BUSINESS MANAGEMENT – APM PMQ COMPETENCE TEST 2024 SERIES 16 (RISK ISSUE MANAGEMENT QUIZ)
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Business Management
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Business Management
Unlock the secrets to mastering risk and issue management with our comprehensive quiz! Dive into a series of meticulously crafted questions designed to challenge and enhance your understanding of key risk management concepts. From identifying risks and managing threats to understanding risk appetit...
BUSINESS MANAGEMENT – APM PMQ COMPETENCE TEST 2024 SERIES 16
RISK ISSUE MANAGEMENT QUIZ
NOTE: This is part 16 and the last of a complete series of APM (Association for Project Management)
PMQ (Project Management Qualification) as of September 2024 all you need for your exam preps
Circle the letter of the Definition that corresponds to the displayed Term.
1. Risk log
a) A document listing all issues raised during a project or programme, showing details of each issue, its
evaluation, what decisions were made and its current status. Used interchangeably with issue log.
b) The individual or group best placed to assess and manage a risk.
c) A level of delegated permission to vary performance from specified parameters.
d) A document listing identified risk events and their corresponding planned responses. Used
interchangeably with risk register and risk repository.
Correct Answer: A document listing identified risk events and their corresponding planned responses.
Used interchangeably with risk register and risk repository.
Explanation: The risk log (or risk register) is used to document identified risks and planned responses
to manage them throughout a project.
2. Probability
a) The likelihood of a risk event occurring.
b) A problem that is now, or is about to breach delegated tolerances for work on a project or
programme. Issues require support from the sponsor to agree a resolution.
c) A response to an opportunity that maximises both its probability and impact.
d) The process by which concerns that threaten the project objectives and cannot be resolved by the
project manager can be identified and addressed to remove the threats that they pose.
Correct Answer: The likelihood of a risk event occurring.
Explanation: Probability refers to the chance of a specific risk event happening within the context of a
project.
3. Contingency
a) The potential of a situation or event to impact the achievement of specific objectives.
b) Provision of additional time or money to deal with the occurrence of risks should they occur.
c) The likelihood of a risk event occurring.
d) A response to a threat where no course of action is taken.
Correct Answer: Provision of additional time or money to deal with the occurrence of risks should
they occur.
Explanation: Contingency involves allocating extra resources to address potential risks that may arise.
4. Opportunity
a) A document listing identified risk events and their corresponding planned responses. Used
interchangeably with risk register and risk repository.
b) A positive risk event that, if it occurs, will have an upside/beneficial effect on the achievement of
one or more objectives.
c) A sum of money that is part of the overall cost contingency to cover the cost impact of unidentified
risks and potentially some already identified very low probability, very high-impact risks.
d) The individual or group best placed to assess and manage a risk.
Correct Answer: A positive risk event that, if it occurs, will have an upside/beneficial effect on the
achievement of one or more objectives.
Explanation: An opportunity in risk management refers to a positive event that could positively affect
the project's goals.
5. Reduce
a) A process that allows individual risk events and overall risk to be understood and managed
proactively, optimising success by minimising threats and maximising opportunities.
b) A response to a threat that reduces its probability, impact or both.
c) The process by which issues are drawn to the attention of a higher level of management.
d) A response to an opportunity that maximises both its probability and impact.
Correct Answer: A response to a threat that reduces its probability, impact or both.
Explanation: The "Reduce" strategy involves taking actions to lower the chance of a risk occurring or
lessening its impact.
6. Risk owner
a) A document listing all issues raised during a project or programme, showing details of each issue, its
evaluation, what decisions were made and its current status. Used interchangeably with issue register.
b) A level of delegated permission to vary performance from specified parameters.
c) How much risk investors are willing to tolerate in achieving their objectives. Expressed as risk
thresholds or tolerances.
d) The individual or group best placed to assess and manage a risk.
Correct Answer: The individual or group best placed to assess and manage a risk.
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