ch 8 - Chapter 8 Managing Project Risk True/False 1 Failure...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8: Managing Project Risk True/False 1. Failure to follow a formal risk management plan will often cause organizations to be reactive and find themselves in a state of perpetual crisis, a condition known as crisis management. 2. The best time to plan for risk is during the project execution phase when risk can be assessed most accurately. 3. Effective project risk management requires that each risk have an owner. 4. In general, because of the similarities in IT projects, one can manage all projects and risks in the same manner. 5. Project risk management focuses solely on the downside that results from unexpected problems or threats. 6. The PMBOK® definition of project risk suggests that a systematic process is needed to effectively manage the risk of a project. 7. It never pays to ignore an element of project risk. 8. The goal of a sound risk management is to completely avoid all risk. 9. Triggers or flags in the form of metrics should be identified to draw attention to a particular risk when it occurs. 10. Unknown-unknown risks are residual risks that we cannot even imagine happening. 11. Since risk arises from uncertainty, there can be no such category as known risks. 12. Learning cycles can be used as a tool for identifying threats and opportunities. 13. Nominal Group Technique is a free form, unstructured process similar to Brainstorming. 14. The fishbone or Ishikawa diagram is a form of cause and effect analysis diagramming. 15. Since IT projects are developed in an environment that changes so rapidly and so extensively, there is little value in using past projects to guide our risk assessment of new ones. 16. Qualitative risk analysis has as one of its strengths the ability to include subjective
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
analysis based on experience and judgment. 17. The concept of expected value rests on the notion of a probability-weighted summation of component parts. 18. Discrete Probability Distributions use only integers where fractions would make no sense. 19. In Tusler’s risk classification scheme, Alligators are risks with a high probability of occurrence and impact. 20. The area under the normal distribution curve that lies within 2 standard deviations of the mean (plus or minus) includes about 68% of all the values. 21.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

ch 8 - Chapter 8 Managing Project Risk True/False 1 Failure...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online