PMI Risk Management Professional Certification Practice Exam Set 7

Billy is the project manager of the HAR Project and is in month six of the project. The project is scheduled to last for 18 months. Management asks Billy how often the project team is participating in risk reassessment in this project. What should Billy tell management if he's following the best practices for risk management?


Options are :

  • Project risk management has been concluded with the project planning.
  • Project risk management happens at every milestone.
  • At every status meeting the project team project risk management is an agenda item (Correct)
  • Project risk management is scheduled for every month in the 18-month project.

Answer : At every status meeting the project team project risk management is an agenda item

You are the project manager of the NNN project for your company. You and the project team are working together to plan the risk responses for the project. You feel that the team has successfully completed the risk response planning and now you must initiate what risk process it is. Which of the following risk processes is repeated after the plan risk responses to determine if the overall project risk has been satisfactorily decreased?


Options are :

  • Risk response implementation
  • Qualitative risk analysis
  • Quantitative risk analysis (Correct)
  • Risk identification

Answer : Quantitative risk analysis

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?


Options are :

  • Organizational process assets (Correct)
  • Expert judgment
  • Quantitative risk analysis and modeling techniques
  • Data gathering and representation techniques

Answer : Organizational process assets

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 :

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

Answer : Risk register

David is the project manager of the NKL Project for his organization. He has been asked to create a proposal for a construction project for a client. David realizes that there are several requirements within the SOW and RFP provided by the client that would eliminate his company from bidding on the construction project. David proposed to management that his organization create a partnership with a competitor so that together they could bid on the construction project and qualify for the customer's requirements. What risk response is David proposing to management?


Options are :

  • Transference
  • Sharing (Correct)
  • Exploiting
  • Teaming agreement

Answer : Sharing

You are the project manager of the NKQ project for your organization. You have completed the quantitative risk analysis process for this portion of the project. What is the only output of the quantitative risk analysis process?


Options are :

  • Probability of reaching project objectives
  • Risk contingency reserve
  • Risk register updates (Correct)
  • Risk response

Answer : Risk register updates

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


Options are :

  • Acceptance (Correct)
  • Transference
  • Exploitation
  • Mitigation

Answer : Acceptance

You are the project manager of the GHY project. In your organization you must follow certain enterprise environmental factors that establish the rules for risk management . One of the policies your project must adhere to requires periodic rapid analysis of risks within the project. These rapid, cost-effective session must be documented and performed monthly. What type of analysis are you required to perform according to your enterprise environmental factors?


Options are :

  • Quantitative analysis
  • Delphi Technique
  • Brainstorming
  • Qualitative analysis (Correct)

Answer : Qualitative analysis

You work as a project manager for SoftTech Inc. You are working with the project stakeholders to begin the qualitative risk analysis process. You will need all of the following as inputs to the qualitative risk analysis process except for which one?


Options are :

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

Answer : Stakeholder register

You are the project manager of the NHQ project for your company. Management has told you that you must implement an agreed upon contingency response if the Cost Performance Index in your project is less than 0.90. Consider that your project has a budget at completion of $250,000 and is 60 percent complete. You are scheduled to be however, 75 percent complete, and you have spent $165,000 to date. What is the Cost Performance Index for this project to determine if the contingency response should happen?


Options are :

  • 0.8
  • 0.88
  • 0.91 (Correct)
  • ($37,500)

Answer : 0.91

You are the project manager of the GHY project for your organization. You are working with your project team to begin identifying risks for the project. As part of your preparation for identifying the risks within the project you will need eleven inputs for the process. Which one of the following is NOT an input to the risk identification process?


Options are :

  • Procurement management plan (Correct)
  • Stakeholder register
  • Quality management plan
  • Cost management plan

Answer : Procurement management plan

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?


Options are :

  • Watchlist of low-priority risks
  • Trends in qualitative risk analysis
  • Risks grouped by categories
  • Prioritized list of quantified risks (Correct)

Answer : Prioritized list of quantified risks

Joyce is the project manager for her company. Joyce and her project team are working through the quantitative analysis for certain risk events within her project. According to the enterprise environmental factors the project manager is to perform sensitivity analysis on any risk with an impact greater than $5,000 in the project. What is the sensitivity analysis?


Options are :

  • It determines possible combinations of risk events to predict overall project success, failure, or probability of achieving project objectives.
  • It determines which risk events have the most potential impact on the project. (Correct)
  • It uses round of anonymous surveys to predict which events are most likely to happen.
  • It uses rounds of anonymous surveys to predict probability and impact.

Answer : It determines which risk events have the most potential impact on the project.

