identifying and evaluating potential risks

Course 3 – Project Planning: Putting It All Together QUIZ ANSWERS

Week 4: Managing Risks Effectively

Google Project Management: Professional Certificate

Coursera Answers & Study Guide

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TABLE OF CONTENT

Managing Risks Effectively INTRODUCTION

Risk management is an important part of project management and can help prevent the failure of a project. Coursera’s Google Project Management: Professional Certificate program provides learners with essential knowledge on managing risks effectively, and identifying and evaluating potential risks. It covers topics such as how to identify different types of risks, measure their impact on a project, create a risk management plan and communicate it to stakeholders, as well as develop strategies to resolve identified risks. The program also gives learners access to tools they can use to assess and manage project risks.

By mastering these skills, students will be able to anticipate possible problems before they arise and mitigate their impacts when they do occur. This in turn, will reduce the chances of project failures due to unanticipated issues and ensure successful outcomes for projects.

Learning Objectives

  • Communicate and resolve identified issues in a risk management plan.
  • Identify types of risks and measure their impact on a project.
  • Examine tools for identifying, assessing, and managing risks.
  • Explain what risk management is and how it can help prevent project failure.

TEST YOUR KNOWLEDGE: RISKs MANAGEMENT

1. Define a risk as it relates to project management.

  • A risk is an event that might occur and could impact a project in the future. (CORRECT)
  • A risk is a measurement that estimates the potential impact of events that could occur in the future.
  • A risk is a known problem that has already impacted a project.
  • A risk is a measurement that estimates the impact of known problems.

Correct: Risks are potential issues that may or may not occur. Project managers should prepare for them, just in case.

2. What is the difference between a risk and an issue in project management?

  • An issue is a known problem; a risk is an event that might happen in the future (CORRECT)
  • Risks and issues are both known problems, but they affect projects to different degrees
  • Risks and issues are both events that might happen in the future, but they could affect projects to different degrees.
  • A risk is a known problem; an issue is an event that might happen in the future

Correct: Issues are problems that have already impacted a project, while risks are the potential problems that could impact it in the future.

3. Fill in the blank: Risk management is the process of _____.

  • identifying and avoiding projects that have a high potential for risk
  • identifying and initiating projects that have a low potential for risk
  • identifying and mitigating risks and issues that are already impacting a project
  • identifying and evaluating potential risks and issues that could impact a project (CORRECT)

Correct: Risk management can help project managers make sure that risks don’t turn into known problems.

4. Which of the following are true of risk management? Select all that apply.

  • It helps identify who a project manager should consult about a potential risk. (CORRECT)
  • It helps determine how to mitigate potential risks. (CORRECT)
  • It is a one-time exercise at the start of a project.
  • It reveals what could go wrong with a project. (CORRECT)

Correct: Risk management can help improve communication between you and your stakeholders by informing them about potential risks before they become known issues. It also helps you avoid delays by pinpointing potential risks and determining how each potential risk could be mitigated.

Correct: Risk management can be helpful in creating a backup plan if something goes wrong. It can also help you avoid delays by pinpointing potential issues and determine who you’ll need to consult about each risk.

Correct: Risk management can help project managers avoid delays by pinpointing potential issues. It can also help you identify who you’ll need to consult about each risk and come up with a plan for how each potential risk could be mitigated.

5. When planning for a project, what does risk management provide an understanding of? Select all that apply.

  • When to share project deliverables
  • Who to consult about risks (CORRECT)
  • How project risks could be mitigated (CORRECT)
  • What could go wrong with the project (CORRECT)

Correct: Risk management helps a project have a better chance of success. This is because risk management informs project managers about what could go wrong with a project, how project risks could be mitigated, and who to consult about each risk.

Correct: Planning ahead is key to meeting project goals, and mitigating risk is a key part of planning. By using risk management, project managers identify what could go wrong with a project, how project risks could be mitigated, and who to consult about each risk.

