Week 4: Managing Risks Effectively
Managing Risks Effectively INTRODUCTION
Professional Google Project Management: Certificate Coursera offers the students an introduction to risk management in project management, which is crucial in preventing the failure of the project. Furthermore, it develops learners’ critical skills to deal with risk, identify potential problems, and determine their effect on the project. The program includes training about the various types of risks of all the potential risks, various strategies of affecting these risks and outlining management, plan nc-Consults Issue, and action on the Risk. Other topics will be about the corresponding tools needed in risk identification, assessment, and management.
The students will be better equipped, armed with the skills that teach them how to foresee problems earlier and reduce the likely impact of such issues on project failures. In so doing, the future course of events is ensured.
Learning Objectives
- Acknowledge and manage reference matters listed in a risk management plan.
- Understand differences in risks and articulate their impact on projects.
- Tools are available to identify, analyze, and manage risks.
- To understand risk management and how it actually helps prevent project failures.
TEST YOUR KNOWLEDGE: RISKs MANAGEMENT
1. Define a risk as it relates to project management.
- A risk is an event that might occur and could impact a project in the future. (CORRECT)
- A risk is a measurement that estimates the potential impact of events that could occur in the future.
- A risk is a known problem that has already impacted a project.
- A risk is a measurement that estimates the impact of known problems.
Correct: Risk is the possibility of the occurring or not occurring events which pose as challenges or uncertainties to the project. It is said that proactive strategies are often aimed at arming the Project Manager to handle them effectively when they come.
2. What is the difference between a risk and an issue in project management?
- An issue is a known problem; a risk is an event that might happen in the future (CORRECT)
- Risks and issues are both known problems, but they affect projects to different degrees
- Risks and issues are both events that might happen in the future, but they could affect projects to different degrees.
- A risk is a known problem; an issue is an event that might happen in the future
Correct: Problems are existing challenges or obstacles affecting a project. Risks are potential issues that may arise in the future and affect the project if they are not handled properly.
3. Fill in the blank: Risk management is the process of _____.
- identifying and avoiding projects that have a high potential for risk
- identifying and initiating projects that have a low potential for risk
- identifying and mitigating risks and issues that are already impacting a project
- identifying and evaluating potential risks and issues that could impact a project (CORRECT)
Correct: Risk management also has the advantage of involving project managers in the pro-active mitigation of risks so that they do not turn into problems for the project.
4. Which of the following are true of risk management? Select all that apply.
- It helps identify who a project manager should consult about a potential risk. (CORRECT)
- It helps determine how to mitigate potential risks. (CORRECT)
- It is a one-time exercise at the start of a project.
- It reveals what could go wrong with a project. (CORRECT)
Informing potential problems before they mature into real issues is a good practice for risk management paving the way that can help improve stakeholder communication. It also saves delays by identifying and mitigating potential risks for each potential risk.
Risk management is important in terms of coming up with other plans that can be implemented in case of a mistake. It also saves delays by identifying potential traverse and determining who to be consulted with respect to each of the risks.
Risk management ensures that project managers prevent possible delays by identifying potential issues. It also indicates whom to consult in each case of risk and draws a plan to mitigate each potential risk properly.
5. When planning for a project, what does risk management provide an understanding of? Select all that apply.
- When to share project deliverables
- Who to consult about risks (CORRECT)
- How project risks could be mitigated (CORRECT)
- What could go wrong with the project (CORRECT)
By keeping project managers informed of potential risks and showing how such risks can be mitigated, risk management enhances a project’s chances of success.
Risk management anticipates potential risks associated with projects. It devises strategies for the effective mitigation of risks. It informs about who to consult to prevent each risk.
Setting up for the occurrence of something awry in any project is just so inevitable. Indeed, risk management teaches project managers how to anticipate possible issues, to lay out measures of mitigations, and where to consult the stakeholders for every risk.
TEST YOUR KNOWLEDGE: RISKS SENARIOS
1. Which three of the following scenarios represent possible opportunities that could arise from a risk?
- Adding two team members from another team to increase productivity and meet the project deadline (CORRECT)
- Hiring a new supplier of an item required to complete a product shortly before the project closes
- Completing a milestone ahead of schedule (CORRECT)
- Adopting a new spreadsheet software to streamline and simplify tasks in the future (CORRECT)
Although adding new members to a team results in a productivity decrease during the onboarding period, efficiency can be recovered later through more accomplished work.
