Latest PMI-RMP Exam Questions for Comprehensive Preparation

Question #1

You are preparing to complete the quantitative risk analysis process with your project team and several subject matter experts. You gather the necessary inputs including the project's cost management plan. Why is it necessary to include the project's cost management plan in the preparation for the quantitative risk analysis process?

A. he project's cost management plan can help you to determine what the total cost of the project is allowed to be

B. he project's cost management plan provides direction on how costs may be changed due to identified risks

C. he project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget

D. he project's cost management plan is not an input to the quantitative risk analysis process

View answer

Correct Answer: C

Question #2

You are the project manager of the HJH project for your company. In your project, you have created the probability-impact risk matrix as shown in the following figure:If Risk D happens in this project, how much will be left in the contingency reserve?

A. 440,000

B. 233,500

C. 258,500

D. 243,500

View answer

Correct Answer: B

Question #3

Elizabeth is a project manager for her organization and she finds risk management to be very difficult for her to manage. She asks you, a lead project manager, at what stage in the project will risk management become easier. What answer best resolves the difficulty of risk management practices and the effort required?

A. isk management only becomes easier the more often it is practiced

B. isk management only becomes easier when the project is closed

C. isk management only becomes easier when the project moves into project execution

D. isk management is an iterative process and never becomes easier

View answer

Correct Answer: A

Question #4

Ruth is the project manager of ISFH project for her company. This project is forty percent complete and it appears that some risk events are going to happen in the project that will have an adverse affect on the project. Ruth creates a change request regarding the risks. Is this a valid response?

A. o, change requests should not address risks, only risk response strategies should be issued

B. o, change requests should not address pending risks, but only scope changes

C. es, change requests can be recommended for corrective actions for contingency plans

D. es, change requests can ask for additional funds to pay for the risk impact

View answer

Correct Answer: C

Question #5

A high-profile, high-priority project within your organization is being created. Management wants you to pay special attention to the project risks and do all that you can to ensure that all of the risks are identified early in the project. Management has to ensure that this project succeeds. Management's risk aversion in this project is associated with what term?

A. uantitative risk analysis

B. isk conscience

C. isk mitigation

D. tility function

View answer

Correct Answer: D

Question #6

When using the risk register to manage the cost risk analysis, which of the following models the way correlation arises, and avoids the need to estimate the correlation coefficients?

A. isk Monte Carlo analysis

B. isk driver method

C. isk scatter diagram

D. isk RACI matrix

View answer

Correct Answer: C

Question #7

You are the project manager of the BJA Project for your company. Management is worried about one of the identified risks in your project. The risk event has a probability of 90 percent and a cost impact of $85,000. Management and you discuss possible solutions to address the risk. You share with them that for $75,000 you can reduce the probability of the risk event to 15 percent and the impact to $25,000. This solution will add three weeks to the project schedule. Management thinks this is a good idea and t

A. voidance

B. cceptance

C. xploit

D. itigation

View answer

Correct Answer: D

Question #8

Mary is the project manager of the HGH Project for her company. She and her project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the order. The NBG Company can guarantee orders within three days, but the costs of their products are significantly more expensive than the current vendor. What type of a response strategy is this?

A. nternal risk management strategy

B. ontingent response strategy

C. xternal risk response

D. xpert judgment

View answer

Correct Answer: B

Question #9

Thomas is the project manager of the NHJ Project for his company. He has identified several positive risk events within his project and he thinks these events can save the project time and money. Positive risk events, such as these within the NHJ Project are also known as what?

A. enefits

B. pportunities

C. ncillary constituent components

D. ontingency risks

View answer

Correct Answer: B

Question #10

Courtney is the project manager for her organization. She is working with the project team to complete the qualitative risk analysis for her project. During the analysis Courtney encourages the project team to begin the grouping of identified risks by common causes. What is the primary advantage to group risks by common causes during qualitative risk analysis?

A. t helps the project team realize the areas of the project most laden with risks

B. t saves time by collecting the related resources, such as project team members, to analyze the risk events

C. t can lead to developing effective risk responses

D. t can lead to the creation of risk categories unique to each project

View answer

Correct Answer: C

Question #11

John is the project manager of the NHQ Project for his company. His project has 75 stakeholders, some of which are external to the organization. John needs to make certain that he communicates about risk in the most appropriate method for the external stakeholders. Which project management plan will be the best guide for John to communicate to the external stakeholders?

