Latest PMI-RMP Practice Materials & Exam Questions 2024, PMI Risk Management Professional

Question #1

Which of the following techniques examines the degree to which organizational strengths offset threats and opportunities that may serve to overcome weaknesses?

A. SWOT Analysis

B. Expert Judgment

C. Delphi

D. Brainstorming

View answer

Correct Answer: D

Question #2

What approach can a project manager use to improve the project's performance during qualitative risk analysis?

A. Focus on near-term risks first

B. Create a risk breakdown structure and delegate the risk analysis to the appropriate project team members

C. Focus on high-priority risks

D. Analyze as many risks as possible regardless of who initiated the risk event

View answer

Correct Answer: C

Question #3

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. Parkinson's Law

B. Mitigation

C. Avoidance

D. Lag Time

View answer

Correct Answer: B

Question #4

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. Issue

B. Assumption

C. Risk

D. Constraint

View answer

Correct Answer: D

Question #5

Joan is a project management consultant and she has been hired by a firm to help them identify risk events within the project. Joan would first like to examine the project documents including the plans, assumptions lists, project files, and contracts. What key thing will help Joan to discover risks within the review of the project documents?

A. The project documents will help the project manager, or Joan, to identify what risk identification approach is best to pursue

B. Lack of consistency between the plans and the project requirements and assumptions can be the indicators of risk in the project

C. Poorly written requirements will reveal inconsistencies in the project plans and documents

D. Plans that have loose definitions of terms and disconnected approaches will reveal risks

View answer

Correct Answer: D

Question #6

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. Acceptance

B. Avoidance

C. Mitigation

D. Transference

View answer

Correct Answer: D

Question #7

Lisa is the project manager of the SQL project for her company. She has completed the risk response planning with her project team and is now ready to update the risk register to reflect the risk response. Which of the following statements best describes the level of detail Lisa should include with the risk responses she has created?

A. The level of detail is set by historical information

B. The level of detail should correspond with the priority ranking

C. The level of detail must define exactly the risk response for each identified risk

D. The level of detail is set of project risk governance

View answer

Correct Answer: D

Question #8

Which one of the following is the only output for the qualitative risk analysis process?

A. Enterprise environmental factors

B. Project management plan

C. Risk register updates

D. Organizational process assets

View answer

Correct Answer: D

Question #9

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. Issue

B. Assumption

C. Risk

D. Constraint

View answer

Correct Answer: D

Question #10

You are the project manager of the HQQ Project for your company. You are working with your project stakeholders to discuss the risks in the project that can adversely affect the project objectives. You are discussing the possibilities of causes for an identified risk event in your project. Your stakeholder is confused on the difference between causes and risk events. Which of the following is NOT an example of a cause for a project risk?

A. Limited team members to complete the project work

B. Quality assurance programs within the company

C. Work permit requirements

D. Schedule constraints on the project

View answer

Correct Answer: D

Question #11

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. This is mitigation because the response reduces the probability

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

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

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

View answer

Correct Answer: A

Question #12

Lisa is the project manager of the FKN project for her organization. She is working with Sam, the CIO, to discuss a discount the vendor has offered the project based on the amount of materials that is ordered. Lisa and Sam review the offer and agree that while their project may qualify for the discounted materials the savings is nominal and they would not necessarily pursue the savings. Lisa documents this positive risk response in the risk register. What risk response is this?

A. Enhance

B. Transference

C. Share

D. Acceptance

View answer

Correct Answer: D

Question #13

Holly is the project manager of the NHQ project for her company. Her project sponsor, Tracy, has requested that Thomas, the department manager, from the Risk Management Department, will work with Holly to determine the effectiveness of the risk responses. Tracy and Thomas are concerned that some of the risks within Holly's project may not be addressed to depth they would like. In this scenario, who is responsible for ensuring that risk audits are performed at an appropriate frequency throughout the project?

A. Thomas

B. Tracy

C. The project team

D. Holly

View answer

Correct Answer: C

Question #14

Where can a project manager find risk-rating rules?

A. Risk management plan

B. Organizational process assets

C. Enterprise environmental factors

D. Risk probability and impact matrix

View answer

Correct Answer: B

Question #15

Which of the following statements describe the purpose of an Issue Log? Each correct answer represents a complete solution. Choose all that apply.

A. It analyzes the impact that the issue is having on the project

B. It tracks the actions taken to resolve the issue

C. It tracks the outcome of the actions taken

D. It addresses the risks that could affect the project

View answer

Correct Answer: ABC

Question #16

There are five inputs to the quantitative risk analysis process. Which one of the following is NOT an input to the perform quantitative risk analysis process?

