Question

7. An organisation operates compliance and audit functions that 3. When estimating time for activities, a Project Manager should: Answer: Answer: Use the best guess and estimate all activities since there will be changes as the project progresses and more information becomes available Involve people who will be doing the work to get estimates Estimate for what the cost will allow and include buffers None of the above Page 4. An accepted deadline for project approaches. However, the project manager realizes only 75% percent of the work has been completed. The project manager then issues a change request. What should the change request authorize? Answer: Additional resources using the contingency fund b) Escalation approval to use contingency funding Team overtime to meet schedule Corrective action based on causes c. 5. Within an organisation, when attempting to manage and control risk, the organisation should be aware that Answer: a) b) Consideration of risk perception is not required. Consideration should be given to internal controls only. Uncertainty must be taken into account. Uncertainty need not be considered. d) 6. The Chief Risk Officer within a large manufacturing organisation has been asked by the Board of Directors to provide an example of a pure risk. A suitable example would be Answer: a) b) c) A fire occurring in a new manufacturing process line. Entering into a contract to purchase a new factory. Making a strategic decision that affects the long-term future of the organisation. The purchase of a currency derivative

Answer 1

The right choices to the questions above are as follows:

3. The correct option is b that is the Project Manager should involve people who will be doing the work to get estimates since people may have experience and if more people work hard, the chances of estimates being correct rises.

4. The correct option is d that is change request should authorize corrective action based on causes.

5. The correct option is c that is uncertainty should be taken into account when attempting to manage and control risk within an organization.

6. The correct option is a that is A fire occurring in a new manufacturing process line is an example of Pure Risk.