CH 7 TF

Question 1

The probability that a risk event will occur is higher during the initial stages of a project.

Answer

true

Question 2

Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

Answer

true

Question 3

Risk management is a reactive approach that is designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimized.

Answer

true

Question 4

One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.

Answer

true

Question 5

The project being delayed is an example of a major risk that should be assessed.

Answer

true

Question 6

The first step in the risk management process is risk assessment.

Answer

true

Question 7

A risk profile is a list of questions that have been developed and refined from previous, similar projects.

Answer

true

Question 8

The risk identification process should be limited to just the core project team.

Answer

true

Question 9

While a "can do" attitude is essential during implementation, project managers have to encourage critical thinking when it comes to risk identification.

Answer

true

Question 10

Responses to all identifiable risks should be a top priority for the project manager.

Answer

true

Question 11

When considering risk value, the lower the value, the higher the level of risk.

Answer

true

Question 12

If, during risk response development, you successfully identify how you will respond to a risk, contingency planning is unnecessary.

Answer

true

Question 13

Adopting proven technology instead of experimental technology is an example of mitigating a risk.

Answer

true

Question 14

A risk is an uncertain event that, if it occurs, can have a positive or negative effect on project objectives.

Answer

true

Question 15

Performance bonds, warranties, and guarantees are financial instruments used to share risk.

Answer

true

Question 16

Fixed-price contracts are an example of transferring risk from an owner to a contractor.

Answer

true

Question 17

When developing a response to a risk by scheduling outdoor work in the summer, investing in up-front safety training, or choosing high-quality materials, these are examples of retaining a risk.

Answer

true

Question 18

Budget reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

Answer

true

Question 19

Change management systems involve reporting, controlling, and recording changes to the project baseline.

Answer

true

Question 20

Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.

Answer

true

Question 21

Contingency funding is made up of budget reserves and management reserves.

Answer

true

Question 22

Although most risks are presented as something not desirable, there can also be desirable risks called Opportunities.

Answer

true

Question 23

Opportunities identified within a project are treated very differently from risks.

Answer

true

Question 24

Having an environment where identified risks are treated professionally will lead to better control of risks.

Answer

true

CH 7 TF

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