A. Risk register

B. Risk management plan

C. Cost management plan

D. Enterprise environmental factors

View answer

Correct Answer: A

Question #17

Neil works as a project manager for SoftTech Inc. He is working with Tom, the COO of his company, on several risks within the project. Tom understands that through qualitative analysis Neil has identified many risks in the project. Tom's concern, however, is that the priority list of these risk events are sorted in "high- risk," "moderate-risk," and "low-risk" as conditions apply within the project. Tom wants to know that is there any other objective on which Neil can make the priority list for project risk

A. Risks may be listed by the additional analysis and response

B. Risk may be listed by the responses in the near-term

C. Risks may be listed by priority separately for schedule, cost, and performance

D. Risks may be listed by categories

View answer

Correct Answer: D

Question #18

Lisa is the project manager of the SQL project for her company. She has completed the risk response planning with her project team and is now ready to update the risk register to reflect the risk response. Which of the following statements best describes the level of detail Lisa should include with the risk responses she has created?

A. The level of detail is set by historical information

B. The level of detail should correspond with the priority ranking

C. The level of detail must define exactly the risk response for each identified risk

D. The level of detail is set of project risk governance

View answer

Correct Answer: A

Question #19

Della works as a project manager for SoftTech Inc. She is working with the project stakeholders to begin the quantitative risk analysis process. Which of the following inputs will be needed for the quantitative risk analysis process in her project? Each correct answer represents a complete solution. Choose all that apply.

A. Risk management plan

B. Project scope statement

C. Risk register

D. Cost management plan

View answer

Correct Answer: ACD

Question #20

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. 245

B. 51,040

C. 102,080

D. 320

View answer

Correct Answer: B

Question #21

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. Acceptance

B. Sharing

C. Transference

D. Mitigation

View answer

Correct Answer: A

Question #22

Gary is the project manager of the MMQ project for his company. He is working with his project team to plan the risk responses for his project. Sarah, a project team member, does not understand the process that Gary is using to plan the risk responses. Which approach is the preferred method to address project risks and the risk responses?

A. Risks in the project should be addressed by their probability for creating risk responses

B. Risks in the project should be addressed by the organization's risk tolerance for creating risk responses

C. Risks in the project should be addressed by their impact for creating risk responses

View answer

Correct Answer: D

Question #23

Holly is the project manager of the NSS Project for her company. She is discussing some of the project risks and the issues that have happened in the project. Holly has faxed the status report to her project client for their review. Based on the standard communication model, which component in this scenario is the decoder?

A. Project customer

B. Telephone wire

C. Holly

D. Project customer's fax machine

View answer

Correct Answer: D

Question #24

Who is responsible for the stakeholder expectations management in a high-profile, high-risk project?

A. Project risk assessment officer

B. Project management office

C. Project sponsor

D. Project manager

View answer

Correct Answer: D

Question #25

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. Avoidance

B. Mitigation

C. Acceptance

D. Transference

View answer

Correct Answer: D

Question #26

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. Monitor and control project risks

B. Create a risk governance approach

C. Create the project risk register

D. Plan risk responses

View answer

Correct Answer: A

Question #27

You work as a project manager for SoftTech Inc. You have implemented the risk action plan and it was not effective. What type of plan should you as a project manager will create for implementation if a selected risk strategy fails to be fully effective?

A. Mitigation management plan

B. Mitigation plan

C. Fallback plan

D. Risk response plan

View answer

Correct Answer: B

Question #28

Shawn is the project manager of the WHT Project for his company. In this project Shawn's team reports that they have found a way to complete the project work for less cost than what was originally planned. The project team presents a new software that will help to automate the project work. While the software and the associated training costs $25,000 it will save the project nearly $65,000 in total costs. Shawn agrees to the software and changes to the project management plan accordingly. What type of risk

A. Avoidance

B. Exploiting

C. Accepting

D. Enhancing

View answer

Correct Answer: B

Question #29

You are the project manager of the GHY Project for your company. You have completed the risk response planning with your project team. You now need to update the WBS. Why would the project manager need to update the WBS after the risk response planning process? Choose the best answer.

A. Because of work that was omitted during the WBS creation

B. Because of new work generated by the risk responses

C. Because of risk responses that are now activities

D. Because of risks associated with work packages

View answer

Correct Answer: A

Question #30

You are the project manager of the GGG project. You have completed the risk identification process for the initial phases of your project. As you begin to document the risk events in the risk register what additional information can you associate with the identified risk events?