If the pace at which tasks and milestones are completed exceeds the original milestone plan, it may disrupt the ultimate project timeline but would allow for more job tasks to be delivered to team members, which would represent another desirable result of a risk.
Initiating with the assumption that the first two risks would be moderate, the third one implies that learning from new software may slow the team down at first but entail substantial improvements in the long run.
2. Which of the following scenarios is an example of a project issue? Select all that apply.
- Materials increase in price (CORRECT)
- Team members complete tasks early
- Workers at a supplier’s production are currently in a labor strike (CORRECT)
- Clients do not return the necessary paperwork on time (CORRECT)
Risks, like market fluctuations, may potentially challenge project costs.
A big risk that can affect the project’s ride is a strike by suppliers for crucial materials of the project.
A problem with submitting contracts to clients in an incorrect format is missed deadlines and legal issues.
3. Fill in the blank: The risk management process includes five steps: identify, analyze, evaluate, _____, and monitor and control.
- accept
- mitigate
- classify
- treat (CORRECT)
Correct: A project manager is responsible for shrinking risk by developing plans capable of effectively counter-measuring the worst happenings due to risks.
4. During which phase of the risk management life cycle do you use the information you have gained about the likelihood and potential impact of risks to prioritize risks?
- Analyze the risk.
- Monitor and control the risk.
- Identify the risk.
- Treat the risk.
- Evaluate the risk. (CORRECT)
Correct: During this juncture, risks that are to be processed are first identified as to become more concrete and then prioritized according to their urgency.
5. What risk refers to the possibility that a project won’t produce the results outlined in the project goals?
- Budget risk
- Dependency
- Time risk
- Scope risk (CORRECT)
Correct: Risk of scope is the possibility that a project may be unable to provide the results outlined in the objectives of the project. Project success can also be hampered by risks related to timelines, budgets, and dependencies.
6. When is a good time to review the project budget and identify if you need to make any changes?
- After speaking with the project sponsor
- After the initiation phase
- After you meet a milestone (CORRECT)
- After a retrospective
Correct: Milestones are used for ensuring that the budget is being tracked and the payments are updated as necessary throughout a project.
TEST YOUR KNOWLEDGE: MEASURING RISK IMPACT
1. Which type of risk involves the possibility that a project will not produce the results outlined in the project goals?
- Time risk
- Environmental risk
- Budget risk
- Scope risk (CORRECT)
Correct: This involves the possibility of unpredictability and ambiguity, i.e. that, maintained, the deliverables of the project will be acceptable to stakeholders and customers alike.
2. Imagine you’re a project manager overseeing the development and launch of a new app. Which of the following problems could be a single point of failure risk in the app’s development?
- Completing a project milestone behind schedule, which may delay the project timeline.
- Failing to back up key project documentation, which may result in a complete loss of essential data. (CORRECT)
- Lack of communication between the designers and the project lead, which may lead to tension among team members.
- Receiving negative feedback from user testing, which may lead to more work for the developers.
Correct: Whenever a restoration is essential, every piece of data stored must be duplicated as the documents go down in a crash that causes data loss. Either way, you lose the documents, and your team must rebuild the project before it can advance. If this happens, all you have is a single point of failure risk which will most likely be catastrophic and will halt the project.
3. Continuing with the app-development project scenario from the previous question, which three of the following task relationships demonstrate an internal dependency?
- Developers must fix bugs before the Quality Assurance team begins testing. (CORRECT)
- Researchers must conduct usability tests before the team can improve the design. (CORRECT)
- Partner agencies must deliver image assets before the app is complete.
- Designers must complete wireframes before they begin prototyping. (CORRECT)
- Clients must sign off on the design before the official launch.
Your team is responsible for app design, so this is an internal dependency.
Your team is responsible for usability testing, which makes it an internal dependency.
Your team is responsible for fixing the bugs; therefore, it is an internal dependency.
4. Continuing with the app-development project scenario from the previous question, you need to secure funding to develop the app. You want to write a grant proposal to an investment firm. Which of the following is an external dependency for this task?
- Appoint a team member to assemble the proposal.
- Outline your project milestones in the proposal.
- Get feedback from the investment firm about the types of projects they are interested in funding. (CORRECT)
- Identify team members to write the sections of the proposal that align with their expertise.
Correct: It is impossible for your team to drive the interests of the investment house as it is involved in grant writing, making it an extrinsic dependency.
TEST YOUR KNOWLEDGE: IDENTIFYING AND ASSESSING RISKS
1. Imagine that you’re overseeing a project to construct a new office building for your company, and you need to determine your task dependencies. Which of the following tasks should come first?
