PMI Risk Management Professional Certification Practice Exam Set 2

There are five outputs of the risk monitoring and controlling process. Which one of the following is NOT an output of the process?


Options are :

  • Change requests
  • Organizational process assets updates
  • Vendor contracts (Correct)
  • Risk register updates

Answer : Vendor contracts

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. What risk response is this?


Options are :

  • This is avoidance because the risk response caused the project plan to be changed.
  • This is not a risk response, but a change request
  • This is mitigation because the response reduces the probability. (Correct)
  • This is transference because of the $260,000 cost of the solution.

Answer : This is mitigation because the response reduces the probability.

You are project manager for ABD project. You, with your team, are working on the following activities: Probabilistic analysis of a project. Probability of achieving cost and time objectives. Trends in Qualitative Risk Analysis results. On which of the following processes are you working on?


Options are :

  • Plan Risk Management
  • Perform Qualitative Risk Analysis
  • Perform Quantitative Risk Analysis (Correct)
  • Identify Risks

Answer : Perform Quantitative Risk Analysis

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?


Options are :

  • The events should be entered into qualitative risk analysis.
  • The events should be entered into the risk register. (Correct)
  • The events should continue on with quantitative risk analysis.
  • The events should be determined if they need to be accepted or responded to.

Answer : The events should be entered into the risk register.

Beth is the project manager of the BFG Project for her company. In this project Beth has decided to create a contingency response based on the performance of the project schedule. If the project schedule variance is greater than $10,000 the contingency plan will be implemented. What is the formula for the schedule variance?


Options are :

  • SV=PV-EV
  • SV=EV-PV (Correct)
  • SV=EV/AC
  • SV=EV/PV

Answer : SV=EV-PV

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?


Options are :

  • Project risks will increase.
  • Project costs will increase. (Correct)
  • The amount of hours a resource can be used will diminish.
  • The project will take longer to complete, but risks will diminish.

Answer : Project costs will increase.

You are the program manager for your organization. Management is considering a new program but they are worried about the program risks that may affect the program success. You know that there are three positive risks responses and three negative risk responses that each risk can have. Management asks you which risk response would be most appropriate for a large risk event if they wanted to hire a third-party to own the risk event for the program. What risk event is most appropriate?


Options are :

  • Sharing
  • Mitigation
  • Avoidance
  • Transference (Correct)

Answer : Transference

You are preparing to start the qualitative risk analysis process for your project. You will be relying on some organizational process assets to influence the process. Which one of the following is NOT a probable reason for relying on organizational process assets as an input for qualitative risk analysis?


Options are :

  • Review of vendor contracts to examine risks in past projects (Correct)
  • Risk databases that may be available from industry sources
  • Studies of similar projects by risk specialists
  • Information on prior, similar projects

Answer : Review of vendor contracts to examine risks in past projects

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


Options are :

  • Human resource needs
  • Quality control concerns
  • Risks (Correct)
  • Costs

Answer : Risks

Tom is the project manager for his organization. In his project he has recently finished the risk response planning. He tells his manager that he will now need to update the cost and schedule baselines. Why would the risk response planning cause Tom the need to update the cost and schedule baselines?


Options are :

  • New or omitted work as part of a risk response can cause changes to the cost and/or schedule baseline. (Correct)
  • Risk responses may take time and money to implement.
  • Risk responses protect the time and investment of the project.
  • Baselines should not be updated, but refined through versions.

Answer : New or omitted work as part of a risk response can cause changes to the cost and/or schedule baseline.

Which of the following documents is described in the statement below? "It is developed along with all processes of the risk management. It contains the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning."


Options are :

  • Risk register (Correct)
  • Quality management plan
  • Project charter
  • Risk management plan

Answer : Risk register

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


Options are :

  • It analyzes the impact that the issue is having on the project. (Correct)
  • It tracks the outcome of the actions taken. (Correct)
  • It tracks the actions taken to resolve the issue. (Correct)
  • It addresses the risks that could affect the project.

Answer : It analyzes the impact that the issue is having on the project. It tracks the outcome of the actions taken. It tracks the actions taken to resolve the issue.

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?


Options are :

  • .Sammy is correct, because organizations can create risk scores for each objective of the project. (Correct)
  • Harry is correct, the risk probability and impact matrix is the only approach to risk assessment.
  • Harry is correct, because the risk probability and impact considers all objectives of the project.
  • Sammy is correct, because she is the project manager

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

Fred is the project manager of the CPS project. He is working with his project team to prioritize the identified risks within the CPS project. He and the team are prioritizing risks for further analysis or action by assessing and combining the risks probability of occurrence and impact. What process is Fred completing?


Options are :

  • Risk identification
  • Risk Breakdown Structure creation
  • Perform qualitative analysis (Correct)
  • Perform quantitative analysis

Answer : Perform qualitative analysis

Holly is the project manager of the GHH Project. During risk identification and the subsequent risk analysis process she has identified a risk with a high probability and high impact for her project. She and the stakeholder agree that the project management plan should be changed to eliminate the risk threat entirely. What risk response has Holly used in this instance?


Options are :

  • This is the avoidance risk response.
  • This is the transference risk response.
  • This is a scope change and not a risk response.
  • This is the risk mitigation response. (Correct)

Answer : This is the risk mitigation response.

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


Options are :

  • Enhance
  • Exploit
  • Acceptance (Correct)
  • Share

Answer : Acceptance

Shelly is the project manager of the BUF project for her company. In this project Shelly needs to establish some rules to reduce the influence of risk bias during the qualitative risk analysis process. What method can Shelly take to best reduce the influence of risk bias?


Options are :

  • Establish risk boundaries
  • Group stakeholders according to positive and negative stakeholders and then complete the risk analysis
  • Determine the risk root cause rather than the person identifying the risk events
  • Establish definitions of the level of probability and impact of risk event (Correct)

Answer : Establish definitions of the level of probability and impact of risk event

John works as a project manager for ABD project. He and his team, are working on the following activities: Relative ranking or priority list of project risks Watchlists of low priority risk Trends in Qualitative Risk Analysis results On which of the following processes is John working on?


Options are :

  • Perform Qualitative Risk Analysis (Correct)
  • Plan Risk Responses
  • Plan Risk Management
  • Perform Quantitative Risk Analysis

Answer : Perform Qualitative Risk Analysis

What risk identification technique allows participants to identify the project risks and to remain anonymous?


Options are :

  • Surveys
  • Delphi technique (Correct)
  • Influence diagrams
  • Assumptions analysis

Answer : Delphi technique

Virginia is the project manager for her organization. She has hired a subject matter expert to interview the project stakeholders on certain identified risks within the project. The subject matter expert will assess the risk event with what specific goal in mind?


Options are :

  • To determine the level of probability and impact for each risk event (Correct)
  • To determine the probability and cost of the risk event
  • To determine the bias of the risk event based on each person interviewed
  • To determine the validity of each risk event

Answer : To determine the level of probability and impact for each risk event

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?


Options are :

  • Quantified risks should always have contingency responses.
  • Some responses have a cost and a time factor to consider for each risk event.
  • Some responses are designed for use only if certain events occur. (Correct)
  • Some responses must counteract pending risk events.

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

The only output of the perform qualitative risk analysis are risk register updates. When the project manager updates the risk register he will need to include several pieces of information including all of the following except for which one?


Options are :

  • Risks grouped by categories
  • Watchlist of low-priority risks
  • Risk probability-impact matrix (Correct)
  • Trends in qualitative risk analysis

Answer : Risk probability-impact matrix

You are the project manager of a large project that will last four years. In this project, you would like to model the risk based on its distribution, impact, and other factors. There are three modeling techniques that a project manager can use to include both event-oriented and project-oriented analysis. Which modeling technique does NOT provide event-oriented and project-oriented analysis for identified risks?


Options are :

  • Expected monetary value
  • Jo-Hari Window (Correct)
  • Modeling and simulation
  • Sensitivity analysis

Answer : Jo-Hari Window

You are the project manager for TTP project. You are in the Identify Risks process. You have to create the risk register. Which of the following are included in the risk register? Each correct answer represents a complete solution. Choose two


Options are :

  • List of mitigation techniques
  • List of key stakeholders
  • List of potential responses (Correct)
  • .List of identified risks (Correct)

Answer : List of potential responses .List of identified risks

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?


Options are :

  • No, change requests should not address risks, only risk response strategies should be issued.
  • Yes, change requests can ask for additional funds to pay for the risk impact.
  • No, change requests should not address pending risks, but only scope changes.
  • Yes, change requests can be recommended for corrective actions for contingency plans. (Correct)

Answer : Yes, change requests can be recommended for corrective actions for contingency plans.

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?


Options are :

  • Transference (Correct)
  • Mitigation
  • Avoidance
  • Exploit

Answer : Transference

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?


Options are :

  • Transference
  • Sharing
  • Exploit
  • Enhance (Correct)

Answer : Enhance

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 accomplishment of the qualitative risk analysis process?


Options are :

  • Prioritization of identified risk events based on probability and impact
  • Corresponding impact on project objectives
  • Time frame for a risk response
  • Cost of the risk impact if the risk event occurs (Correct)

Answer : Cost of the risk impact if the risk event occurs

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 that have low probability and low impact for future reference. What should you tell Nancy?


Options are :

  • All risks are recorded in the risk management plan.
  • All risks, regardless of their assessed impact and probability, are recorded in the risk log.
  • .Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.
  • Risks with low probability and low impact are recorded in a watchlist for future monitoring. (Correct)

Answer : Risks with low probability and low impact are recorded in a watchlist for future monitoring.

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


Options are :

  • Project manager (Correct)
  • Project management office
  • Project risk assessment officer
  • Project sponsor

Answer : Project manager

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