October 20, 2023

Risk Management Quiz: Correct Answers and Explanations

A document you use to capture all known risks is called:

A. Risk Log

B. Risk Register

C. Risk List

D. Risk Diary

Correct Answer: B

Project Management Institute calls the document Risk Register. For sure, you can name documents as you see necessary. However, it’s beneficial for a project manager to be consistent with generally accepted terms. Learn more about Risk Register.

Risk Management Plan Template

(For Software Projects)

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On a Friday evening, John (your best engineer in the team) comes to you and says he quits. You have two weeks to find a substitution. What would reduce the chances of such an event? Why?

A. Regular one-on-ones with John

B. Comprehensive professional development plan

C. The highest salary in the team

D. More responsibility

Correct Answer: A

As a project manager, you need to deal with risks proactively. Therefore, you should not wait until John decides to leave to take action. The best approach to control engagement of your key stakeholders is to communicate with them regularly. That’s why regular one-on-ones is the best proactive action.

A process that involves prioritizing risks for further action or analysis by assessing the impact and the probability of occurrence is called

A. Qualitative Risk Analysis

B. Risk Brainstorming

C. Quantitative Risk Analysis

D. Risk Retrospective

Correct Answer: A

During the Qualitative Risk Analysis, you assess the Impact and Probability of a risk using simple grades like Low, Medium, High. Learn more about Qualitative Risk Analysis.

When do you perform Risk Identification?

A. At the beginning of a project.

B. During project planning.

C. During the whole lifetime of a project.

D. During project execution.

Correct Answer: C

New risks appear all the time. Moreover, known risks change their Impact and Probability with changes on a project. Therefore, you must be on the lookout for the risks all the time. Learn more about Risk Identification.

As a part of your project, you need to organize a conference. You learn that in the place that you rented there’s a 70% chance of a tropical storm on the selected dates. How should you handle such risk?

A. Change the location of the conference.

B. Buy insurance to cover possible damage.

C. Book another place nearby to mitigate the risk of the first location being unavailable due to the storm.

D. Inform all participants of the possible storm.

Correct Answer: A

Risk Response Plans should be adequate, timely, and deal with risk proactively. All other options are passive and begin mitigating a threat only when it happens. Learn more about Risk Response Plans.

Who should be involved in Risk Management activities?

A. Only Project Team.

B. Only Project Manager.

C. As many stakeholders as practical.

D. All stakeholders except clients.

Correct Answer: C

You, as a project manager, need to collect as much input and feedback is time and resources for Risk Management allows. Each stakeholder may have a unique point of view on the challenges and project risks. By including all possible stakeholders you identify more risks.

You acquired an expensive piece of equipment for your project. It is known to be sensitive and fragile in work. Several tasks that require this equipment are on a critical path. What’s the BEST action you can do to improve the project’s chances for success?

A. Buy insurance to cover the costs of repairs.

B. Hire a technical support team to quickly fix the equipment if needed.

C. Find a good expert to operate the equipment.

D. There’s nothing you can do.

Correct Answer: B

Answers A and B are good solutions. Buying insurance will help to avoid budget overrun. Finding a good expert will help reduce the probability of breakdown. However, we have tasks on a critical path. It means they tolerate little risks to the Project Schedule. So, having a team on standby to keep the equipment working is the best option here.

You are on the call with clients. They say the vendor team they hired to create designs is behind schedule. What should you do?

A. State that your project is also behind the schedule because of it.

B. Log the risk into the Risk Register to assess impact.

C. Do nothing. It’s not your problem.

D. Contact the vendor to help them out.

Correct Answer: B

Without proper analysis, you can’t state that a risk has an impact on the project. Likewise, you should not assume that the risk has no impact at all. Therefore, always log all possible risks first. Decide later. Learn more about Risk Management Process.

After you performed Qualitative Risk Analysis you need to create:

A. A prioritized list of risks.

B. List of risks for additional analysis and investigation.

C. List of urgent risks

D. Watch list

E. All the above

Correct Answer: E

A prioritized list of risks, list of risk for additional analysis and investigation, list of urgent risks, the watch list, AND list of risks grouped by categories are the output of the Qualitative Risk Analysis process.

After reviewing Risk Register you see two critical risks that you anticipate during the next week. What should you do with this knowledge?

A. Do nothing. Your Risk Register is shared with the team and stakeholders.

B. Reach out to the stakeholders and the responsible person with a reminder.

Correct Answer: B

Once again, you should be proactive. It includes communications as well. Don’t assume that all stakeholders and team members track all the aspects of the project as you do. Check out the Project Risk Management Plan example.

Risk Management Plan Template

Unfortunately, this article was just one piece of a complex project risk management framework: Many other processes happen before and after this one.

If one part doesn’t work, the whole system breaks.

My Risk Management Plan Template connects all processes and tools into one cohesive system. It also provides access to other articles and videos on risk management. 

Don’t put your projects and reputation at risk. Ensure you know how risk management works in the real world.

All successful project managers know it’s better to learn from someone else’s experience (aka lessons learned). Tap into my 12 years of practical IT experience and get the Risk Management Plan Template.