A. isk Response Plan

B. isk Management Plan

C. ommunications Management Plan

D. roject Management Plan

View answer

Correct Answer: C

Question #12

Stephen is the project manager of the GBB project. He has worked with two subject matter experts and his project team to complete the risk assessment technique. There are approximately 47 risks that have a low probability and a low impact on the project. Which of the following answers best describes what Stephen should do with these risk events?

A. he low probability and low impact risks should be added to a watchlist for future monitoring

B. ecause they are low probability and low impact, the risks can be dismissed

C. he low probability and low impact risks should be added to the risk register

D. ecause they are low probability and low impact, Stephen should accept the risks

View answer

Correct Answer: A

Question #13

Harry works as a project manager for the NHQ Project. He is performing quantitative risk analysis for his project. One of the project risks has a 40 percent probability of happening, and it will cost the project $65,000 if the risk happens. What is the expected monetary value of this risk event?

A. egative $26,000

B. egative $67,000

C. ero - the risk event has not yet occurred

D. 27,000

View answer

Correct Answer: A

Question #14

You and your project team are identifying the risks that may exist within your project. Some of the risks are small risks that won't affect your project much if they happen. What should you do with these identified risk events?

A. ll risks must have a valid, documented risk response

B. hese risks can be accepted

C. hese risks can be added to a low priority risk watch list

D. hese risks can be dismissed

View answer

Correct Answer: C

Question #15

Which of the following diagrams displays sensitivity analysis data?

A. ishbone

B. nfluence

C. ornado

D. ause and effect

View answer

Correct Answer: C

Question #16

You are the project manager of the NHQ Project for your company. You have completed qualitative and quantitative analysis of your identified project risks and you would now like to find an approach to increase project opportunities and to reduce threats within the project. What project management process would best help you?

A. onitor and control project risks

B. reate a risk governance approach

C. reate the project risk register

D. lan risk responses

View answer

Correct Answer: D

Question #17

You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of your company, on several risks within the project. Nancy understands that through qualitative analysis you have identified 80 risks that have a low probability and low impact as the project is currently planned. Nancy's concern, however, is that the impact and probability of these risk events may change as conditions within the project may change. She would like to know where will you document and record these 80 risks th

A. isks with low probability and low impact are recorded in a watchlist for future monitoring

B. ll risks, regardless of their assessed impact and probability, are recorded in the risk log

C. isk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle

D. ll risks are recorded in the risk management plan

View answer

Correct Answer: A

Question #18

Jane is the project manager of the GBB project for her company. In the current project a vendor has offered the project a ten percent discount based if they will order 100 units for the project. It is possible that the GBB Project may need the 100 units, but the cost of the units is not a top priority for the project. Jane documents the offer and tells the vendor that they will keep the offer in mind and continue with the project as planned. What risk response has been given in this project?

A. cceptance

B. nhance

C. xploiting

D. haring

View answer

Correct Answer: A

Question #19

You are the project manager of the GHG project. You are preparing for the quantitative risk analysis process. You are using organizational process assets to help you complete the quantitative risk analysis process.Which one of the following is NOT a valid reason to utilize organizational process assets as a part of the quantitative risk analysis process?

A. ou will use organizational process assets for risk databases that may be available from industry sources

B. ou will use organizational process assets for studies of similar projects by risk specialists

C. ou will use organizational process assets to determine costs of all risks events within the current project

D. ou will use organizational process assets for information from prior similar projects

View answer

Correct Answer: C

Question #20

Kelly is the project manager of the NNQ Project for her company. This project will last for one year and has a budget of $350,000. Kelly is working with her project team and subject matter experts to begin the risk response planning process. When the project manager begins the plan risk response process, what two inputs will she need?

A. ctivity duration estimates

B. chedule management plan

C. isk management plan

D. ctivity cost estimates

View answer

Correct Answer: C

Question #21

Consider a project with a budget at completion of $1,345,000 and it is supposed to be completed by today, but it is only 80 percent complete. This project has spent $1,250,000 to reach this point of completion. What is the schedule variance for this project?

A. $217,500

B. 0 percent

C. $174,000

D. $269,000

View answer

Correct Answer: C

Question #22

There are seven risks responses that a project manager can choose from. Which risk response is appropriate for both positive and negative risk events?

A. cceptance

B. haring

C. ransference

D. itigation

View answer

Correct Answer: A

Question #23

There are seven risk responses for any project. Which one of the following is a valid risk response for a negative risk event?

