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1. Most risk acceptance policies rely on a contingency allowance for the project. A contingency allowance is an amount of money the project will likely need in the contingency reserve based on the impact, probability, and expected monetary value of a risk event. Project KIL has risks A and B. A has 25% probability of occurring and a negative impact of -$50 while B has 45% probability of occurring and a negative impact of -$90. What is the expected monetary value (Ex$V) for risk A?
Explanation: The expected monetary value (Ex$V) for risk A is calculated by 0.25 x -$50 = -$12.50
2. Nina Gouldman is the project manager of Ken Publishing. She’s currently planning the communication requirements of a new project, Project Mag. When should she accurately assess stakeholder information needs?
A. At the middle phase of the project. Stakeholder demands during the first half of the project will accurately assess what kind of information stakeholders really need and how often they need it.
B. Right after the project has started. This will help Nina accurately estimate the kind of information that stakeholders actually need.
C. Early in the project, after evaluating the project constraints and assumptions.
D. Early in the project, before exploring communication modalities.
Explanation: Accurately assessing stakeholder information needs must be completed early in the project, before exploring communication modalities.
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