chapter-11 Risk Management
1. 1. Risk utility rises at a decreasing rate for a person.
b. risk-averse
2. Those who are have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
a. risk-seeking
3. A person achieves a balance between risk and payoff.
d. risk-neutral
4. involves deciding how to approach and plan the risk management activities for the project.
b. Planning risk management
5. involves determining which risks are likely to affect a project and documenting the characteristics of each.
a. Identifying risks
6. involves prioritizing risks based on their probability and impact of occurrence.
a. Performing qualitative risk analysis
7. involves numerically estimating the effects of risks on project objectives.
d. Performing quantitative risk analysis
8. involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
b. Planning risk responses
9. involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.
c. Controlling risk
10. Identifying risks is a subprocess of the process of project risk management.
a. planning
11. Performing qualitative and quantitative risk analyses are subprocesses of the process of project risk management.
a. planning
12. are predefined actions that the project team will take if an identified risk event occurs.
c. Contingency plans
13. Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.
c. procurement
14. is a fact-finding technique that can be used for collecting information in face -to-face, phone, e- mail, or instant -messaging discussions.
d. Interviewing
15. A(n) represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
b. influence diagram
16. The lists the relative probability of a risk occurring and the relative impact of the risk occurring.
c. probability/impact matrix
17. are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
d. Top Ten Risk Item Tracking
18. A(n) is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
a. decision tree
19. analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results.
c. Monte Carlo
20. What is the first step in a Monte Carlo analysis?
c. Assess the range for the variables being considere
21. A is a technique used to show the effects of changing one or more variables on an outcome.
a. sensitivity analysis
22. involves eliminating a specific threat, usually by eliminating its causes.
a. Risk avoidance
23. involves shifting the consequence of a risk and responsibility for its management to a third party.
c. Risk transference
24. involves reducing the impact of a risk event by reducing the probability of its occurrence.
d. Risk mitigation
25. involves doing whatever you can to make sure the positive risk happens.
a. Risk exploitation
26. involves allocating ownership of the risk to another party.
b. Risk sharing
27. involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
c. Risk enhancement
28. applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.
b. Risk acceptance
29. risks refer to those that are direct results of implementing risk responses.
d. Secondary
30. are unplanned responses to risk events used when project teams do not have contingency plans in place.
a. Workarounds