PMI-RMP PMI Risk Management Professional Practice Test Set 1

You are the project manager of the NNH Project. In this project you have created a contingency
response that the schedule 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 schedule performance index?


Options are :

  • -$37,800
  • 1.06
  • 0.92
  • 0.93 (Correct)

Answer : 0.93

Lamont is the project manager of a project that has recently finished the final project deliverables.
The project customer has signed off on the project deliverable and Lamont has a few
administrative closure activities to complete. In the project, there were several large risks that
could have wrecked the project but Lamont and his project team found some creative methods to
resolve the risks without affecting the project costs or project end date. What should Lamont do
with the risk responses he identified during the project's monitoring and controlling process?


Options are :

  • Include the responses in the project management plan.
  • Nothing. The risk responses are included in the project's risk register already
  • Include the risk responses in the organization's lessons learned database (Correct)
  • Include the risk response in the project risk management plan

Answer : Include the risk responses in the organization's lessons learned database

Ned is the project manager of the HNN project for your company. Ned has asked you to help him
complete some probability distributions for his project. What portion of the project will you most
likely use for probability distributions?


Options are :

  • Uncertainty in values such as duration of schedule activities (Correct)
  • Risk probability and impact matrixes
  • Bias towards risk in new resources
  • Risk identification

Answer : Uncertainty in values such as duration of schedule activities

You are the project manager for your organization and you are working with Thomas, a project
team member. You and Thomas have been working on a specific risk response for a probable risk
event in the project. Thomas is empowered with a risk response and will control all aspects of the
identified risk response in which a particular risk event will happen within the project. What title, in
regard to risk, is bestowed on Thomas?


Options are :

  • Risk expeditor
  • Risk team leader
  • Risk coordinator
  • Risk owner (Correct)

Answer : Risk owner

Courtney is the project manager for her organization. She is working with the project team to
complete the qualitative risk analysis for her project. During the analysis Courtney encourages the
project team to begin the grouping of identified risks by common causes. What is the primary
advantage to group risks by common causes during qualitative risk analysis?


Options are :

  • It can lead to the creation of risk categories unique to each project.
  • It can lead to developing effective risk responses. (Correct)
  • It saves time by collecting the related resources, such as project team members, to analyze the risk events.
  • It helps the project team realize the areas of the project most laden with risks.

Answer : It can lead to developing effective risk responses.

Harry works as a project manager for the NHQ Project. He is performing quantitative risk analysis
for his project. One of the project risks has a 40 percent probability of happening, and it will cost
the project $65,000 if the risk happens. What is the expected monetary value of this risk event?


Options are :

  • Negative $67,000
  • Negative $26,000 (Correct)
  • $27,000
  • Zero - the risk event has not yet occurred

Answer : Negative $26,000

You work as a project manager for BlueWell Inc. You are currently working with the project
stakeholders to identify risks in your project. You understand that the qualitative risk assessment
and analysis can reflect the attitude of the project team and other stakeholders to risk. Effective
assessment of risk requires management of the risk attitudes of the participants. What should you,
the project manager, do with assessment of identified risks in consideration of the attitude and
bias of the participants towards the project risk?


Options are :

  • Evaluate the bias towards the risk events and correct the assessment accordingly (Correct)
  • Document the bias for the risk events and communicate the bias with management
  • Evaluate the bias through SWOT for true analysis of the risk events
  • Evaluate and document the bias towards the risk events

Answer : Evaluate the bias towards the risk events and correct the assessment accordingly

You are the project manager for the NHQ Project. This project requires that you install 140 copies
of design software onto your department's computers. The vendor offers you a twenty percent
discount on the software if your company will purchase 150 or more copies of the software. You
communicate this offer with other departments in your firm to see if anyone else would need 10
copies of the software to save your project a significant amount of funds. What is this risk
response called?


