Types of project risks and how to prepare a contingency plan

The video discusses the importance of risk management in business projects, highlighting the need to identify, evaluate, and plan for potential risks. It covers different types of project risks, such as budget, schedule, and performance risks, and outlines strategies to handle them, including elimination, mitigation, transfer, and acceptance. The video also emphasizes the significance of business contingency plans in preparing for unforeseen circumstances, providing steps to create effective plans.

What is the primary role of project managers in dealing with risks?

• To delay project timelines

• To increase project costs

• To identify and manage uncertainties

• To ignore potential threats

Which of the following best describes a risk in project management?

• A routine event that has no effect on the project

• A certain event that guarantees project success

• An uncertain event that may negatively impact the project

• A planned event that ensures project completion

What is the main goal of risk management?

• To reduce negative impacts of changing circumstances

• To ensure project delays

• To eliminate all risks

• To increase project costs

Which type of risk involves the financial burden of technical failures?

• Schedule risk

• Performance risk

• Market risk

• Budget risk

What is a key strategy to handle risks by avoiding them?

• Transfer

• Mitigation

• Acceptance

• Elimination

How can risks be mitigated in project management?

• By accepting them without any action

• By ignoring them

• By transferring them to another project

• By reducing their potential impact

What is the purpose of a risk management plan?

• To avoid communication with stakeholders

• To ensure project failure

• To increase project complexity

• To document anticipated risks and responses

What is a business contingency plan designed to do?

• To ensure project delays

• To increase project costs

• To prepare for unforeseen circumstances

• To ignore potential emergencies

Which of the following is a step in creating a business contingency plan?

• Ignoring potential risks

• Ensuring project delays

• Prioritizing risks based on their likelihood

• Increasing project costs

What is the benefit of having a contingency plan?

• It ensures project delays

• It increases project costs

• It minimizes losses during emergencies

• It guarantees project failure