PMI Risk Management Professional Certification Practice Exam Set 1

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?


Options are :

  • Acceptance is the only risk response for positive risk events.
  • Four (Correct)
  • Three
  • Seven

Answer : Four

Your project team has identified a project risk that must be responded to. The risk has been recorded in the risk register and the project team has been discussing potential risk responses for the risk event. The event is not likely to happen for several months but the probability of the event is high. Which one of the following is a valid response to the identified risk event?


Options are :

  • Risk audit
  • Technical performance measurement
  • Corrective action (Correct)
  • Earned value management

Answer : Corrective action

You are the project manager of the NHJ project for your company. This project has a budget at completion of $1,650,000 and you are 60 percent complete. According to the project plan, however, the project should be 65 percent complete. In this project you have spent $995,000 to reach this point of completion. There is a risk that this project may be late so you have taken some measures to recover the project schedule. Management would like to know, based on current performance, what the estimate at completion for this project will be. What is the estimate at completion?


Options are :

  • ($8,333)
  • $1,666,667 (Correct)
  • $1,650,000
  • $663,333

Answer : $1,666,667

Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is calculated during quantitative risk analysis. He is worried about the risk exposure which is too low for the events surrounding his project requirements. How is the risk exposure calculated?


Options are :

  • The risk exposure of a risk event is determined by historical information.
  • The probability of a risk event plus the impact of a risk event determines the true risk exposure.
  • The probability of a risk event times the impact of a risk event determines the true risk exposure. (Correct)
  • The probability and impact of a risk event are gauged based on research and in-depth analysis.

Answer : The probability of a risk event times the impact of a risk event determines the true risk exposure.

You work as a project manager for BlueWell Inc. You want to create a visual diagram, which can depict the resources that will be used within the project. Which of the following diagrams will you create to accomplish the task?


Options are :

  • Resource breakdown structure (Correct)
  • RACI chart
  • Roles and responsibility matrix
  • Work breakdown structure

Answer : Resource breakdown structure

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?


Options are :

  • The risk exposure of the event is $850,000.
  • The risk exposure of the event is $500,000.
  • The risk exposure of the event is $245,000. (Correct)
  • The risk exposure of the event is $350,000.

Answer : The risk exposure of the event is $245,000.

You are the project manager for your organization. You are working with your key stakeholders in the qualitative risk analysis process. You understand that there is certain bias towards the risk events in the project that you need to address, manage, and ideally reduce. What solution does the PMBOK recommend to reduce the influence of bias during qualitative risk analysis?


Options are :

  • Involve all stakeholders to vote on the probability and impact of the risk events
  • .Isolate the stakeholders by project phases to determine their risk bias
  • Provide iterations of risk analysis for true reflection of a risk probability and impact
  • Establish the definitions of the levels of probability and impact (Correct)

Answer : Establish the definitions of the levels of probability and impact

You are working with your project stakeholders to identify risks within the JKP Project. You want to use an approach to engage the stakeholders to increase the breadth of the identified risks by including internally generated risk. Which risk identification approach is most suited for this goal?


Options are :

  • Delphi Technique
  • SWOT analysis (Correct)
  • Brainstorming
  • Assumptions analysis

Answer : SWOT analysis

You are a risk auditor for your company. You are reviewing the contract types a project manager has used in her project. Of the following, which contract type has the most risk for the project manager as a buyer?


Options are :

  • Time and material
  • Cost plus percentage of costs (Correct)
  • Cost plus incentive fee
  • Fixed-price, incentive fee

Answer : Cost plus percentage of costs

Kelly is the project manager of the BHH project for her organization. She is completing the risk identification process for this portion of her project. Which one of the following is the only thing that the risk identification process will create for Kelly?


Options are :

  • Change requests
  • Project document updates
  • Risk register updates
  • Risk register (Correct)

Answer : Risk register

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 materials can also be known as what term?


Options are :

  • Benchmarking
  • Cost-benefits analysis
  • Team development
  • Cost of conformance to quality (Correct)

Answer : Cost of conformance to quality

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?


Options are :

  • It helps to determine how much more funds will need to be invested in the project.
  • It helps to evaluate if the remaining reserve is adequate for the risk exposure. (Correct)
  • It helps to evaluate secondary and residual risks related to the risk responses and their costs.
  • It helps to determine the probability and impact of project risks.

Answer : It helps to evaluate if the remaining reserve is adequate for the risk exposure.

You are working with Anna on your project to determine and map the probability distributions of risk within the project. You have indicated that you will use the uniform distribution method for a portion of the project. Which part of your project is most likely to have a uniform risk distribution?


