Practice Test

True or False: Risk management templates/forms can be customized depending on the project requirement.

Answer: True

Explanation: Every project has unique risks, thus it may often require a customized risk management plan tailored to its specific needs.

Which of the following is not normally included in risk management templates/forms?

  • a) Risk List
  • b) Risk Breakdown Structure (RBS)
  • c) Responsible Party
  • d) Total project budget

Answer: d) Total project budget

Explanation: The total project budget is not typically included in risk management templates. Instead, these forms usually include risk list, RBS, and the responsible party among other data related to risk management.

True or False: Risk Management Templates/Forms should not include a section on risk responses.

Answer: False

Explanation: Risk response planning is a critical part of risk management, so any comprehensive risk management plan should include a section on risk responses.

Which of the following is not a section in a typical Risk Management Plan template?

  • a) Risk Analysis
  • b) Resource Scheduling
  • c) Risk Monitoring
  • d) Risk Identification

Answer: b) Resource Scheduling

Explanation: Resource scheduling is not a part of a Risk Management Plan template. It is usually found in a project management plan.

What is the main objective of a Risk Register template?

  • a) To list all identified risks
  • b) To describe the risk management strategies in detail
  • c) To provide a daily schedule for the project team
  • d) To list all project stakeholders

Answer: a) To list all identified risks

Explanation: The risk register is a document used in project management to identify potential risks, their impacts and corresponding mitigation strategies.

True or False: The risk assessment matrix is a form used to calculate the overall risk score of a project.

Answer: True

Explanation: The risk assessment matrix is a visual representation used to assess the level of risk by considering the category of probability or likelihood against the category of consequence severity.

Which of the following is an important section of a Risk Management Plan template?

  • a) Project Budget
  • b) Cost Estimation
  • c) Risk Categorization
  • d) Quality Assurance

Answer: c) Risk Categorization

Explanation: Risk Categorization is the process of grouping individual risks by common root causes for the purpose of developing effective risk responses.

True or False: It’s not necessary to update the risk register periodically as risks do not change during the lifecycle of a project.

Answer: False

Explanation: Risks can change throughout a project, so the risk register should be periodically updated to reflect the current risk.

Risk Response Form includes:

  • a) Risk Identification
  • b) Proposed Action
  • c) Risk Classification
  • d) Both a) and c)

Answer: d) Both a) and c)

Explanation: A Risk Response Form typically includes the identification of the risk, the proposed actions to address the risk, and risk classification.

True or False: Risk management forms/templates only include quantitative risk analysis.

Answer: False

Explanation: Risk management forms and templates typically encompass both quantitative and qualitative risk analysis. This provides a more balanced and detailed view of project risks.

In which form/template would the overall impact of all risks on a project be found?

  • a) Risk Breakdown Structure
  • b) Risk Register
  • c) Overall Risk Analysis
  • d) Risk Impact Matrix

Answer: c) Overall Risk Analysis

Explanation: This form quantifies the total risk exposure of a project by amalgamating the potential impact of all identified individual risks.

Interview Questions

What is the key purpose of a Risk Management Plan?

The Risk Management Plan is a document that outlines the approach for managing risk throughout a project. It includes procedures for risk identification, quantification, and monitoring, as well as protocols for risk escalation and response.

How is Risk Breakdown Structure (RBS) beneficial in Risk Management?

Risk Breakdown Structure (RBS) helps in organizing the risks identified according to their sources. This paneled illustration is an effective tool to understand potential risks and mitigating them in a structured fashion.

What does a risk register contain?

A risk register is a document that contains details of all identified risks, including their nature, impacts, and potential response strategies. It also includes the outcomes of risk analysis and risk response planning.

What is the main function of a risk audit?

A risk audit is a tool used to ensure the accuracy, completeness, and effectiveness of a project’s risk management process. It evaluates the effect of risk responses and identifies areas for improvement in the present risk management approach.

How is a risk score calculated in a Quantitative Risk Analysis template?

In a Quantitative Risk Analysis template, the risk score is typically calculated as the product of the risk’s probability and its impact.

What type of information is included in a Risk Response Strategy?

A Risk Response Strategy includes information about how a specific, identified risk will be addressed – whether that means avoiding, transferring, mitigating, or accepting the risk. It also outlines the resources required for the implementation of the strategy.

What is the purpose of a Probability and Impact Matrix in risk management?

A Probability and Impact Matrix is used to assess and prioritize risks based on their probability of occurring and their potential impact on project objectives.

What is a Risk Data Quality Assessment?

A Risk Data Quality Assessment is the evaluation of the degree to which the data about risks is useful for risk management decision-making. It ensures that the data used to analyze and prioritize risks is accurate, reliable, and of high quality.

What is the objective of the Risk Reassessment template?

The purpose of the Risk Reassessment template is to re-evaluate the project risks at different stages of the project to ensure the previously evaluated risks are still relevant and to identify any new risks that may have emerged.

What does a Risk Tolerance Threshold document define?

A Risk Tolerance Threshold document defines the level of risk that a project, organization, or stakeholder is willing to accept before action is required.

What is the use of a Risk Decision Making Tools template?

A Risk Decision Making Tools template helps in facilitating decisions when faced with risk or uncertainty. It is useful in understanding the possible risk scenarios and potential outcomes.

What is the function of a Risk Assessment Matrix?

A Risk Assessment Matrix assists in prioritization of risks by quantifying the probability and impact of potential risks and plotting them on a matrix. The position of the risks within the matrix helps in deciding which risks need immediate attention and which can be deferred.

How is risk response efficacy assessed?

The efficacy of risk response actions is assessed through risk reviews and audits, where the outcomes of implemented strategies are evaluated against predetermined objectives and adjustments are made as required.

How important is risk documentation in successful risk management?

Documenting risk management activities, from identification through response and monitoring, is crucial to building organizational learning, ensuring accountability, providing legal support, and maintaining effective communication throughout the project team.

What is Risk Factors Analysis?

Risk Factors Analysis is a process of identifying and assessing factors that may jeopardize the success of a project or task. It includes factors like technical issues, cost or budget estimation errors, legal issues, etc.

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