Download Mobile AppWhat is a risk in project management?
Study guide
Risk Management question review
Review the scenarios, likely traps, and explanations covered in this practice test before you retake it or compare answers with your team.
Question 1: What is a risk in project management?
A risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives.
Question 2: What is the difference between a risk and an issue?
A risk is a potential future event. An issue is a problem that has already occurred and needs resolution.
Question 3: What is risk mitigation?
Risk mitigation involves taking actions to reduce the probability and/or impact of a risk.
Question 4: What is a risk register?
A risk register is a document that records identified risks, their analysis, and response plans.
Question 5: What is the formula for risk exposure?
Risk Exposure (or Expected Monetary Value) = Probability × Impact.
Question 6: What is risk transfer?
Risk transfer involves shifting the negative impact of a risk to a third party, typically through insurance or contracts.
Question 7: What is a positive risk called?
Positive risks are called opportunities. They have a potential positive impact on project objectives.
Question 8: What is risk avoidance?
Risk avoidance involves changing plans to eliminate a threat or protect objectives from its impact.
Question 9: What is a contingency reserve?
Contingency reserve is budget or time set aside to address identified risks that have been accepted.
Question 10: When should risk identification occur?
Risk identification should occur throughout the project lifecycle as new risks may emerge.