A. Risk potential responses

B. Risk schedule

C. Risk owner

D. Risk cost

View answer

Correct Answer: D

Question #31

John works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which of the following inputs of the identify risks process is useful in identifying risks associated to the time allowances for the activities or projects as a whole, with a width of the range indicating the degrees of risk?

A. Activity duration estimates

B. Schedule management plan

C. Risk management plan

D. Activity cost estimates

View answer

Correct Answer: CD

Question #32

Holly is the project manager of the NSS Project for her company. She is discussing some of the project risks and the issues that have happened in the project. Holly has faxed the status report to her project client for their review. Based on the standard communication model, which component in this scenario is the decoder?

A. Project customer

B. Telephone wire

C. Holly

D. Project customer's fax machine

View answer

Correct Answer: B

Question #33

Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan the risk responses for the NNP Project. Mike would like the project team to work together on establishing risk thresholds in the project. What is the purpose of a risk threshold?

A. It helps to identify those risks for which specific responses are needed

B. It is a limit of the funds that can be assigned to risk events

C. It is a warning sign that a risk event is going to happen

D. It is a study of the organization's risk tolerance

View answer

Correct Answer: D

Question #34

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. Parkinson's Law

B. Mitigation

C. Avoidance

D. Lag Time

View answer

Correct Answer: C

Question #35

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. Issue

B. Assumption

C. Risk

D. Constraint

View answer

Correct Answer: C

Question #36

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. Monitor and control project risks

B. Create a risk governance approach

C. Create the project risk register

D. Plan risk responses

View answer

Correct Answer: B

Question #37

You are the project manager of the NHQ Project for your company. You are discussing some of the project issues that need to be resolved in the project. You and the project stakeholders come to an agreement about the risk issues and how they will be resolved. Where should you document this information for issue resolution?

A. Project management plan for execution

B. Lessons learned documentation

C. Issue log

D. Risk response plan

View answer

Correct Answer: D

Question #38

You are the project manager of the NNQ Project for your company and are working with your project team to define contingency plans for the risks within your project. Mary, one of your project team members, asks what a contingency plan is. Which of the following statements best defines what a contingency response is?

A. Some responses are designed for use only if certain events occur

B. Some responses have a cost and a time factor to consider for each risk event

C. Some responses must counteract pending risk events

D. Quantified risks should always have contingency responses

View answer

Correct Answer: D

Question #39

Fill in the blank with an appropriate phrase. ______ are activities that are dangerous to complete and manage such as construction, electrical work, or manufacturing.

A. Pure risks

View answer

Correct Answer: C

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. Acceptance

B. Avoidance

C. Mitigation

D. Transference

View answer

Correct Answer: A

Question #41

Your organization has a project that is expected to last 20 months but the customer would really like the project completed in 18 months. You have worked on similar projects in the past and believe that you could fast track the project and reach the 18 month deadline. What increases when you fast track a project?

A. Resources

B. Costs

C. Communication

D. Risks

View answer

Correct Answer: D

Question #42

Which of the following risk responses delineates that the project plan will not be changed to deal with the risk?

A. Exploitation

B. Transference

C. Acceptance

D. Mitigation

View answer

Correct Answer: C

Question #43

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. The low probability and low impact risks should be added to awatchlist for future monitoring

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

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

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

View answer

Correct Answer: A

Question #44

Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen. If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

A. $35,000

B. $41,700

C. $14,000

D. $6,700

View answer

Correct Answer: D

Question #45

Rob is the project manager of the IDLK Project for his company. This project has a budget of $5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the project is allowed to proceed - even though the organization has already invested over $750,000 in the project. What risk response is the most appropriate for this instance?

A. Acceptance

B. Transference

C. Mitigation

D. Enhance

View answer

Correct Answer: D

Question #46

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider the technology factors a risk for her project. Where should she document the risks associated with this technology so she can track the risk status and responses?

A. Project scope statement

B. Risk register

C. Project charter

D. Risk low-level watch list

View answer

Correct Answer: BCD

Question #47

Your organization has named you the project manager of the JKN Project. This project has a BAC of $1,500,000 and it is expected to last 18 months. Management has agreed that if the schedule baseline has a variance of more than five percent then you will need to crash the project. What happens when the project manager crashes a project?