- Begin construction on the new building.
- Set the project budget.
- Identify the construction site.
- Get stakeholder input to determine project goals. (CORRECT)
Correct: From there one can set up a budget-related project, determine the construction site, and start the construction process.
2. Continuing with the construction project scenario from the previous question, which of the following tasks should come last in the project?
- Move equipment to the new office. (CORRECT)
- Plan for risk.
- Hire an architect.
- Order the building materials.
Correct: Adding pieces of equipment to the new office happens after working out the risks, hiring an architect, and getting in the materials.
3. Continuing with the construction project scenario from the previous question, imagine that you underestimated the amount of a particular material needed to complete the new building. You purchase more of the material at full cost, since you no longer qualify for the bulk, discounted rate. What risk does this scenario demonstrate?
- Environmental risk
- Time risk
- Legal risk
- Budget risk (CORRECT)
Correct: There exist colossal dangers to the project funds as a result of neglected costs supposed to crop up in bad planning.
4. Continuing with the construction project scenario from the previous question, the project team completes the designs (Task A) and then begins construction (Task B). What type of dependency describes the relationship between Tasks A and B?
- Finish-to-Start (FS) (CORRECT)
- Start-to-Finish (SF)
- Finish-to-Finish (FF)
- Start-to-Start (SS)
Correct: Task A precedes Task B, where Task B will depend on Task A’s completion, i.e. Task A is scheduled to finish before Task B can start (design completion, construction start).
TEST YOUR KNOWLEDGE: MITIGATING AND COMMUNICATING RISKS
1. Imagine you have learned that a contractor who has done quality work for your organization in the past has received some negative reviews recently. You choose to hire another contractor for the current project. This is an example of mitigating risk by ______.
- reducing or controlling it
- transferring it
- avoiding it (CORRECT)
- accepting it
Correct: If you decide to hire another contractor, it means you’re reducing the risk by removing it completely.
2. Which of the following are basic components of a risk management plan? Select all that apply.
3. Which of the following tools can help project managers visualize how to mitigate a risk in order to reduce or control it?
3. Fill in the blank: An _____ is an observable occurrence on a network, system, or device.
- A decision tree (CORRECT)
- A statement of work
- A power grid
- A project charter
Correct: A decision tree is a flowchart made to help project managers see the potential effects of decisions over a wider scope of the project.
4. What step should you take after you complete your risk management plan?
- Implement the individual mitigation plans for the risks you have identified.
- Estimate the likelihood and impact of the project risks you have prioritized.
- Share the plan with your team and stakeholders. (CORRECT)
- Create a power grid to include in the appendix of your plan.
Correct: Since, once you are done with it, share it with your team and rather share it with the stakeholders to receive indications from them. That’s what gets things done.
5. During the planning phase, what should you consider when communicating a risk to stakeholders?
- Scope of the project
- Expertise of the project stakeholder
- Severity of the identified risk (CORRECT)
- Size of the project team
Correct: The user should appraise the magnitude of the risks identified and must enter into multiple and early communications with stakeholders regarding medium- and high-level risks. As for the low-grade risks, a simple email would suffice.
Project Planning: Putting It All Together WEEKLY CHALLENGE 4
1. Fill in the blank: A(n) _____ is a known and real problem that can affect a team’s ability to complete a task.
- threat
- drawback
- issue (CORRECT)
- risk
2. The risk management process can provide project managers a better understanding of what information? Select all that apply.
- How could the project manager mitigate the potential risk (CORRECT)
- When exactly the risk will occur
- What could go wrong with the project (CORRECT)
- Who the project manager needs to consult about a risk (CORRECT)
3. As a project manager you are practicing risk management. You have already defined potential risks, determined their likelihood, and prioritized them. Now, you’re making a plan to address and manage each risk. This represents which risk management step?
- Monitor and control risks
- Treat risks (CORRECT)
- Identify risks
- Analyze risks
4. Identify the steps involved in creating and utilizing a fishbone (or cause-and-effect) diagram.
- Define the problem, identify categories, mitigate causes, and monitor feedback
- Define the problem, identify risks, mitigate causes, and analyze the causes
- Define the problem, identify categories, brainstorm causes, and analyze the causes (CORRECT)
- Define the problem, identify risks, brainstorm causes, and monitor feedback
5. Fill in the blank: Once an organization has explored the inherent risks of a project, its willingness to accept the possible outcomes of those risks is known as _____.
