PMI-RMP PMI Risk Management Professional Practice Test Set 3

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?


Options are :

  • Project customer (Correct)
  • Project customer's fax machine
  • None of the above
  • Holly
  • Telephone wire

Answer : Project customer

Which of the following diagrams displays sensitivity analysis data?


Options are :

  • Influence
  • Tornado (Correct)
  • Fishbone
  • Cause and effect

Answer : Tornado

Your project is an agricultural-based project that deals with plant irrigation systems. You have
discovered a byproduct in your project that your organization could use to make a profit. If your
organization seizes this opportunity it would be an example of what risk response?


Options are :

  • Exploiting (Correct)
  • Enhancing
  • Opportunistic
  • Positive

Answer : Exploiting

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.
A.
List of mitigation techniques
B.
List of key stakeholders
C.
List of identified risks
D.
List of potential responses


Options are :

  • B,C
  • D,B
  • A,D
  • C,D (Correct)

Answer : C,D

During qualitative risk analysis you want to define the risk urgency assessment. All of the following
are indicators of risk priority except for which one?


Options are :

  • Warning signs
  • . Risk rating
  • Symptoms
  • Cost of the project (Correct)

Answer : Cost of the project

You work as a project manager for TechSoft Inc. You, the project team, and the key project
stakeholders have completed a round of quantitative risk analysis. You now need to update the
risk register with your findings so that you can communicate the risk results to the project
stakeholders - including management. You will need to update all of the following information
except for which one?


Options are :

  • Probabilistic analysis of the project
  • Trends in quantitative risk analysis
  • Probability of achieving cost and time objectives
  • Risk distributions within the project schedule (Correct)

Answer : Risk distributions within the project schedule

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?


Options are :

  • These risks can be dismissed.
  • All risks must have a valid, documented risk response.
  • These risks can be accepted.
  • These risks can be added to a low priority risk watch list. (Correct)

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

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 :

  • . Enhance (Correct)
  • Transference
  • Sharing
  • Exploit

Answer : . Enhance

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?


Options are :

  • Activity duration estimates (Correct)
  • Schedule management plan
  • Activity cost estimates
  • Risk management plan

Answer : Activity duration estimates

You are the project manager of the GHY project for your company. This project has a budget of
$543,000 and is expected to last 18 months. In this project, you have identified several risk events
and created risk response plans. In what project management process group will you implement
risk response plans?


Options are :

  • Monitoring and Controlling (Correct)
  • In any process group where the risk event resides
  • Planning
  • . Executing

Answer : Monitoring and Controlling

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 for the identified risk. Who is correct in this scenario?


Options are :

  • Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses. (Correct)
  • Nancy is correct. All risks of significant probability and impact should pass the quantitative risk analysis process before risk responses are created.
  • Bob is correct. Bob is familiar with the technology and the risk event so his response should be implemented.
  • Nancy is correct. Because Nancy is the project manager she can determine the correct procedures for risk analysis and risk responses. In addition, she has noted the risk response that Bob recommends.

Answer : Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses.

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 :

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

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

There are seven risks responses that a project manager can choose from. Which risk response is
appropriate for both positive and negative risk events?


Options are :

  • Mitigation
  • Sharing
  • Transference
  • Acceptance (Correct)

Answer : Acceptance

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 :

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

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

You are the project manager of the AMD project for your organization. In this project, you are
currently performing quantitative risk analysis. The tool and technique you are using is simulation 

where the project model is computed many times with the input values chosen at random for each
iteration. The goal is to create a probability distribution from the iterations for the project schedule.
What technique will you use with this simulation?


Options are :

  • Pareto modeling
  • Analogous modeling
  • Monte Carlo Technique (Correct)
  • Expected Monetary Value

Answer : Monte Carlo Technique

You are the project manager for BlueWell Inc. Your current project is a high priority and high
profile project within your organization. You want to identify the project stakeholders that will have
the most power in relation to their interest on your project. This will help you plan for project risks,
stakeholder management, and ongoing communication with the key stakeholders in your project.
In this process of stakeholder analysis, what type of a grid or model should you create based on
these conditions?


