PMI-RMP PMI Risk Management Professional Practice Test Set 6

Holly is the project manager of the GHH Project. During risk identification and the subsequent risk
analysis process she has identified a risk with a high probability and high impact for her project.
She and the stakeholder agree that the project management plan should be changed to eliminate
the risk threat entirely. What risk response has Holly used in this instance? 


Options are :

  • This is the risk mitigation response.
  • This is the avoidance risk response. (Correct)
  • This is a scope change and not a risk response.
  • This is the transference risk response.

Answer : This is the avoidance risk response.

Fred is the project manager of the CPS project. He is working with his project team to prioritize the
identified risks within the CPS project. He and the team are prioritizing risks for further analysis or
action by assessing and combining the risks probability of occurrence and impact. What process is
Fred completing?


Options are :

  • Perform qualitative analysis (Correct)
  • Risk identification
  • Risk Breakdown Structure creation
  • Perform quantitative analysis

Answer : Perform qualitative analysis

Your project spans the entire organization. You would like to assess the risk of the project but are
worried that some of the managers involved in the project could affect the outcome of any risk
identification meeting. Your worry is based on the fact that some employees would not want to
publicly identify risk events that could make their supervisors look bad. You would like a method
that would allow participants to anonymously identify risk events. What risk identification method
could you use
?


Options are :

  • Root cause analysis
  • Delphi technique (Correct)
  • Isolated pilot groups
  • SWOT analysis

Answer : Delphi technique

Lisa is the project manager of the SQL project for her company. She has completed the risk
response planning with her project team and is now ready to update the risk register to reflect the
risk response. Which of the following statements best describes the level of detail Lisa should
include with the risk responses she has created? 


Options are :

  • The level of detail should correspond with the priority ranking. (Correct)
  • The level of detail is set by historical information.
  • The level of detail must define exactly the risk response for each identified risk
  • The level of detail is set of project risk governance

Answer : The level of detail should correspond with the priority ranking.

John is the project manager of the NHQ Project for his company. His project has 75 stakeholders,
some of which are external to the organization. John needs to make certain that he communicates
about risk in the most appropriate method for the external stakeholders. Which project
management plan will be the best guide for John to communicate to the external stakeholders?




Options are :

  • Risk Response Plan
  • Communications Management Plan (Correct)
  • Project Management Plan
  • Risk Management Plan

Answer : Communications Management Plan

Your organization, as part of its enterprise environmental factors, has established risk governance
to be implemented in each project. Part of this governance is the reassessment of risks within
each project. How much detail and repetition in approach for risks to be reassessed for probability
and impact?


Options are :

  • Each risk reassessment should go into the same depth as the original risk assessment activity
  • The probability and impact of risk event should determine the level of reassessment throughout the project lifecycle.
  • The level of detail and reassessment should reflect the priority of the project.
  • The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives. (Correct)

Answer : The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives.

Sammy is the project manager for her organization. She would like to rate each risk based on its
probability and affect on time, cost, and scope. Harry, a project team member, has never done this
before and thinks Sammy is wrong to attempt this approach. Harry says that an accumulative risk
score should be created, not three separate risk scores. Who is correct in this scenario?




Options are :

  • Harry is correct, because the risk probability and impact considers all objectives of the project.
  • Sammy is correct, because organizations can create risk scores for each objective of the project. (Correct)
  • Harry is correct, the risk probability and impact matrix is the only approach to risk assessment.
  • Sammy is correct, because she is the project manager

Answer : Sammy is correct, because organizations can create risk scores for each objective of the project.

Frank is the project manager of the NHL Project for his company and he is starting the risk
identification process for the project. Frank needs to ensure that the correct stakeholders are
interviewed as part of risk identification. What document will help Frank to communicate and solicit
inputs of the project stakeholders during risk identification?


Options are :

  • Requirements management plan
  • Risk register
  • Project charter
  • Stakeholder register (Correct)

Answer : Stakeholder register

You are the project manager of the KJH Project and are working with your project team to plan the
risk responses. Consider that your project has a budget of $500,000 and is expected to last six
months. Within the KJH Project you have identified a risk event that has a probability of .70 and
has a cost impact of $350,000. When it comes to creating a risk response for this event what is the
risk exposure of the event that must be considered for the cost of the risk response?


Options are :

  • The risk exposure of the event is $500,000.
  • The risk exposure of the event is $245,000. (Correct)
  • The risk exposure of the event is $850,000.
  • The risk exposure of the event is $350,000.

Answer : The risk exposure of the event is $245,000.

You are the project manager for your organization. You are working with your key stakeholders in
the qualitative risk analysis process. You understand that there is certain bias towards the risk
events in the project that you need to address, manage, and ideally reduce. What solution does
the PMBOK recommend to reduce the influence of bias during qualitative risk analysis?


Options are :

  • Provide iterations of risk analysis for true reflection of a risk probability and impact
  • Isolate the stakeholders by project phases to determine their risk bias
  • Establish the definitions of the levels of probability and impact (Correct)
  • Involve all stakeholders to vote on the probability and impact of the risk events

Answer : Establish the definitions of the levels of probability and impact

You are the project manager of the NKJ Project for your company. The project's success or failure
will have a significant impact on your organization's profitability for the coming year. Management

has asked you to identify the risk events and communicate the event's probability and impact as
early as possible in the project. Management wants to avoid risk events and needs to analyze the
cost-benefits of each risk event in this project. What term is assigned to the low-level of
stakeholder tolerance in this project?


Options are :

  • Mitigation-ready project management
  • Risk utility function (Correct)
  • Risk avoidance
  • Risk-reward mentality

Answer : Risk utility function

Kelly is the project manager of the BHH project for her organization. She is completing the risk
identification process for this portion of her project. Which one of the following is the only thing that
the risk identification process will create for Kelly?