- risk register
- risk appetite (CORRECT)
- risk assumption
- risk analysis
6. Which of the following are examples of external risk? Select all that apply.
- A deliverable takes longer than anticipated to complete
- A breakdown in communication among team members
- A project vendor goes out of business (CORRECT)
- A change in regulatory requirements (CORRECT)
7. What does a risk management plan typically contain? Select all that apply.
- A competitor analysis for each risk
- Probability estimates for each risk (CORRECT)
- A mitigation plan for each risk (CORRECT)
- An executive summary (CORRECT)
8. Why should project managers communicate risks clearly to key stakeholders? Select all that apply.
- To convince them to provide an increase in budget, if necessary (CORRECT)
- To increase trust in the relationship (CORRECT)
- To get them to provide additional teammates, if necessary (CORRECT)
- To deflect blame on project issues, if necessary
9. As a project manager, you’re identifying task dependencies. Task B cannot finish until Task A is complete—the tasks operate at the same time. Which type of dependency does this situation represent?
- Finish to Start (FS) (CORRECT)
- Start to Finish (SF)
- Finish to Finish (FF)
- Start to Start (SS)
10. Which steps should be taken when updating a risk management plan? Select all that apply.
- Remove risks that are no longer relevant. (CORRECT)
- Move the plan to a confidential folder.
- Add newly-identified risks. (CORRECT)
- Include any changes in the mitigation plans. (CORRECT)
11. Fill in the blank: The process of identifying and evaluating potential risks and issues that could impact a project is known as _____.
- risk mitigation
- risk management (CORRECT)
- risk identification
- risk analysis
12. When should project managers engage in risk management?
- At the beginning of the project
- Towards the end of the project
- Shortly after the project begins
- Regularly throughout the project (CORRECT)
13. When working through the risk management life cycle, what’s the main goal when evaluating a risk?
- Treating risks
- Prioritizing risks (CORRECT)
- Identifying risks
- Controlling risks
14. Choose the best definition for inherent risk as it relates to project management.
- The measure of a risk, calculated by its difficulty and frequency
- The measure of a risk, calculated by its probability and impact (CORREECT)
- The measure of a risk, calculated by its causes and circumstances
- The measure of a risk, calculated by its timing and dependencies
15. Fill in the blank: The four common ways to mitigate risk include _____.
- accept it, disregard it, reduce or control it, and transfer it
- avoid it, accept it, disregard it, and transfer it
- avoid it, accept it, reduce or control it, and transfer it (CORRECT)
- accept it, ignore it, reduce or control it, and transfer it
16. Which of the following is the best way to communicate a high-level risk to stakeholders?
- Plan to present the risks and your mitigation plans at the next monthly meeting.
- Describe the risks in a weekly planning email and briefly explain your plan to mitigate them.
- Describe the risks and your mitigation plan to stakeholders the next time you see them in person.
- Meet with stakeholders in person to present serious risks and your plans to mitigate them. (CORRECT)
17. As a project manager practicing risk management, you’ve already identified the risk. Now, you’re determining the likelihood and potential impact the risk will have on your project. Which risk management step does this represent?
- Treat risks
- Avoid risks
- Monitor and control risks
- Analyze risks (CORRECT)
18. What are the most common types of risk that can impact projects?
- Time risks, budget risks, and external risks
- Budget risks, scope risks, and internal risks
- Time risks, budget risks, and scope risks (CORRECT)
- Budget risks, internal risks, and external risks
19. Which of the following best describes the executive summary in the risk management plan?
- Charts such as the impact chart, probability chart, and the probability and impact matrix
- Information such as the plan’s status, creation date, and uploaded date
- Introduction to the conditions of the project and an outline of the potential risks (CORRECT)
- Description of each risk, its risk rating, and a mitigation plan
20. As a project manager, you’re identifying task dependencies. Task B cannot start until Task A is complete. Which type of dependency does this situation represent?
- Start to Start (SS)
- Start to Finish (SF)
- Finish to Start (FS) (CORRECT)
- Finish to Finish (FF)
21. As a project manager, you’re identifying task dependencies. Task B cannot start until Task A has started. Which type of dependency does this situation represent?