A. Project risks will increase

B. The project will take longer to complete, but risks will diminish

C. Project costs will increase

D. The amount of hours a resource can be used will diminish

View answer

Correct Answer: C

Question #48

Sam is the project manager of a construction project in south Florida. This area of the United States is prone to hurricanes during certain parts of the year. As part of the project plan Sam and the project team acknowledge the possibility of hurricanes and the damage the hurricane could have on the project's deliverables, the schedule of the project, and the overall cost of the project. Once Sam and the project stakeholders acknowledge the risk of the hurricane they go on planning the project as if the ris

A. Active acceptance

B. Passive acceptance

C. Avoidance

D. Mitigation

View answer

Correct Answer: D

Question #49

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

B. Harry iscorrect, the risk probability and impact matrix is the only approach to risk assessment

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

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

View answer

Correct Answer: C

Question #50

You are the project manager of the NGH project for your organization. You want to create a causeand- effect diagram to help discover the root causes of the risks within the project. Harold, the CIO, recommends that you create an Ishikawa diagram instead. What is an Ishikawa diagram?

A. It is a graphical representation of situations showing causal influences

B. It is the same thing as a root cause diagram

C. It shows how various elements of a system interrelate

D. It diagrams the risks according to the work breakdown structure including resources

View answer

Correct Answer: B

Question #51

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. Avoidance

B. Acceptance

C. Exploit

D. Mitigation

View answer

Correct Answer: D

Question #52

You work as a project manager for BlueWell Inc. You are about to complete the quantitative risk analysis process for your project. You can use three available tools and techniques to complete this process. Which one of the following is NOT a tool or technique that is appropriate for the quantitative risk analysis process?

A. Expert judgment

B. Data gathering and representation techniques

C. Organizational process assets

D. Quantitative risk analysis and modeling techniques

View answer

Correct Answer: C

Question #53

Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to last 14 months and has a budget at completion of $4,555,000. Tracy's organization will receive a bonus of $80,000 per day that the project is completed early up to $800,000. Tracy realizes that there are several opportunities within the project to save on time by crashing the project work. Crashing the project is what type of risk response?

A. Transference

B. Mitigation

C. Exploit

D. Enhance

View answer

Correct Answer: D

Question #54

You are the project manager for your company and a new change request has been approved for your project. This change request, however, has introduced several new risks to the project. You have communicated these risk events and the project stakeholders understand the possible effects these risks could have on your project. You elect to create a mitigation response for the identified risk events. Where will you record the mitigation response?

A. Risk register

B. Risk log

C. Risk management plan

D. Project management plan

View answer

Correct Answer: C

Question #55

You work as a project manager for BlueWell Inc. You have to communicate the causes of risk events to the stakeholders. Which risk diagramming technique you will use to communicate the causes of risk events to project stakeholders?

A. Project network diagrams

B. Process flow charts

C. Ishikawa diagrams

D. Influence diagrams

View answer

Correct Answer: C

Question #56

You are the project manager of the GGK project for your company. The GGK project has a budget of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the project to increase the likelihood of completing the project early as the project was only scheduled to be 35 percent complete at this time. This positive risk response, while keeping the project ahead of schedule, has added significant costs to the project. You have already spent $575,000 to reach this point in the

A. The CPI is -$68,960 and the SPI is $63,255

B. The CPI is

D. The CPI is 1

View answer

Correct Answer: C

Question #57

You work as a project manager for BlueWell Inc. Your project is using a new material to construct a large warehouse in your city. This new material is cheaper than traditional building materials, but it takes some time to learn how to use the material properly. You have communicated to the project stakeholders that you will be able to save costs by using the new material, but you will need a few extra weeks to complete training to use the materials. This risk response of learning how to use the new material

A. Team development

B. Benchmarking

C. Cost of conformance to quality

D. Cost-benefits analysis

View answer

Correct Answer: C

Question #58

You are the project manager of the GHY Project for your company. You have completed the risk response planning with your project team. You now need to update the WBS. Why would the project manager need to update the WBS after the risk response planning process? Choose the best answer.

A. Because of work that was omitted during the WBS creation

B. Because of new work generated by the risk responses

C. Because of risk responses that are now activities

D. Because of risks associated with work packages

View answer

Correct Answer: B

Question #59

Gary is the project manager for his project. He and the project team have completed the qualitative risk analysis process and are about to enter the quantitative risk analysis process when Mary, the project sponsor, wants to know what quantitative risk analysis will review. Which of the following statements best defines what quantitative risk analysis will review?

A. The quantitative risk analysis process will review risk events for their probability and impact on the project objectives

B. The quantitative risk analysis seeks to determine the true cost of each identified risk event and the probability of each risk event to determine the risk exposure

C. The quantitative risk analysis process will analyze the effect of risk events that may substantially impact the project's competing demands

D. The quantitative risk analysis reviews the results of risk identification and prepares the project for risk response management

View answer

Correct Answer: A

Question #60

Your project has several risks that may cause serious financial impact should they happen. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like for you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?

