Which of the following baselines identifies the specifications required by the resource that meet the approved requirements?
Correct Answer: B
Section: Volume C Explanation/Reference: Explanation: Allocated baseline identifies the specifications that meet the approved requirements. Incorrect Answers: A: Functional baseline identifies the initial specifications before any changes are made. C: Product baseline identifies the minimal specification required by the resource to meet business outcomes. D: Developmental baseline identifies the state of the resources as it is developed to meet or exceed expectations and requirements.
Question 107
Which of the following techniques examines the degree to which organizational strengths offset threats and opportunities that may serve to overcome weaknesses?
Correct Answer: A
Section: Volume B Explanation: SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Incorrect Answers: B, C: Brainstorming and Delphi techniques are used to identify risks in a project through consensus. Delphi differs in that as the members of the team do not know each other. D: In this technique, risks can be identified directly by experts with relevant experience of similar projects or business areas.
Question 108
Which of the following is the process of numerically analyzing the effects of identified risks on the overall enterprise's objectives?
Correct Answer: B
is incorrect. Unlike the quantitative risk assessment, qualitative risk assessment does not assign dollar values. Rather, it determines risk's level based on the probability and impact of a risk. These values are determined by gathering the opinions of experts. Probability- establishing the likelihood of occurrence and reoccurrence of specific risks, independently, and combined. The risk occurs when a threat exploits vulnerability. Scaling is done to define the probability that a risk will occur. The scale can be based on word values such as Low, Medium, or High. Percentage can also be assigned to these words, like 10% to low and 90% to high. Impact- Impact is used to identify the magnitude of identified risks. The risk leads to some type of loss. However, instead of quantifying the loss as a dollar value, an impact assessment could use words such as Low, Medium, or High. Impact is expressed as a relative value. For example, low could be 10, medium could be 50, and high could be 100. Risk level= Probability*Impact Answer: A is incorrect. The first thing we must do in risk management is to identify the areas of the project where the risks can occur. This is termed as risk identification. Listing all the possible risks is proved to be very productive for the enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are considered, as both carry some level of risk with them. Answer: D is incorrect. This is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness through the project.
Question 109
Your project has several risks that may cause serious financial impact if they occur. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?
Correct Answer: B
is incorrect. This chart is created as part of quantitative analysis.
Question 110
When defining thresholds for control key performance indicators (KPIs). it is MOST helpful to align:
