139 - Chapter 11-13
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_____________ is an uncertainty that can have a negative or positive effect on meeting project objectives.
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Risk utility
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Risk tolerance
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Risk management
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Risk
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About This Quiz
This quiz titled '139 - Chapter 11-13' assesses knowledge on risk management within project settings, focusing on risk identification, analysis, and mitigation strategies. It is crucial for learners aiming to enhance their risk management skills in a professional context.
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- 2.
A person who is risk-_____________ receives greater satisfaction when more payoff is at stake and is willing to pay a penalty to take risks.
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Averse
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Seeking
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Neutral
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Aware
Correct Answer
A. SeekingExplanation
A person who is risk-seeking is someone who actively seeks out and enjoys taking risks. They are more satisfied when there is a higher potential payoff involved and are even willing to pay a penalty in order to engage in risky activities. This indicates that they have a higher tolerance for uncertainty and are motivated by the excitement and potential rewards that come with taking risks.Rate this question:
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- 3.
Which risk management process involves prioritizing risks based on their probability and impact of occurrence?
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Planning risk management
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Identifying risks
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Performing qualitative risk analysis
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Performing quantitative risk analysis
Correct Answer
A. Performing qualitative risk analysisExplanation
Performing qualitative risk analysis involves prioritizing risks based on their probability and impact of occurrence. This process helps to identify and assess risks qualitatively, without assigning specific values or numbers to them. By prioritizing risks, organizations can focus their resources on addressing the most critical and high-impact risks first. This analysis helps in understanding the potential consequences of each risk and determining the appropriate risk response strategies.Rate this question:
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- 4.
Your project involves using a new release of a common software application, but if that release is not available, your team has _____________ plans to use the current release.
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Contigency
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Fallback
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Reserve
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Mitigation
Correct Answer
A. ContigencyExplanation
In this scenario, the correct answer is "contingency". A contingency plan refers to a backup or alternative plan that is prepared in case the desired or intended plan does not work out. In this case, if the new release of the software application is not available, the team has a contingency plan to use the current release instead.Rate this question:
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- 5.
Which risk identification tool involves deriving a consensus among a panel of experts by using anonymous input regarding future events?
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Risk breakdown structure
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Brainstorming
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Interviewing
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Delphi technique
Correct Answer
A. Delphi techniqueExplanation
The Delphi technique involves gathering input from a panel of experts anonymously to reach a consensus on future events. This method allows for unbiased opinions and encourages open discussion without the influence of dominant personalities. The experts provide their input and predictions independently, and the facilitator compiles and summarizes the responses to identify common themes and areas of agreement. This technique helps in identifying and assessing risks by leveraging the collective knowledge and expertise of the panel.Rate this question:
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- 6.
A risk _____________ is a document that contains results of various risk management processes, and is often displayed in a table or spreadsheet format.
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Management plan
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Register
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Breakdown structure
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Probability/impact matrix
Correct Answer
A. RegisterExplanation
A risk register is a document that contains results of various risk management processes, and is often displayed in a table or spreadsheet format. It is used to identify, assess, and track risks throughout a project or organization. The register includes information such as the risk description, likelihood, impact, mitigation strategies, and responsible parties. It helps to prioritize risks and allocate resources accordingly to manage and mitigate them effectively.Rate this question:
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- 7.
_____________ are indicators or symptoms of actual risk events, such as a cost overrun on early activities being a symptom of poor cost estimates.
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Probabilities
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Impacts
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Watch list items
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Triggers
Correct Answer
A. TriggersExplanation
Triggers are indicators or symptoms of actual risk events. They can be seen as warning signs that suggest the occurrence of a risk event. In the given example, a cost overrun on early activities is a trigger that indicates poor cost estimates. Triggers help in identifying and addressing potential risks before they escalate into bigger issues.Rate this question:
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- 8.
Suppose there is a 30 percent chance that you will lose $10,000 and a 70 percent chance that you will earn $100,000 on a particular project. What is the project’s estimated monetary value?
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-$30,000
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$70,000
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$67,000
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-$67,000
Correct Answer
A. $67,000Explanation
The project's estimated monetary value is $67,000. This is calculated by multiplying the probability of each outcome by its corresponding monetary value and summing them up. In this case, there is a 30% chance of losing $10,000 (-$10,000 * 0.30 = -$3,000) and a 70% chance of earning $100,000 ($100,000 * 0.70 = $70,000). Adding these values together gives us -$3,000 + $70,000 = $67,000.Rate this question:
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- 9.
