Question 1

The PRAM model for risk management proposes that risk management follow a life cycle much as projects follow a life cycle.

Accepted Answer

A) True 
 B)False

Question 2

The marketing team would develop the advertising campaign to promote the newest product but the engineers wanted to keep all product details a secret during development.The service and operations branches of the company were also in the dark,so product rollout was going to be their initiation as well.This project has a very high:

Accepted Answer

A)  Political risk. 
B)  Operating risk. 
C)  Organizational risk. 
D)  Integration risk. 
A)  Political risk. 
B)  Operating risk. 
C)  Organizational risk. 
D)  Integration risk.

Question 3

The first phase of a comprehensive project risk assessment should be:

Accepted Answer

A)  To assess the specific sources of risk at the outset of the project, including the need to fashion appropriate responses. 
B)  To make sure the project is well defined, including all deliverables, statement of work, and project scope. 
C)  To develop reasonable estimates of the impacts on the project of both the identified risks and the proposed solutions. 
D)  To produce a project risk management plan that proactively offers risk mitigation strategies for the project as needed. 
A)  To assess the specific sources of risk at the outset of the project, including the need to fashion appropriate responses. 
B)  To make sure the project is well defined, including all deliverables, statement of work, and project scope. 
C)  To develop reasonable estimates of the impacts on the project of both the identified risks and the proposed solutions. 
D)  To produce a project risk management plan that proactively offers risk mitigation strategies for the project as needed.

Question 4

Garman yawned as he sat at his kitchen table.His plans to corner the world's supply of peanut valves required detailed planning and an honest assessment of the risks involved in this highly speculative venture.He first identified the primary factors that might contribute to the project's failure.These factors were employee-related; market maturity-related; and health-related.The best estimates he could come up with for these probabilities were 0.6,0.2 and 0.3,respectively.The consequences of failure were less certain,but he finally decided that the cost consequences rated a 0.2,the schedule consequences rated a 0.4,the reliability consequences rated 0.1,and the company goodwill consequences were a robust 0.6.What is the overall project risk factor for this undertaking?

Accepted Answer

The overall project risk factor is 0.572

Question 5

How does risk level vary with project life cycle stages? Where is the period of highest risk impact? Why?

Accepted Answer

Risk is at its highest during a project'

Question 6

What are the basic qualitative methods for identifying risk factors? What are the advantages and disadvantages of each method?

Accepted Answer

A number of qualitative methods are avai

Question 7

What are the four alternatives a project organization can adopt in deciding how to address their risks? What are the advantages and disadvantages of each? Which is best and why?

Accepted Answer

The four possible alternatives a project

Question 8

The PRAM model for risk management proposes a "pick and choose" approach to risk management.

Accepted Answer

A) True 
 B)False

Question 9

The probability that funds allocated to the project will be insufficient to complete it is:

Accepted Answer

A)  Technical risk. 
B)  Cost estimate risk. 
C)  Financing risk. 
D)  Operating risk. 
A)  Technical risk. 
B)  Cost estimate risk. 
C)  Financing risk. 
D)  Operating risk.

Question 10

Sketch the risk level and opportunity curves as a function of the project life cycle stage.Provide an example of a project from the recent business literature or your personal experience that exhibits these characteristics.Cite specific instances where the levels of opportunity,risk,and stake fluctuated.

Accepted Answer

Examples will vary;

Question 11

There are four alternatives a project organization can adopt in deciding how to address their risks.Develop four different scenarios,one each for which each of the alternatives would be appropriate.Justify your selections.

Accepted Answer

The four possible alternatives a project

Question 12

While thrilling,there is a chance that you would have an accident if you elected to drive on the wrong side of a divided highway in Woodward,an outcome that could be described as:

Accepted Answer

A)  High in consequence and high in probability. 
B)  Low in consequence and low in probability. 
C)  Low in probability and high in consequence. 
D)  High in probability and low in consequence. 
A)  High in consequence and high in probability. 
B)  Low in consequence and low in probability. 
C)  Low in probability and high in consequence. 
D)  High in probability and low in consequence.

Question 13

A serious risk factor probably has:

Accepted Answer

A)  A high consequence and a medium likelihood. 
B)  A high consequence and a low likelihood. 
C)  A medium consequence and a low likelihood. 
D)  A low consequence and a medium likelihood. 
A)  A high consequence and a medium likelihood. 
B)  A high consequence and a low likelihood. 
C)  A medium consequence and a low likelihood. 
D)  A low consequence and a medium likelihood.