Correct: No project goes 100% according to plan, so if (or when) something goes wrong, it’s important to have a plan. Risk management helps project managers identify what could go wrong with a project, how project risks could be mitigated, and who to consult about each risk.

TEST YOUR KNOWLEDGE: RISKS SENARIOS

1. Which three of the following scenarios represent possible opportunities that could arise from a risk?

  • Adding two team members from another team to increase productivity and meet the project deadline (CORRECT)
  • Hiring a new supplier of an item required to complete a product shortly before the project closes
  • Completing a milestone ahead of schedule (CORRECT)
  • Adopting a new spreadsheet software to streamline and simplify tasks in the future (CORRECT)

Correct: Adding team members could risk the productivity of the team in the short term as they are onboarded, but long term the team should be able to complete more work.

Correct: While completing tasks and milestones ahead of schedule could disrupt the timeline of the project, it may free up team members to work on additional tasks. This is a positive outcome of a risk.

Correct: Learning a new software could be a risk if it initially slows down the team. However, if it benefits the team long term, it is likely an opportunity.

2. Which of the following scenarios is an example of a project issue? Select all that apply.

  • Materials increase in price (CORRECT)
  • Team members complete tasks early
  • Workers at a supplier’s production are currently in a labor strike (CORRECT)
  • Clients do not return the necessary paperwork on time (CORRECT)

Correct: Risks like market fluctuations can lead to project cost issues.

Correct: A strike at a supplier is an issue that could mean a delay in receiving necessary project materials.

Correct: Submitting contracts to clients in the wrong format, for example, can lead to issues such as missed deadlines or legal concerns.

3. Fill in the blank: The risk management process includes five steps: identify, analyze, evaluate, _____, and monitor and control.

  • accept
  • mitigate
  • classify
  • treat (CORRECT)

Correct: When a project manager treats a risk, they make plans for how to respond if the risk becomes an issue.

4. During which phase of the risk management life cycle do you use the information you have gained about the likelihood and potential impact of risks to prioritize risks?

  • Analyze the risk.
  • Monitor and control the risk.
  • Identify the risk.
  • Treat the risk.
  • Evaluate the risk. (CORRECT)

Correct: During this phase, you use the results of a risk analysis to determine which risks to prioritize. 

5. What risk refers to the possibility that a project won’t produce the results outlined in the project goals?

  • Budget risk
  • Dependency
  • Time risk
  • Scope risk (CORRECT)

Correct: Scope risk refers to the possibility that a project won’t produce the results outlined in the project goals. Time risks, budget risks, and dependencies may also pose risks to the project.

6. When is a good time to review the project budget and identify if you need to make any changes?

  • After speaking with the project sponsor
  • After the initiation phase
  • After you meet a milestone (CORRECT)
  • After a retrospective

Correct: Milestones can act as checkpoints for budget management and payment.

TEST YOUR KNOWLEDGE: MEASURING RISK IMPACT

1. Which type of risk involves the possibility that a project will not produce the results outlined in the project goals?

  • Time risk
  • Environmental risk
  • Budget risk
  • Scope risk (CORRECT)

Correct: This type of risk involves the possibility that a project won’t meet your project goals and could result in the deliverables of your project not being acceptable to your stakeholders or customers.

2. Imagine you’re a project manager overseeing the development and launch of a new app. Which of the following problems could be a single point of failure risk in the app’s development?

  • Completing a project milestone behind schedule, which may delay the project timeline.
  • Failing to back up key project documentation, which may result in a complete loss of essential data. (CORRECT)
  • Lack of communication between the designers and the project lead, which may lead to tension among team members.
  • Receiving negative feedback from user testing, which may lead to more work for the developers.

Correct: If the documents become corrupted and the data gets lost, the project can’t move forward until the team rebuilds them. That makes this a single point of failure risk, which has the potential to be catastrophic and halt work across the project.

3. Continuing with the app-development project scenario from the previous question, which three of the following task relationships demonstrate an internal dependency?

  • Developers must fix bugs before the Quality Assurance team begins testing. (CORRECT)
  • Researchers must conduct usability tests before the team can improve the design. (CORRECT)
  • Partner agencies must deliver image assets before the app is complete.
  • Designers must complete wireframes before they begin prototyping. (CORRECT)
  • Clients must sign off on the design before the official launch.

Correct: Your team is responsible for bug fixes, making this an internal dependency.

Correct: Your team is responsible for usability testing, making this an internal dependency.

Correct: Your team is responsible for the app’s design, making this an internal dependency.

4. Continuing with the app-development project scenario from the previous question, you need to secure funding to develop the app. You want to write a grant proposal to an investment firm. Which of the following is an external dependency for this task?

  • Appoint a team member to assemble the proposal.
  • Outline your project milestones in the proposal.
  • Get feedback from the investment firm about the types of projects they are interested in funding. (CORRECT)
  • Identify team members to write the sections of the proposal that align with their expertise.

Correct: Your team can’t control what interests the investment firm, making this an external dependency for the grant-writing task.

TEST YOUR KNOWLEDGE: IDENTIFYING AND ASSESSING RISKS

1. Imagine that you’re overseeing a project to construct a new office building for your company, and you need to determine your task dependencies. Which of the following tasks should come first?

  • Begin construction on the new building.
  • Set the project budget.
  • Identify the construction site.
  • Get stakeholder input to determine project goals. (CORRECT)

Correct: Connecting with stakeholders is a critical first step in any new project. Following that, you can set the project budget, identify the construction site, and begin construction on the new building.

2. Continuing with the construction project scenario from the previous question, which of the following tasks should come last in the project?

  • Move equipment to the new office. (CORRECT)
  • Plan for risk.
  • Hire an architect.
  • Order the building materials.

Correct: Moving equipment into the new office comes after planning for risk, hiring an architect, and ordering materials.

3. Continuing with the construction project scenario from the previous question, imagine that you underestimated the amount of a particular material needed to complete the new building. You purchase more of the material at full cost, since you no longer qualify for the bulk, discounted rate. What risk does this scenario demonstrate?

  • Environmental risk
  • Time risk
  • Legal risk
  • Budget risk (CORRECT)

Correct: Unexpected costs due to poor planning can pose a risk to the project budget.

4. Continuing with the construction project scenario from the previous question, the project team completes the designs (Task A) and then begins construction (Task B). What type of dependency describes the relationship between Tasks A and B?

  • Finish-to-Start (FS) (CORRECT)
  • Start-to-Finish (SF)
  • Finish-to-Finish (FF)
  • Start-to-Start (SS)

Correct: Task A must be completed before Task B can start (the designs must be completed before construction can begin), making this an example of a Finish-to-Start dependency.

TEST YOUR KNOWLEDGE: MITIGATING AND COMMUNICATING RISKS

1. Imagine you have learned that a contractor who has done quality work for your organization in the past has received some negative reviews recently. You choose to hire another contractor for the current project. This is an example of mitigating risk by ______.

  • reducing or controlling it
  • transferring it
  • avoiding it (CORRECT)
  • accepting it

Correct: By hiring a different contractor, you are mitigating the risk by avoiding it altogether. 

2. Which of the following are basic components of a risk management plan? Select all that apply.

  • A Gantt chart
  • A risk register (CORRECT)
  • Mitigation plans (CORRECT)
  • A probability and impact matrix (CORRECT)

Correct: A risk register contains a list of possible risks to a project, making it easier to avoid or mitigate them. A risk management plan should also include a probability and impact matrix and mitigation plans.

Correct: Mitigation plans give teams and stakeholders a clear understanding of potential problems and a plan to address them. A risk management plan should also include a probability and impact matrix and a risk register.

Correct: A probability and impact matrix helps determine the likelihood a risk will occur and the damage a materialized risk could cause to the project. A risk management plan should also include a risk register and mitigation plans.

3. Which of the following tools can help project managers visualize how to mitigate a risk in order to reduce or control it?

  • A decision tree (CORRECT)
  • A statement of work
  • A power grid
  • A project charter

Correct: A decision tree is a flowchart that can help project managers visualize the wider impact of a decision on the rest of a project.

