Risk Management Quiz: Test!
Questions and Answers
- 1.
According to Maylor, what are traditionally the core three risk categories?
- A.
Cost, schedule, and quality
- B.
Environment, cost, and legal
- C.
Resources, schedule, and health and safety
Correct Answer
A. Cost, schedule, and qualityExplanation
Maylor identifies cost, schedule, and quality as the core three risk categories. These categories are traditionally considered the most important factors to consider when managing risks in a project. Cost refers to the financial impact of a risk, schedule refers to the impact on project timelines and deadlines, and quality refers to the impact on the final product or service. By focusing on these core categories, project managers can effectively identify and mitigate potential risks to ensure project success.Rate this question:
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- 2.
What are the three stages of cyclical risk management?
- A.
Identification, quantification and prioritisation
- B.
Identification, analysis, and monitoring and control
- C.
Analysis, mitigation, and control
Correct Answer
B. Identification, analysis, and monitoring and controlExplanation
The three stages of cyclical risk management are identification, analysis, and monitoring and control. In the identification stage, potential risks are identified and documented. In the analysis stage, the identified risks are analyzed to understand their potential impact and likelihood. Finally, in the monitoring and control stage, measures are put in place to monitor the identified risks and control them effectively. This cyclical approach ensures that risks are continuously identified, analyzed, and managed to minimize their impact on the organization.Rate this question:
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- 3.
Which of the following are risk analysis techniques?
- A.
Interviewing
- B.
Network diagrams
- C.
Brainstorming
- D.
SWOT analysis
- E.
Acceptance
- F.
Outsourcing
- G.
RBS - risk breakdown structure
Correct Answer(s)
A. Interviewing
C. Brainstorming
D. SWOT analysis
G. RBS - risk breakdown structureExplanation
Risk analysis techniques involve identifying, assessing, and prioritizing risks. Interviewing is a technique where stakeholders are interviewed to gather information about potential risks. Brainstorming is a technique where a group generates ideas and potential risks are identified and discussed. SWOT analysis is a technique that assesses the strengths, weaknesses, opportunities, and threats of a project, including potential risks. RBS, or risk breakdown structure, is a technique that breaks down risks into categories and subcategories for better analysis and understanding. Therefore, all of these techniques are risk analysis techniques.Rate this question:
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- 4.
What does the acronym SWOT mean?
- A.
Sensitivity, Weaknesses, Opportunities, and Time
- B.
Strengths, Weaknesses, Opportunities, and Threats
Correct Answer
B. Strengths, Weaknesses, Opportunities, and ThreatsExplanation
SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. This framework is commonly used in business and strategic planning to assess an organization's internal strengths and weaknesses, as well as external opportunities and threats in the market or industry. By analyzing these factors, businesses can identify areas where they have a competitive advantage, areas that need improvement, potential growth opportunities, and potential risks or challenges they may face.Rate this question:
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- 5.
Which of the following is the more commonly-used type of risk analysis method?
- A.
Qualitative
- B.
Quantitative
Correct Answer
A. QualitativeExplanation
Qualitative risk analysis is the more commonly-used type of risk analysis method. This method involves assessing risks based on subjective judgment and qualitative data, such as expert opinions, historical data, and observations. It focuses on understanding the nature and characteristics of the risks rather than assigning numerical values. Quantitative risk analysis, on the other hand, involves assigning numerical values to risks and using statistical analysis to quantify the potential impact and likelihood of each risk. While quantitative analysis provides more precise and measurable results, qualitative analysis is often preferred due to its simplicity, ease of use, and ability to provide an initial understanding of risks.Rate this question:
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- 6.
When might a PERT approach to risk assessment now be most useful?
- A.
In determining the effects of risks
- B.
For a manager deciding whether to accept the level of risk that a project presents
- C.
In all large projects
- D.
