Dewp - Module 4 - Mini Exam

Project Management

Risk Analysis

PMBOK

ISO 31000

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Quizzes Created: 7 | Total Attempts: 3,576

| Attempts: 255 | Questions: 12

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1. Question 11: Cindy is managing a small building construction project. This is a six month long project. The project has a rigid time deadline. Some heavy rains are expected in the next couple of months and Cindy is worriedthat this might affect the schedule of the project. Heavy rains in this scenario are an example of?

A.) Assumption

B.) Constraint

C.) Unknown risk

D.) Known risk

Correct answer is D
Explanation: The heavy rains in this scenario are uncertain events that might affect the schedule. This is an example of project risk. Since Cindy is aware of this risk, it is a known risk.
Reference: PMBOK Guide 5th Edition, page 310

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About This Quiz

DEWP - Module 4 - Mini Exam tests understanding of risk management strategies in project settings. It covers management reserves for unknown risks, qualitative risk analysis, risk acceptance, and tools like Tornado Diagrams and SWOT Analysis.

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2. Question 1: Julia has just presented her risk management strategy to her project sponsor. The project sponsor is very happy with the strategy but has asked Julia to setup a Management Reserve as well. What type of project risks are handled by the Management Reserves?

A.) Known risks

B.) Unknown risks

C.) Mitigated risks

D.) Transferred risks

Correct answer is B
Explanation: Unknown project risks are handled by the management reserves.
Reference: PMBOK Guide 5th Edition, page 310

Explanation

Correct answer is B
Explanation: Unknown project risks are handled by the management reserves.
Reference: PMBOK Guide 5th Edition, page 310

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3. Question 3: Carol is currently planning her project risk responses. There is a huge risk of cost variation due to some of the present economic conditions in the country. This situation cannot be avoided because Carol doesn't have any control over it. In addition, she doesn't have any control over influencing the probability or the impact of this risk. This is also not a type of risk that can be insured. What should Carol do in this situation?

A.) Accept the risk

B.) Mitigate the risk

C.) Transfer the risk

D.) Avoid the risk

Correct answer is A
Explanation: In this situation, Carol cannot avoid, mitigate or transfer the risk. She doesn't have a choice so she must accept the risk.
Reference: PMBOK Guide 5th Edition, page 345

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4. Question 8: Which of the following updates to the Risk Register are not performed during the Perform Qualitative Risk Analysis process?

A.) Relative ranking of risks

B.) Categorization of risks

C.) List of risks for additional analysis

D.) List of potential responses

Correct answer is D
Explanation: Potential risk responses are updated in the Risk Register during the Identify Risks process. Their responses are updated again during the Plan Risk Responses process. However, these updates are not performed during the Perform Qualitative Risk Analysis process.
Reference: PMBOK Guide 5th Edition, page 333

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5. Question 6: James has just finished documenting a list of his project risks. He now wants to analyze his company's strengths and capabilities to deal with these risks. Which of the following techniques can help James determine these strengths and capabilities and analyze the organizational environment?

A.) Expert Judgment

B.) SWOT Analysis

C.) Brainstorming

D.) Checklist Analysis

Correct answer is B
Explanation: James wants to analyze the organization's strengths and weaknesses in relation to the identified risks. A SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis is the tool that can help James with this activity.
Reference: PMBOK Guide 5th Edition, page 326

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6. Question 5: George has identified his project risks. He now wants to determine which risks have the most significant impact. This will consist of analyzing the effects of various risks on project objectives by keeping all the uncertain elements at their baseline values. Which of the following tools can help George conduct this analysis?

A.) Fishbone Diagram

B.) Flowchart

C.) Tornado Diagram

D.) Pareto Chart

Correct answer is C
Explanation: George wants to conduct a Sensitivity Analysis. A Tornado Diagram is a typical display of sensitivity analysis.
Reference: PMBOK Guide 5th Edition, page 338

Explanation

Correct answer is C
Explanation: George wants to conduct a Sensitivity Analysis. A Tornado Diagram is a typical display of sensitivity analysis.
Reference: PMBOK Guide 5th Edition, page 338

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7. Question 2: Anne is currently analyzing her project risks. She wishes to quickly assign relative probabilities to these risks in order to prioritize them. Which of the following processes assigns relative probabilities to the identified project risks?

