Project Managers Can Identify Risks by Learning and Understanding the Cause

question 15

Multiple Choice

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

• A) develop a flow chart that shows how data flows from one person to another
• B) conduct a root cause analysis
• C) examine triggers that a risk is about to occur
• D) list all risks in a risk register

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Definitions:

Disinflation

A slowdown in the rate of inflation, indicating a reduction in the rate at which prices for goods and services rise over time.

Favorable Supply Shock

A situation in which the supply of goods increases, leading to lower prices and benefiting consumers.

Unemployment Rate

The share of people in the labor force who have no job but are searching for one.

Business Confidence

An economic indicator that measures the degree of optimism or pessimism that business managers feel about the prospects of their companies and the economy as a whole.