A. Risk response

B. Quantitative analysis

C. Contingency reserve

D. Risk response plan

View answer

Correct Answer: A

Question #61

The Project Risk Management knowledge area focuses on which of the following processes? Each correct answer represents a complete solution. Choose all that apply.

A. Quantitative Risk Analysis

B. Risk Monitoring and Control

C. Potential Risk Monitoring

D. Risk Management Planning

View answer

Correct Answer: B

Question #62

You are the project manager of the NNH Project. In this project you have created a contingency response that the schedule performance index should be less than 0.93. The NHH Project has a budget at completion of $945,000 and is 45 percent complete though the project should be 49 percent complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is the project's schedule performance index?

A. -$37,800

B. 0

D. 1

View answer

Correct Answer: D

Question #63

Ben is the project manager of the CMH Project for his organization. He has identified a risk that has a low probability of happening, but the impact of the risk event could save the project and the organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs her to research the time, cost, and method to improve the probability of the positive risk event. Ben then communicates the risk event and response to management. What risk response has been used here?

A. Sharing

B. Transference

C. Enhance

D. Exploit

View answer

Correct Answer: C

Question #64

You are the project manager of the AFD project for your company. You are working with the project team to reassess existing risk events and to identify risk events that have not happened and whose relevancy to the project has passed. What should you do with these events that have not happened and would not happen now in the project?

A. Add the risks to the risk register

B. Add the risks to a low-priority watchlist

C. Close the outdated risks

D. Add the risk to the issues log

View answer

Correct Answer: D

Question #65

Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes and is useful for computer modelers for a range of purposes. Which of the following purposes does the sensitivity analysis include? Each correct answer represents a complete solution. Choose all that apply.

A. Increased understanding or quantification of the system

B. Estimating the average outcome

C. Model development

D. Decision making or the development of recommendations for decision makers

View answer

Correct Answer: D

Question #66

Gary is the project manager of the MMQ project for his company. He is working with his project team to plan the risk responses for his project. Sarah, a project team member, does not understand the process that Gary is using to plan the risk responses. Which approach is the preferred method to address project risks and the risk responses?

A. Risks in the project should be addressed by their probability for creating risk responses

B. Risks in the project should be addressed by the organization's risk tolerance for creating risk responses

C. Risks in the project should be addressed by their impact for creating risk responses

D. Risks in the project should be addressed by their priority for creating risk responses

View answer

Correct Answer: D

Question #67

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider the technology factors a risk for her project. Where should she document the risks associated with this technology so she can track the risk status and responses?

A. Project scope statement

B. Risk register

C. Project charter

D. Risk low-level watch list

View answer

Correct Answer: D

Question #68

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. Risk management only becomes easier the more often it is practiced

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

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

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

View answer

Correct Answer: C

Question #69

Wendy is the project manager of the NNJ project for her company. As part of the variance and trend analysis tool and technique for risk governance she is using earned value management. In this approach, Wendy wants to track and compare the cost and schedule variances. What is the point of this tool and technique in regard to risk?

A. Wendy can determine a true project completion date

B. Wendy can track the cost and schedule variances

C. Wendy can review quality performance on baselines

D. Wendy can forecast deviation of the project cost and schedule for completion targets

View answer

Correct Answer: A

Question #70

You are the project manager for your organization. You are working with your project team to complete the qualitative risk analysis process. The first tool and technique you are using requires that you assess the probability and what other characteristic of each identified risk in the project?

A. Impact

B. Risk owner

C. Cost

D. Risk category

View answer

Correct Answer: A

Question #71

You are the project manager for BlueWell Inc. You are reviewing the risk register for your project. The risk register provides much information to you, the project manager and to the project team during the risk response planning. All of the following are included in the risk register except for which item?

A. Network diagram analysis of critical path activities

B. Symptoms and warning signs of risks

C. List of potential risk responses

D. Trends in qualitative risk analysis results

View answer

Correct Answer: C

Question #72

You work as a project manager for BlueWell Inc. You would like to utilize sensitivity analysis in your project, but the management does not understand how this will be displayed. What type of chart is usually used with sensitivity analysis to show the relative affect of risks on the project?

A. Ishikawa chart

B. Force field analysis chart

C. GERT Chart

D. Tornado diagram

View answer

Correct Answer: ACD

Question #73

You are the project manager of a new project in your organization. You and the project team have identified the project risks, completed risk analysis, and are planning the most appropriate risk responses. Which of the following tools is most effective to choose the most appropriate risk response?

A. Cause-and-effect diagrams

B. Project network diagrams Delphi Technique

D.

