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Risk Assessment

5 minutes 5 Questions

Risk Assessment is the process of determining the probability of the identified risks and assessing their potential impact. During this step, both qualitative and quantitative risk assessment methods are used. Quantitative risk assessment provides numerical estimates of probabilities. Qualitative r…

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CAPM - Risk Assessment Example Questions

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Question 1

An international NGO plans to host a large, outdoor event in different countries. This includes countries which have a known risk of extreme weather conditions. How should the project manager address this risk?

Correct Answer: Develop contingency plans for each location, based on a Quantitative Risk Analysis of historical weather patterns

A project manager's task in such a situation is to manage and mitigate the risk. The best course of action is to develop contingency plans for each location based on a Quantitative Risk Analysis of historical weather patterns. This employs a data-driven approach to understand the probability and impact of adverse weather conditions and allows for strategical planning. This way, the impact of such risks can be minimized or even avoided. The second option, ignoring weather risks and focusing on event organization, is not a strategic approach as it does not address the inherent risk of extreme weather, which can potentially jeopardize the entire event Hiring local weather experts, while it may provide some level of insight, does not address the root problem- the potential disruption due to unexpected weather conditions. Additionally, it might not be economically feasible or practical to hire experts in each location Lastly, moving the event indoor in all locations, may not be possible due to space constraints, cost, or even the nature of the event being outdoor. It also doesn't take into account the specific situations in different countries.

Question 2

A technology firm is developing a new mobile banking application. The release date is fast approaching yet there are concerns about possible security risks. As a project associate, which risk management process will you prioritize?

Correct Answer: Performing Quantitative Risk Analysis

The best approach in managing risks for a technology firm developing a mobile banking app facing secure risks and an approaching deadline would be 'Performing Quantitative Risk Analysis'. This process objectively and numerically evaluates the probability of each risk and its impact on project objectives if it occurs, providing a basis for prioritizing risks for further action. 'Skipping the risk assessment to meet the deadline' is not advisable because it can lead to significant security and operational issues down the line. 'Limiting the features of the application' misses the point of risk assessment, which isn’t about limiting product scope, but about understanding and controlling risks. 'Releasing the app and dealing with security issues post-release' is seen as reactive and risky, particularly in an application handling sensitive financial data, where security breaches might lead to customer distrust and legal issues.

Question 3

A university IT department is concerned about the risks of students connecting their own devices to the campus network. What step should be taken first to manage these risks?

Correct Answer: Perform a risk assessment to identify potential threats and vulnerabilities

Performing a risk assessment is the first step to manage risks. It identifies potential threats and vulnerabilities to the network. Blocking devices, creating separate VLANs, providing VPN, enforcing security policies, and implementing strong passwords are not the initial steps to manage risks; they are possible risk management controls that could be implemented after the risk assessment.

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