PMI-RMP PMI Risk Management Professional Practice Test Set 8

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

Answer : Risk Governance

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.

A.
Estimating the average outcome
B.
Model development
C.
Decision making or the development of recommendations for decision makers
D.
Increased understanding or quantification of the system


Options are :

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

Answer : B,C,D

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 :

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

Answer : Sharing

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 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.
  • Project risk management has been concluded with the project planning.

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

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 :

  • 0.80
  • 0.88
  • -$37,500
  • 0.91 (Correct)

Answer : 0.91

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 :

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

Answer : Ishikawa diagrams

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

Answer : Stakeholder register

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 for risk databases that may be available from industry sources.
  • 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 studies of similar projects by risk specialists.
  • You will use organizational process assets for information from prior similar projects.

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

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 :

  • 28
  • 300
  • 250
  • 378 (Correct)

Answer : 378

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

A.
Opportunities
B.
Tools
C.
Weaknesses
D.
Threats
E.
Strengths
F.
Optimism


Options are :

  • E,C,D,F
  • A,C,D,E (Correct)
  • A,F,D,E
  • D,C,F,E

Answer : A,C,D,E

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

Answer : Risk register

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 :

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

Answer : Life cycle costing

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

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

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 :

  • Transference
  • Exploiting
  • Enhancing
  • Sharing (Correct)

Answer : Sharing

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)
  • Quality management plan
  • Cost management plan
  • Stakeholder register

Answer : Procurement management plan

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

Answer : Quantitative risk analysis

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.

A.
Increased understanding or quantification of the system
B.
Estimating the average outcome

C.
Model development
D.
Decision making or the development of recommendations for decision makers



Options are :

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

Answer : A,C,D

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

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


Options are :

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

Answer : Recurrent projects

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 :

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

Answer : Change request log

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


Options are :

  • Transference
  • Acceptance (Correct)
  • Mitigation
  • Exploitation

Answer : Acceptance

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 :

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

Answer : Negative $27,500

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

Answer : Risk transference

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

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

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 :

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

Answer : Communication

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 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 :

  • Three
  • Four (Correct)
  • Seven
  • One

Answer : Four

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

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

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 is an iterative process and never becomes easier.
  • Risk management only becomes easier when the project moves into project execution.
  • Risk management only becomes easier when the project is closed.

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

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 :

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

Answer : Contingent response strategy

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions