Descriptive Questions : 10 marks for each question.

1. Project risks can/cannot be eliminated if the project is carefully planned. Explain.

2. Discuss the difference between Internal Risks and External Risks. List sources of Risks in each of
these categories.

3. The chances of risk events occurring and their respective costs increasing change over the
project life cycle. What is the significance of this phenomenon to a project manager ?

Objective Questions : Each Question carry two marks, for the correct answer.

1. A pure Risk is one where,

 (a) The result can be only either a loss or no change

 (b) The result can be gain, a loss, or no change
 (c) The result can be only either a gain, or no change
 (d) The result can not be predicted

If choice a is selected set score to 2.

2. Risk avoidance :

 (a) Means measures are taken to eliminate the loss exposure

 (b) Means measures are taken to reduce loss severity
 (c) Means Insurance has been purchased & the risk transferred to an Insurance Company.
 (d) Is never a useful Risk Management Tool.

If choice a is selected set score to 2.

3. An opportunity is defined as ,
 (a) An appropriate option for dealing with a risk.
 (b) A risk with a potential beneficial outcome
 (c) Something which may pose a risk
 (d) A way of managing a threat to the project objectives.

If choice b is selected set score to 2.