Question 8

Given the following cash flow of the baseline budget, What is the estimate of escalated cash out flow and escalation % of the baseline? Hint: See Table 11.4 (Raydugin, p. 222) for example of calculation of the Cost Escalation Reserve.

Account	Estimate	2015	2016	2017	2018	2019	2020	2021
Adjusted Composite Index	NA	1.000	1.050	1.400	1.600	2.000	1.700	0.900
Cash Outflow (Base)	175000	50000	40000	30000	20000	14000	11000	10000
Cash Outflow (Escalated)	?
Escalation %	?

Question 8 options:

A	Escalated cash out flow = 123050 Escalation % = 17.5%
B	Escalated cash out flow = 2000000 Escalation % = 127.5%
C	Escalated cash out flow = 223050 Escalation % = 27.5%
D	Escalated cash out flow = 221700 Escalation % = 26.7%
E	It is not possible to calculate escalated cash outflow.

Question 1

A particular uncertainty may be managed at more than one level. Which of the followingstatements arerecommended regarding the promoting and demoting of uncertainties? (Select all that apply)

A	Game changers and show-stoppers should be listed in the business-unit (or even corporate) register
B	Medium-level/material/yellow uncertainties should be placed in either discipline or project registers
C	Low-level/small/green uncertainties should stay in discipline logs/registers
D	High-level/critical/red uncertainties should be shown in both project and business-unit registers
E	The promoting of critical uncertainties is necessary only if you think the project manager or business unit managers are capable of dealing with them.

Question 2

A particular uncertainty may be managed at more than one level. Which of the followingstatements are notrecommended regarding the promoting and demoting of uncertainties? (Select all that apply)

Question 2 options:

A	The promoting of critical uncertainties is necessary only if you think the project manager or business unit managers are capable of dealing with them.
B	Medium-level/material/yellow uncertainties should be placed in either discipline or project registers
C	High-level/critical/red uncertainties should be managed at the work package level andnever be promoted to upper levels if you think it will have a significant impact on company objectives and your job
D	Low-level/small/green uncertainties shouldalways be promoted to the businessunit level risk register
E	Game changers and show-stoppers should be listed in the business-unit (or even corporate) register

Question 3

Which of the following findings of a risk management health self-check would be considered unacceptable for project reserves and execution plan integration? (select all that apply)

Question 3 options:

A	Existing risk register not updated or used as a basis of probabilistic risk analysis for development of project reserves.
B	Risk management integrated as part of project execution plan.
C	Project reserves are not tracked and drawn down.
D	Risk register not used for development of project reserves.
E	Cost escalation modelnot developed or considered a factor.