100%(4)4 out of 4 people found this document helpful
This preview shows page 267 - 270 out of 275 pages.
clarify the risk. It is up to the management to accept the risk or to mitigate it. Answer. D is incorrect. Risk professional can only recommend the risk assessment if the company's policies is violating, but it can only be conducted when the management allows. Answer. A is incorrect. As in this case it is important to mitigate the risk, hence risk professional should once recommend a risk assessment. Though the decision for the conduction of risk assessment in case of violation of company's policy, is taken by management. Answer. B is incorrect. The recommendation to revise the current policy should not be triggered by a single request. QUESTION: 393 Jane is the project manager of the NHJ Project for his company. He has identified several positive risk events within his project and he thinks these events can save the project time and money. Positive risk events, such as these within the NHJ Project are referred to as? A. Contingency risks B. Benefits C. Residual risk D. Opportunities Answer: D Explanation: A positive risk event is also known as an opportunity. Opportunities within the project to save time and money must be evaluated, analyzed, and responded to. Answer. A is incorrect. A contingency risk is not a valid risk management term. 266
Answer. B is incorrect. Benefits are the good outcomes of a project endeavor. Benefits usually have a cost factor associated with them. Answer. C is incorrect. Residual risk is the risk that remains after applying controls. It is not feasible to eliminate all risks from an organization. Instead, measures can be taken to reduce risk to an acceptable level. The risk that is left is residual risk. QUESTION: 394 Arrange the following in the sequence as they occur in the different Phases of Risk Management. Answer: Explanation: Risk management provides an approach for individuals and groups to make a decision on how to deal with potentially harmful situations. Following are the four phases involved in risk management: 1.Risk identification :The first thing we must do in risk management is to identify the areas of the project where the risks can occur. This is termed as risk identification. Listing all the possible risks is proved to be very productive for the enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are considered, as both carry some level of risk with them. 267
2.Risk Assessment and Evaluation :Risk assessment use quantitative and qualitative analysis approaches to evaluate each significant risk identified. 3.Risk Prioritization and Response :As many risks are being identified in an enterprise, it is best to give each risk a score based on its likelihood and significance in form of ranking. This concludes whether the risk with high likelihood and high significance must be given greater attention as compared to similar risk with low likelihood and low significance. Hence, risks can be prioritized and appropriate responses to those risks are created.