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NEW QUESTION 34
Who is PRIMARILY accountable for risk treatment decisions?
- A. Risk manager
- B. Risk owner
- C. Business manager
- D. Data owner
Answer: B
NEW QUESTION 35
Wendy has identified a risk event in her project that has an impact of $75,000 and a 60 percent chance of happening. Through research, her project team learns that the risk impact can actually be reduced to just
$15,000 with only a ten percent chance of occurring. The proposed solution will cost $25,000. Wendy agrees to the $25,000 solution. What type of risk response is this?
- A. Avoidance
- B. Transference
- C. Mitigation
- D. Enhancing
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to be within acceptable threshold limits. Taking early actions to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred.
Incorrect Answers:
B: Avoidance changes the project plan to avoid the risk altogether.
C: Transference requires shifting some or all of the negative impacts of a threat, along with the ownership of the response, to a third party. Transferring the risk simply gives another party the responsibility for its management-it does not eliminate it.
Transferring the liability for a risk is most effective in dealing with financial risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the risk.
D: Enhancing is actually a positive risk response. This strategy is used to increase the probability and/or the positive impact of an opportunity. Identifying and maximizing the key drivers of these positive-impact risks may increase the probability of their occurrence.
NEW QUESTION 36
Which of the following are true for quantitative analysis?
Each correct answer represents a complete solution. Choose three.
- A. Allows discovery of which phenomena are likely to be genuine and which are merely chance occurrences
- B. Determines risk factors in terms of high/medium/low.
- C. Produces statistically reliable results
- D. Allows data to be classified and counted
Answer: A,C,D
Explanation:
Section: Volume B
Explanation:
As quantitative analysis is data driven, it:
* Allows data classification and counting.
* Allows statistical models to be constructed, which help in explaining what is being observed.
* Generalizes findings for a larger population and direct comparisons between two different sets of data or observations.
* Produces statistically reliable results.
* Allows discovery of phenomena which are likely to be genuine and merely occurs by chance.
Incorrect Answers:
A: Risk factors are expressed in terms of high/medium/low in qualitative analysis, and not in quantitative analysis.
NEW QUESTION 37
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