Options are :

  • Avoidance
  • Transference
  • Sharing (Correct)
  • Exploiting

Answer : Sharing

You work as a project manager for TechSoft Inc. You are working with the project stakeholders on
the qualitative risk analysis process in your project. You have used all the tools to the qualitative 

risk analysis process in your project. Which of the following techniques is NOT used as a tool in
qualitative risk analysis process?


Options are :

  • Risk Data Quality Assessment
  • Risk Reassessment (Correct)
  • Risk Categorization
  • Risk Urgency Assessment

Answer : Risk Reassessment

Mary is a project manager in her organization. On her current project she is working with her
project team and other key stakeholders to identify the risks within the project. She is currently
aiming to create a comprehensive list of project risks so she is using a facilitator to help generate
ideas about project risks. What risk identification method is Mary likely using?


Options are :

  • Delphi Techniques
  • Brainstorming (Correct)
  • Expert judgment
  • Checklist analysis

Answer : Brainstorming

Harold is the project manager of a large project in his organization. He has been actively
communicating and working with the project stakeholders. One of the outputs of the manage
stakeholder expectations process can actually create new risk events for Harold's project. Which
output of the manage stakeholder expectations process can create risks?


Options are :

  • Project management plan updates
  • Project document updates
  • Organizational process assets updates
  • Change requests (Correct)

Answer : Change requests

Rob is the project manager of the IDLK Project for his company. This project has a budget of
$5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the
project is allowed to proceed - even though the organization has already invested over $750,000
in the project. What risk response is the most appropriate for this instance?



Options are :

  • Transference
  • Acceptance (Correct)
  • Mitigation
  • Enhance

Answer : Acceptance

In what portion of a project are risk and opportunities greatest and require intense planning and
anticipation of risk events?


Options are :

  • Initiating (Correct)
  • Planning
  • Executing
  • Closing

Answer : Initiating

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. A teaming agreement is an
example of what risk response?


Options are :

  • Transference
  • Sharing (Correct)
  • Acceptance
  • Mitigation

Answer : Sharing

You work as a project manager for BlueWell Inc. You are involved with the project team on the
different risk issues in your project. You are using the applications of IRGC model to facilitate the
understanding and managing the rising of the overall risks that have impacts on the economy and
society. One of your team member wants to know that what is the need to use the IRGC. What will
be your reply?


Options are :

  • IRGC models aim at building robust, integrative inter-disciplinary governance models for emerging and existing risks (Correct)
  • IRGC addresses the development of resilience and the capacity of organizations and people to face unavoidable risks.
  • IRGC addresses questions such as the understanding of the secondary impacts of a risk.
  • IRGC is both a concept and a tool

Answer : IRGC models aim at building robust, integrative inter-disciplinary governance models for emerging and existing risks

Diana is the project manager of the QPS project for her company. In this project Diana and the
project team have identified a pure risk. Diana and the project team decided, along with the key
stakeholders, to remove the pure risk from the project by changing the project plan altogether.
What is a pure risk?


Options are :

  • It is a risk event that only has a negative side, such as loss of life or limb. (Correct)
  • It is a risk event that cannot be avoided because of the order of the work.
  • It is a risk event that is created by a risk response.
  • It is a risk event that is generated due to errors or omission in the project work.

Answer : It is a risk event that only has a negative side, such as loss of life or limb.

The Project Risk Management knowledge area focuses on which of the following processes?
Each correct answer represents a complete solution. Choose all that apply.


Options are :

  • Risk Monitoring and Control
  • Risk Management Planning
  • Quantitative Risk Analysis
  • A,B,D (Correct)

Answer : A,B,D

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 :

  • 51,040 (Correct)
  • 320
  • 102,080
  • 245

Answer : 51,040

Mark is the project manager of the BFL project for his organization. He and the project team are
creating a probability and impact matrix using RAG rating. There is some confusion and
disagreement among the project team as to how a certain risk is important and priority for attention
should be managed. Where can Mark determine the priority of a risk given its probability and
impact?


