Question 1

The exposure a firm opens itself to when developing a project that requires a large up-front investment can be classified as:

Accepted Answer

A) Financial risk. 
B) Technical risk. 
C) Execution risk. 
D) Legal risk.

Question 2

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

Accepted Answer

The answer of What are the basic qualitative methods for...

Question 3

How do mentoring and cross-training mitigate risk?

Accepted Answer

The answer of How do mentoring and cross-training mitigate risk?...

Question 4

With a cost factor of 0.8,a schedule rating of 0.6,a reliability rating of 0.5,and a performance rating of 0.6,the overall consequence of failure was:

Accepted Answer

A) 0.565 for the squidproofing project. 
B) 0.500 for the squidproofing project. 
C) 0.750 for the squidproofing project. 
D) 0.625 for the squidproofing project.

Question 5

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Accepted Answer

A) True 
 B)False

Question 6

What is the relationship between a project's progress and the level of budget reserves?

Accepted Answer

A) As the project nears completion,the budgeted reserves tend to increase. 
B) As the project nears completion,the budgeted reserves tend to decrease. 
C) As the budgeted reserves increase,the project tends to near completion. 
D) As the budgeted reserves decrease,the project tends to near completion.

Question 7

What are any four common categories of risk? What is an element of each category?

Accepted Answer

The answer of What are any four common categories of...

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

Your project team is interested in determining an overall risk factor for your project to develop a personal submarine constructed entirely of Popsicle sticks and wood glue.Describe how you would develop reasonable estimates for each of the probability of failure categories and each of the consequence of failure categories.

Accepted Answer

The answer of Your project team is interested in determining...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Every one of the nine phases of the PRAM methodology has a deliverable.

Accepted Answer

A) True 
 B)False

Question 12

What is the PRAM methodology and what are its salient features?

Accepted Answer

The answer of What is the PRAM methodology and what...

Question 13

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

The answer of Sketch the risk level and opportunity curves...

Question 14

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.

Question 15

Your project team members do not have adequate training to complete project work and there are far fewer team members that what you need to complete your project activities according to your originally projected schedule.This situation represents an example of:

Accepted Answer

A) Execution risk. 
B) Technical risk. 
C) Commercial risk. 
D) Legal risk.

Question 16

The PostHoc Company specializes in justifying decisions that have already been made.One day they fielded a request to perform a project risk analysis and compute the risk factor for buying an investment property on St.Charles Street in the Big Easy.There was no time (and no need to be perfectly honest)to gather any data regarding the situation;all they had to do was provide an equation and a number that showed the project wasn't too risky for the investor that had already made a decision to proceed.The investor wanted the overall project risk factor to come in at an even 0.5 and also wanted all of the scores for the seven factors that make up this score to have identical values.What is the probability of failure for complexity if these two criteria are met?

Accepted Answer

The answer of The PostHoc Company specializes in justifying decisions...

Question 17

The residents of Enumclaw,Washington,live in the shadow of majestic Mount Rainier and its 26 glaciers.The Cascades form a ring of fire around the Pacific Northwest and erupt with surprising regularity,although Mount Rainier hasn't erupted on a major scale since about a thousand years ago.When it does erupt,the pyroclastic flow (a massive cloud of superheated ash and rock up to 1500 degrees Fahrenheit that can travel at speeds up to 300 miles per hour)will make Enumclaw a less pleasant place to live.City leaders have completed the:

Accepted Answer

A) Control and documentation phase of risk management. 
B) Risk identification phase of risk management. 
C) Analysis of probability and consequences phase of risk management. 
D) Risk mitigation strategies phase of risk management.

Question 18

The overall consequence of failure was 0.4 and curiously enough,the consequence of performance is twice that of reliability;the consequence of reliability is twice that of schedule;and the consequence of schedule is twice that of cost.What is the consequence of failure cost?

Accepted Answer

A) 0.091 
B) 0.107 
C) 0.123 
D) 0.136

Question 19

The mouse executive board meeting was drawing to a conclusion;the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

Accepted Answer

A) Commercial risk. 
B) Execution risk. 
C) Financial risk. 
D) Technical risk.

Question 20

Pick any three steps in the PRAM methodology and explain the deliverables generated by that step.

Accepted Answer

The answer of Pick any three steps in the PRAM...

Exam 7: Risk Management

The exposure a firm opens itself to when developing a project that requires a large up-front investment can be classified as:

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

How do mentoring and cross-training mitigate risk?

With a cost factor of 0.8,a schedule rating of 0.6,a reliability rating of 0.5,and a performance rating of 0.6,the overall consequence of failure was:

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

What is the relationship between a project's progress and the level of budget reserves?

What are any four common categories of risk? What is an element of each category?

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

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

Every one of the nine phases of the PRAM methodology has a deliverable.

What is the PRAM methodology and what are its salient features?

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:

Your project team members do not have adequate training to complete project work and there are far fewer team members that what you need to complete your project activities according to your originally projected schedule.This situation represents an example of:

The overall consequence of failure was 0.4 and curiously enough,the consequence of performance is twice that of reliability;the consequence of reliability is twice that of schedule;and the consequence of schedule is twice that of cost.What is the consequence of failure cost?

The mouse executive board meeting was drawing to a conclusion;the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

Pick any three steps in the PRAM methodology and explain the deliverables generated by that step.