PMI Risk Management Professional Certification Practice Exam Set 6

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?


Options are :

  • Impact (Correct)
  • Risk owner
  • Risk category
  • Cost

Answer : Impact

Which of the following are parts of SWOT Analysis? Each correct answer represents a complete solution. Choose all that apply.


Options are :

  • Tools
  • Opportunities (Correct)
  • Strengths (Correct)
  • Threats (Correct)
  • Weaknesses (Correct)
  • Optimism

Answer : Opportunities Strengths Threats Weaknesses

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


Options are :

  • First-of-its kind technology projects
  • Recurrent projects (Correct)
  • State-of-art technology projects
  • Operational work projects

Answer : Recurrent projects

You are the project manager of the HJK Project for your organization. You and the project team have created risk responses for many of the risk events in the project. Where should you document the proposed responses and the current status of all identified risks?


Options are :

  • Risk management plan
  • Stakeholder management strategy
  • Lessons learned documentation
  • Risk register (Correct)

Answer : Risk register

You are the project manager of RTF project for your organization. You are working with your project team and several key stakeholders to create a diagram that shows causal factors for an effect to be solved. What diagramming technique are you using as a part of the risk identification process?


Options are :

  • Predecessor and successor diagramming
  • System or process flow charts
  • Cause and effect diagrams (Correct)
  • Influence diagrams

Answer : Cause and effect diagrams

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?


Options are :

  • Risk low-level watch list
  • Project scope statement
  • Project charter
  • Risk register (Correct)

Answer : Risk register

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?


Options are :

  • 0.92
  • 1.06
  • ($30,647)
  • 0.93 (Correct)

Answer : 0.93

Frances is the project manager of a project in her organization. This project has a budget of $567,000 and is schedule to last for three years. Frances wants to examine the risk events to determine which risk events have the most potential impact on the project. Which modeling technique can help Frances to accomplish this goal?


Options are :

  • Sensitivity analysis (Correct)
  • Modeling and simulation
  • Quantitative risk analysis
  • Expected monetary value

Answer : Sensitivity analysis

Della works as a project manager for Tech Perfect Inc. She is studying the documentation of planning of a project. The documentation states that there are twenty-eight stakeholders with the project. What will be the number of communication channels for the project?


Options are :

  • 20
  • 250
  • 300
  • 378 (Correct)

Answer : 378

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?


Options are :

  • Risk management plan
  • Risk register (Correct)
  • Project management plan
  • Risk log

Answer : Risk register

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?


Options are :

  • Zero - the risk event has not yet occurred
  • Negative $26,000
  • Negative $27,500 (Correct)
  • Negative $55,000

Answer : Negative $27,500

You work as a project manager for BlueWell Inc. You are preparing to plan risk responses for your project with your team. How many risk response types are available for a negative risk event in the project?


Options are :

  • One
  • Three
  • Seven
  • Four (Correct)

Answer : Four

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?


Options are :

  • You will use organizational process assets to determine costs of all risks events within the current project. (Correct)
  • You will use organizational process assets for risk databases that may be available from industry sources.
  • You will use organizational process assets for information from prior similar projects.
  • You will use organizational process assets for studies of similar projects by risk specialists

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

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.


Options are :

  • Decision making or the development of recommendations for decision makers (Correct)
  • Increased understanding or quantification of the system (Correct)
  • Estimating the average outcome
  • Model development (Correct)

Answer : Decision making or the development of recommendations for decision makers Increased understanding or quantification of the system Model development

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?


Options are :

  • Trends in qualitative risk analysis results
  • List of potential risk responses
  • Symptoms and warning signs of risks
  • Network diagram analysis of critical path activities (Correct)

Answer : Network diagram analysis of critical path activities

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


Options are :

  • Decision making or the development of recommendations for decision makers (Correct)
  • Increased understanding or quantification of the system (Correct)
  • Estimating the average outcome
  • .Model development (Correct)

Answer : Decision making or the development of recommendations for decision makers Increased understanding or quantification of the system .Model development

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?


