Question 1:
Which of the following is NOT a common risk response strategy?
Explanation: Risk deferral is not a common risk response strategy. The other options—risk acceptance, risk avoidance, and risk mitigation—are well-known strategies used in risk management.
Question 2:
What is the primary purpose of a risk assessment matrix?
Explanation: The primary purpose of a risk assessment matrix is to prioritize risks based on their impact and likelihood. It provides a visual representation of risks, allowing project managers to focus their attention on high-priority risks.
Question 3:
What is the formula to calculate risk exposure?
Explanation: The formula to calculate risk exposure is Risk Exposure = Probability × Impact. It quantifies the potential impact of a risk event by considering both its probability of occurrence and its impact on project objectives.
Question 4:
Which risk response strategy involves transferring the risk to a third party?
Explanation: The risk response strategy that involves transferring the risk to a third party is risk transfer. It typically involves the use of insurance, warranties, or contracts to shift the financial impact of the risk.
Question 5:
What is the purpose of risk monitoring and control?
Explanation: The purpose of risk monitoring and control is to track identified risks and their characteristics, assess the effectiveness of risk response strategies, and identify new risks to update the risk register. It ensures that the project's risk management processes remain effective throughout the project lifecycle.