A. nhance

B. xploit

C. cceptance

D. hare

View answer

Correct Answer: C

Question #24

You are the project manager for the ABC organization. Your current project has 75 internal stakeholders and 245 external stakeholders. Many of the risks within your project will only affect the internal stakeholders, but several of the identified risk events will affect the external stakeholders. Management would like to know the total number of communication channels in the project. How many communication channels exist in this project?

A. 45

B. 1,040

C. 02,080

D. 20

View answer

Correct Answer: B

Question #25

You work as a project manager for BlueWell Inc. You have declined a proposed change request because of the risk associated with the proposed change request. Where should the declined change request be documented and stored?

A. hange request log

B. essons learned

C. roject archives

D. roject document updates

View answer

Correct Answer: A

Question #26

In addition to monitoring and controlling the project risks for their status and information the risk monitoring and controlling process accomplishes four key things for a project. Which one of the following is NOT a determination that is made by the risk monitoring and controlling process?

A. etermines if the project assumptions are still valid

B. etermines if the risk management policies and procedures are being followed

C. etermines if the risk contingency reserves should be modified to be in alignment with the current risk assessment

D. etermines if the project constraints are still valid

View answer

Correct Answer: D

Question #27

Jenny is the project manager of the NHJ Project for her company. She has identified several positive risk events within the project and she thinks these events can save the project time and money. You, a new team member wants to know that how many risk responses are available for a positive risk event. What will Jenny reply to you?

A. our

B. hree

C. even

D. cceptance is the only risk response for positive risk events

View answer

Correct Answer: A

Question #28

You are the project manager of the NHQ project for your company. You are working with your project team to complete a risk audit. A recent issue that your project team responded to, and management approved, was to increase the project schedule because there was risk surrounding the installation time of a new material. Your logic was that with the expanded schedule there would be time to complete the installation without affecting downstream project activities. What type of risk response is being audited in

A. arkinson's Law

B. itigation

C. voidance

D. ag Time

View answer

Correct Answer: C

Question #29

Sammy is the project manager for her organization. She would like to rate each risk based on its probability and affect on time, cost, and scope. Harry, a project team member, has never done this before and thinks Sammy is wrong to attempt this approach. Harry says that an accumulative risk score should be created, not three separate risk scores. Who is correct in this scenario?

A. arry is correct, because the risk probability and impact considers all objectives of the project

B. arry is correct, the risk probability and impact matrix is the only approach to risk assessment

C. ammy is correct, because organizations can create risk scores for each objective of the project

D. ammy is correct, because she is the project manager

View answer

Correct Answer: C

Question #30

Harry is a project manager of a software development project. In the early stages of planning, he and the stakeholders operated with the belief that the software they were developing would work with their organization's current computer operating system. Now that the project team has started developing the software it has become apparent that the software will not work with nearly half of the organization's computer operating systems. The incorrect belief Harry had in the software compatibility is an exampl

A. ssue

B. ssumption

C. isk

D. onstraint

View answer

Correct Answer: B

Question #31

You and your project team have identified the project risks and now are analyzing the probability and impact of the risks. What type of analysis of the risks provides a quick and high-level review of each identified risk event?

A. risk probability-impact matrix

B. uantitative risk analysis

C. even risk responses

D. ualitative risk analysis

View answer

Correct Answer: D

Question #32

You and your project team are just starting the risk identification activities for a project that is scheduled to last for 18 months. Your project team has already identified a long list of risks that need to be analyzed. How often should you and the project team do risk identification?

A. t depends on how many risks are initially identified

B. t least once per month

C. dentify risks is an iterative process

D. everal times until the project moves into execution

View answer

Correct Answer: C

Question #33

Pete works as a project manager for BlueWell Inc. The Management has told him that he must implement an agreed-upon contingency response if the cost performance index in his project is less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is 65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78 percent complete. What is the cost performance index for this project to determine if the contingency response should happen?

A.

B.

C.

D.

View answer

Correct Answer: A

Question #34

Which of the following characteristics would a risk tolerant person or group demonstrate?

A. daptable and resourceful; not afraid to take action; thrill seeking

B. iscomfort with uncertainty; low tolerance for ambiguity; seeks security and resolution in the face of risk

C. isk taking is a price worth paying for future payoffs; seeks strategies and tactics that have high future payoffs; thinks abstractly and creatively envisioning possibilities, and not afraid of change or unknowns

D. easonable comfort with most uncertainty; accepts risk as a normal feature of projects and business, and takes uncertainty in stride with no apparent or significant influence on their behavior

View answer

Correct Answer: D

Question #35

Examine the figure given below.What will be the expected monetary value of Risk C?

