7.18 Go to www.informationweek.com/whitepaper/Management/ROI-TCO/managing-risk-an-integrated-approacwp1229549889607?articleID=54000027 and access the article on “Managing Risk: An Integrated Approach.” Consider the importance of proactive risk management in light of one of the cases at the end of this chapter. How were these guidelines were violated by de Havilland or the Tacoma Narrows construction project organization? Support your arguments with information either from the case or from other Web sites.
7.19 FEMA, the Federal Emergency Management Agency, is responsible for mitigating or responding to natural disasters within the United States. Go to https://www.fema. gov/mitigation-best-practices-portfolio. Look around the site and click on “Risk Management” and “Case Studies” to see examples of projects in which the agency is involved. How does FEMA apply the various mitigation strategies
(e.g., accept, minimize, share, and transfer) in its approach to risk management?
7.20 Go to www.mindtools.com/pages/article/newTMC_07. htm and read the article on managing risks. What does the article say about creating a systematic methodology for managing project risks? How does this methodology compare with the qualitative risk assessment approach taken in this chapter? How does it diverge from our approach?
7.21 Using the keyword phrase “cases on project risk management,” search the Internet to identify and report on a recent example of a project facing significant risks. What steps did the project organization take to first identify and then mitigate the risk factors in this case?
7.22 Go to www.project-management-podcast.com/index. php/podcast-episodes/episode details/109-episode-063- how-do-risk-attitudes-affect-your-project to access the podcast on risk attitudes on projects. What does the speaker, Cornelius Fichtner, PMP, suggest about the causes of project failures as they relate to issues of risk management?
PMP CERTIFICATION SAMPLE QUESTIONS
7.23 The project manager has just met with her team to brainstorm some of the problems that could occur on the upcoming project. Today’s session was intended to generate possible issues that could arise and get everyone to start thinking in terms of what they should be looking for once the project kicks off. This meeting would be an example of what element in the risk management process?
a. Risk mitigation
b. Control and documentation
c. Risk identification
d. Analysis of probability and consequences
7.24 Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company’s union has not been concluded. Todd decides to continue working on the resource schedule
in anticipation of a satisfactory settlement. Todd’s approach would be an example of which method for dealing with risk.
a. Accept it
b. Minimize it
c. Transfer it
d. Share it
7.25 A small manufacturer has won a major contract with the U.S. Army to develop a new generation of satellite phones for battlefield applications. Because of the significant technological challenges involved in this project and the company’s own size limitations and lack of experience in dealing with the Army on these kinds of contracts, the company has decided to partner with another firm to collaborate on developing the technology. This decision would be an example of what kind of response to the risk.
a. Accept it
b. Minimize it
c. Transfer it
d. Share it
7.26 All the following would be considered examples of significant project risks except:
a. Financial risks
b. Technical risks
c. Commercial risks
d. Legal risks
e. All are examples of significant potential project risks
7.27 Suppose your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium, and low). In evaluating a project’s risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequences. If you are interested in prioritizing your risks, which of these should be considered first?
a. Commercial risk
b. Legal risk
c. Both should be considered equally significant
d. Neither is really much of a threat to this project, so it doesn’t matter what order you assign them
7.28 Sanjay is managing a multi-million-dollar construction project that is scheduled to take nearly three years to complete. During the planning phase, he discovers a serious threat to the project schedule and budget due to the fact that he is planning to build during monsoon season in a flood area. After evaluating his options, he decides to build earlier in the year to complete critical parts of the project before the possibility of damage from monsoon flooding. This is an example of the:
a. Risk avoidance
b. Risk transference
c. Risk mitigation
d. Risk acceptance
7.29 You are managing a project when an unanticipated risk event occurs. You meet with your project team and company experts and figure out a workaround to keep the project on schedule. In what process are you engaged?
a. Quantitative risk analysis
b. Qualitative risk analysis
c. Risk response
d. Control and Documentation
7.30 A probability and impact matrix is useful for:
a. Quantitative risk analysis
b. Qualitative risk analysis
c. Risk Identification
d. Control and Documentation
7.31 A workaround is:
a. A technique for managing conflict
b. A non-critical path (one with extra float) through the network diagram
c. An adjustment to the project budget
d. A response to an unplanned risk event
7.32 A fixed-price contract offers the seller (contractor):
a. A higher risk than the buyer (client)
b. The same risk as that of the buyer (client)
c. A lower risk than the buyer (client)
d. Guaranteed reimbursement of actual costs
Notes
7.23 c—Brainstorming meetings are usually created as an effective means to get project team members to begin identifying potential risks.
7.24 a—Todd is choosing to accept the risk of potential future
problems by continuing to work on his resource schedule
in anticipation of positive contract talks.
7.25 d—The firm has decided to share the risk of the new project
by partnering with another company.
7.26 e—All are examples of significant potential project risks.
7.27 b—Legal risks would be of higher overall significance (high
probability, medium consequence) and so should probably
be considered first in a prioritization scheme.
7.28 c—Risk mitigation occurs when you try to make the risk
less severe. By accelerating construction, Sanjay hopes to
minimize the threat from flooding.
7.29 c—A workaround would be an example of a risk response.
7.30 b—A probability and impact matrix is used for qualitative
risk analysis.
7.31 d—workarounds are defined as responses to unplanned
risk events.
7.32 a—fixed-price contracts lessen risk for the client because
any cost overruns are the responsibility of the seller, or
contractor.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