_____________ is a quantitative risk analysis tool that uses a model of a system to analyze its expected behavior or performance
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Simulation
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Sensitivity analysis
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Monte Carlo analysis
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EMV
Correct Answer
A. SimulationExplanation
Simulation is a quantitative risk analysis tool that uses a model of a system to analyze its expected behavior or performance. It involves creating a virtual representation of the system and running various scenarios to understand how it will behave under different conditions. By simulating the system, analysts can identify potential risks, evaluate the impact of different variables, and make informed decisions to mitigate risks and optimize performance.Rate this question:
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- 10.
Your project team has decided not to use an upcoming release of software because it might cause your schedule to slip. Which negative risk response strategy are you using?
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Avoidance
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Acceptance
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Transference
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Mitigation
Correct Answer
A. AvoidanceExplanation
The project team is choosing to avoid the risk of using the upcoming release of software because it may cause a delay in the schedule. By avoiding the risk, they are actively deciding not to engage with it and are taking steps to prevent it from occurring. This strategy allows them to minimize the potential negative impact on the project's timeline.Rate this question:
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- 11.
What is the top reason for global outsourcing of IT services?
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Cost reduction
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A shortage of qualified personnel
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Decreasing time to market
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Increasing revenues
Correct Answer
A. A shortage of qualified personnelExplanation
The top reason for global outsourcing of IT services is a shortage of qualified personnel. This means that companies are unable to find enough skilled individuals locally to meet their IT needs. As a result, they turn to outsourcing to access a larger pool of talent from around the world. Outsourcing allows companies to tap into the expertise of professionals in different countries who possess the necessary skills and qualifications. This helps address the shortage of qualified personnel and ensures that companies can meet their IT requirements effectively.Rate this question:
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- 12.
Your organization hired a specialist in a certain field to provide training for a short period of time. Which reason for outsourcing would this example fall under?
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Reducing costs
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Allowing the client organization to focus on its core business
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Accessing skills and technologies
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Providing flexibility
Correct Answer
A. Accessing skills and technologiesExplanation
This example of hiring a specialist in a certain field for training falls under the reason for outsourcing of "accessing skills and technologies." By outsourcing this training to a specialist, the organization can benefit from the expertise and knowledge of someone who has specific skills and technologies in that field. This allows the organization to gain access to resources that they may not have internally, ultimately enhancing their own capabilities and improving the quality of the training provided.Rate this question:
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- 13.
In which project procurement management process is an RFP often written?
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Planning procurement management
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Conducting procurements
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Controlling procurements
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Selecting sellers
Correct Answer
A. Planning procurement managementExplanation
An RFP (Request for Proposal) is often written in the project procurement management process of planning procurement management. This process involves identifying the necessary goods or services to be procured and determining the most appropriate procurement approach. Writing an RFP is a crucial step in this process as it allows the project team to clearly communicate their requirements to potential sellers and solicit competitive proposals. By writing an RFP during the planning phase, the project team can ensure that they have a well-defined procurement strategy in place before moving forward with conducting procurements or selecting sellers.Rate this question:
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- 14.
An item you need for a project has a daily lease cost of $200. If you decide to purchase the item, the investment cost is $6,000 and the daily cost is $100. After how many days will the lease cost be the same as the purchase cost?
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30
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40
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50
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60
Correct Answer
A. 60Explanation
After purchasing the item, the daily cost is $100. The lease cost is $200 per day. To find out when the lease cost will be the same as the purchase cost, we need to find the number of days it takes for the total cost of leasing to equal the investment cost of purchasing. Since the investment cost is $6,000 and the daily cost difference between leasing and purchasing is $100, it will take 60 days for the lease cost to be the same as the purchase cost.Rate this question:
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- 15.
Which type of contract has the least amount of risk for the buyer?
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Fixed-price
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Cost plus incentive fee (CPIF)
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Time and material
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Cost plus fixed fee (CPFF)
Correct Answer
A. Fixed-priceExplanation
A fixed-price contract has the least amount of risk for the buyer because the price is agreed upon upfront and does not change, regardless of any unforeseen circumstances or changes in the project. The buyer knows exactly how much they will be paying, which eliminates the risk of cost overruns or additional expenses. In contrast, other types of contracts such as cost plus incentive fee (CPIF), time and material, or cost plus fixed fee (CPFF) may involve more uncertainty and potential for increased costs.Rate this question:
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- 16.