A. $113,750

B. 175,000 if the risk event actually happens

C. $175,000

D. $27,000

View answer

Correct Answer: D

Question #36

The risk manager organizes a stakeholder meeting to obtain agreement on project risk response strategies. At the conclusion of this meeting, the risk response strategies should be which of the following?

A. cheduled, budgeted, and easy for project stakeholders to understand

B. ost-effective, validated by Monte Carlo analysis, and assigned

C. terative, scaled to the project, and addressing threats and opportunities

D. imely, cost-effective, agreed-upon, and accepted

View answer

Correct Answer: C

Question #37

You are the project manager of the NKJ Project for your company. The project's success or failure will have a significant impact on your organization's profitability for the coming year. Management has asked you to identify the risk events and communicate the event's probability and impact as early as possible in the project. Management wants to avoid risk events and needs to analyze the cost-benefits of each risk event in this project. What term is assigned to the low-level of stakeholder tolerance in this

A. itigation-ready project management

B. isk utility function

C. isk avoidance

D. isk-reward mentality

View answer

Correct Answer: B

Question #38

Fred is the project manager of the PKL project. He is working with his project team to complete the quantitative risk analysis process as a part of risk management planning. Fred understands that once the quantitative risk analysis process is complete, the process will need to be completed again in at least two other times in the project. When will the quantitative risk analysis process need to be repeated?

A. uantitative risk analysis process will be completed again after the cost management planning and as a part of monitoring and controlling

B. uantitative risk analysis process will be completed again after new risks are identified and as part of monitoring and controlling

C. uantitative risk analysis process will be completed again after the risk response planning and as a part of monitoring and controlling

D. uantitative risk analysis process will be completed again after the plan risk response planning and as part of procurement

View answer

Correct Answer: C

Question #39

Which risk response is acceptable for both positive and negative risk events?

A. ransferring

B. cceptance

C. haring

D. nhancing

View answer

Correct Answer: B

Question #40

You are the project manager for a construction project. The project involves casting of a column in a very narrow space. Because of lack of space, casting it is highly dangerous. High technical skill will be required for casting that column. You decide to hire a local expert team for casting that column. Which of the following types of risk response are you following?

A. cceptance

B. voidance

C. itigation

D. ransference

View answer

Correct Answer: D

Question #41

Which positive risk response best describes a teaming agreement?

A. hare

B. xploit

C. nhance

D. enture

View answer

Correct Answer: A

Question #42

Thomas is a key stakeholder in your project. Thomas has requested several changes to the project scope for the project you are managing. Upon review of the proposed changes, you have discovered that these new requirements are laden with risks and you recommend to the change control board that the changes be excluded from the project scope. The change control board agrees with you. What component of the change control system communicates the approval or denial of a proposed change request?

A. onfiguration management system

B. cope change control system

C. ntegrated change control

D. hange log

View answer

Correct Answer: C

Question #43

Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a vendor to complete all work packages that deal with the electrical wiring. By removing the risk internally to a licensed electrician Adrian feels more comfortable with project team being safe. What type of risk response has Adrian used in this example?

A. voidance

B. itigation

C. cceptance

D. ransference

View answer

Correct Answer: D

Question #44

Which of the following components ensures that risks are examined for all new proposed change requests in the change control system?

A. isk monitoring and control

B. cope change control

C. ntegrated change control

D. onfiguration management

View answer

Correct Answer: C

Question #45

During project execution, the project team realizes that the power outlet for imported equipment is not compatible with the current customer's electrical infrastructure. This event was not originally identified as a risk. To maintain the project schedule, the project manager decides to purchase a new power adapter.What type of response best describes this course of action?

A. Contingency plan

B. Management plan

C. Fall-back plan

D. Workaround

View answer

Correct Answer: D

Question #46

Ben is the project manager of the YHT Project for his company. Alice, one of his team members, is confused about when project risks will happen in the project. Which one of the following statements is the most accurate about when project risk happens?

A. roject risk can happen at any moment

B. roject risk happens throughout the project execution

C. roject risk is always in the future

D. roject risk is uncertain, so no one can predict when the event will happen

View answer

Correct Answer: C

Question #47

Jenny is the project manager for the NBT projects. She is working with the project team and several subject matter experts to perform the quantitative risk analysis process. During this process she and the project team uncover several risks events that were not previously identified. What should Jenny do with these risk events?

