Risk management planning MCQs – Software Project  Management

1. What is the primary goal of risk management planning?
a) To identify and eliminate all project risks
b) To develop strategies for managing project risks
c) To create a project budget
d) To assign tasks to team members
Answer: b) To develop strategies for managing project risks

2. Which of the following is a key output of the risk management planning process?
a) Risk register
b) Work Breakdown Structure (WBS)
c) Project scope statement
d) Change control plan
Answer: a) Risk register

3. Which document outlines how risks will be identified, assessed, and managed?
a) Risk management plan
b) Project scope statement
c) Project charter
d) Quality management plan
Answer: a) Risk management plan

4. Which of the following is typically NOT included in a risk management plan?
a) Roles and responsibilities
b) Risk categories
c) Risk triggers
d) Team salaries
Answer: d) Team salaries

5. The risk management plan should be developed during which project phase?
a) Initiation
b) Planning
c) Execution
d) Monitoring and controlling
Answer: b) Planning

6. What is a common tool used to categorize risks during risk planning?
a) Monte Carlo analysis
b) Risk Breakdown Structure (RBS)
c) SWOT analysis
d) PERT chart
Answer: b) Risk Breakdown Structure (RBS)

7. Which of the following is a typical activity during risk management planning?
a) Identifying risk owners
b) Assigning project tasks
c) Estimating project costs
d) Creating a product prototype
Answer: a) Identifying risk owners

8. What is the primary purpose of a risk register?
a) To track project progress
b) To document identified risks and their response strategies
c) To manage project finances
d) To schedule project tasks
Answer: b) To document identified risks and their response strategies

9. Which of the following is used to prioritize risks in a risk management plan?
a) Probability and impact matrix
b) Gantt chart
c) Fishbone diagram
d) Responsibility Assignment Matrix (RAM)
Answer: a) Probability and impact matrix

10. Who is primarily responsible for creating the risk management plan?
a) Project sponsor
b) Project manager
c) Project team members
d) Stakeholders
Answer: b) Project manager

11. Which of the following factors is most important when assessing the impact of a risk?
a) The project manager’s experience
b) The probability of risk occurrence
c) The cost of the project
d) The severity of the risk on project objectives
Answer: d) The severity of the risk on project objectives

12. Which tool or technique is commonly used in risk identification during planning?
a) Brainstorming
b) Gantt chart
c) Fishbone diagram
d) Critical path analysis
Answer: a) Brainstorming

13. In risk management planning, which strategy is used to address opportunities?
a) Avoid
b) Transfer
c) Enhance
d) Mitigate
Answer: c) Enhance

14. What does a probability and impact matrix help determine?
a) The sequence of project activities
b) The relative importance of risks
c) The cost of risk management
d) The project schedule
Answer: b) The relative importance of risks

15. Which of the following is typically the first step in risk management planning?
a) Conducting a quantitative risk analysis
b) Risk identification
c) Defining risk response strategies
d) Risk monitoring
Answer: b) Risk identification

16. What does the risk tolerance of stakeholders refer to?
a) The level of risk stakeholders are willing to accept
b) The amount of time stakeholders can invest in the project
c) The number of risks stakeholders can identify
d) The financial budget allocated for risk management
Answer: a) The level of risk stakeholders are willing to accept

17. Which risk response strategy involves taking no proactive action but preparing to deal with the risk if it occurs?
a) Avoid
b) Transfer
c) Accept
d) Mitigate
Answer: c) Accept

18. What is the purpose of contingency reserves in risk management?
a) To fund project tasks
b) To cover costs related to unforeseen risks
c) To calculate the project’s profit margin
d) To reduce the project’s scope
Answer: b) To cover costs related to unforeseen risks

19. Which of the following documents would provide insight into a project’s risk management approach?
a) Risk management plan
b) Project charter
c) Communication plan
d) WBS dictionary
Answer: a) Risk management plan

20. Which of the following techniques is used for qualitative risk analysis?
a) Probability and impact matrix
b) Monte Carlo simulation
c) Earned value analysis
d) Parametric modeling
Answer: a) Probability and impact matrix