The is the point at which the contractor assumes total responsibility for each additional dollar of contract cost.
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Breakeven point
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Share Ratio Point
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Point of Reconciliation
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Point of Total Assumption
Correct Answer
A. Point of Total AssumptionExplanation
The Point of Total Assumption refers to the point at which the contractor assumes total responsibility for each additional dollar of contract cost. This means that beyond this point, any additional costs incurred by the contractor will not be reimbursed by the client or the contract. It is an important concept in contract management as it helps determine the financial risk and potential profit for the contractor.Rate this question:
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- 17.
If your college or university wanted to get information from potential sellers for providing a new sports stadium, what type of document would be required of the potential sellers?
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RFP
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RFQ
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Proposal
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Quote
Correct Answer
A. ProposalExplanation
If a college or university wants to gather information from potential sellers for the purpose of building a new sports stadium, they would require a proposal from the potential sellers. A proposal is a formal document that outlines the seller's approach, plans, and costs for the project. It provides detailed information about the seller's capabilities and expertise, as well as their understanding of the project requirements. This document helps the college or university evaluate and compare different sellers' offerings before making a decision.Rate this question:
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- 18.
Buyers often prepare a list when selecting a seller to make the process more manageable.
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Preferred
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Short
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Qualified suppliers
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BAFO
Correct Answer
A. ShortExplanation
Buyers often prepare a short list when selecting a seller to make the process more manageable. This means that they narrow down their options to a smaller number of preferred and qualified suppliers. By doing so, buyers can focus their attention on evaluating and comparing a select few sellers, rather than having to consider a large number of potential options. This helps streamline the decision-making process and allows buyers to make a more informed choice.Rate this question:
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- 19.
A proposal evaluation sheet is an example of a(n) .
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RFP
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NPV analysis
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Earned value analysis
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Weighted scoring model
Correct Answer
A. Weighted scoring modelExplanation
A proposal evaluation sheet is an example of a weighted scoring model because it assigns different weights to various criteria or factors that are important in evaluating proposals. These weights reflect the relative importance of each criterion, and the scores assigned to each proposal are then multiplied by these weights to calculate a weighted score. This allows for a more objective and systematic evaluation of proposals, as it takes into account the different priorities and preferences of the evaluators.Rate this question:
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- 20.
Is a term used to describe various procurement functions that are now done electronically.
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E-procurement
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E-bay
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E-commerce
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EMV
Correct Answer
A. E-procurementExplanation
E-procurement refers to the use of electronic platforms and technologies to carry out various procurement functions. This can include activities such as sourcing, ordering, and payment processes, all of which are done electronically. E-procurement allows for greater efficiency, transparency, and cost savings in the procurement process, as it eliminates the need for manual paperwork and streamlines communication between buyers and suppliers. It is widely used in both public and private sectors to streamline and automate procurement processes.Rate this question:
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- 21.
Which knowledge area was first introduced in the PMBOK® Guide in 2012?
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Project engagement management
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Project consulting management
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Project stakeholder engagement
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Project stakeholder management
Correct Answer
A. Project stakeholder managementExplanation
The correct answer is project stakeholder management. This knowledge area was first introduced in the PMBOK® Guide in 2012. It focuses on identifying and engaging stakeholders throughout the project lifecycle to ensure their needs and expectations are met. This includes processes such as stakeholder identification, analysis, communication, and management. By actively managing stakeholders, project managers can enhance project success and minimize potential conflicts or issues.Rate this question:
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- 22.
Suppliers and concerned citizens are examples of which type of stakeholders?
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Internal
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External
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Supportive
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Unsupportive
Correct Answer
A. ExternalExplanation
Suppliers and concerned citizens are considered external stakeholders because they are individuals or entities that are not directly involved in the day-to-day operations of a company but have an interest or influence in its activities. Suppliers provide goods or services to the company, while concerned citizens may include community members, activists, or organizations that have a vested interest in the company's actions and impact on the community or environment. Both suppliers and concerned citizens have a role in shaping the company's reputation and success from an external perspective.Rate this question:
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- 23.
What type of information about stakeholders is not included in a stakeholder register?
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Identification
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Classification
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Assessment
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Engagement level
Correct Answer
A. Engagement levelExplanation
The stakeholder register includes information about stakeholders such as their identification, classification, and assessment. However, the engagement level of stakeholders is not included in the stakeholder register. The engagement level refers to the extent to which stakeholders are actively involved and participating in a project or organization. This information is typically tracked separately from the stakeholder register and is important for understanding the level of support or opposition from stakeholders.Rate this question:
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- 24.