You are the project manager of the GHG project for your company. You have identified the project risks, completed qualitative and quantitative analysis, and created risk responses. You also need to document how and when risk audits will be performed in the project. Where will you define the frequency of risk audits?


Options are :

  • Quality management plan
  • Risk response plan
  • Risk management plan (Correct)
  • Schedule management plan

Answer : Risk management plan

You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your company. 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. Which of the following risk response planning techniques will you use to shift the impact of a threat to a third party, together with the responses?


Options are :

  • Risk transference (Correct)
  • Risk mitigation
  • Risk avoidance
  • Risk acceptance

Answer : Risk transference

As a part of monitoring and controlling the project, the project manager should update the risk register. The project manager should update the risk register with information on risk reassessment, risk audits, and periodic risk reviews. What other information should the project manager update the risk register with?


Options are :

  • Actual costs and schedule delays of risk events.
  • Actual outcomes of the project's risks and of the risk responses. (Correct)
  • Actual cost of risk events.
  • Actual outcomes of risk management duties by the project team.

Answer : Actual outcomes of the project's risks and of the risk responses.

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?


Options are :

  • Influence diagrams
  • Project network diagrams
  • Process flow charts
  • Ishikawa diagrams (Correct)

Answer : Ishikawa diagrams

Harry works as a project manager for BlueWell Inc. He is determining how to conduct the risk management activities for a project. According to the PMBOK, there are six inputs to the plan risk management process. Which one of the following is NOT an input to this process?


Options are :

  • Schedule management plan
  • Cost management plan
  • Risk management plan (Correct)
  • Project scope statement

Answer : Risk management plan

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


Options are :

  • Configuration management
  • Risk monitoring and control
  • Integrated change control (Correct)
  • Scope change control

Answer : Integrated change control

The risk transference is referred to the transfer of risks to a third party, usually for a fee, it creates a contractual-relationship for the third party to manage the risk on behalf of the performing organization. Which one of the following is NOT an example of the transference risk response?


Options are :

  • Life cycle costing (Correct)
  • Performance bonds
  • Warranties
  • Use of insurance

Answer : Life cycle costing

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?


Options are :

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

Answer : Risks

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


Options are :

  • Determines if the risk management policies and procedures are being followed
  • Determines if the project constraints are still valid (Correct)
  • Determines if the project assumptions are still valid
  • Determines if the risk contingency reserves should be modified to be in alignment with the current risk assessment

Answer : Determines if the project constraints are still valid

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?


Options are :

  • Risks in the project should be addressed by their priority for creating risk responses. (Correct)
  • Risks in the project should be addressed by their probability for creating risk responses.
  • Risks in the project should be addressed by the organization's risk tolerance for creating risk responses.
  • Risks in the project should be addressed by their impact for creating risk responses.

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

Risk coordinator


Options are :

  • Acceptance
  • Mitigation
  • Transference (Correct)
  • Avoidance

Answer : Transference

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?


Options are :

  • Achieving customer satisfaction is a risk as the project manager cannot control how satisfied the customer will be with the project deliverables.
  • Achieving customer satisfaction should always map to the quality requirements for the project.
  • Achieving customer satisfaction is an assumption and should be documented in the project scope.
  • Achieving customer satisfaction is a subjective requirement and entails a high level of risk of being successfully accomplished. (Correct)

Answer : Achieving customer satisfaction is a subjective requirement and entails a high level of risk of being successfully accomplished.

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?


Options are :

  • Lack of consistency between the plans and the project requirements and assumptions can be the indicators of risk in the project. (Correct)
  • Poorly written requirements will reveal inconsistencies in the project plans and documents.
  • Plans that have loose definitions of terms and disconnected approaches will reveal risks.
  • The project documents will help the project manager, or Joan, to identify what risk identification approach is best to pursue.

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

Which positive risk response best describes a teaming agreement?


Options are :

  • Exploit
  • Share (Correct)
  • Venture
  • Enhance

Answer : Share

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


Options are :

  • Seven risk responses
  • Qualitative risk analysis (Correct)
  • A risk probability-impact matrix
  • Quantitative risk analysis

Answer : Qualitative risk analysis

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?


Options are :

  • 245
  • 1,02,080
  • 51,040 (Correct)
  • 320

Answer : 51,040

Which of the following processes must be repeated after Plan Risk Responses, as well as part of the Monitor and Control Risks, to determine if the overall project risk has been satisfactorily decreased?


Options are :

  • Risk Limitation
  • Perform Quantitative Risk Analysis (Correct)
  • Perform Qualitative Risk Analysis
  • dentify Risk

Answer : Perform Quantitative Risk Analysis

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