Risk & Quality Management

A project manager identifies a threat that, if it occurs, would significantly delay the project, and the team changes the plan to eliminate it entirely. Which risk response strategy is this?

• A Accept
• B Mitigate
• C Transfer
• D Avoid ✓

Answer: Avoiding a threat means changing the plan to eliminate the risk or protect objectives from its impact entirely. Mitigation only reduces probability or impact rather than removing it.

During quality planning, the project manager wants to identify the few root causes that produce the majority of defects. Which tool is MOST appropriate?

• A Histogram
• B Control chart
• C Scatter diagram
• D Pareto chart ✓

Answer: A Pareto chart ranks causes by frequency to highlight the vital few that drive most defects, supporting the 80/20 principle. This focuses improvement effort where it matters most.

A project manager purchases insurance to handle the financial impact of a potential risk event. Which risk response strategy is being used?

• A Escalate
• B Transfer ✓
• C Avoid
• D Mitigate

Answer: Transferring a risk shifts the impact and ownership of the response to a third party, such as through insurance or a contract. The risk still exists but its financial consequence is borne by another party.

A control chart shows seven consecutive data points falling on one side of the mean, though all are within control limits. What does this indicate?

• A The measurements are inaccurate and should be discarded
• B The rule of seven suggests a non-random pattern that should be investigated ✓
• C The process is in control and no action is needed
• D The control limits should be widened

Answer: The rule of seven flags seven consecutive points on one side of the mean as a non-random trend warranting investigation, even within control limits. It signals a potential assignable cause.

A team identifies an opportunity to finish a deliverable early by partnering with a specialized vendor who guarantees the result. Which positive risk response is this?

• A Exploit
• B Share ✓
• C Enhance
• D Accept

Answer: Sharing an opportunity allocates ownership to a third party best able to capture the benefit, such as a specialized partner. Exploiting would mean ensuring the opportunity is realized internally.

A risk is identified that is outside the project manager's authority and affects the broader organization. What is the appropriate response strategy?

• A Transfer the risk to the project team
• B Accept the risk and take no action
• C Mitigate the risk within the project budget
• D Escalate the risk to the appropriate level of management or program ✓

Answer: Escalating is appropriate when a risk lies outside the project's scope or the project manager's authority and must be owned at a higher organizational level. The risk then leaves the project's active register.