E. Decision tree analysis

View answer

Correct Answer: D

Question #74

You are the project manager of the GHQ project for your company. You are working with your project team to prepare for the qualitative risk analysis process. Mary, a project team member, does not understand why you need to complete qualitative risks analysis. You explain to Mary that qualitative risks analysis helps you determine which risks needs additional analysis. There are also some other benefits that qualitative risks analysis can do for the project. Which one of the following is NOT an accomplishmen

A. Corresponding impact on project objectives

B. Time frame for a risk response

C. Prioritization of identified risk events based on probability and impact

D. Cost of the risk impact if the risk event occurs

View answer

Correct Answer: A

Question #75

You are the project manager of the NNH project. In this project you have created a contingency response that the cost performance index should be less than 0.93. The NHH project has a budget at completion of $945,000 and is 45 percent complete - though the project should be 49 percent complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is the project's cost performance index?

A. 1

B. 0

C. -$30,647

D. 0

View answer

Correct Answer: D

Question #76

Don is the project manager of the PFO project for his organization. Don is working with the project team members and two subject matter experts to assess the identified risk events in the project. Which of the following approaches is the best to assess the risk events in the project?

A. Determination of the true cost of the risk event

B. Probability and Impact Matrix

C. Root cause analysis

D. Interviews or meetings

View answer

Correct Answer: D

Question #77

Who is responsible for the stakeholder expectations management in a high-profile, high- risk project?

A. Project risk assessment officer

B. Project management office

C. Project sponsor

D. Project manager

View answer

Correct Answer: C

Question #78

You are interviewing members of a project team to test their understanding of the assigned risk responses as risk owners. You and the project manager are working together to evaluate the risk responses to determine their effectiveness in the project. What project management technique are you performing with the project manager in this scenario?

A. Risk audits

B. Stakeholder analysis as the project team is a stakeholder

C. Risk identification with the project team

D. Risk analysis

View answer

Correct Answer: A

Question #79

You are the project manager of the BlueStar project in your company. Your company is structured as a functional organization and you report to the functional manager that you are ready to move onto the qualitative risk analysis process. What will you need as inputs for the qualitative risk analysis of the project in this scenario?

A. Qualitative risk analysis does not happen through the project manager in a functional structure

B. You will need the risk register, risk management plan, project scope statement, and any relevantorganizational process assets

C. You will need the risk register, risk management plan, outputs of qualitative risk analysis, and any relevantorganizational process assets

D. You will need the risk register, risk management plan, permission from the functional manager, and anyrelevant organizational process assets

View answer

Correct Answer: B

Question #80

Frank is the project manager of the NHH Project. He is working with the project team to create a plan to document the procedures to manage risks throughout the project. This document will define how risks will be identified and quantified. It will also define how contingency plans will be implemented by the project team. What document is Frank and the NHH Project team creating in this scenario?

A. Resource management plan

B. Project plan

C. Project management plan

D. Risk management plan

View answer

Correct Answer: D

Question #81

Mark works as a project manager for TechSoft Inc. Mark, the project team, and the key project stakeholders have completed a round of qualitative risk analysis. He needs to update the risk register with his findings so that he can communicate the risk results to the project stakeholders – including management. Mark will need to update all of the following information except for which one?

A. Prioritized list of quantified risks

B. Watchlist of low-priority risks

C. Trends in qualitative risk analysis

D. Risks grouped by categories

View answer

Correct Answer: D

Question #82

Della works as a project manager for SoftTech Inc. She is working with the project stakeholders to begin the quantitative risk analysis process. Which of the following inputs will be needed for the quantitative risk analysis process in her project? Each correct answer represents a complete solution. Choose all that apply.

A. Risk management plan

B. Project scope statement

C. Risk register

D. Cost management plan

View answer

Correct Answer: D

Question #83

Which of the following diagrams displays sensitivity analysis data?

A. Fishbone

B. Influence

C. Tornado

D. Cause and effect

View answer

Correct Answer: C

Question #84

You are the project manager for your organization. You are working with your project team to complete the qualitative risk analysis process. The first tool and technique you are using requires that you assess the probability and what other characteristic of each identified risk in the project?

A. Impact

B. Risk owner

C. Cost

D. Risk category

View answer

Correct Answer: B

Question #85

Don has hired Jerry, a contractor, to complete a portion of his project work. The contract used was a cost-plus contract. If Don were to perform a risk audit, who would carry the risk in this scenario?

