Q. Risk management

Submitted by y0zh on Thu, 05/09/2013 - 18:34

 Which of the following statements are NOT true considering the management of risks in a project?

  1. The affect of various risks on project scope, cost and quality is numerically analyzed in the perform quantitative risk analysis process

  2. A contingency plan is created to handle known risks in a project

  3. The assumptions analysis is a technique used in identify risks process

  4. The risk register is updated in all risk management processes except in plan risk management

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crushPMP

Thu, 05/09/2013 - 18:47

Contingency plan (& workarounds - if the risks occur) is probably created for unknown risks. B?

y0zh

Thu, 05/09/2013 - 18:55

Friendly speaking, for me it's not clear. Do you have any reference?

Contingency plans are made based on potential risks that are identified that could derail a project. Workarounds are responses to problems that develop while the project is being worked that were never identified

contingency plan is:

  • a strategy developed in advance for dealing with the occurrence of identified risks.
     
  • performed to construct a strategy before things go wrong.
     
  • to include a fallback plan for risks with a high impact.  A fallback plan is to be implemented if the initial contingency plan is ineffective in responding to the risk event.

 

Are we considering Fallback plan which included in Contigency plan in this question???

Geethika

Fri, 05/10/2013 - 08:32

Contigency reserves - Set aside amount for known (identified) risks, for cost and schedule uncertainty. Part of Cost baseline and EVM.

Contingency Plan - Planned Risk response plan A (it can be any suitable plan, using contingency reserve is just one way)

Fallback Plan - Planned Risk response plan B, if A fails

Workaround - Unplanned Risk response plan for negative risk which has occured already

Now coming back to the Q,  

Option - contingency plan is created to handle known risks in a project is not true.  It should have been contingency reserves is created to handle known risks in a project

bkthakkar

Fri, 05/10/2013 - 00:55

answer is D

All the other options are part of Risk Mgt

in case of plan Risk Management, output is Risk Mgt plan. Risk Register is only created in Identify Risks

 

mlmPMP2013

Fri, 05/10/2013 - 01:07

It is B, as a contingency plan is created fro active accepted risk, not KNOWN risks.  For known risks you have a contingency reserve.

bkthakkar

Fri, 05/10/2013 - 04:42

sorry, i did not read the options correctly

bkthakkar

Fri, 05/10/2013 - 08:50

agreed and intuitely read contingency plan as contingency reserve and hence deviated my answer. Regrets for inconvinience


Bhavesh

pmpcracker

Wed, 05/15/2013 - 01:01

 Any one please explain the exact difference between contingency plan and contingency reserve.

 

 

pmpcracker

Wed, 05/15/2013 - 01:05

 I am confused. What is accpeted risk and what is known risk?