Practice Test

True or False: Once a risk expires, it never needs to be evaluated for recurrence.

a) True

b) False

Answer: b) False.

Explanation: Even for expired risks, there’s a possibility of recurrence, so periodic review and evaluation is necessary.

What happens to a risk once it has expired?

a) It is revisited daily

b) It is taken off the risk management plan

c) It is monitored quarterly

d) It is no longer a concern for the project

Answer: b) It is taken off the risk management plan

Explanation: Once a risk has expired, it should be removed from the plan to avoid confusion and mismanagement of resources.

True or False: Risks that are closed out should be documented.

a) True

b) False

Answer: a) True.

Explanation: Documenting closed out risks helps in avoiding repetition and provides lessons learned.

What is the correct order of the risk management process?

a) Identify, Analyze, Respond, Monitor/Control, Close out

b) Identify, Respond, Analyze, Monitor/Control, Close out

c) Analyze, Identify, Respond, Close out, Monitor/Control

Answer: a) Identify, Analyze, Respond, Monitor/Control, Close out.

Explanation: This is the basic order in risk management from identification to closing out.

True or False: The PMI-RMP exam focuses largely on risk identification, risk response planning, and risk analysis.

a) True

b) False

Answer: b) False.

Explanation: While these are important areas, the exam also focuses significantly on risk monitoring and control and closing out expired risks.

Which of the following is NOT a part of the risk closing process?

a) Evaluating action plans

b) Identifying new risks

c) Transferring ownership of risks

d) Updating the risk database

Answer: c) Transferring ownership of risks

Explanation: Ownership transfer typically happens during the risk response planning phase, not during the closing process.

True or False: During the close out phase of risk management, it is important to reassess the risk register.

a) True

b) False

Answer: a) True.

Explanation: Reevaluating the risk register is essential during the close out phase, in order to update and document changes.

True or False: Risks can expire but will never completely disappear.

a) True

b) False

Answer: a) True.

Explanation: Even after a risk has expired, there’s always a chance it can manifest itself again at a different stage of the project.

The stage of risk management where expired risks are assessed and removed from the risk log is called:

a) Risk Auditing

b) Risk Close Out

c) Risk Realization

d) Risk Identification

Answer: b) Risk Close Out

Explanation: The risk close out stage is where expired risks are assessed and removed, and final risk documentation is completed.

True or False: Effective risk management stops once the risks are expired.

a) True

b) False

Answer: b) False.

Explanation: Effective risk management is a continual, iterative process that includes the monitoring and review of expired risks.

Interview Questions

What is the process of monitoring risks in project management?

In project management, risk monitoring involves ongoing identification and monitoring of potential risks and strategies for managing them. It also includes tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

What does ‘Close Out Expired Risks’ mean in risk management?

It means ending the monitoring and control process of a risk that is no longer pertinent because the risk event has passed or its probability or impact has reduced to an acceptable threshold.

What is the importance of closing out expired risks in project risk management?

Closing out expired risks is crucial because it helps focus the project’s energy, resources, and risk management efforts on current and potential risks. It reduces unnecessary complexity and improves the efficiency of the risk management process.

What is the part of risk closure in the risk management process?

In the risk management process, risk closure involves documenting the outcomes of risk responses, performing administrative closure of risk activities, and incorporating risk management lessons learned into the organization’s knowledge base.

What document helps manage the closure of expired risks?

The Risk Register helps manage the closure of expired risks. It documents all identified risks, including those that have expired, and is updated periodically throughout the project lifecycle.

What are some signs that a risk has expired?

Some signs of an expired risk include: the risk event has passed without occurrence, the project has surpassed the phase where the risk could have impacted, or changes in project or external conditions have reduced the risk’s probability or impact.

How does efficient risk monitoring contribute to closing out expired risks?

Efficient risk monitoring contributes by continually tracking and reviewing the probability and impact of risks. Once these become insignificant due to changes in project conditions, time frames, or successful risk responses, the risks can be closed out.

What is the risk owner’s role in closing out expired risks?

The risk owner monitors the assigned risk continuously, and when the risk has expired, they are responsible for communicating this update to the project team and updating the appropriate documentation, such as the Risk Register.

How can you ensure that no risk is prematurely marked as expired?

By maintaining diligent risk monitoring and control procedures, documented evidence of the risk’s expiry, and consensus among the risk management team to ensure that it’s appropriate to classify the risk as expired.

What is the impact of not closing out expired risks sufficiently on a project?

Not closing out expired risks can lead to wasted resources, increased project complexity, and decreased efficiency by addressing risks that are no longer relevant. Furthermore, it could distract the project team’s focus from other real, active risks.

What mechanism would you use to document lessons learned from closed-out risks?

The Lessons Learned Register is used to document lessons from closed-out risks. It typically includes information about the risk, its impact, the effectiveness of response strategies, etc. This knowledge can be leveraged for future projects or phases.

How does risk management improve as a result of closing out expired risks?

Closing out expired risks improves the risk management process by making it more efficient and targeted. It assists in resource allocation and allows the project team to concentrate on managing significant, active risks.

When in the project lifecycle should the process of closing out expired risks begin?

The process should be ongoing throughout the project’s lifecycle. Any identified risk that has passed or no longer poses a significant threat to the project’s objectives should be closed out when it is identified as having expired.

What changes might push a risk to an expired status?

Changes may include alterations in project scope, schedule, or resources, adjustments in project approach or technology, and external factors such as changing market conditions, legal requirements, or stakeholder influence.

As a project manager, how would you handle a risk that has been prematurely marked as expired?

The risk needs to be reassessed, its probability and impact reevaluated, and its status updated in the risk register. If needed, the risk response plan will be revised and communicated with the project team.

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