QUESTION: 165

You are the project manager for BlueWell Inc. You have noticed that the risk level in your project increases above the risk tolerance level of your enterprise. You have applied several risk responses. Now you have to update the risk register in accordance to risk response process. All of the following are included in the risk register except for which item?

Risk triggers
Agreed-upon response strategies
Network diagram analysis of critical path activities
Risk owners and their responsibility

Answer(s): C

Explanation:

The risk register does not examine the network diagram and the critical path. There may be risks associated with the activities on the network diagram, but it does not address the network diagram directly.

The risk register is updated at the end of the plan risk response process with the information that was discovered during the process. The response plans are recorded in the risk register. In the risk register, risk is stated in order of priority, i.e., those with the highest potential for threat or opportunity first. Some risks might not require response plans at all, but then too they should be put on a watch list and monitored throughout the project. Following elements should appear in the risk register:

List of identified risks, including their descriptions, root causes, and how the risks impact the project objectives
Risk owners and their responsibility
Outputs from the Perform Qualitative Analysis process Agreed-upon response strategies
Risk triggers
Cost and schedule activities needed to implement risk responses Contingency plans
Fallback plans, which are risk response plans that are executed when the initial risk response plan proves to be ineffective
Contingency reserves
Residual risk, which is a leftover risk that remains after the risk response strategy has been implemented Secondary risks, which are risks that come about as a result of implementing a risk response

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QUESTION: 166

Ben is the project manager of the CMH Project for his organization. He has identified a risk that has a low probability of happening, but the impact of the risk event could save the project and the organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs her to research the time, cost, and method to improve the probability of the positive risk event. Ben then communicates the risk event and response to management. What risk response has been used here?

Transference
Enhance
Exploit
Sharing

Answer(s): B

Explanation:

Enhance is a risk response to improve the conditions to ensure the risk event occurs. Risk enhancement raises the probability of an opportunity to take place by focusing on the trigger conditions of the opportunity and optimizing the chances. Identifying and maximizing input drivers of these positive-impact risks may raise the probability of their occurrence.

Incorrect Answers:
A: Transference is a strategy to mitigate negative risks or threats. In this strategy, consequences and the ownership of a risk is transferred to a third party. This strategy does not eliminate the risk but transfers responsibility of managing the risk to another party. Insurance is an example of transference.

C: Exploit response is one of the strategies to negate risks or threats that appear in a project. This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. Exploiting a risk event provides opportunities for positive impact on a project. Assigning more talented resources to the project to reduce the time to completion is an example of exploit response.

D: Sharing happens through partnerships, joint ventures, and teaming agreements. Sharing response is where two or more entities share a positive risk. Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.

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QUESTION: 167

Which of the following techniques examines the degree to which organizational strengths offset threats and opportunities that may serve to overcome weaknesses?

SWOT Analysis
Delphi
Brainstorming
Expert Judgment

Answer(s): A

Explanation:

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Incorrect Answers:
B, C: Brainstorming and Delphi techniques are used to identify risks in a project through consensus. Delphi differs in that as the members of the team do not know each other.

D: In this technique, risks can be identified directly by experts with relevant experience of similar projects or business areas.

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QUESTION: 168

You are the project manager for your company and a new change request has been approved for your project. This change request, however, has introduced several new risks to the project. You have communicated these risk events and the project stakeholders understand the possible effects these risks could have on your project. You elect to create a mitigation response for the identified risk events. Where will you record the mitigation response?

Risk register
Risk log
Project management plan
Risk management plan

Answer(s): A

Explanation:

The Identified risks and potential responses are documented in the risk register. A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains:
A description of the risk
The impact should this event actually occur The probability of its occurrence
Risk Score (the multiplication of Probability and Impact)
A summary of the planned response should the event occur
A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.

Incorrect Answers:
B: This is not a valid choice for this question

C: The project management plan is the parent of the risk management plan, but the best choice is the risk register.

D: The risk management plan is an input to the risk response planning, but it is not the best choice for this question

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