A.) Plan Risk Responses

B.) Perform Quantitative Risk Analysis

C.) Perform Qualitative Risk Analysis

D.) Identify Risks

Correct answer is C
Explanation: Anne wants to assign relative probabilities. Such probabilities are based on ordinal scale. The Perform Qualitative Risk Analysis process assigns these probabilities to the identified project risks.
Reference: PMBOK Guide 5th Edition, page 328

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8. Question 7: Which of the following statements regarding the Perform Qualitative Risk Analysis and the Perform Quantitative Risk Analysis processes is correct?

A.) The Perform Quantitative Risk Analysis process assigns relative probabilities while the Perform Qualitative Risk Analysis process assigns numerical probabilities... A.) The Perform Quantitative Risk Analysis process assigns relative probabilities while the Perform Qualitative Risk Analysis process assigns numerical probabilities to the project risks.

B.) The Perform Qualitative Risk Analysis process assigns relative probabilities while the Perform Quantitative Risk Analysis process assigns numerical probabilities... B.) The Perform Qualitative Risk Analysis process assigns relative probabilities while the Perform Quantitative Risk Analysis process assigns numerical probabilities to the project risks.

C.) The Perform Qualitative Risk Analysis process is a mandatory process to be performed on every project, while the Perform... C.) The Perform Qualitative Risk Analysis process is a mandatory process to be performed on every project, while the Perform Quantitative Risk Analysis process is an optional process.

D.) The Perform Quantitative Risk Analysis process is a mandatory process to be performed on every project, while the Perform... D.) The Perform Quantitative Risk Analysis process is a mandatory process to be performed on every project, while the Perform Qualitative Risk Analysis process is an optional process.

Correct answer is B
Explanation: No process in the PMBOK Guide is mandatory. Every project team can determine which processes need to be applied to a specific project. The difference between these processes is that the Perform Qualitative Risk Analysis process assigns relative probabilities to the project risks, while the Perform Quantitative Risk Analysis process assigns numerical probabilities to the project risks.
Reference: PMBOK Guide 5th Edition, pages 328, 333

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9. Question 4: Which of the following statements regarding Expected Monetary Value analysis (EMV) is incorrect?

A.) It calculates a statistical average of the probable outcome of risk events.

B.) It requires a risk-neutral approach.

C.) It can be used in decision tree analysis.

D.) It calculates the impact of risks that have already occurred.

Correct answer is D
Explanation: EMV only takes into account future risks. It doesn't calculate the impact of risks that have already occurred. Risks that have already occurred are considered issues.
Reference: PMBOK Guide 5th Edition, page 339

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10. Question 10: Which of the following tools and techniques compares the amount of remaining contingency reserves to the amount of remaining project risk, in order to determine the sufficiency of the remaining contingency reserves?

A.) Risk Reassessment

B.) Reserve Analysis

C.) Technical Performance Measurement

D.) Variance and Trend Analysis

Correct answer is B
Explanation: The contingency reserves are the funds available to the project team to deal with the project risks. Reserve Analysis is the technique that compares the amount of contingency reserves available with the project risk remaining, at the time of the analysis.
Reference: PMBOK Guide 5th Edition, page 352

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11. Question 9: John is currently planning for his project risks. He has documented the risk categories and has obtained approved definitions for the risk probability and impact. In addition, he has developed a Probability and Impact Matrix that will help in prioritizing project risks. Which of the following processes should he perform next?

A.) Identify Risks

B.) Perform Qualitative Risk Analysis

C.) Perform Quantitative Risk Analysis

D.) Control Risks

Correct answer is A
Explanation: Risk categories, definitions for risk probability and impact, and the Probability and Impact Matrix are part of the Risk Management Plan. This means that John has completed the Plan Risk Management process and should start the Identify Risks process next.
Reference: PMBOK Guide 5th Edition, page 319

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12. Question 12: Linda is currently performing the Control Risks process for her project. She determines that some of the project risks listed in the Risk Register have become outdated. What should be done to these risks?

A.) These risks need to be reassessed.

B.) These risks need to be transferred to the Risk Watch List.

C.) These risks need to be closed.

D.) These risks need to be documented as Lessons Learned.

Correct answer is C
Explanation: The Risk Register must be kept updated and accurate as of the Review Date. All the outdated risks need to be closed in the Risk Register.
Reference: PMBOK Guide 5th Edition, page 354

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