Exam 7: Managing Risk

The ________ form identifies each risk event,the likelihood of it occurring,the potential impact,when it may occur,and the degree of difficulty in detecting it.

A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality.

Contingency funding is made up of budget reserves and management reserves.

Tools such as a risk assessment form and a risk severity matrix are used to

If,during risk response development,you successfully identify how you will respond to a risk,contingency planning is unnecessary.

Performance bonds,warranties,and insurance are examples of ________ a risk.

Budget reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

________ reserves are identified for specific work packages and are distributed by the project manager and the team members.

Choosing to move a concert indoors to eliminate the threat of bad weather is an example of ____________ a risk.

Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

While a "can do" attitude is essential during implementation,project managers have to encourage critical thinking when it comes to risk identification.

What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.

Describe the relationship between the likelihood of a risk event occurring and the cost of fixing the risk event as a project proceeds through its life cycle.

The probability that a risk event will occur is higher during the initial stages of a project.

What is a "trigger" and why is it important when planning contingencies?

Why might an organization be opposed to developing and implementing a thorough risk management process?

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as

A list of questions that address traditional areas of uncertainty on a project is known as a _________.

_______________ focuses on how to respond to events that have a positive impact on a project.

Fixed-price contracts are an example of transferring risk from an owner to a contractor.