4. What step should you take after you complete your risk management plan?

  • Implement the individual mitigation plans for the risks you have identified.
  • Estimate the likelihood and impact of the project risks you have prioritized.
  • Share the plan with your team and stakeholders. (CORRECT)
  • Create a power grid to include in the appendix of your plan.

Correct: Once you’ve filled out the risk management plan, you should share it with your team and stakeholders to solicit their input. This will help you confirm alignment with your plan.

5.  During the planning phase, what should you consider when communicating a risk to stakeholders?

  • Scope of the project
  • Expertise of the project stakeholder
  • Severity of the identified risk (CORRECT)
  • Size of the project team

Correct: You should consider the severity of the identified risk. It is important to communicate early and often with stakeholders about medium- and high-level risks. For low-level risks, something as simple as an email might suffice.

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Project Planning: Putting It All Together WEEKLY CHALLENGE 4

1. Fill in the blank: A(n) _____ is a known and real problem that can affect a team’s ability to complete a task.

  • threat
  • drawback
  • issue (CORRECT)
  • risk

2. The risk management process can provide project managers a better understanding of what information? Select all that apply.

  • How could the project manager mitigate the potential risk (CORRECT)
  • When exactly the risk will occur
  • What could go wrong with the project (CORRECT)
  • Who the project manager needs to consult about a risk (CORRECT)

3. As a project manager you are practicing risk management. You have already defined potential risks, determined their likelihood, and prioritized them. Now, you’re making a plan to address and manage each risk. This represents which risk management step?

  • Monitor and control risks
  • Treat risks (CORRECT)
  • Identify risks
  • Analyze risks

4. Identify the steps involved in creating and utilizing a fishbone (or cause-and-effect) diagram.

  • Define the problem, identify categories, mitigate causes, and monitor feedback
  • Define the problem, identify risks, mitigate causes, and analyze the causes
  • Define the problem, identify categories, brainstorm causes, and analyze the causes (CORRECT)
  • Define the problem, identify risks, brainstorm causes, and monitor feedback

5. Fill in the blank: Once an organization has explored the inherent risks of a project, its willingness to accept the possible outcomes of those risks is known as _____.

  • risk register
  • risk appetite (CORRECT)
  • risk assumption
  • risk analysis

6. Which of the following are examples of external risk? Select all that apply.

  • A deliverable takes longer than anticipated to complete
  • A breakdown in communication among team members
  • A project vendor goes out of business (CORRECT)
  • A change in regulatory requirements (CORRECT)

7. What does a risk management plan typically contain? Select all that apply.

  • A competitor analysis for each risk
  • Probability estimates for each risk (CORRECT)
  • A mitigation plan for each risk (CORRECT)
  • An executive summary (CORRECT)

8. Why should project managers communicate risks clearly to key stakeholders? Select all that apply.

  • To convince them to provide an increase in budget, if necessary (CORRECT)
  • To increase trust in the relationship (CORRECT)
  • To get them to provide additional teammates, if necessary (CORRECT)
  • To deflect blame on project issues, if necessary

9. As a project manager, you’re identifying task dependencies. Task B cannot finish until Task A is complete—the tasks operate at the same time. Which type of dependency does this situation represent?

  • Finish to Start (FS) (CORRECT)
  • Start to Finish (SF)
  • Finish to Finish (FF)
  • Start to Start (SS)

10. Which steps should be taken when updating a risk management plan? Select all that apply.

  • Remove risks that are no longer relevant. (CORRECT)
  • Move the plan to a confidential folder.
  • Add newly-identified risks. (CORRECT)
  • Include any changes in the mitigation plans. (CORRECT)

11. Fill in the blank: The process of identifying and evaluating potential risks and issues that could impact a project is known as _____.

