Chapter 11 T/F

Question 1

1. Risks can have both negative and positive effects on meeting project objectives.

Answer

true

Question 2

2. One possible response to managing negative risk it to accept the potential effects from the risk.

Answer

true

Question 3

3. A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks.

Answer

true

Question 4

4. Unknown risks can be managed proactively.

Answer

true

Question 5

5.. The last step in project risk management is deciding how to address this knowledge area for a particular project by
performing risk management planning.

Answer

true

Question 6

6. Contingency plans are predefined actions that the project team will take if an identified risk event occurs.

Answer

true

Question 7

7. Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding
future events.

Answer

true

Question 8

8. The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals
produce through brainstorming in small, face-to-face groups.

Answer

true

Question 9

9. The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input
regarding future events.

Answer

true

Question 10

10. Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.

Answer

true

Question 11

11. A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on
a chart and the relative impact of the risk occurring on the other.

Answer

true

Question 12

12. Top Ten Risk Item Tracking is a quantitative risk analysis tool.

Answer

true

Question 13

13. The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and
monitoring a top-ten master list of risks

Answer

true

Question 14

14. Quantitative risk analysis need not be done for projects that are large and complex.

Answer

true

Question 15

15. The lower the earned monetary value calculation for a project, the chances of project success is higher.

Answer

true

Question 16

16. The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will
be equal to or less than a certain value

Answer

true

Question 17

17. Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.

Answer

true

Question 18

18. The risk register can be created with a simple Microsoft Word or Excel file.

Answer

true

Chapter 11 T/F

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