MODULE ASSESSMENT: In-Class Test

COLLEGE: Lincoln International Business School

MODULE: Management of Project and Contract Risk

MODULE CODE: BUS9175M

LEVEL: M

CO-ORDINATOR: Kai Adegbembo

DATE: 29 March 2022

TIME ALLOWED: 30 minutes

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INSTRUCTIONS TO STUDENTS:

QUESTIONS TO ANSWER: Answer all sections of questions

MARKING SCHEME: All questions carry equal weight

MATERIALS ALLOWED:

NOTES TO STUDENTS: Answers should be clearly indicated and

legibly written

Student Name__________________________ Student Number_________

Programme____________________________

Agreed Mark_______% 1st Marker_________ 2nd Marker__________

BUS9044M Mock Test Page 1 of 6

Part I

Definitional and brief situational questions

1. What risk attribute is not used to prioritise the inherent risks?

a. direction
b. variability
c. proximity
d. propinquity

2. Which of the following is an element of the VUCA-Prime risk leadership

approach?

a. validity
b. acceptance
c. clarity
d. uncertainty

3. Why was “Monte Carlo” chosen as a name for a risk assessment method?

a. it was developed in Monte Carlo

b. probability theory has roots in gambling
c. it was proposed by the Count of Monte Carlo
d. gamblers first used it in the casinos of Monte Carlo

4. Which of the following can also be referred to as ‘black swan’?

a. known known
b. unknown unknown
c. unknown known
d. known unknown

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5. What method can be used for risk identification?

a. Monte Carlo
b. Value at risk
c. Cause-effect analysis
d. Net present value

Part II

Open-ended definitional questions

1. How would you define ‘uncertainty’?

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2. Give three examples of ‘macro risks’?

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3. Can you define a ‘sentinel event’? Provide an example.

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4. What is the difference between white and black swan events?
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5. Risk assessment is required for…

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Part III

Open-ended situational questions

1. What should we do with known knowns in our projects?

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2. What tools may be used when identifying supply chain risks?

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3. For which risks would you use a risk pooling strategy?
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4. How would you prioritise the identified risks if, during the initial risk
assessment, all of them fell into the same category on the risk map (low
probability, moderate impact)?
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5. Based on the below diagram, what is the predicted risk of project failure?

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