Question: True

Answer: The project manager needs to set the tone for encouraging open and timely discussion of risks among the project team.

Question: True

Answer: A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the project objective.

Question: False

Answer: Risk identification is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs.

Question: False

Answer: Waiting for favorable events to occur and then reacting to them can result in panic and costly responses.

Question: False

Answer: Managing risk includes taking action to foster the likelihood of occurrence or the impact of such unfavorable events.

Question: False

Answer: The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective.

Question: True

Answer: Risk management involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.

Question: True

Answer: Addressing risks proactively will increase the chances of accomplishing the project objective.

Question: True

Answer: Some level of risk planning should be done during the initiating phase of the project life cycle to make sure that a contractor understands the risk involved with bidding on a proposed project.

Question: True

Answer: If the risk seems too great, the contractor may decide to not bid on a proposed project.