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Project Management, 2e (Pinto)
Chapter 7 Risk Management

7.3 Multiple Choice

1) The difference between projects that fail and those that are ultimately successful has to do with:
A) the plans that have been made to deal with problems as they arise.
B) the fact that a successful project doesn't encounter problems.
C) whether the project is for an internal or external customer.
D) whether the problem is time- or budget-related.
Answer: A

2) Project risk is highest during the:
A) termination stage of the project life cycle.
B) concept stage of the project life cycle.
C) implementation stage of the project life cycle.
D) development stage of the project life cycle.
Answer: B

3) Project risk is lowest during
B) the Delphi method.
C) past history.
D) multiple assessments.
Answer: B

17) A method for conducting risk factor identification that generates ideas but doesn't focus on decision-making is:
A) a brainstorming meeting.
B) the Delphi method.
C) past history.
D) multiple assessments.
Answer: A

18) One source of information on future risks and the leading indicators that accompany risks is:
A) a brainstorming meeting.
B) the Delphi method.
C) past history.
D) multiple assessments.
Answer: C

19) The terpsichorean was familiar with the risks associated with various moves, the accountant knew financial risks forwards and backwards, while the civil engineer could quantify the risks associated with distributed loads on the temporary stage. Their input was used as part of:
A) a brainstorming meeting approach to risk factor identification.
B) the Delphi method approach to risk factor identification.
C) a past history approach to risk factor identification.
D) a multiple assessments approach to risk factor identification.
Answer: D

20) The probability that project revenues will not be sufficient to repay the debts is:
A) financial risk
B) cost estimate risk.
C) market risk.
D) promotion risk.
Answer: A

21) The probability that funds allocated to the project will be insufficient to complete it is:
A) technical risk.
B) cost estimate risk.
C) financing