Which of the following type of risk could result in bankruptcy?
Answer(s): D
Catastrophic risk causes critical financial losses that have the possibility of bankruptcy. Incorrect Answers:A: Marginal risk causes financial loss in a single line of business and a reduced return on IT investment.B: It causes minimal impact on a single line of business affecting their ability to deliver services or products. C: Critical risk causes serious financial losses in more than one line of business with a loss in productivity.
Risks with low ratings of probability and impact are included for future monitoring in which of the following?
Answer(s): C
Watch-list contains risks with low rating of probability and impact. This list is useful for future monitoring of low risk factors.Incorrect Answers:A, B: No such documents as risk alarm and observation list is prepared during risk identification process.D: Risk register is a document that contains the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning. Description, category, cause, probability of occurring, impact on objectives, proposed responses, owner, and the current status of all identified risks are put in the risk register.
You are the project manager of your project. You have to analyze various project risks. You have opted for quantitative analysis instead of qualitative risk analysis. What is the MOST significant drawback of using quantitative analysis over qualitative risk analysis?
Answer(s): B
Quantitative risk analysis is generally more complex and thus is costlier than qualitative risk analysis. Incorrect Answers:A: Neither of the two risk analysis methods is fully objective. Qualitative method subjectively assigns high, medium and low frequency and impact categories to a specific risk, whereas quantitative method subjectivity expressed in mathematical "weights".C: To be effective, both processes require personnel who have a good understanding of the business. So there is equal requirement of skilled personnel in both.D: Quantitative analysis generally has a better buy-in than qualitative analysis to the point where it can cause over-reliance on the results. Hence this option is not correct.
You are working as the project manager of the ABS project. The project is for establishing a computer network in a school premises. During the project execution, the school management asks to make the campus Wi-Fi enabled. You know that this may impact the project adversely. You have discussed the change request with other stakeholders. What will be your NEXT step?
The first step after receiving any change request in a project must be first analyzed for its impact. Changes may be requested by any stakeholder involved with the project. Although, they may be initiated verbally, they should always be recorded in written form and entered into the change management and/or configuration management.Incorrect Answers:A, B, D: All these are the required steps depending on the change request. Any change request must be followed by the impact analysis of the change.
Which of the following role carriers are responsible for setting up the risk governance process, establishing and maintaining a common risk view, making risk-aware business decisions, and setting the enterprise's risk culture?Each correct answer represents a complete solution. Choose two.
Answer(s): A,D
The board of directors and senior management has the responsibility to set up the risk governance process, establish and maintain a common risk view, make risk-aware business decisions, and set the enterprise's risk culture.Incorrect Answers:B: CFO is the most senior official 0f the enterprise who is accountable for financial planning, record keeping, investor relations and financial risks. CFO is not responsible for responsible for setting up the risk governance process, establishing and maintaining a common risk view, making risk-aware business decisions, and setting the enterprise's risk culture.C: Human resource is the most senior official of an enterprise who is accountable for planning and policies with respect to all human resources in that enterprise. HR is not responsible for risk related activities.
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