BUSINESS MANAGEMENT – APM PMQ COMPETENCE TEST 2024 GLOSSARY SERIES 5
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Unlock the secrets to mastering project and risk management with our comprehensive quiz bundle! Designed specifically for business and management students, this resource offers a deep dive into key terms and concepts crucial for effective project oversight. From understanding risk responses and iss...
BUSINESS MANAGEMENT – APM PMQ COMPETENCE TEST 2024 GLOSSARY SERIES 5
GLOSSARY 5
NOTE: This is part 5 of a complete series of APM (Association for Project Management) PMQ (Project
Management Qualification) Glossary where we take a thorough look into various terms and definitions
as of September 2024, this is all you need for your exam preps
Circle the letter of the Definition that corresponds to the displayed Term.
1. Issue log
a) How much risk investors are willing to tolerate in achieving their objectives. Expressed as risk
thresholds or tolerances.
b) 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.
c) Exposure of stakeholders to the consequences of variation in outcome.
d) A response to an opportunity that increases its probability, impact or both on the project.
Correct Answer: 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.
Explanation: The issue log is used to track and manage issues that arise during a project, providing a
clear record of the issue's details and status.
2. Project risk
a) A technique used to assess the overall risk for a project, programme or portfolio that enables the
combined effect of estimating uncertainty and specific risk events to be predicted.
b) A response to a threat that reduces its probability, impact or both.
c) Exposure of stakeholders to the consequences of variation in outcome.
d) A response to a threat that reduces its probability, impact or both by transferring the risk to a third
party.
Correct Answer: Exposure of stakeholders to the consequences of variation in outcome.
Explanation: Project risk refers to the uncertainty that stakeholders face due to possible variations in
project outcomes.
3. Risk
a) A response to a threat where no course of action is taken.
b) A level of delegated permission to vary performance from specified parameters.
c) The potential of a situation or event to impact on the achievement of specific objectives.
d) A document listing identified risk events and their corresponding planned responses. Used
interchangeably with risk register and risk repository.
Correct Answer: The potential of a situation or event to impact on the achievement of specific
objectives.
Explanation: Risk is the inherent potential for events to affect the success of achieving objectives.
4. Reject
a) 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 on a resolution.
b) A response to an opportunity that maximises both its probability and impact.
c) A response to an opportunity where no action is taken.
d) Exposure of stakeholders to the consequences of variation in outcome.
Correct Answer: A response to an opportunity where no action is taken.
Explanation: To reject means to choose not to act on a potential opportunity, allowing the situation to
remain as is.
5. Tolerance
a) A response to a threat where no course of action is taken.
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 on a resolution.
c) A response to a threat that reduces its probability, impact or both by transferring the risk to a third
party.
d) A level of delegated permission to vary performance from specified parameters.
Correct Answer: A level of delegated permission to vary performance from specified parameters.
Explanation: Tolerance refers to the acceptable range of variance in performance that has been pre-
authorized.
6. Threat
a) A negative risk event; a risk event that, if it occurs, will have a downside / detrimental effect on one
or more objectives.
b) 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.
c) The likelihood of a risk event occurring.
d) A response to an opportunity that increases its probability, impact or both on the project.
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