Options are :

  • Look-up table (Correct)
  • Project sponsor
  • Risk management plan
  • Risk response plan

Answer : Look-up table

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

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

The Identify Risk process determines the risks that affect the project and document their
characteristics. Why should the project team members be involved in the Identify Risk process?


Options are :

  • They are the individuals that will most likely cause and respond to the risk events
  • They are the individuals that are most affected by the risk events
  • They are the individuals that will have the best responses for identified risks events within the project.
  • They are the individuals that will need a sense of ownership and responsibility for the risk events (Correct)

Answer : They are the individuals that will need a sense of ownership and responsibility for the risk events

Which positive risk response best describes a teaming agreement?


Options are :

  • Enhance
  • Share (Correct)
  • Exploit
  • Ventu

Answer : Share

Management has asked you to perform a risk audit and report back on the results. Bonny, a
project team member asks you what a risk audit is. What do you tell Bonny?


Options are :

  • A risk audit is an audit of all the risks that have occurred in the project and what their true impact on cost and time has been.
  • A risk audit is a review of all the risk probability and impact for the risks, which are still present in the project but which have not yet occurred.
  • A risk audit is a review of all the risks that have yet to occur and what their probability of happening are.
  • A risk audit is a review of the effectiveness of the risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process. (Correct)

Answer : A risk audit is a review of the effectiveness of the risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.

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 :

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

Answer : Perform Quantitative Risk Analysis

You are the project manager of a large, high-profile project in your organization. You have realized
that politics within your company may affect the true identification of risk events within the project.
You decide that you'd like to use a method to identify risk events through an anonymous process.
Which one of the following risk events will allow you to collect and distribute risk information
without the stakeholders knowing what other stakeholders are communicating about the project
risk events?


Options are :

  • Surveys
  • Checklist analysis
  • Delphi Technique (Correct)
  • Monte Carlo Technique

Answer : Delphi Technique

Tom is the project manager of the GGG project for his company. He is working with the project
team on the Perform Qualitative Risk Analysis process. Tom is having the project team to review
the project scope statement as an input to the qualitative risk analysis process. Why?


Options are :

  • The project scope statement must be understood to see the project requirements and the inherent risks of the project.
  • The project scope statement will reveal the type of project as either a recurrent or first-of-its-kind project. (Correct)
  • The project scope identifies the risks associated with project constraints
  • The project scope statement must be reviewed to understand the quality requirements and the risks associated with the demand for quality.

Answer : The project scope statement will reveal the type of project as either a recurrent or first-of-its-kind project.

You work as a project manager for BlueWell Inc. You would like to utilize sensitivity analysis in
your project, but the management does not understand how this will be displayed. What type of
chart is usually used with sensitivity analysis to show the relative affect of risks on the project?


Options are :

  • Tornado diagram (Correct)
  • Ishikawa chart
  • GERT Chart
  • Force field analysis chart

Answer : Tornado diagram

You are interviewing members of a project team to test their understanding of the assigned risk
responses as risk owners. You and the project manager are working together to evaluate the risk
responses to determine their effectiveness in the project. What project management technique are
you performing with the project manager in this scenario?


Options are :

  • Stakeholder analysis as the project team is a stakeholder
  • Risk audits (Correct)
  • Risk analysis
  • Risk identification with the project team

Answer : Risk audits

Thomas is the project manager of the NHJ Project for his company. He has identified several
positive risk events within his project and he thinks these events can save the project time and
money. Positive risk events, such as these within the NHJ Project are also known as what?


Options are :

  • Benefits
  • Opportunities (Correct)
  • Contingency risks
  • Ancillary constituent components

Answer : Opportunities

What project management plan is most likely to direct the quantitative risk analysis process for a project in a matrix environment?


Options are :

  • Human resource management plan
  • Risk management plan (Correct)
  • Risk analysis plan
  • Staffing management plan

Answer : Risk management plan

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