- Finish to Finish (FF)
- Finish to Start (FS)
- Start to Finish (SF)
- Start to Start (SS) (CORRECT)
22. Failing to engage in risk management for your project can have which two of the following consequences
- You will not be able to use the appropriate tools
- You will not be able to establish necessary vendor relationships
- You will not be able to meet project timelines and goals (CORRECT)
- You will not be able to make necessary adjustments to the project plan (CORRECT)
23. Fill in the blank: A potential event that can impact your project if it occurs is called a(n) _____.
- problem
- issue
- delay
- risk (CORRECT)
24. Which of the following is a recommended method to communicate a medium-level risk to stakeholders?
- Present the risk and your mitigation plan during the team meeting next month.
- In the weekly planning email, briefly describe the risk and your plan to mitigate it.
- Call an urgent in-person meeting with stakeholders to present the risk and your plan to mitigate it.
- Send stakeholders a direct email that outlines the risk and includes a detailed explanation of your mitigation plan. (CORRECT)
25. A project manager needs to identify and plan for known problems that can affect project completion. What are these known problems called in project management?
- Potentials
- Impactors
- Risks
- Issues (CORRECT)
26. Failing to engage in risk management for your project can have which of the following consequences? Select all that apply.
- You will not be able to use the appropriate tools.
- You will not be able to meet project timelines and goals. (CORRECT)
- You will not be able to make necessary adjustments to the project plan. (CORRECT)
- You will not be able to establish necessary vendor relationships.
27. As a project manager practicing risk management, you find and define potential project risks. Which risk management step does this represent?
- Treat risks
- Avoid risks
- Identify risks (CORRECT)
- Monitor and control risks
28. A project manager attempts to determine the root cause of a problem that has already occurred. Which tool below can help them?
- Stakeholder map
- Project charter
- Fishbone diagram (CORRECT)
- Risk register
29. A project manager has just learned that a supplier is currently running low on required materials for a project. The supplier is very confident that the materials will be restocked before they are needed for the project. The project manager decides to continue with the vendor rather than finding a new one. What kind of risk mitigation strategy is this?
- Controlling risk
- Accepting risk (CORRECT)
- Transferring risk
- Avoiding risk
30. A project manager communicates a newly discovered risk to a stakeholder. They include the risk in a weekly planning email with potential ways to address the risk if needed. What level of risk are they likely writing about?
- Medium-level risk
- Low-level risk (CORRECT)
- Single point of failure
- High-level risk
31. A project manager needs to identify and plan for potential events that can impact the project. What are these potential events called in project management?
- Risks (CORRECT)
- Issues
- Problems
- Delays
32. As a project manager you are practicing risk management. You have already defined potential risks, determined their likelihood and potential impact. Now, you prioritize the risks. This represents which risk management step?
- Monitor and control risks
- Identify risks
- Evaluate risks (CORRECT)
- Analyze risks
33. A project manager completes a fishbone diagram. They completed three steps: define the problem, identify categories, and brainstorm causes. What is the next step they should take to complete the fishbone diagram?
- Analyze the causes (CORRECT)
- Identify risks
- Mitigate the causes
- Monitor feedback
34. A project manager has just identified a risk that has the potential to be catastrophic and halt work across a project. What is this type of risk known as?
- External risk
- Complete halting point
- Time risk
- Single point of failure (CORRECT)
35. Imagine that your company is considering using a vendor. The vendor makes quality products, but you have learned they have a reputation for shipping delays. Ultimately, you decide to use a different vendor. Which risk mitigation strategy did you use?
- Control the risk
- Avoid the risk (CORRECT)
- Accept the risk
- Reduce the risk
36. A project manager has identified a number of tasks in an upcoming project with dependencies. Most of the dependencies are finish to finish. What situation is this dependency describing?
- Task 2 cannot start until Task 1 has started
- Task 2 cannot finish until Task 1 has finished (CORRECT)
- Task 2 cannot finish until Task 1 has started
- Task 2 cannot start until Task 1 has finished
37. A major part of risk management is identifying potential problems. Which of the following is another critical aspect of risk management?
- Encouraging risk early in a project
- Running practice situations where risks have become issues
- Creating a plan for potential risks (CORRECT)
- Reviewing past projects and reusing those risk management plans
38. What two factors combine to determine inherent risk?
- Damage and mitigation
- Probability and impact (CORRECT)
- Probability and mitigation
- Damage and impact
39. You are identifying risks for an upcoming project. You have already planned for time risks and budget risks. Which of the following is another common type of risk?
