Risk Management Plans Address 8 Tasks

According To The Textbook Risk Management Plans Address 8 T

Question 1according To The Textbook Risk Management Plans Address 8 T

Question 1according To The Textbook Risk Management Plans Address 8 T

Question 1 According to the textbook, risk management plans address 8 topics. Which of the following is not one of these topics? a. Roles and responsibilities b. Work breakdown structure c. Budget and schedule d. Tracking Question 2 Many tools and techniques have been developed to help identify project risks. The US Government has appointed an independent experts group to anonymously provide their opinion on what may happen in future. What is the tool/technique adopted? a. Brainstorming b. Delphi technique c. SWOT analysis d. Interviewing Question 3 The executive management of your organization has asked you, the project manager, for a periodic review of the project risks. Which risk analysis tool will you use that will help in monitoring the risks throughout the project life? a. Top ten risk item tracking b. Probability/impact matrix c. Risk breakdown structure d. Risk ranking chart Question 4 People’s attitudes towards risk vary. Some derive a high degree of satisfaction only from high stake risks whereas others are happy only when the stakes are low. What is the term for the measure of this satisfaction? a. Risk reward b. Risk gratification c. Risk appetite d. Risk utility Question 5 You are tasked with preparing the risk breakdown structure for a project. After a thorough investigation you find that the responsibilities of each project team member have not been clearly defined. Which knowledge area of project management is this associated with? a. Human resources b. Scope c. Communications d. Integration Question 6 An organization is evaluating the risks involved in implementing a sales force automation solution. It has been evaluated that the organization can save a lot of money. At this stage it is important to understand if the sales team will use this system. What category of risk needs to be assessed? a. Financial risk b. People risk c. Process risk d. Market risk Question 7 Risks are controlled in two ways. It is essential to raise risk awareness and make it an ongoing activity for all project team members. In addition, risk events should trigger the execution of the risk management plan in order to control the risk. A number of tools and techniques are available to control risk. Which of the following is not one of the techniques for risk control? a. Risk reassessment b. Variance and trend analysis c. Periodic risk reviews d. Budget preparation Question 8 Risk can be mitigated by reducing the probability of it happening. If project managers use established processes then some of the risk can be mitigated. The triple constraint of scope, cost and time are affected by technical, cost and schedule risks respectively. Which risk mitigation strategy helps lower the probability of all three risks? a. Use WBS and CPM b. Increase project manager authority c. Improve problem handling d. Emphasize team support Question 9 Negative risks are potential hurdles to the execution of a project as per plan. Positive risks are those that impact the plan in the opposite direction of negative risks. Each, negative and positive risks, have suitable basic risk response strategies. Which one of the following strategies is applicable for both types of risks? a. Risk mitigation b. Risk acceptance c. Risk transference d. Risk sharing Question 10 Project managers must treat risk management as an investment which increases the chances of success. Under which of the following circumstances would project risk management make financial sense? a. Never makes financial sense b. Only when the cost of risk management is lower than the expected benefits c. Only when the cost of risk management is higher than the expected benefits d. Always makes financial sense Question 11 A project manager feels elated when a proposal to build a new product gets accepted even though it could make or break one’s career. What is this person’s approach to risk? a. Risk-seeking b. Risk-neutral c. Risk-tolerant d. Risk-averse Question 12 A project manager has successfully identified risks and put in place suitable risk response strategies. However, these strategies have created new risks. What is the term for these risks? a. Residual risks b. Enhanced risks c. Secondary risks d. Unknown risks Question 13 Calculate the expected monetary value (EMV) of a project that has a 95% chance of yielding $500,000 and a 5% chance of losing $200,000? a. $455,000 b. $465,000 c. $475,000 d. $485,000 Question 14 Historically, organizations have not given importance to identify and manage risks. Now, risk management is being recognized and valued. It takes knowledge and talent to identify and manage project risks. Which activity below is not a part of project risk management? a. Identifying the skills required for the project b. Recognizing the shortage of a required skill c. Preparing staffing plans to overcome the skill shortage d. Analyzing the impact on project budget due to skill shortage Question 15 An organization is planning to enter a new market with weak competition. Even though the organization is confident that it has made the right bet, a high degree of uncertainty exists. What is this organization’s approach to risk? a. It has a high risk tolerance b. It has a high risk acceptance c. It has a high risk appetite d. It has a high risk utility Question 16 Some members of your project team work in an area where the electricity supply is not stable. You have drafted a plan to order a power backup. What type of plan is this? a. Fallback plans b. Contingency reserves c. Contingency plans d. Management reserves Question 17 As the project manager of an information technology project you evaluate the chance of any key employee leaving the project and whether that will have any impact on the schedule. What risk management process have you utilized? a. Identifying risks b. Planning risk management c. Performing quantitative risk analysis d. Performing qualitative risk analysis Question 18 A project manager is preparing the risk register and is looking for any leading indicators of potential risk. What is the term for these indicators? a. Switches b. Checklists c. Triggers d. Watch list items Question 19 Quantitative risk analysis involves numerically estimating the effects of risks on project objectives. Which one of the following is not a technique for quantitative risk analysis? a. Decision tree b. Simulation c. Probability/impact chart d. Sensitivity analysis Question 20 The project manager decides to not upgrade to the new, unfamiliar operating system until the ongoing IT project is completed. What type of negative risk response strategy is this? a. Risk mitigation b. Risk transference c. Risk acceptance d. Risk avoidance