A. Don would because he is the project manager

B. Jerry would because of the contract type

C. Don would because of the contract type

D. Jerry would because he is the hired contractor

View answer

Correct Answer: C

Question #86

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. All risks must have a valid, documented risk response

B. These risks can be accepted

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

D. These risks can be dismissed

View answer

Correct Answer: C

Question #87

Rex is the project manager of the BDF Project. This project will last for two years and has a budget of $2,345,000. Management has instructed Rex that the project must not go over budget as funds are very tight in the organization. During the project planning Rex and the project team discover a positive risk event to save $75,000. Rex wants to make certain that this risk event happens so which risk response method is most appropriate?

A. Share

B. Mitigation

C. Exploit

D. Enhance

View answer

Correct Answer: C

Question #88

Wendy is the project manager of the FBL project for your company. She has identified several risks within her project and has created a risk contingency reserve of $45,000 total. Her project is nearly complete and many of the risks have not happened in the project. What should Wendy do with the funds in the contingency reserve?

A. The funds remain in the contingency reserve until all of the risks have passed

B. The funds for the risks that have passed and have not happened are transferred to the project budget

C. The funds for the risks that have passed and have not happened are released

D. The funds remain in the contingency reserve until the project is closed

View answer

Correct Answer: D

Question #89

Holly is the project manager of the NHQ project for her company. Her project sponsor, Tracy, has requested that Thomas, the department manager, from the Risk Management Department, will work with Holly to determine the effectiveness of the risk responses. Tracy and Thomas are concerned that some of the risks within Holly's project may not be addressed to depth they would like. In this scenario, who is responsible for ensuring that risk audits are performed at an appropriate frequency throughout the project?

A. Thomas

B. Tracy

C. The project team

D. Holly

View answer

Correct Answer: B

Question #90

You work as a project manager for BlueWell Inc. You are performing the quantitative risk analysis for your project. One of the project risks has a 50 percent probability of happening, and it will cost the project $55,000 if the risk happens. What will be the expected monetary value of this risk event?

A. Negative $27,500

B. Zero - the risk event has not yet occurred

C. Negative $26,000

D. Negative $55,000

View answer

Correct Answer: D

Question #91

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. Project risk can happen at any moment

B. Project risk happens throughout the project execution

C. Project risk is always in the future

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

View answer

Correct Answer: C

Question #92

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

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

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

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

View answer

Correct Answer: B

Question #93

You work as a project manager for BlueWell Inc. You are currently working with the project stakeholders to identify risks in your project. You understand that the qualitative risk assessment and analysis can reflect the attitude of the project team and other stakeholders to risk. Effective assessment of risk requires management of the risk attitudes of the participants. What should you, the project manager, do with assessment of identified risks in consideration of the attitude and bias of the participants

A. Evaluate and document the bias towards the risk events

B. Evaluate the bias through SWOT for true analysis of the risk events

C. Document the bias for the risk events and communicate the bias with management

D. Evaluate the bias towards the risk events and correct the assessment accordingly

View answer

Correct Answer: B

Question #94

You work as a project manager for BlueWell Inc. There has been a delay in your project work that is adversely affecting the project schedule. You decided, with your stakeholders' approval, to fast track the project work to get the project done faster. When you fast track the project which of the following are likely to increase?

A. Costs

B. Quality control concerns

C. Human resource needs

D. Risks

View answer

Correct Answer: B

Question #95

Your organization has a project that is expected to last 20 months but the customer would really like the project completed in 18 months. You have worked on similar projects in the past and believe that you could fast track the project and reach the 18 month deadline. What increases when you fast track a project?

A. Resources

B. Costs

C. Communication

D. Risks

View answer

Correct Answer: D

Question #96

Nancy is the project manager of the NHH project. She and the project team have identified a significant risk in the project during the qualitative risk analysis process. Bob is familiar with the technology that the risk is affecting and proposes to Nancy a solution to the risk event. Nancy tells Bob that she has noted his response, but the risk really needs to pass through the quantitative risk analysis process before creating responses. Bob disagrees and ensures Nancy that his response is most appropriate

A. Bob is correct

B. Bob is correct

C. Nancy is correct

D. Nancy is correct

View answer

Correct Answer: B

Question #97

You work as a project manager for BlueWell Inc. You with your team are using a method or a (technical) process that conceives the risks even if all theoretically possible safety measures would be applied. One of your team member wants to know that what is a residual risk. What will you reply to your team member?

A. It is a risk that can not be addressed by a risk response

B. It is a risk that will remain no matter what type of risk response is offered

C. It is a risk that remains because no risk response is taken

D. It is a risk that remains after planned risk responses are taken

View answer

Correct Answer: B

Question #98

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider the technology factors a risk for her project. Where should she document the risks associated with this technology so she can track the risk status and responses?