Options are :

  • Salience model
  • Stakeholder register
  • Stakeholder power/interest grid (Correct)
  • Influence/impact grid

Answer : Stakeholder power/interest grid

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 :

  • B. Mitigation
  • D. Avoidance
  • C. Transference (Correct)
  • A. Exploit

Answer : C. Transference

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 :

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

Answer : Risk probability-impact matrix

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?


Options are :

  • Project network diagrams
  • .Delphi Technique
  • Decision tree analysis (Correct)
  • Cause-and-effect diagrams

Answer : Decision tree analysis

You are completing the qualitative risk analysis process with your project team and are relying on
the risk management plan to help you determine the budget, schedule for risk management, and
risk categories. You discover that the risk categories have not been created. When should the risk
categories have been created?


Options are :

  • Define scope process
  • Risk identification process
  • Create work breakdown structure process
  • Plan risk management process (Correct)

Answer : Plan risk management process

Frank is a project team member in your project. Frank has been adding changes to the software
interface for the software that your project is creating. Because Frank has been adding these
features new risks have entered into the project. You elect that these additions should be removed
from the project even if it takes extra time and money to remove the features. What are these
riskladen features called?


Options are :

  • Corrective actions
  • Scope creep (Correct)
  • Negative risks
  • Gold plating

Answer : Scope creep

You are the project manager of QSL project for your organization. You are working with your
project team and several key stakeholders to create a diagram that shows how various elements
of a system interrelate and the mechanism of causation within the system. What diagramming
technique are you using as a part of the risk identification process?


Options are :

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

Answer : System or process flowcharts

Your project uses a piece of equipment that if the temperature of the machine goes above 450
degree Fahrenheit the machine will overheat and have to be shut down for 48 hours. Should this
machine overheat even once it will delay the project's end date. You work with your project to
create a response that should the temperature of the machine reach 430, the machine will be
paused for at least an hour to cool it down. The temperature of 430 is called what?


Options are :

  • Risk response
  • Risk trigger (Correct)
  • Risk event
  • Risk identification

Answer : Risk trigger

You work as the project manager for BlueWell Inc. You are monitoring the project performance.
You want to make a decision to change the project plan to eliminate a risk in order to protect the
project objectives. Which of the following strategies will you use to tackle the risk?


Options are :

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

Answer : Risk avoidance

Which of the following processes is described in the statement below? "This is the process of
numerically analyzing the effect of identified risks on overall project objectives."


Options are :

  • Perform Quantitative Risk Analysis (Correct)
  • Perform Qualitative Risk Analysis
  • Monitor and Control Risks
  • Identify Risks

Answer : Perform Quantitative Risk Analysis

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?


Options are :

  • Enhance
  • Share
  • Acceptance (Correct)
  • Transference

Answer : Acceptance

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 risk is not likely to happen. What type of risk response is Sam using?


Options are :

  • Avoidance
  • Mitigation
  • Active acceptance
  • Passive acceptance (Correct)

Answer : Passive acceptance

You are preparing to complete the quantitative risk analysis process with your project team and
several subject matter experts. You gather the necessary inputs including the project's cost
management plan. Why is it necessary to include the project's cost management plan in the
preparation for the quantitative risk analysis process?


Options are :

  • The project's cost management plan can help you to determine what the total cost of the project is allowed to be.
  • The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget. (Correct)
  • The project's cost management plan provides direction on how costs may be changed due to identified risks.
  • The project's cost management plan is not an input to the quantitative risk analysis process

Answer : The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget.

Pete works as a project manager for BlueWell Inc. The Management has told him that he must
implement an agreed-upon contingency response if the cost performance index in his project is
less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is
65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78
percent complete. What is the cost performance index for this project to determine if the
contingency response should happen?


Options are :

  • 0.89
  • 1.02 (Correct)
  • 0.96
  • 0.90

Answer : 1.02

You are the project manager for the TTR project. You are in the process of gathering information
for risk identification. You ask experts to participate in the process through their emails for
maintaining anonymity. You collect the responses, summarize them, and are then re-circulated to
the experts for further comment. Which of the following techniques are you using for risk
identification?


Options are :

  • Expert judgment
  • Delphi (Correct)
  • SWOT analysis
  • Brainstorming

Answer : Delphi

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