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Project Management Chapter 7

Total questions: 21

Worksheet time: 21mins

Name
Class
Date
1.

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

a)

Random chance

b)

Disaster

c)

Risk

d)

Hazard

e)

Bad luck

2.

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

a)

Slowly rise

b)

Drop sharply and then level out

c)

Rise sharply and then level out

d)

Remain about the same

e)

Slowly drop

3.

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

a)

Slowly rise

b)

Drop sharply and then level out

c)

Rise sharply and then level out

d)

Remain about the same

e)

Slowly drop

4.

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

a)

Risk forecasting

b)

Risk management

c)

Contingency planning

d)

Scenario analysis

e)

Disaster protection

5.

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

a)

Risk response development

b)

Risk assessment

c)

Risk identification

d)

Risk tracking

e)

Risk response control

6.

The initial step in the risk management process is to

a)

Determine the level of acceptable risk

b)

Assess the risk potential

c)

Identify the risks

d)

Set aside budget funds for managing the risks

e)

Appoint a risk manager

7.

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

a)

Not consider all possibilities

b)

Encourage participants be over optimistic

c)

Support participants being over pessimistic

d)

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

e)

Give too much attention to past events

8.

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

a)

Risk breakdown structures

b)

Contingency breakdown structure

c)

Scenario analysis

d)

Organizational breakdown structure

e)

Risk assessment

9.

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

a)

Project team

b)

Customers

c)

Subcontractors

d)

Vendors

e)

All of these groups can included in the risk identification process

10.

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

a)

Create a risk breakdown structure

b)

Assess identified risks

c)

Create contingency plans

d)

Decide how to respond to all risks

e)

Mitigate risks

11.

Risks are evaluated in terms of

a)

Likelihood and cost

b)

Cost and schedule

c)

Impact and cost

d)

Time and impact

e)

Likelihood and impact

12.

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an

a)

Mitigating

b)

Retaining

c)

Ignoring

d)

Transferring

e)

Avoiding

13.

Which of the following activities might you consider adding a time buffer to?

a)

Activities with severe risks

b)

Merge activities that are prone to delays

c)

Activities with scare resources

d)

Noncritical activities with very little slack

e)

You might consider adding a time buffer to any of these activities

14.

Which of the following is NOT included a Failure Mode and Effects Analysis?

a)

Impact

b)

Probability

c)

Detection

d)

Risk value

e)

All of these are included

15.

A fixed price contract is an example of

a)

Avoiding risk

b)

Transferring risk

c)

Accepting risk

d)

Ignoring risk

e)

Mitigating risk

16.

Which of the following is NOT one of the potential responses to a specific risk event?

a)

Mitigating

b)

Retaining

c)

Ignoring

d)

Transferring

e)

Avoiding

17.

A Risk Response Matrix contains all of the following EXCEPT

a)

Contingency plan

b)

Trigger

c)

Who is responsible

d)

Response

e)

When the risk will occur

18.

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

b)

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

c)

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

d)

A risk response is created by the project team and project manager while the project manager and the customers agree on the contingency plan

e)

A risk response is action that is the response to a risk once it has happened and the contingency plan is created by customer if the risk response fails

19.

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following?

a)

Mitigating

b)

Retaining

c)

Ignoring

d)

Transferring

e)

Avoiding

20.

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses a called___reserves.

a)

Management

b)

Budget

c)

Contingency

d)

Padded

e)

Just in case

21.

Risks that can result in a system or process that will not work are known as

a)

Technical risks

b)

Funding risks

c)

Schedule risks

d)

Cost risks

e)

Unnecessary risks