Paper For Above instruction

Risk management is a critical component of project management that involves systematically identifying, assessing, and responding to project risks to minimize their impact on project objectives. According to established project management frameworks, risk management plans typically address several key topics to ensure comprehensive mitigation and control strategies. While these topics aim to cover various facets of risk, not all areas are explicitly included in standard risk management plans. In this paper, we explore the core topics addressed by risk management plans, examine tools and techniques used for risk identification and analysis, and analyze the strategic responses and organizational attitudes toward risk.

Topics Addressed by Risk Management Plans

Based on the guidelines outlined in project management literature, risk management plans generally include topics such as roles and responsibilities, risk identification, risk analysis, risk response planning, risk monitoring, and control processes. These aspects ensure that risks are assigned to appropriate team members, thoroughly analyzed, and managed proactively throughout the project lifecycle. However, certain areas, such as the work breakdown structure (WBS) and the specifics of project schedules and budgets, are typically not direct topics of a risk management plan, although they are integral to project planning overall.

For instance, roles and responsibilities are explicitly covered to assign accountability. Risk identification techniques like brainstorming or Delphi techniques are discussed, alongside methods for analyzing risks through probability/impact matrices or qualitative assessments. Implementing risk responses such as mitigation, acceptance, transfer, or sharing strategies are also focal points within risk management strategies. Monitoring and controlling the risks involve ongoing activities such as risk audits, variance analysis, and periodic reviews.

In contrast, the work breakdown structure primarily belongs to scope management, while the detailed schedule and budget are part of project time and cost management. These are indirectly related but are not core topics within a risk management plan itself. Recognizing these distinctions helps clarify what is included and excluded from the scope of risk management planning.

Tools and Techniques for Risk Identification and Analysis

Various tools and techniques facilitate effective risk management. Brainstorming, SWOT analysis, interviewing, and the Delphi technique are commonly employed to identify potential risks. Among these, the Delphi technique is distinguished by employing anonymous expert opinions to reach a consensus, which reduces bias and encourages independent assessments (Hasson et al., 2000).

Once risks are identified, techniques such as probability/impact matrices, risk breakdown structures, and sensitivity analysis are used to prioritize and analyze risks quantitatively or qualitatively. These tools aid project managers in understanding which risks require immediate attention and how they may affect project objectives. For monitoring risks over time, tools like risk registers, risk rankings, and probability-impact charts are instrumental.

Risk Responses and Organizational Attitudes

Risk response strategies include mitigation, acceptance, transfer, and sharing. While some risks can be actively managed through mitigation plans—such as implementing quality controls or contingency plans—others may be accepted when the cost of mitigation exceeds potential benefits. Transference involves shifting risk liability to third parties, often via insurance or contractual agreements. Sharing risks involves joint risk mitigation efforts among stakeholders.

Organizational attitudes toward risk significantly influence the effectiveness of risk management. Risk appetite reflects the degree of risk an organization is willing to accept, whereas risk tolerance indicates the acceptable variation from planned objectives. Risk-seeking organizations may pursue uncertain opportunities, while risk-averse entities prefer to minimize exposure. These attitudes determine how aggressively risks are identified, analyzed, and responded to in the project environment.

Conclusion

In summary, risk management plans center on specific topics such as responsibilities, risk analysis, and monitoring activities. Although elements like work breakdown structures and detailed schedules are important in project planning, they are not directly part of risk management plans. Employing appropriate tools and techniques for risk identification and analysis enables project teams to anticipate potential hurdles. Moreover, understanding organizational risk attitudes guides strategic responses to uncertainties, ultimately contributing to project success. Effective risk management requires a coordinated effort that encompasses clear planning, diligent monitoring, and adaptive strategies tailored to organizational culture and project specifics.

References

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