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Quiz Lesson 3 - Topic F (Risks)

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What does a trigger condition represent in risk management?

a)

A risk that occurs due to external factors

b)

A situation indicating that a risk event is about to happen

c)

The level of risk appetite acceptable to the organization

d)

A mitigation strategy to address a known risk

2.

What is an example of a business risk in project management?

a)

A risk that could lead to regulatory noncompliance

b)

A competitive risk that could lead to either profit or loss

c)

A resource-related issue affecting project performance

d)

A project schedule overrun due to poor estimation

3.

Which risk response strategy involves transferring ownership of a threat to a third party?

a)

Escalate

b)

Avoid

c)

Transfer

d)

Mitigate

4.

What is the primary purpose of a risk register?

a)

To track project compliance with legal requirements

b)

To document identified risks and their management plans

c)

To determine organizational risk appetite and threshold

d)

To calculate expected monetary value (EMV)

5.

What is the difference between a secondary risk and a residual risk?

a)

Secondary risks occur due to poor planning; residual risks occur after project closure.

b)

Secondary risks arise from implementing risk responses, while residual risks remain after implementing responses.

c)

Secondary risks are external to the project, while residual risks are internal.

d)

Secondary risks are addressed in contingency planning, while residual risks are escalated.

6.

Which of the following is a valid opportunity response strategy?

a)

Mitigate

b)

Share

c)

Transfer

d)

Avoid

7.

What does a probability and impact matrix help project managers achieve?

a)

Assign ownership to risks

b)

Rank risks based on their likelihood and potential effect on project objectives

c)

Identify secondary risks and their mitigation strategies

d)

Calculate expected monetary value (EMV) for all risks

8.

What should be the first step when managing a risk with a high probability and low impact?

a)

Mitigate the risk immediately

b)

Document the risk in the risk register and monitor it

c)

Escalate the risk to stakeholders for review

d)

Transfer the risk to a third party

9.

What does the term "contingency reserve" refer to in risk management?

a)

A backup plan for unplanned risks

b)

Resources allocated for unknown risks

c)

Time or money set aside for known risks with planned responses

d)

Extra resources allocated after a risk has occurred

10.

What is the purpose of a decision tree analysis in risk management?

a)

To identify all potential risk triggers

b)

To evaluate the implications of multiple options in uncertainty

c)

To assign qualitative risk ratings

d)

To develop a hierarchical representation of risk sources