A. he events should be entered into qualitative risk analysis

B. he events should be determined if they need to be accepted or responded to

C. he events should be entered into the risk register

D. he events should continue on with quantitative risk analysis

View answer

Correct Answer: C

Question #48

You are the project manager of the YHG project for your company. Within the project, you and the project team have identified a risk event that could have a financial impact on the project of $450,000. This risk event has a 70 percent chance of occurring in the project. The project identifies a solution that will reduce the probability of the risk event to ten percent, but it will cost $260,000 to implement. Management agrees with the solution and asks that you include the risk response in the project plan.

A. his is mitigation because the response reduces the probability

B. his is not a risk response, but a change request

C. his is transference because of the $260,000 cost of the solution

D. his is avoidance because the risk response caused the project plan to be changed

View answer

Correct Answer: A

Question #49

After a risk review meeting, three key risks are identified as likely to be realized. The project manager requests a risk scenario be calculated to establish the impact on the budget.What is the forecasting methodology that should be utilized to calculate the impact?

A. Estimate to complete (ETC)

B. Budget at completion (BAC)

C. Estimate risk completion (ERC)

D. Estimate at completion (EAC)

View answer

Correct Answer: D

Question #50

A project manager must have certain interpersonal skills to communicate with stakeholders and manage their expectations of the project work. Which of the following interpersonal skills has been identified as one of the biggest reasons for project success or failure?

A. otivation

B. ommunication

C. nfluencing

D. olitical and cultural awareness

View answer

Correct Answer: B

Question #51

Which types of project tends to have more well-understood risks?

A. perational work projects

B. irst-of-its kind technology projects

C. ecurrent projects

D. tate-of-art technology projects

View answer

Correct Answer: C

Question #52

Which of the following processes is described in the statement below? "This is the process of numerically analyzing the effect of identified risks on overall project objectives."

A. dentify Risks

B. erform Quantitative Risk Analysis

C. onitor and Control Risks

D. erform Qualitative Risk Analysis

View answer

Correct Answer: B

Question #53

A part of a project deals with the hardware work. As a project manager, you have decided to hire a company to deal with all hardware work on the project. Which type of risk response is this?

A. xploit

B. itigation

C. ransference

D. voidance

View answer

Correct Answer: C

Question #54

You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of $350,000.When it comes to creating a risk response for this event what is the risk exposure of the event that must be considered for the cost of the risk response?

A. he risk exposure of the event is $245,000

B. he risk exposure of the event is $500,000

C. he risk exposure of the event is $350,000

D. he risk exposure of the event is $850,000

View answer

Correct Answer: A

Question #55

You are completing the qualitative risk analysis process with your project team and are relying on the risk management plan to help you determine the budget, schedule for risk management, and risk categories. You discover that the risk categories have not been created. When should the risk categories have been created?

A. reate work breakdown structure process

B. lan risk management process

C. isk identification process

D. efine scope process

View answer

Correct Answer: B

Question #56

Ted is the project manager of the HRR project for his company. Management has asked that Ted periodically reviews the contingency reserve as risk events happen, pass, or are still pending. What is the purpose of reviewing the contingency reserve?

A. t helps to evaluate if the remaining reserve is adequate for the risk exposure

B. t helps to determine how much more funds will need to be invested in the project

C. t helps to evaluate secondary and residual risks related to the risk responses and their costs

D. t helps to determine the probability and impact of project risks

View answer

Correct Answer: A

Question #57

Bill is the project manager of the JKH Project. He and the project team have identified a risk event in the project with a high probability of occurrence and the risk event has a high cost impact on the project. Bill discusses the risk event with Virginia, the primary project customer, and she decides that the requirements surrounding the risk event should be removed from the project. The removal of the requirements does affect the project scope, but it can release the project from the high risk exposure. W

A. itigation

B. ransference

C. cceptance

D. voidance

View answer

Correct Answer: D

Question #58

You are the project manager for your organization. You are preparing for the quantitative risk analysis. Mark, a project team member, wants to know why you need to do quantitative risk analysis when you just completed qualitative risk analysis. Which one of the following statements best defines what quantitative risk analysis is?

A. uantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives

B. uantitative risk analysis is the planning and quantification of risk responses based on probability and impact of each risk event

C. uantitative risk analysis is the review of the risk events with the high probability and the highest impact on the project objectives

D. uantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact

View answer

Correct Answer: A

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