Project Management Chapter 7

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a

• Random chance

• Disaster

• Risk

• Hazard

• Bad luck

The chances of a risk event occurring as a project proceeds through its life cycle tend to

• Slowly rise

• Drop sharply and then level out

• Rise sharply and then level out

• Remain about the same

• Slowly drop

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to

• Slowly rise

• Drop sharply and then level out

• Rise sharply and then level out

• Remain about the same

• Slowly drop

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

• Risk forecasting

• Risk management

• Contingency planning

• Scenario analysis

• Disaster protection

Which of the following is NOT one of the steps in the risk management process?

• Risk response development

• Risk assessment

• Risk identification

• Risk tracking

• Risk response control

The initial step in the risk management process is to

• Determine the level of acceptable risk

• Assess the risk potential

• Identify the risks

• Set aside budget funds for managing the risks

• Appoint a risk manager

One common mistake made early in the risk identification process is to

• Not consider all possibilities

• Encourage participants be over optimistic

• Support participants being over pessimistic

• Focus on consequences and not on the events that could produce consequences

• Give too much attention to past events

Organizations use___in conjunction with work breakdown with work breakdown structures to help management teams identify and eventually analyze risk.

• Risk breakdown structures

• Contingency breakdown structure

• Scenario analysis

• Organizational breakdown structure

• Risk assessment

Which of the following groups should NOT be a part of the risk identification process?

• Project team

• Customers

• Subcontractors

• Vendors

• All of these groups can included in the risk identification process

After your team has successfully identified potential risks that could affect the project, what is next step?

• Create a risk breakdown structure

• Assess identified risks

• Create contingency plans

• Decide how to respond to all risks

• Mitigate risks