Q&A Hero

Q: The fee in a CPFF contract constantly varies even when the scope of a contract remains the same. a. True b. False

Q: Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts. a. True b. False

Q: Indirect costs are those costs can be traced back to a project in a cost-effective way. a. True b. False

Q: A single contract can include all three categories of contracts. a. True b. False

Q: Risk registers and stakeholder registers are outputs of the planning procurement process. a. True b. False

Q: If an organization has no need to buy any products or services from outside the organization, then it has no need to perform any of the procurement management processes. a. True b. False

Q: Project procurement management consists primarily of two processes: assessing procurements and controlling procurements. a. True b. False

Q: While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers. a. True b. False

Q: Suppliers are those organizations or individuals who provide procurement services. a. True b. False

Q: What are the four main capabilities of procure-to-pay suites for indirect procurements? What type(s) of organizations are they suitable for?

Q: How are RFPs different from RFQs? What are some of the requirements of writing an RFP?

Q: How is a statement of work (SOW) different from a contract statement of work? What are some of the requirements for creating a contract SOW?

Q: What are the four types of cost-reimbursable contracts? Briefly describe each type.

Q: List and briefly describe the four main processes of project procurement management.

Q: What are some of the advantages that outsourcing offers which is encouraging many companies to adopt it?

Q: A(n) _____ type of e-procurement that Identifies new suppliers for a specific category of purchasing requirements using Internet technology.

Q: A(n) _____ type of e-procurement that sends requests for information and prices to suppliers and receives the response of suppliers using Internet technology.

Q: A(n) _____ system provides the ability to easily organize, find, and archive procurement-related documents.

Q: Tools used in contract closure include procurement audits, _____, and a records management system.

Q: The final process in project procurement management is _____.

Q: In procurement management, evaluation of any change should include a(n) _____ analysis.

Q: _____ are oral or written acts or omissions by someone with actual or apparent authority that can be construed to have the same effect as a written change order.

Q: The process of source selection involves evaluating proposals from sellers, choosing the best one, negotiating, and awarding the _____.

Q: A(n)_____ conference helps ensure that everyone has a clear, common understanding of the buyer's desired products or services.

Q: All procurement documents should be in _____ form in order to facilitate accurate and complete responses from prospective sellers.

Q: What are the four basic response strategies for negative risks? Describe each strategy.

Q: Explain the basic steps involved in performing a Monte Carlo analysis.

Q: Explain decision trees and expected monetary value.

Q: List and briefly describe four methods for identifying risks.

Q: List and briefly describe the six major processes involved in risk management.

Q: Project teams sometimes use _____, which are unplanned responses to risk events, when they do not have contingency plans in place.

Q: _____ risks are risks that remain after all of the response strategies have been implemented.

Q: Risk _____ refers to reducing the impact of a risk event by reducing the probability of its occurrence.

Q: _____ involves accepting the consequences should a risk occur.

Q: _____ helps professionals to see the effects of changing one or more variables on an outcome.

Q: _____ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level.

Q: _____ is the product of a risk event probability and the risk event's monetary value.

Q: A(n) _____ is a list of risks that are low priority, but are still identified as potential risks.

Q: The main output of qualitative risk analysis is updating the ________. .

Q: _____ are numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur.

Q: The _____ is the person who will own or take responsibility for the risk.

Q: _____ are indicators or symptoms of actual risk events.

Q: A(n) _____ is a document that contains results of various risk management processes.

Q: System or process _____ are diagrams that show how different parts of a system interrelate.

Q: The basic concept of the _____ technique is to derive a consensus among a panel of experts who make predictions about future developments.

Q: _____ is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment.

Q: _____ is the process of understanding what potential events might hurt or enhance a particular project.

Q: A(n) _____ is a hierarchy of potential risk categories for a project.

Q: A(n) _____ documents the procedures for managing risk throughout the project.

Q: The main output of the _____ process is the start of a risk register.

Q: The term _____ is used to describe risks that the project team has identified and analyzed.

Q: Risk utility rises at a decreasing rate for a(n) _____ person.

Q: _____ is the amount of satisfaction or pleasure received from a potential payoff.

Q: A project _____ is an uncertainty that can have a negative or positive effect on meeting project objectives.

Q: Potential problems that might occur on the project and how they might impede project success are _____ risks.

Q: _____ are unplanned responses to risk events used when project teams do not have contingency plans in place.a. Workarounds b. Fallback plansc. Contingency plans d. Triggers

Q: _____ risks refer to those that are direct results of implementing risk responses.a. Architectural b. Primaryc. Residual d. Secondary

Q: _____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.a. Risk enhancement b. Risk acceptancec. Risk sharing d. Risk exploitation

Q: _____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.a. Risk exploitation b. Risk sharingc. Risk enhancement d. Risk acceptance

Q: _____ involves allocating ownership of the risk to another party.a. Risk exploitation b. Risk sharingc. Risk enhancement d. Risk acceptance

Q: _____ involves shifting the consequence of a risk and responsibility for its management to a third party.a. Risk avoidance b. Risk acceptancec. Risk transference d. Risk mitigation

Q: _____ involves doing whatever you can to make sure the positive risk happens.a. Risk exploitation b. Risk sharingc. Risk enhancement d. Risk acceptance

Q: _____ involves reducing the impact of a risk event by reducing the probability of its occurrence.a. Risk avoidance b. Risk acceptancec. Risk transference d. Risk mitigation

Q: _____ involves eliminating a specific threat, usually by eliminating its causes.a. Risk avoidance b. Risk acceptancec. Risk transference d. Risk mitigation

Q: A _____ is a technique used to show the effects of changing one or more variables on an outcome.a. sensitivity analysis b. decision treec. Monte Carlo analysis d. systems analysis

Q: What is the first step in a Monte Carlo analysis? a. Determine the probability distribution of each variable. b. For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. c. Assess the range for the variables being considered. d. Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

Q: _____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.a. Sensitivity b. Systemsc. Monte Carlo d. NPV

Q: A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.a. decision tree b. activity-on-arrowc. workaround d. backward pass

Q: Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.a. planning b. executingc. monitoring and controlling d. closing

Q: Identifying risks is a subprocess of the _____ process of project risk management.a. planning b. executingc. monitoring and controlling d. closing

Q: _____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.a. SharePoint portal b. Probability/impact matrices or chartsc. Expectations management matrix d. Top Ten Risk Item Tracking

Q: The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.a. Top Ten Risk Item Tracking chart b. requirements traceability matrixc. probability/impact matrix d. expectations management matrix

Q: A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.a. risk breakdown structure b. influence diagramc. process flow chart d. work breakdown structure

Q: _____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.a. Brainstorming b. Monte Carlo analysisc. The Delphi technique d. Interviewing

Q: Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.a. integration b. qualityc. procurement d. human resources

Q: _____ are predefined actions that the project team will take if an identified risk event occurs.a. Secondary risks b. Workaroundsc. Contingency plans d. Management reserves

Q: _____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.a. Performing quantitative risk analysis b. Planning risk responsesc. Controlling risk d. Performing qualitative risk analysis

Q: _____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.a. Performing quantitative risk analysis b. Planning risk responsesc. Controlling risk d. Performing qualitative risk analysis

Q: _____ involves numerically estimating the effects of risks on project objectives.a. Performing qualitative risk analysis b. Planning risk responsesc. Identifying risks d. Performing quantitative risk analysis

Q: _____ involves prioritizing risks based on their probability and impact of occurrence.a. Performing qualitative risk analysis b. Identifying risksc. Planning risk responses d. Performing quantitative risk analysis