  • risk mitigation
  • risk management (CORRECT)
  • risk identification
  • risk analysis

12. When should project managers engage in risk management?

  • At the beginning of the project
  • Towards the end of the project
  • Shortly after the project begins
  • Regularly throughout the project (CORRECT)

13. When working through the risk management life cycle, what’s the main goal when evaluating a risk?

  • Treating risks
  • Prioritizing risks (CORRECT)
  • Identifying risks
  • Controlling risks

14. Choose the best definition for inherent risk as it relates to project management.

  • The measure of a risk, calculated by its difficulty and frequency
  • The measure of a risk, calculated by its probability and impact (CORREECT)
  • The measure of a risk, calculated by its causes and circumstances
  • The measure of a risk, calculated by its timing and dependencies

15. Fill in the blank: The four common ways to mitigate risk include _____.

  • accept it, disregard it, reduce or control it, and transfer it
  • avoid it, accept it, disregard it, and transfer it
  • avoid it, accept it, reduce or control it, and transfer it (CORRECT)
  • accept it, ignore it, reduce or control it, and transfer it

16. Which of the following is the best way to communicate a high-level risk to stakeholders?

  • Plan to present the risks and your mitigation plans at the next monthly meeting.
  • Describe the risks in a weekly planning email and briefly explain your plan to mitigate them.
  • Describe the risks and your mitigation plan to stakeholders the next time you see them in person.
  • Meet with stakeholders in person to present serious risks and your plans to mitigate them. (CORRECT)

17. As a project manager practicing risk management, you’ve already identified the risk. Now, you’re determining the likelihood and potential impact the risk will have on your project. Which risk management step does this represent?

  • Treat risks
  • Avoid risks
  • Monitor and control risks
  • Analyze risks (CORRECT)

18. What are the most common types of risk that can impact projects?

  • Time risks, budget risks, and external risks
  • Budget risks, scope risks, and internal risks
  • Time risks, budget risks, and scope risks (CORRECT)
  •  Budget risks, internal risks, and external risks

19. Which of the following best describes the executive summary in the risk management plan?

  • Charts such as the impact chart, probability chart, and the probability and impact matrix
  • Information such as the plan’s status, creation date, and uploaded date
  • Introduction to the conditions of the project and an outline of the potential risks (CORRECT)
  • Description of each risk, its risk rating, and a mitigation plan

20. As a project manager, you’re identifying task dependencies. Task B cannot start until Task A is complete. Which type of dependency does this situation represent?

  • Start to Start (SS)
  • Start to Finish (SF)
  • Finish to Start (FS) (CORRECT)
  • Finish to Finish (FF)

21. As a project manager, you’re identifying task dependencies. Task B cannot start until Task A has started. Which type of dependency does this situation represent?

  • Finish to Finish (FF)
  • Finish to Start (FS)
  • Start to Finish (SF)
  • Start to Start (SS) (CORRECT)

22. Failing to engage in risk management for your project can have which two of the following consequences

  • You will not be able to use the appropriate tools
  • You will not be able to establish necessary vendor relationships
  • You will not be able to meet project timelines and goals (CORRECT)
  • You will not be able to make necessary adjustments to the project plan (CORRECT)

23. Fill in the blank: A potential event that can impact your project if it occurs is called a(n) _____.

  • problem
  • issue
  • delay
  • risk (CORRECT)

24. Which of the following is a recommended method to communicate a medium-level risk to stakeholders?

  • Present the risk and your mitigation plan during the team meeting next month.
  • In the weekly planning email, briefly describe the risk and your plan to mitigate it.
  • Call an urgent in-person meeting with stakeholders to present the risk and your plan to mitigate it.
  • Send stakeholders a direct email that outlines the risk and includes a detailed explanation of your mitigation plan. (CORRECT)

Managing Risks Effectively CONCLUSION

In conclusion, risk management is an important tool for project managers to prevent project failure. By understanding how to identify and manage different types of risks, project managers can increase the chances of successful project delivery.

There are a variety of tools available to help with risk management, and using a risk management plan can help communication and resolve risks. If you want to learn more about risk management, Coursera offers a course that covers all of these topics in greater detail. Join now and get started on managing risks today!

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