A. Project scope statement

B. Risk register

C. Project charter

D. Risk low-level watch list

View answer

Correct Answer: BCD

Question #99

You work as a project manager for BlueWell Inc. Your project is running late and you must respond to the risk. Which risk response can you choose that will also cause you to update the human resource management plan?

A. Teaming agreements

B. Transference

C. Crashing the project

D. Fast tracking the project

View answer

Correct Answer: B

Question #100

You are the project manager for the NHQ Project. This project requires that you install 140 copies of design software onto your department's computers. The vendor offers you a twenty percent discount on the software if your company will purchase 150 or more copies of the software. You communicate this offer with other departments in your firm to see if anyone else would need 10 copies of the software to save your project a significant amount of funds. What is this risk response called?

A. Exploiting

B. Avoidance

C. Sharing

D. Transference

View answer

Correct Answer: A

Question #101

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. Risk register and the risk response plan

B. Risk register and power to assign risk responses

C. Risk register and the risk management plan

D. Risk register and the results of risk analysis

View answer

Correct Answer: A

Question #102

Fred is the project manager of a large project in his organization. Fred needs to begin planning the risk management plan with the project team and key stakeholders. Which plan risk management process tool and technique should Fred use to plan risk management?

A. Variance and trend analysis

B. Information gathering techniques

C. Planning meetings and analysis

D. Data gathering and representation techniques

View answer

Correct Answer: B

Question #103

Bill is the project manager for a project that will last six months and has a budget of $580,000. In this project a high-risk has been identified with the new materials the project will be using. Bill would like to assign one person, Beth, to be responsible to monitor this risk. Bill assigns Beth the authority to respond to the risk event if it appears in the risk events that is likely to happen. In addition, Bill hires a consultant to work with Beth on this area of the project. In this instance, who is the

A. Bill, because he is the project manager

B. Beth, because she has the authority to respond to the risk event

C. Beth and the consultant are the risk owners

D. The consultant working with Beth, because this is transference

View answer

Correct Answer: B

Question #104

You are the project manager of the NHH project for your company. You have completed the first round of risk management planning and have created four outputs of the risk response planning process. Which one of the following is NOT an output of the risk response planning?

A. Risk register updates

B. Organizational process assets updates

C. Project document updates

D. Risk-related contract decisions

View answer

Correct Answer: A

Question #105

You are the project manager of the NNQ Project for your company and are working with your project team to define contingency plans for the risks within your project. Mary, one of your project team members, asks what a contingency plan is. Which of the following statements best defines what a contingency response is?

A. Some responses are designed for use only if certain events occur

B. Some responses have a cost and a time factor to consider for each risk event

C. Some responses must counteract pending risk events

D. Quantified risks should always have contingency responses

View answer

Correct Answer: C

Question #106

You work as a project manager for SoftTech Inc. You are working with the project stakeholders to begin the qualitative risk analysis process. Which of the following inputs will be needed for the qualitative risk analysis process in your project? Each correct answer represents a complete solution. Choose all that apply.

A. Organizational process assets

B. Cost management plan

C. Project scope statement

D. Risk register

View answer

Correct Answer: D

Question #107

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. 245

B. 51,040

C. 102,080

D. 320

View answer

Correct Answer: C

Question #108

Frank is the project manager of the NHL Project for his company and he is starting the risk identification process for the project. Frank needs to ensure that the correct stakeholders are interviewed as part of risk identification. What document will help Frank to communicate and solicit inputs of the project stakeholders during risk identification?

A. Project charter

B. Risk register

C. Requirements management plan

D. Stakeholder register

View answer

Correct Answer: B

Question #109

Mary is a project manager in her organization. On her current project she is working with her project team and other key stakeholders to identify the risks within the project. She is currently aiming to create a comprehensive list of project risks so she is using a facilitator to help generate ideas about project risks. What risk identification method is Mary likely using?

A. Brainstorming

B. Delphi Techniques

C. Checklist analysis

D. Expert judgment

View answer

Correct Answer: B

Question #110

Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen. If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

A. $35,000

B. $41,700

C. $14,000

D. $6,700

View answer

Correct Answer: B

Question #111

You are working with the project stakeholders to analyze and prioritize their requirements for the project. One of the project requirements is to achieve a high-level of customer satisfaction for the project deliverable. What is the danger in this project requirement?

A. Achieving customer satisfaction is an assumption and should be documented in the project scope

B. Achieving customer satisfaction is a subjective requirement and entails a high level of risk of beingsuccessfully accomplished

C. Achieving customer satisfaction is a risk as the project manager cannot control how satisfied the customerwill be with the project deliverables

D. Achieving customer satisfaction should always map to the quality requirements for the project

View answer

Correct Answer: B

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