RMP - 1. INTRODUCTION

What is a project issue within a project environment?

• A risk which has a significant impact on the project.
• A certain event which has a positive or negative impact in the project.
• An uncertain event which may impact the project.
• A negative effect on a project objective arising from occurrence of a threat.

Which of the following represents levels of risk attitudes?

• Risk exploit, risk avoiding, risk transferring.
• High, medium and low.
• Risk averse, risk neutral, risk seeking.
• Technical, External and Organizational.

Which of the following situational factors has a significant effect on risk attitude?

• The perception of probability or frequency of occurrence and the perception of impact magnitude.
• The risk heuristics evaluation available to the project team during planning and execution.
• The number of project team members with close relationships to the chief executive officer (CEO).
• The number of external stakeholders and the potential for indirect consequence.

What is the best method a risk manager should use to initially define the stakeholders' risk appetite?

• Review risk management plan.
• What if scenario.
• Conduct SWOT analysis.
• Meeting and interviews with key stakeholders.

A project manager has received an email from a key stakeholder illustrating that the project is small and a risk management plan is not needed and lack of a plan will reduce costs. As a project manager, what should you do?

• Remove the stakeholder from the stakeholder register and inform the sponsor.
• Assess the impact of removing the risk management processes from the project.
• Advise the stakeholder that risk management plan must be applied to all projects as it is valuable.
• Cancel the risk management plan as the project is small.

What is the communication form that helps in reducing misunderstandings and improving teamwork?

• Push communication.
• Status reports.
• Face to face discussion.
• Formal communication.

Which of the following characteristics would be of a risk-averse person?

• Risk taking is a price worth paying for future payoffs, seeks strategies and tactics that have high future payoffs.
• Not afraid to take action, or even thrill seeking.
• Discomfort with uncertainty and seeks security and resolution when facing risk.
• Comfort with most uncertainty, accepts risks as a normal feature of projects and business.

Which approach should be used when considering human factors to influence the risk management process for optimal effects at the group and individual levels?

• Agile.
• Proactive.
• Reactive.
• Ongoing.

Project stakeholders can often be risk-averse with little to no knowledge of the risk process. How should a risk manager increase stakeholder risk appetite?

• Increase the impact of all risks in the risk breakdown structure (RBS)
• Exclude risk-averse stakeholders from future risk discussions.
• Develop a generous probabilistic cash flow model.
• Explain risk handling and mitigation strategies.

You are a project manager for an infrastructure project. During a project review meeting, an executive is reviewing the risk section, including risks on the watch list, and requesting to close them out. What is the executive's risk attitudes?

• Tolerant.
• Averse.
• Seeking.
• Neutral.