1) In conducting a risk analysis for a project, you learn that the office space you require is not available after 5:00pm. This is an example of:

	a.	An inherent risk
	b.	A residual risk
	c.	An assumption
	d.	A constraint
	e.	all of the above

2) You are a project manager for a large residential construction project. You are in the planning phase analysing potential risks to the project. You identify that there is a moderate probability of a construction worker strike within the first year of project implementation and have entered this information into a risk probability matrix. What should you do now?

	a.	Determine the risk impact using a risk impact matrix
	b.	complete a change request
	c.	Call a meeting of the key stakeholders to discuss this risk
	d.	Enter your risk probability score into a risk priority matrix
	e.	both a) and d)

3)As head of a large mining project, you need to focus on risks that are likely to occur and would impact one or more of the project's triple constraint. One way to help you make such decisions is to:

a.	Use a risk priority matrix
	Use a risk impact assessment matrix
	Use a risk probability matrix
	Convene project team meeting to discuss risk responses
	All of the above

4) A risk response strategy that can be used for both threats and opportunities is:

	a.	Share
	b.	Accept
	c.	Avoid
	d.	Transfer
	e.	All of the above

5)You are managing a new technology project designed to improve the removal of non-recyclable items from the recycling process. You are in the planning phase of this project and have identified the project risks and completed a qualitative and quantitative analysis of those risks. The viability of the recycling process relies on keeping the cost of recycling as low as possible. One of the inherent risks identified states that the developed recycling technology may increase the overall cost of recycling. You set aside 6 percent of the project budget in the event the risk is realized. Select the answer that best describes the above.

	a.	The inherent risk has been completely mitigated and therefore is no longer a risk to the project
	b.	A contingency reserve has been allocated to a known risk
	c.	A management reserve has been designated to this unknown risk to be managed at an account level
	d.	The quantitative analysis performed on the inherent risk demonstrated that this inherent risk will threaten the viability of the project
	e.	The qualitative analysis revealed that the organization has a high risk attitude

6)You are a project manager in the implementation phase of a large IT project. Your project is significantly over budget. Upon further investigation you discover that the project team member who was working on the original budget had to leave the project and her replacement who completed the budget did not actually possess the required budgeting skills. To make matters worse, there have been unanticipated additional costs to the project as a result of higher than anticipated inflation. This is an example of:

	a.	Cost risk
	b.	Technology risk
	c.	Project team risk
	d.	Both a) and c)
	e.	none of the above

7)Select the answer that best describes an organization with a high risk attitude.

	a.	An organization that believes that high risk often equals high reward
	b.	An organization that is willing to devote large amounts of resources assuming the risk probability is low
	c.	An organization that is willing to devote limited resources if the risk probability is high
	d.	An organization that is willing to make large resource commitments when risk probability is high
	e.	None of the above

8) Your project is using complex, unproven technology. Your team conducted a brainstorming session to identify risks. Under-performance of project resources was determined to be the number one risk. Which of the below statements is NOT true?

	a.	Brainstorming is an ineffective method for identifying project risks
	b.	There is an inherent risk associated with using complex, unproven technology
	c.	The under-performance of project resources should be logged as a project risk in the risk register
	d.	The project team is performing the Identify Risks process of the risk management process
	e.	Both b) and c)

9) A project manager working on a steel bridge connecting the island of Victoria to the mainland is performing a risk prioritization. One of the risks identified is the price fluctuation of steel. The project manager assessed the probability of a spike in steel prices at 35%. The corresponding impact on the project constraints were as follows: Cost = High (>30% cost increase); Time = Low (<5% time increase); Scope = Low (minimal scope change); Quality = Low (minimal quality impact). The project manager calculated the risk priority score for this risk as a high priority risk. Select the answer that best describes how the project manager determined the risk priority.

	a.	The project manager correctly determined the risk priority score by multiplying the probability by the average rating of the project constraints
	b.	The project manager correctly determined the risk priority score to be 6
	c.	The project manager selected the incorrect probability rating, but selected the appropriate impact rating
	d.	The project manager overestimated the probability of steel prices spiking and should have consulted an expert
	e.	Both b) and c)

10) Which of the following statements is TRUE regarding decision tree analysis?

	a.	The net path value is the sum of the decision node value and the chance node value
	b.	The Expected Monetary Value is an approximation only and used for the purposes of comparing overall scenarios
	c.	In order to remove emotional distortions from the decision, the client's risk attitude should not be considered in making the final choice between competing scenarios
	d.	The average scenario values provide the best forecast on the expected value of any option within a given scenario when conducting a decision tree analysis
	e.	both b) and d)