This quiz tests your knowledge on Risk Management in Project Management. It covers topics such as risk categories, risk prioritization, risk treatment, and industry standards methods for treating risk. The quiz is based on the AS/NZS ISO 31000:2009 standard and includes 10 multiple-choice questions.
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1.Three common risk categories are Scope risk, Schedule risk and Resource risk. Which of the following statements most accurately describes one of these risk categories? (Selectonebest answer) Scope risk refers to deliverables, objectives, project charter Schedule risk refers to the project budget Resource risk refers to the Procurement Plan 2.Risks can be ranked as unacceptable, undesirable, tolerable or broadly acceptable, and you must act upon them accordingly. Which of the following definitions of these rankings is not correct? (Select theoneincorrect answer) An unacceptable classification requires stopping the activity An undesirable classification requires that the risk is treated based on its ranking A tolerable classification requires the risk to be transferred A broadly acceptable classification allows the risk to be tolerated 3.The following lists components of a Risk Management Plan and their purpose in the risk management process. Which of these definitions most accurately describes a Risk Management Plan component? (Selectonebest answer) RISK CONTEXT Identified risks and their categories RISK IDENTIFICATION Identifies risk standards and their context RISK ANALYSIS classifies risk Risk SWOT responds to changes in the risk environment RISK REGISTER records risk objectives RISK MONITORING Looks at risk qualitatively and quantitatively 4.Which of the following accurately describes contemporary methods of risk prioritisation in project management? (Select theonebest answer)
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Risk prioritisation is generally based on the probability of occurrence and severity of impact of each identified risk Some organisations place a higher priority on risks that are likely to happen soon Organisations place higher priority on those risks that fall on the critical path and have poor current controls to mitigate the risk All of these 5.Match the following terms (refer to word list) to their correct meaning. Word List:Risk Probability, Risk Likelihood, Risk Impact, Risk Consequence, Risk Ranking, Risk Classification, Inherent Risk, Residual Risk, Qualitative Risk, Quantitative Risk MeaningDefinition Developing and applying a scale of a 5 x 5 array of elements with each element representing a different of likelihood and impact values Qualitative risk The probability of the risk even occurring. Risk mitigation strategies reduce the probability or likelihood of the risk occurring Risk probability This refers to the impact of the risk event, if it occursRisk impact This process looks at the risks that have received a high priority ranking, and then examines the effect of these risks Quantitative risk Same as for risk impactRisk consequence Same as for risk probabilityRisk likelihood The score given to a risk by multiplying its probability and impact Risk ranking Defining the classifications by which risk can then be calculated and analysed Risk classification A risk inherited from a previous projectInherent risk The risk that remains after mitigation and controls are taken into account Residual risk 6.Carefully read the following table from an Internet Project Risk Register, and answer the following question. IDRisk EventLikelihoodSeverity AProject requires new technology and support structure MediumLow BWeb infrastructure lacks sufficient transaction capacity MediumHigh
CIS resources are spread too thinHighHigh DThe intranet site suffers a security breachLowHigh Which of the following risk events should receive the highest risk level in preparation for risk evaluation and prioritisation?(Select theonebest answer) project requires new technology and support structure web infrastructure lacks sufficient transaction capacity IS resources are spread too thin The intranet site suffers a security breach 7.When assessing risks we need to understand the external and internal operating environments of the project. Which of the following relates to the internal risk context of the project? (Select theonebest answer) Local, state and federal economies Regulatory and legal frameworks Physical and technical infrastructure for the project Social, community and cultural influences 8.Risk treatment applies to both negative risk and positive risk. Various strategies exist for treating negative risk and these differ to the way positive risk is treated. Select the single most accurate statement about industry standards methods for treating risk: Negative risk can be treated by either avoiding, exploiting, transferring or mitigating. Negative risk treated is either avoided, transferred, mitigated or accepted. Positive risk is treated by either mitigating, sharing, mitigating or accepting. Positive risk is treated by either exploiting, transferring, mitigating or accepting. 9.TheAS/NZS ISO 31000:2009standard provides the internationally accepted basis for best practice risk management. The standard includes 11 principles for managing risk and implies that the Risk Management Plan should meet these criteria. Listed below are 10 of the principles: 1.Creates value
2.Integral part of organisational processes 3.Part of decision making 4.Explicitly addresses uncertainty 5.Systematic, structured and timely 6.Based on the best available information 7.Takes human and cultural factors into account 8.Transparent and inclusive 9.Dynamic, iterative and responsive to change 10.Facilitates continual improvement and enhancement of the organization Select the remaining principle from the list below:(Select theonebest answer) Cost effective Customer focussed Tailored 10.Quantitative risk analysis, as opposed to other forms of risk analysis, is based on? (Select theonebest answer) an analysis of the likelihood and impact adopting given values to the qualitative scales uses numerical values such as formula or monetary values all of the above.