21. The identification of risk triggers occurs during which risk management process?
a) Risk identification
b) Risk monitoring and control
c) Risk response planning
d) Risk mitigation
Answer: a) Risk identification

22. In risk management planning, which of the following would be considered an external risk?
a) Poor project management
b) Change in government regulations
c) Lack of team expertise
d) Incorrect cost estimates
Answer: b) Change in government regulations

23. Which of the following is NOT a risk response strategy?
a) Avoidance
b) Mitigation
c) Transfer
d) Estimation
Answer: d) Estimation

24. What is the primary goal of qualitative risk analysis?
a) To develop contingency plans
b) To numerically estimate the impact of risks
c) To prioritize risks based on probability and impact
d) To eliminate all project risks
Answer: c) To prioritize risks based on probability and impact

25. Which of the following is a tool used for quantitative risk analysis?
a) SWOT analysis
b) Monte Carlo simulation
c) Risk Breakdown Structure (RBS)
d) Stakeholder register
Answer: b) Monte Carlo simulation

26. Which risk management activity involves identifying risks by reviewing historical project data?
a) Brainstorming
b) Document review
c) SWOT analysis
d) Delphi technique
Answer: b) Document review

27. What is a risk owner in the context of risk management planning?
a) The person who identified the risk
b) The person responsible for managing the risk response
c) The project sponsor
d) The entire project team
Answer: b) The person responsible for managing the risk response

28. Which of the following should be regularly updated throughout the project?
a) Project charter
b) Risk register
c) Scope statement
d) Project budget
Answer: b) Risk register

29. What type of risk is most likely to arise from incomplete or inaccurate project requirements?
a) External risk
b) Technical risk
c) Financial risk
d) Legal risk
Answer: b) Technical risk

30. In risk management planning, which of the following is a reactive risk response?
a) Avoid
b) Mitigate
c) Fallback plan
d) Transfer
Answer: c) Fallback plan

31. Which of the following is an input to risk management planning?
a) Project charter
b) Lessons learned register
c) Procurement contracts
d) Risk audits
Answer: a) Project charter

32. What is the purpose of risk audits in risk management?
a) To identify new risks
b) To assess the effectiveness of risk responses
c) To reduce project scope
d) To identify project stakeholders
Answer: b) To assess the effectiveness of risk responses

33. When should the risk management plan be revisited and updated?
a) Only at the end of the project
b) After every risk event
c) At regular intervals throughout the project
d) Only if the project fails
Answer: c) At regular intervals throughout the project

34. Which of the following is a key consideration in creating a risk management plan?
a) Stakeholder risk tolerance
b) Team salaries
c) Project location
d) Project duration
Answer: a) Stakeholder risk tolerance

35. Which of the following risk management processes focuses on continuously monitoring risks throughout the project?
a) Risk identification
b) Risk response planning
c) Risk monitoring and control
d) Risk quantification
Answer: c) Risk monitoring and control

36. Which of the following risk management tools evaluates multiple risk scenarios through simulation?
a) SWOT analysis
b) Monte Carlo analysis
c) Fishbone diagram
d) RACI matrix
Answer: b) Monte Carlo analysis

37. Which element in the risk management plan defines how to measure risk performance?
a) Risk thresholds
b) Risk triggers
c) Risk audit schedule
d) Risk response strategies
Answer: a) Risk thresholds

38. Which of the following is a proactive risk response?
a) Implementing contingency reserves
b) Creating a fallback plan
c) Conducting risk audits
d) Avoiding the risk
Answer: d) Avoiding the risk

39. What role does a “watchlist” play in risk management?
a) To monitor low-priority risks
b) To document risks that require immediate action
c) To track all project risks
d) To identify project stakeholders
Answer: a) To monitor low-priority risks

40. What is a common reason for risk management planning to fail?
a) Overestimating risks
b) Not involving key stakeholders in the planning process
c) Focusing too much on cost management
d) Developing detailed schedules
Answer: b) Not involving key stakeholders in the planning process