PM with Int. Applications

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk

• a.risk breakdown structures

• a.contingency breakdown structures

• a.scenario analysis

• a.organizational breakdown structure

• a.risk assessment

Answer explanation

•Organizations use risk breakdown structures in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. The focus at the beginning should be on risks that can affect the whole project as opposed to a specific section of the project or network.

•Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response?

• a.Mitigating

• a.Retaining

• a.Escalating

• a.Transferring

• a.Avoiding

Answer explanation

•Although it is impossible to eliminate all risk events, some specific risks may be avoided before you launch the project. Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of avoiding risk.

A key distinction between a risk response and a contingency plan is

• a.a risk response is established only for moderate risks while contingency plans are established for major risks.

• a.a risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.

• a.a risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning.

• a.a risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan.

•This response allocates some or all of the responsibility of realizing the identified opportunity for the project.

• Exploit

• Share

• Enhance

• Accept

Answer explanation

Definition of a share response to an identified opportunity.

•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