Question 14

Contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost.

Accepted Answer

A) True 
 B)False

Question 15

A project team assigns probabilities of 0.1,0.2,and 0.4 respectively to the maturity,complexity,and dependency categories.The probability of failure can be calculated as:

Accepted Answer

A)  0.23. 
B)  0.33. 
C)  0.65. 
D)  0.70. 
A)  0.23. 
B)  0.33. 
C)  0.65. 
D)  0.70.

Question 16

Risk management is a:

Accepted Answer

A)  Three-stage process. 
B)  Four-stage process. 
C)  Five-stage process. 
D)  Six-stage process. 
A)  Three-stage process. 
B)  Four-stage process. 
C)  Five-stage process. 
D)  Six-stage process.

Question 17

As risk decreases in the project life cycle,opportunity increases.

Accepted Answer

A) True 
 B)False

Question 18

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

Accepted Answer

A) True 
 B)False

Question 19

The probability that legal and managerial structures put together to develop and operate the project will NOT perform well is:

Accepted Answer

A)  Operating risk. 
B)  Political risk. 
C)  Organizational risk. 
D)  Integration risk. 
A)  Operating risk. 
B)  Political risk. 
C)  Organizational risk. 
D)  Integration risk.

Question 20

With a maturity risk of 0.3,a complexity risk of 0.4,and a dependency risk of 0.5,the probability of failure is:

Accepted Answer

A)  About 0.3. 
B)  About 0.4. 
C)  About 0.5. 
D)  About 0.6. 
A)  About 0.3. 
B)  About 0.4. 
C)  About 0.5. 
D)  About 0.6.

The PRAM model for risk management proposes that risk management follow a life cycle much as projects follow a life cycle.

The first phase of a comprehensive project risk assessment should be:

How does risk level vary with project life cycle stages? Where is the period of highest risk impact? Why?

What are the basic qualitative methods for identifying risk factors? What are the advantages and disadvantages of each method?

What are the four alternatives a project organization can adopt in deciding how to address their risks? What are the advantages and disadvantages of each? Which is best and why?

The PRAM model for risk management proposes a "pick and choose" approach to risk management.

The probability that funds allocated to the project will be insufficient to complete it is:

There are four alternatives a project organization can adopt in deciding how to address their risks.Develop four different scenarios,one each for which each of the alternatives would be appropriate.Justify your selections.

While thrilling,there is a chance that you would have an accident if you elected to drive on the wrong side of a divided highway in Woodward,an outcome that could be described as:

A serious risk factor probably has:

Contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost.

A project team assigns probabilities of 0.1,0.2,and 0.4 respectively to the maturity,complexity,and dependency categories.The probability of failure can be calculated as:

Risk management is a:

As risk decreases in the project life cycle,opportunity increases.

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

The probability that legal and managerial structures put together to develop and operate the project will NOT perform well is:

With a maturity risk of 0.3,a complexity risk of 0.4,and a dependency risk of 0.5,the probability of failure is:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

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Exam 7: Risk Management

The PRAM model for risk management proposes that risk management follow a life cycle much as projects follow a life cycle.

The first phase of a comprehensive project risk assessment should be:

How does risk level vary with project life cycle stages? Where is the period of highest risk impact? Why?

What are the basic qualitative methods for identifying risk factors? What are the advantages and disadvantages of each method?

What are the four alternatives a project organization can adopt in deciding how to address their risks? What are the advantages and disadvantages of each? Which is best and why?

The PRAM model for risk management proposes a "pick and choose" approach to risk management.

The probability that funds allocated to the project will be insufficient to complete it is:

There are four alternatives a project organization can adopt in deciding how to address their risks.Develop four different scenarios,one each for which each of the alternatives would be appropriate.Justify your selections.

While thrilling,there is a chance that you would have an accident if you elected to drive on the wrong side of a divided highway in Woodward,an outcome that could be described as:

A serious risk factor probably has:

Contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost.

A project team assigns probabilities of 0.1,0.2,and 0.4 respectively to the maturity,complexity,and dependency categories.The probability of failure can be calculated as:

Risk management is a:

As risk decreases in the project life cycle,opportunity increases.

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

The probability that legal and managerial structures put together to develop and operate the project will NOT perform well is:

With a maturity risk of 0.3,a complexity risk of 0.4,and a dependency risk of 0.5,the probability of failure is:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters