The risk transference is referred to the transfer of risks to a third party, usually for a fee, it creates a contractual-relationship for the third party to manage the risk on behalf of the performing organization. Which one of the following is NOT an example of the transference risk response?

1. A. Use of insurance
2. B. Warranties
3. C. Life cycle costing
4. D. Performance bonds

Correct Answer: C

Mary is the project manager of PKT project. In Mary's project there are certain enterprise environmental factors that require Mary to use modeling and simulation techniques to predict the likelihood of achieving cost and schedule objectives in the project. Mary is using a technique for which the cost estimates are chosen at random for each iteration of the analysis, such as pessimistic, most likely, and worst-case scenarios. What type of analysis is Mary using in this project?

1. A. Quantitative analysis
2. B. Qualitative analysis
3. C. Risk distribution
4. D. Monte Carlo Analysis

Correct Answer: D

You are the project manager for the NHH project. You are working with your project team to examine the project from four different defined perspectives to increase the breadth of identified risks by including internally generated risks. What risk identification approach are you using in this example?

1. A. Root cause analysis
2. B. SWOT analysis
3. C. Influence diagramming techniques
4. D. Assumptions analysis

Correct Answer: B

You are the project manager of the BlueStar project in your company. Your company is structured as a functional organization and you report to the functional manager that you are ready to move onto the qualitative risk analysis process. What will you need as inputs for the qualitative risk analysis of the project in this scenario?

1. A. Qualitative risk analysis does not happen through the project manager in a functional structure.
2. B. You will need the risk register, risk management plan, project scope statement, and any relevant organizational process assets.
3. C. You will need the risk register, risk management plan, outputs of qualitative risk analysis, and any relevant organizational process assets.
4. D. You will need the risk register, risk management plan, permission from the functional manager, and any relevant organizational process assets.

Correct Answer: B

Which of the following processes must be repeated after Plan Risk Responses, as well as part of the Monitor and Control Risks, to determine if the overall project risk has been satisfactorily decreased?

1. A. Risk Limitation
2. B. Perform Qualitative Risk Analysis
3. C. Identify Risk
4. D. Perform Quantitative Risk Analysis

Correct Answer: D