6. Lifecycle and Management

Risk Management — Quiz

Test your understanding of risk management with 5 practice questions.

Practice Questions

Question 1

In a systems engineering project, what is the primary distinction between a 'known-known' risk and a 'known-unknown' risk?

Question 2

Consider a project where a critical software module has a $40\%$ chance of causing a $150,000$ delay. A proposed testing strategy can reduce this probability to $10\%$ at a cost of $10,000$. What is the net Expected Monetary Value (EMV) of implementing the testing strategy?

Question 3

Which of the following risk response strategies is most appropriate when the cost of mitigation outweighs the potential impact of the risk, and the organization is prepared to absorb the consequences?

Question 4

In a complex systems integration project, a critical interface component has a $25\%$ chance of failure, leading to a $200,000$ cost overrun. A proposed design change can reduce the probability of failure to $5\%$ at a cost of $15,000$. What is the net Expected Monetary Value (EMV) of implementing the design change?

Question 5

Which of the following best describes the concept of 'secondary risks' in risk management?