In determining the likelihood of individual risks occurring
Correct Answer
B. For a manager deciding whether to accept the level of risk that a project presentsExplanation
A PERT (Program Evaluation and Review Technique) approach to risk assessment would be most useful for a manager deciding whether to accept the level of risk that a project presents. PERT is a project management tool that helps in analyzing and evaluating the potential risks associated with a project. By using PERT, a manager can assess the impact and probability of risks, allowing them to make informed decisions about whether the project's level of risk is acceptable or if mitigation measures need to be implemented. This approach helps in understanding the overall risk profile of the project and aids in making risk-informed decisions.Rate this question:
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- 7.
Which of the following are advantages of using quantitative methods of risk analysis?
- A.
Less time-consuming
- B.
More precise
- C.
Less reliance on software
Correct Answer
B. More preciseExplanation
Quantitative methods of risk analysis are advantageous because they provide more precise results compared to qualitative methods. Quantitative analysis involves using numerical data and statistical models to assess risks, which allows for more accurate calculations and predictions. This precision can help in making informed decisions and implementing effective risk management strategies.Rate this question:
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- 8.
Which of the following are quantitative risk analysis technologies?
- A.
Simulation
- B.
Gathering opinions
- C.
Decision-making trees
- D.
Using simple ranking charts
- E.
The Event Chain method
- F.
Failure mode effect analysis (FMEA)
- G.
PERT
Correct Answer(s)
A. Simulation
C. Decision-making trees
E. The Event Chain method
G. PERTExplanation
Quantitative risk analysis technologies involve numerical data and calculations to assess and quantify risks. Simulation is a technique that uses mathematical models to simulate various scenarios and predict outcomes. Decision-making trees are a visual representation of decision options and their potential consequences, allowing for quantitative analysis. The Event Chain method is a technique that analyzes the impact of events and their probabilities on project outcomes. PERT (Program Evaluation and Review Technique) is a project management tool that uses statistical analysis to estimate project durations. These technologies all involve quantitative analysis and are therefore considered quantitative risk analysis technologies.Rate this question:
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- 9.
What is Opportunities Management?
- A.
The management of any identified risk once it occurs
- B.
The management of positive risks
- C.
A new school of thought that treats the emergence of any risk as an opportunity to re-work the project
Correct Answer
B. The management of positive risksExplanation
Opportunities management refers to the management of positive risks. This means that instead of perceiving risks as solely negative events, opportunities management treats them as potential positive outcomes. It involves identifying and assessing risks that could have a positive impact on a project or organization, and then implementing strategies to maximize those opportunities. By actively managing positive risks, organizations can capitalize on potential benefits and enhance their overall performance and success.Rate this question:
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- 10.
In NASA’s Mars Climate Orbiter Project, what were some of the failures in relation to risk management?
- A.
Failure to continually perform system analyses to identify risks
- B.
Failure to communicate risks to all sectors of the project team and management
- C.
Failure of the team and management to work to make trade-off decisions to mitigate risks
- D.
Failure to properly consider the likelihood and impact of potential risks
- E.
Failure to regularly communicate progress of the risk mitigation plans and trade-offs to management
- F.
Failure to define and quantify acceptable risk
- G.
Failure to draw up an initial risk register
- H.
Failure to prioritise risks
Correct Answer(s)
A. Failure to continually perform system analyses to identify risks
B. Failure to communicate risks to all sectors of the project team and management
C. Failure of the team and management to work to make trade-off decisions to mitigate risks
E. Failure to regularly communicate progress of the risk mitigation plans and trade-offs to management
F. Failure to define and quantify acceptable riskExplanation
The given answer lists several failures in relation to risk management in NASA's Mars Climate Orbiter Project. These failures include not performing system analyses to identify risks continuously, not communicating risks to all sectors of the project team and management, not making trade-off decisions to mitigate risks, not regularly communicating the progress of risk mitigation plans and trade-offs to management, and not defining and quantifying acceptable risk. These failures highlight the importance of ongoing risk assessment, effective communication, decision-making, and monitoring in managing risks effectively.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 24, 2011Quiz Created by
Team418b
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