Options are :

  • Early concept stage of design (Correct)
  • Project phases that deal with "cutover" technologies
  • Project initiating
  • Late completion stages of a project

Answer : Early concept stage of design

You are the project manager of the GYH project for your organization. Management has asked you to begin identifying risks and to use an information gathering technique. Which one of the following risk identification approaches is an information gathering technique?


Options are :

  • SWOT analysis
  • Assumptions analysis
  • Root cause analysis (Correct)
  • Documentation reviews

Answer : Root cause analysis

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?


Options are :

  • Plan risk responses (Correct)
  • Monitor and control project risks
  • Create the project risk register
  • Create a risk governance approach

Answer : Plan risk responses

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?


Options are :

  • Enhance (Correct)
  • itigation
  • Transference
  • Exploit

Answer : Enhance

Todd is the project manager of the EST project for his company. His organization has established certain rules in the enterprise environmental factors which affect the approach that Todd takes in managing his project. One of the rules requires Todd to consider the risk attitude of the stakeholders participating in risk analysis. Why must risk attitude be considered as a part of risk analysis?


Options are :

  • Risk attitude can establish a stakeholder's influence over project decisions.
  • Risk attitude establishes stakeholders as positive or negative stakeholders.
  • Risk attitude identifies stakeholders that are hygiene seekers or motivation seekers.
  • Risk attitude can affect the measurement of probability and impact. (Correct)

Answer : Risk attitude can affect the measurement of probability and impact.

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 project?


Options are :

  • Mitigation-ready project management
  • Risk utility function (Correct)
  • Risk-reward mentality
  • Risk avoidance

Answer : Risk utility function

Frank is the project manager of the NHQ project for his company. Frank is working with the project team, key stakeholders, and several subject matter experts on risks dealing with the new materials in the project. Frank wants to utilize a risk analysis method that will help the team to make decisions in the presence of the current uncertainty surrounding the new materials. Which risk analysis approach can Frank use to create an approach to make decisions in the presence of uncertainty?


Options are :

  • Quantitative risk analysis process (Correct)
  • Delphi Technique
  • Qualitative risk analysis process
  • Monte Carlo Technique

Answer : Quantitative risk analysis process

You work as the project manager for Bluewell Inc. Your project has several risks that will affect several stakeholder requirements. Which project management plan will define who will be available to share information on the project risks?


Options are :

  • Communications Management Plan (Correct)
  • Stakeholder management strategy
  • Risk Management Plan
  • Resource Management Plan

Answer : Communications Management Plan

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?


Options are :

  • Enhance
  • Sharing
  • Exploiting
  • Acceptance (Correct)

Answer : Acceptance

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


Options are :

  • Organizational process assets
  • Enterprise environmental factors
  • Project management plan
  • Risk register updates (Correct)

Answer : Risk register updates

Your organization, as part of its enterprise environmental factors, has established risk governance to be implemented in each project. Part of this governance is the reassessment of risks within each project. How much detail and repetition in approach for risks to be reassessed for probability and impact?


Options are :

  • Each risk reassessment should go into the same depth as the original risk assessment activity.
  • The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives. (Correct)
  • The level of detail and reassessment should reflect the priority of the project.
  • The probability and impact of risk event should determine the level of reassessment throughout the project lifecycle.

Answer : The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives.

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?


Options are :

  • Risk Management Plan
  • Risk Response Plan
  • Project Management Plan
  • Communications Management Plan (Correct)

Answer : Communications Management Plan

Your project spans the entire organization. You would like to assess the risk of the project but are worried that some of the managers involved in the project could affect the outcome of any risk identification meeting. Your worry is based on the fact that some employees would not want to publicly identify risk events that could make their supervisors look bad. You would like a method that would allow participants to anonymously identify risk events. What risk identification method could you use?


Options are :

  • SWOT analysis
  • Delphi technique (Correct)
  • Root cause analysis
  • solated pilot groups

Answer : Delphi technique

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. What risk response has been enacted in this project?


Options are :

  • Avoidance (Correct)
  • Transference
  • Mitigation
  • Acceptance

Answer : Avoidance

During which of the following processes, probability and impact matrix is prepared?


Options are :

  • Perform Quantitative Risk Analysis
  • Plan Risk Responses
  • Perform Qualitative Risk Analysis (Correct)
  • Monitoring and Control Risks

Answer : Perform Qualitative Risk Analysis

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?


Options are :

  • Risk register
  • Requirements management plan
  • Project charter
  • Stakeholder register (Correct)

Answer : Stakeholder register

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


Options are :

  • Sharing
  • Transferring
  • Acceptance (Correct)
  • Enhancing

Answer : Acceptance

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?


Options are :

  • The level of detail must define exactly the risk response for each identified risk.
  • The level of detail is set by historical information
  • The level of detail should correspond with the priority ranking. (Correct)
  • The level of detail is set of project risk governance.

Answer : The level of detail should correspond with the priority ranking.

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