- Scope risk (CORRECT)
- Impact risk
- Limiting risk
- Creeping risk
40. Why should project managers communicate risks clearly to stakeholders? Select all that apply.
- To get them to provide additional teammates, if necessary (CORRECT)
- To increase trust in the relationship (CORRECT)
- To deflect blame on project issues, if necessary
- To convince them to provide an increase in budget, if necessary (CORRECT)
41. A project manager writes a risk management plan. Currently they are working on an introduction to the conditions of the project and an outline of the potential risks. What is the name of this section in the risk management plan?
- Executive summary (CORRECT)
- Header
- Risk register
- Appendix
42. Which of the following is a tool used to assess and prioritize project risks?
- Cause-and-effect diagram
- Fishbone diagram
- Power grid
- Probability and impact matrix (CORRECT)
43. As a project manager, you’re identifying task dependencies. Task B cannot finish until Task A is complete—the tasks operate at the same time. Which type of dependency does this situation represent?
- Finish to Start (FS)
- Finish to Finish (FF) (CORRECT)
- Start to Start (SS)
- Start to Finish (SF)
44. Fill in the blank: A potential event that can impact your project if it occurs is called a(n) _____.
- delay
- Risk (CORRECT)
- problem
- issue
45. A fishbone diagram is a useful tool for risk planning because it identifies the possible cause of a problem that may or may not occur. In what other part of the project management process can you use the diagram?
- Engagement phase
- Closing phase
- Mitigation phase
- Execution phase (CORRECT)
46. Which of the following risk types most commonly impact projects? Select all that apply.
- Time risks (CORRECT)
- Budget risks (CORRECT)
- Inherent risks
- Scope risks (CORRECT)
47. A project manager communicates a newly discovered risk to stakeholders. The project manager requests an immediate meeting to go over the project plan and share details about mitigation strategies. What level of risk are they likely to cover in the meeting?
- Low-level risk
- Medium-level risk
- High-level risk (CORRECT)
- Single point of failure
48. Which of the following tools can project managers use to brainstorm the potential causes of risks?
- Risk register
- Project charter
- Fishbone diagram (CORRECT)
- Stakeholder map
49. What is scope creep in project management?
- The changes, growth, and uncontrolled factors that affect the project’s scope at any point after the project begins (CORRECT)
- The unexpected risks that can come together and form into a single issue that affect the scope of a project near completion
- The additional time a project takes to complete due to unforeseen setbacks
- The amount of time that a project will take to complete as setbacks begin to arise
50. A project manager is concerned about the workload an internal team is taking on for an upcoming project. The project manager decides to shift this workload to an external supplier. What kind of risk mitigation strategy is this?
- Transferring risk (CORRECT)
- Avoiding risk
- Controlling risk
- Accepting risk
51. A project manager has a responsibility to identify and plan for potential problems and known issues. What is this process of identifying and planning called?
- Risk management (CORRECT)
- Risk mitigation
- Risk analysis
- Risk identification
52. Risk management can help you avoid negative consequences like missing project timelines and goals. Which of the following is a benefit of effective risk management?
- You will be able to establish necessary vendor relationships.
- You will be able to use this project’s risk management plan again in different projects.
- You will have access to the appropriate tools for the project.
- You will be able to make a flexible project plan that allows for necessary adjustments. (CORRECT)
53. A project manager identifies a series of tasks in an upcoming project that can only be started when the previous task has been completed. What term defines the relationship between these tasks?
- Connected
- Opposed
- Stacked
- Dependency (CORRECT)
54. Which of the following are steps involved in creating and utilizing a fishbone (or cause-and-effect) diagram? Select all that apply.
- Mitigate causes
- Analyze the causes (CORRECT)
- Identify categories (CORRECT)
- Define the problem (CORRECT)
55. A project manager and a project sponsor are discussing their different risk appetites. What is risk appetite?
- A willingness to accept the possible outcomes of a risk (CORRECT)
- The assumption of additional risks for added challenge
- A desire to incur extra risks
- The shifting of some risks to a different team
56. A project manager communicates a newly discovered risk to a stakeholder. The project manager sends a direct email to stakeholders and includes “urgent” in the subject line. What level of risk are they likely writing about?
- Medium-level risk (CORRECT)
- High-level risk
- Low-level risk
Managing Risks Effectively CONCLUSION
To sum up, risk management is a vital tool for project managers in project failure prevention. Through understanding how to identify and manage several types of risks, project managers are able to get better project delivery.
There are various tools available to assist risk managers in their work-an example being the use of a risk management plan, which facilitates communication to resolve risks. To explore such topics further, Coursera offers a course on all the details of risk management. Sign up and start to learn risk management skill today!