R7-3 All of the following statements... All of the following statements about project risks are true EXCEPT: Mitigating a risk refers to taking action to reduce the likelihood that a risk will happen and/or reduce the impact the risk has on the project Contingency planning is developing a response once the risk occurs. Accepting a risk means no preventive action is taken. Avoiding a risk means changing the project plan in advance to eliminate the chance of that specific risk occurring. W7 Help SAVE & EX R7-4 All of the following statements... All of the following statements about budget and management reserves are true EXCEPT: nts Budget reserves are established to cover identified risks. Budget and management reserves are dependent on each other. The management reserve applies to the total project. The management reserve covers unforeseen risks. Book Print rences R7-5 All of the following statements... pints All of the following statements about a change control process are true EXCEPT: The WBS and change control are directly linked. Olf a change control process is not used, budgets and plans will fall apart. Change control allows for coordination of changes further on in the project. Tracking changes facilitates control and accountability of budgets but not time. eBook Print References R7-6 All of the following statements... All of the following statements about managing negative and positive risks are true EXCEPT: O A negative risk may be transferred to another party, while a positive risk may be shared. Essentially the same process that is used to manage negative risks is applied to positive risks. O A negative risk will often result in an avoidance strategy, while project managers often try to exploit positive risks. O Project managers work to mitigate negative risks, while taking action to enhance the likelihood of an opportunity. O Project managers will seldom choose to accept either negative or positive risks. eBook Print eferences