Risk and Quality Management 40 questions you MUST know the subject
please do not say you can do it if you can’t too many BS in this site..
book is Managing Risk in Organizations A Guide for Managers, J. Davidson Frame (pdf free available online)
verify all questions before you answer, make sure you are 100% sure of the responses
Q1. A function of risk management is to minimize project risks and maximize opportunities.
a. true
b. false
Q2. Which of the following is an internal source of risk?
a. Power outage
b. Office politics
c. Declining market value of corporate stocks
d. Typhoon
Q3. In cost-plus contracts, which of the following assumes the greatest share of risk?
a. contractor
b. general public
c. buyer
d. both the buyer and contractor
Q4. A measure is said to be reliable if:
a. it actually measures what it purports to measure
b. after repeated measurements, it leads to results that are close to each other
c. it is on target
d. it provides answers that are precise
Q5. Which of the following is a risk event?
a. Poor estimating
b. Insurance
c. Management reserve
d. Contingencies
Q6. Management reserves are meant to deal with:
a. known unknowns
b. unknown unknowns
c. risk deflection
d. risk avoidance
Q7. When a firm adopts the Total Quality Management procedures, which of the following is the likely outcome?
a. A continuous focus on lowering production costs
b. A continuous focus on giving the customer more than he or she indicated in the requirements definition statement
c. A continuous focus on improving the processes that produce the products or services
d. Managers set the tone and workers take responsibility for poor quality
Q8. Contingency allowances deal with:
a. known unknowns
b. unknown unknowns
c. risk deflection
d. risk avoidance
Q9. In firm fixed-price contracts, which of the following bears the greatest share of risk?
a. buyer
b. contractor
c. both
d. general public
Q10. As a project nears completion, which of the following is likely to occur?
a. Risk increases
b. Stake increases
c. Stake decreases
d. Risk and stake decreases
Q11. Pareto’s law teaches that the larger the number of quality problems we try to solve, the better off we are.
a. true
b. false
Q12. The ISO 9000 perspective on quality is that quality is basically defined by:
a. senior management
b. customers
c. project sponsors
d. project managers
Q13. Ishikawa fishbone diagrams are used for:
a. Quality assurance purposes
b. Bench marking
c. Quality planning
d. Quality control
Q14. Variance in quality management means non-conformance to requirements.
a. true
b. false
Q15. With proper planning all project risks can be eliminated.
a. true
b. false
Q16. If a risk event has a 0.8 probability of occurrence and $20,000 target value, what does $16,000 represent?
a. Management reserve
b. Contingency allowance
c. Expected value
d. Project budget
Q17. Net present value (NPV) is a tool that can be used to assess risk impact.
a. true
b. false
Q18. The emphasis of ISO 9000 is on the quality of the products produced by organizations.
a. true
b. false
Q19. In developing Ishikawa diagrams, it is typical for a problem under consideration to be stated on the left side, with the possible causes on the right.
a. true
b. false
Q20. A fishbone diagram focuses on identifying the sources of quality problems encountered in a process.
a. true
b. false
Q21. Decision trees force decision-makers to break decisions into their logical components.
a. true
b. false
Q22. Technical risk is the risk that the product we develop might not sell.
a. true
b. false
Q23. Value engineering minimizes engineering risk for:
a. buyers
b. contractors
c. both buyers and contractors
d. shareholders
Q24. Points outside the control limits usually come from:
a. random variability
b. poor implementations
c. special causes
d. Pareto variability
Q25. If the cheapest cost per widget has historically been $30, the most typical $40, and the most expensive $70, what is the expected cost of a widget (use the Beta distribution as the basis of your computation)?
a. $40.00
b. $43.33
c. $45.00
d. $46.67
Q26. In project quality management, benchmarking helps to:
a. determine the benefit and costs of meeting quality requirements
b. measure one’s own products, services and practices against the best practices in the field
c. show how various elements of a quality system are integrated
d. determine which variables have the most influence on the overall project outcome
Q27. Risk mitigation involves reducing the risk event probability, event impact or both.
a. true
b. false
Q28. What quality management tool shows that most of the time, 80% of quality problems are created by 20% of the sources of problems:
a. Fishbone diagrams
b. Control charts
c. Pareto diagrams
d. Flow charts
Q29. The amount of money one stands to lose if an undertaking fails is called?
a. Stake
b. Buffer
c. Float
d. Reserve
Q30. In quality management, the most expensive problems to fix are the problems fixed:
a. at the project initiation phase
b. at the planning phase
c. at the implementation phase
d. after the product is released
Q31. There is a definite link between the level of risk an enterprise faces and the project time frame.
a. true
b. false
Q32. The processes of quality management are:
a. Quality planning, quality control, quality assurance, and quality improvement
b. Benchmarking, inspection, and prevention
c. Quality planning, benchmarking, inspection, and prevention
d. Quality planning, quality control, benchmarking, and inspection
Q33. In risk management, insurance is an example of:
a. Risk avoidance
b. Risk acceptance
c. Risk deflection
d. Contingency planning
Q34. The value of the Analytical Hierarchy Process in risk management is that it helps in prioritization.
a. true
b. false
Q35. The utility function captures the extent to which:
a. people are either risk takers or risk avoiders
b. senior management is satisfied with the project team’s risk management plan
c. the project team feels good about its risk management plan
d. the customer is satisfied with the project team’s risk management plan
Q36. A key feature of business risk is:
a. it focuses on optimizing profit
b. it focuses on minimizing costs
c. it is not found in government operations
d. there is opportunity for gain as well for loss
Q37. The father of ‘statistical quality control’ and inventor of the control chart is:
a. Edward Deming
b. Walter Shewart
c. Joseph Juran
d. Kaoru Ishikawa
Q38. Which of the following accurately describe the four step risk management process?
a. Risk identification, Risk impact analysis, Risk mitigation, Risk deflection
b. Risk acceptance, Risk impact analysis, Risk response development, Risk response control
c. Risk deflection, Contingency planning, Risk impact analysis, Risk response control
d. Risk identification, Risk impact analysis, Risk response development, Risk response control
Q39. When a vendor’s truck arrives at your loading dock and you examine the contents of some of the boxes of goods being delivered, you are engaged in the process of:
a. quality review
b. acceptance sampling
c. quality assessment
d. Pareto optimization
Q40. Continuous quality improvement depends heavily upon:
a. hard work
b. monitoring special causes of variance
c. use of checklists
d. employment of the PDCA cycle
