A risk practitioner discovers several key documents detailing the design of a product currently in development have been posted on the Internet. What should be the risk practitioner's FIRST course of action?

• A.invoke the established incident response plan.
• B.Inform internal audit.
• C.Conduct an immediate risk assessment
• D.Perform a root cause analysis

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Prior to selecting key performance indicators (KPIs), itis MOST important to ensure:

• A.trending data is available.
• B.data collection technology is available.
• C.process flowcharts are current.
• D.measurement objectives are defined.

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You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of $350,000.
When it comes to creating a risk response for this event what is the risk exposure of the event that must be considered for the cost of the risk response?

• A.The risk exposure of the event is $350,000.
• B.The risk exposure of the event is $500,000.
• C.The risk exposure of the event is $850,000.
• D.The risk exposure of the event is $245,000.

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Your project team has completed the quantitative risk analysis for your project work. Based on their findings, they need to update the risk register with several pieces of information. Which one of the following components is likely to be updated in the risk register based on their analysis?

• A.Listing of risk responses
• B.Risk ranking matrix
• C.Listing of prioritized risks
• D.Qualitative analysis outcomes

Correct Answer: C

Explanation/Reference:
Explanation:
The outcome of quantitative analysis can create a listing of prioritized risks that should be updated in the risk register. The project team will create and update the risk register with four key components:
probabilistic analysis of the project

probability of achieving time and cost objectives

list of quantified risks

trends in quantitative risk analysis

Incorrect Answers:
A, B, D: These subjects are not updated in the risk register as a result of quantitative risk analysis.

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Which of the following is the BEST method for discovering high-impact risk types?

• A.Qualitative risk analysis
• B.Delphi technique
• C.Failure modes and effects analysis
• D.Quantitative risk analysis

Correct Answer: C

Explanation/Reference:
Explanation:
Failure modes and effects analysis is used in discovering high-impact risk types.
FMEA:
Is one of the tools used within the Six Sigma methodology to design and implement a robust process

to:
- Identify failure modes
- Establish a risk priority so that corrective actions can be put in place to address and reduce the risk
- Helps in identifying and documenting where in the process the source of the failure impacts the (internal or external) customer
- Is used to determine failure modes and assess risk posed by the process and thus, to the enterprise as a whole' Incorrect Answers:
A, D: These two are the methods of analyzing risk, but not specifically for high-impact risk types. Hence is not the best answer.
B: Delphi is a technique to identify potential risk. In this technique, the responses are gathered via a question: and their inputs are organized according to their contents. The collected responses are sent back to these experts for further input, addition, and comments. The final list of risks in the project is prepared after that. The participants in this technique are anonymous and therefore it helps prevent a person from unduly influencing the others in the group. The Delphi technique helps in reaching the consensus quickly.

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