis is a simulation technique that computes project costs many times in an iterative fashion.

13. C. Mitigation attempts to reduce the impact of a risk event should it occur. Making plans to arrange for the leased equipment reduces the consequences of the risk.

14. A. Assumptions analysis is a tool and technique of the Identify Risks process.

15. A. This question describes risk tolerance levels of the stakeholders. Risk triggers are recorded in the risk register during the Plan Risk Responses process. The risk of buying a machine from a new supplier would pose a threat to the project, not an opportunity. Interviewing might have been used, but this question wasn't describing the Identify Risks process.

16. B. The question describes sensitivity analysis, which is a tool and technique of the Perform Quantitative Risk Analysis process. Tornado diagrams are often used to display sensitivity analysis data.

17. B. Decision tree diagrams are used during the Perform Quantitative Risk Analysis process. All the other options are diagramming techniques used in the Identify Risks process.

18. D. The RBS describes risk categories, and the lowest level can be used as a checklist to help identify risks. Risk owners are not assigned from the RBS but typically are assigned as soon as the risk is identified.

19. D. This is a response strategy known as passive acceptance because the team has decided to take no action and make no plans for the risk. This is a strategy that can be used for either positive or negative risks.

20. C. Perform Qualitative Risk Analysis is a fast and easy method of determining probability and impact.

Chapter

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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