Options are :

  • Risk register updates
  • Project document updates
  • Risk-related contract decisions
  • Organizational process assets updates (Correct)

Answer : Organizational process assets updates

You are the project manager of the NHH Project for your company and you have completed the risk analysis processes for the risk events. You and the project team have created risk responses for most of the identified project risks. Now, you would like to assign risk owners to the events. Which risk events should have risk response owners?


Options are :

  • Only the risks with a high risk rating
  • Each risk that has a risk response should have a risk response owner
  • Only the risk events that are considered a negative risk event with a high risk rating
  • Each agreed-to and funded risk response should have a risk response owner (Correct)

Answer : Each agreed-to and funded risk response should have a risk response owner

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


Options are :

  • Motivation
  • Communication (Correct)
  • Influencing
  • Political and cultural awareness

Answer : Communication

You are the project manager of a large construction project. You are evaluating the strengths, weaknesses, opportunities, and threats involved in a project. In which of the following processes are you on?


Options are :

  • Identify Risks (Correct)
  • Plan Risk Management
  • Plan Risk Responses
  • Define Scope

Answer : Identify Risks

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


Options are :

  • Internal risk management strategy
  • Expert judgment
  • Contingent response strategy (Correct)
  • External risk response

Answer : Contingent response strategy

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.


Options are :

  • Because of new work generated by the risk responses (Correct)
  • Because of work that was omitted during the WBS creation
  • Because of risk responses that are now activities
  • Because of risks associated with work packages

Answer : Because of new work generated by the risk responses

Which of the following processes looks at the complex web of actors, rules, conventions, processes, and mechanisms concerned with how relevant risk information is collected, analyzed and communicated, and how management decisions are taken?


Options are :

  • Risk Communication
  • IRGC
  • Risk Governance (Correct)
  • Risk Response Planning

Answer : Risk Governance

You are the project manager of the CUL project in your organization. You and the project team are assessing the risk events and creating a probability and impact matrix for the identified risks. Which one of the following statements best describes the requirements for the data type used in qualitative risk analysis?


Options are :

  • A qualitative risk analysis required unbiased stakeholders with biased risk tolerances
  • A qualitative risk analysis requires fast and simple data to complete the analysis.
  • A qualitative risk analysis requires accurate and unbiased data if it is to be credible. (Correct)
  • A qualitative risk analysis encourages biased data to reveal risk tolerances.

Answer : A qualitative risk analysis requires accurate and unbiased data if it is to be credible.

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?


Options are :

  • It shows how various elements of a system interrelate.
  • It is the same thing as a root cause diagram. (Correct)
  • It is a graphical representation of situations showing causal influences.
  • It diagrams the risks according to the work breakdown structure including resources.

Answer : It is the same thing as a root cause diagram.

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?


Options are :

  • Risk management only becomes easier the more often it is practiced. (Correct)
  • Risk management only becomes easier when the project moves into project execution.
  • Risk management only becomes easier when the project is closed.
  • Risk management is an iterative process and never becomes easier

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

Wendy is about to perform qualitative risk analysis on the identified risks within her project. Which one of the following will NOT help Wendy to perform this project management activity?


Options are :

  • Risk register
  • Stakeholder register (Correct)
  • Risk management plan
  • Project scope statement

Answer : Stakeholder register

Eric is the project manager of the MTC project for his company. In this project a vendor has offered Eric a sizeable discount on all hardware if his order total for the project is more than $125,000. Right now, Eric is likely to spend $118,000 with vendor. If Eric spends $7,000 his cost savings for the project will be $12,500, but he cannot purchase hardware if he cannot implement the hardware immediately due to organizational policies. Eric consults with Amy and Allen, other project managers in the organization, and asks if she needs any hardware for their projects. Both Amy and Allen need hardware and they agree to purchase the hardware through Eric's relationship with the vendor. What positive risk response has happened in this instance?


Options are :

  • Exploiting
  • Transference
  • Enhancing
  • Sharing (Correct)

Answer : Sharing

Where can a project manager find risk-rating rules?


Options are :

  • Risk management plan
  • Enterprise environmental factors
  • Risk probability and impact matrix
  • Organizational process assets (Correct)

Answer : Organizational process assets

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


Options are :

  • Lessons learned
  • Project document updates
  • Project archives
  • Change request log (Correct)

Answer : Change request log

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