What type of grid can categorize stakeholders based on their level of authority and concern?
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A power/interest grid
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An authority/concern grid
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An authority/interest grid
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A resistance/support grid
Correct Answer
A. A power/interest gridExplanation
A power/interest grid can categorize stakeholders based on their level of authority and concern. This grid helps to identify and prioritize stakeholders based on their power or influence over a project or decision, as well as their level of interest or concern in the outcome. By plotting stakeholders on this grid, it becomes easier to determine how to engage and manage them effectively, based on their level of authority and concern.Rate this question:
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- 25.
One of your project stakeholders has a high amount of authority and a high amount of interest. How should you manage that relationship?
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Keep informed
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Keep satisfied
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Manage closely
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Monitor
Correct Answer
A. Manage closelyExplanation
When a project stakeholder has both a high amount of authority and a high amount of interest, it is crucial to manage the relationship closely. This stakeholder has the power to make significant decisions that can impact the project's success, and their high level of interest indicates their involvement and potential impact on the project. By managing the relationship closely, the project manager can ensure effective communication, address any concerns or issues promptly, and actively involve the stakeholder in decision-making processes. This approach helps to maintain a positive and collaborative relationship, ensuring that the stakeholder's needs and expectations are met throughout the project.Rate this question:
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- 26.
Which type of matrix can help clarify which knowledge areas are most important to stakeholders on a project?
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A knowledge area matrix
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A prioritization matrix
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An expectations management matrix
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A stakeholder management matrix
Correct Answer
A. An expectations management matrixExplanation
An expectations management matrix can help clarify which knowledge areas are most important to stakeholders on a project. This matrix allows project managers to identify and prioritize the expectations of stakeholders, which in turn helps in understanding the knowledge areas that are crucial for meeting those expectations. By using this matrix, project managers can effectively manage and align stakeholder expectations with project goals and objectives.Rate this question:
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- 27.
What tool can you use to document, monitor, and track items that need resolution on a project?
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An issue log
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A risk register
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An issue register
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A resolution log
Correct Answer
A. An issue logExplanation
An issue log is a tool that can be used to document, monitor, and track items that need resolution on a project. It allows project managers and team members to record and track any issues or problems that arise during the project, including their status, priority, and assigned resolution actions. By using an issue log, project stakeholders can effectively manage and address any challenges or obstacles that may impact the project's progress and success.Rate this question:
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- 28.
When should you start controlling stakeholder engagement on a project?
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In the early phases
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In the middle phases
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In the latter phases
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None of the above; you cannot control stakeholder engagement
Correct Answer
A. In the early phasesExplanation
Controlling stakeholder engagement should start in the early phases of a project because it is crucial to establish effective communication and build relationships with stakeholders from the beginning. This allows for better understanding of their needs, expectations, and concerns, which can help in managing their engagement throughout the project lifecycle. By starting early, project managers can identify key stakeholders, establish clear lines of communication, and address any potential issues or conflicts before they escalate. This proactive approach ensures that stakeholders are actively involved and engaged in the project, leading to increased chances of project success.Rate this question:
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- 29.
Which of the following statements is false about software that can assist in project stakeholder management?
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Social media tools can assist in stakeholder management.
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Some project management software includes features like giving high fives
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C. Texting is an example of a microblog that can keep stakeholders informed about project work.
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A vodcast is a video podcast that can inform and engage stakeholders.
Correct Answer
A. C. Texting is an example of a microblog that can keep stakeholders informed about project work.Explanation
Texting is not an example of a microblog. A microblog is a platform where users can post short updates or messages, typically in the form of text, images, or links. Texting, on the other hand, refers to the act of sending short messages via mobile phone or other devices. While texting can be used to communicate with stakeholders, it is not considered a microblogging platform.Rate this question:
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- 30.
After a series of large project disasters, what country is requiring people to complete a new academic program in project management before leading a large government project?
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Australia
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UK
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India
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Japan
Correct Answer
A. UKExplanation
The UK is requiring people to complete a new academic program in project management before leading a large government project due to a series of large project disasters. This suggests that the UK government has recognized the need for better project management skills to prevent future failures and is taking proactive measures to ensure that project leaders are adequately trained and qualified in this area.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
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Mar 20, 2018Quiz Created by
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