Options are :

  • Risk register updates
  • Change requests
  • Risk register (Correct)
  • Project document updates

Answer : Risk register

You are a risk auditor for your company. You are reviewing the contract types a project manager
has used in her project. Of the following, which contract type has the most risk for the project
manager as a buyer?


Options are :

  • Fixed-price, incentive fee
  • Time and material
  • Cost plus incentive fee
  • Cost plus percentage of costs (Correct)

Answer : Cost plus percentage of costs

You are preparing to start the qualitative risk analysis process for your project. You will be relying
on some organizational process assets to influence the process. Which one of the following is
NOT a probable reason for relying on organizational process assets as an input for qualitative risk
analysis?




Options are :

  • Information on prior, similar projects
  • Studies of similar projects by risk specialists
  • Review of vendor contracts to examine risks in past projects (Correct)
  • Risk databases that may be available from industry sources

Answer : Review of vendor contracts to examine risks in past projects

Which of the following documents is described in the statement below? "It is developed along with
all processes of the risk management. It contains the results of the qualitative risk analysis,
quantitative risk analysis, and risk response planning."


Options are :

  • Risk register (Correct)
  • Project charter
  • Quality management plan
  • Risk management plan

Answer : Risk register

Shelly is the project manager of the BUF project for her company. In this project Shelly needs to
establish some rules to reduce the influence of risk bias during the qualitative risk analysis
process. What method can Shelly take to best reduce the influence of risk bias?


Options are :

  • Establish definitions of the level of probability and impact of risk event (Correct)
  • Establish risk boundaries
  • Group stakeholders according to positive and negative stakeholders and then complete the risk analysis
  • Determine the risk root cause rather than the person identifying the risk events

Answer : Establish definitions of the level of probability and impact of risk event

You are the project manager of the NHJ project for your company. This project has a budget at
completion of $1,650,000 and you are 60 percent complete. According to the project plan,
however, the project should be 65 percent complete. In this project you have spent $995,000 to
reach this point of completion. There is a risk that this project may be late so you have taken some
measures to recover the project schedule. Management would like to know, based on current
performance, what the estimate at completion for this project will be. What is the estimate at
completion?


Options are :

  • $1,650,000
  • $1,666,667 (Correct)
  • -$8,333
  • $663,333

Answer : $1,666,667

You work as a project manager for BlueWell Inc. Your project is using a new material to construct
a large warehouse in your city. This new material is cheaper than traditional building materials, but
it takes some time to learn how to use the material properly. You have communicated to the
project stakeholders that you will be able to save costs by using the new material, but you will
need a few extra weeks to complete training to use the materials. This risk response of learning
how to use the new materials can also be known as what term?




Options are :

  • Cost-benefits analysis
  • Cost of conformance to quality (Correct)
  • Benchmarking
  • Team development

Answer : Cost of conformance to quality

You are working with Anna on your project to determine and map the probability distributions of
risk within the project. You have indicated that you will use the uniform distribution method for a
portion of the project. Which part of your project is most likely to have a uniform risk distribution?

.


Options are :

  • Project initiating
  • Late completion stages of a project
  • Early concept stage of design (Correct)
  • Project phases that deal with "cutover" technologies

Answer : Early concept stage of design

Ted is the project manager of the HRR project for his company. Management has asked that Ted
periodically reviews the contingency reserve as risk events happen, pass, or are still pending.
What is the purpose of reviewing the contingency reserve?


Options are :

  • It helps to evaluate secondary and residual risks related to the risk responses and their costs
  • It helps to determine how much more funds will need to be invested in the project.
  • It helps to determine the probability and impact of project risks
  • It helps to evaluate if the remaining reserve is adequate for the risk exposure. (Correct)

Answer : It helps to evaluate if the remaining reserve is adequate for the risk exposure.

Bill is the project manager of the JKH Project. He and the project team have identified a risk event
in the project with a high probability of occurrence and the risk event has a high cost impact on the
project. Bill discusses the risk event with Virginia, the primary project customer, and she decides
that the requirements surrounding the risk event should be removed from the project. The removal
of the requirements does affect the project scope, but it can release the project from the high risk
exposure. What risk response has been enacted in this project? 


Options are :

  • Transference
  • Mitigation
  • Avoidance (Correct)
  • Acceptance

Answer : Avoidance

You are the project manager of the YHG project for your company. Within the project, you and the
project team have identified a risk event that could have a financial impact on the project of
$450,000. This risk event has a 70 percent chance of occurring in the project. The project
identifies a solution that will reduce the probability of the risk event to ten percent, but it will cost
$260,000 to implement. Management agrees with the solution and asks that you include the risk
response in the project plan. What risk response is this? 


Options are :

  • This is not a risk response, but a change request.
  • This is transference because of the $260,000 cost of the solution.
  • This is mitigation because the response reduces the probability. (Correct)
  • This is avoidance because the risk response caused the project plan to be changed

Answer : This is mitigation because the response reduces the probability.

There are five outputs of the risk monitoring and controlling process. Which one of the following is
NOT an output of the process? 


Options are :

  • Vendor contracts (Correct)
  • Change requests
  • Organizational process assets updates
  • Risk register updates

Answer : Vendor contracts

What risk identification technique allows participants to identify the project risks and to remain
anonymous?


Options are :

  • Assumptions analysis
  • Surveys
  • Delphi technique (Correct)
  • Influence diagrams

Answer : Delphi technique

Tom is the project manager for his organization. In his project he has recently finished the risk
response planning. He tells his manager that he will now need to update the cost and schedule
baselines. Why would the risk response planning cause Tom the need to update the cost and
schedule baselines? 


Options are :

  • New or omitted work as part of a risk response can cause changes to the cost and/or schedule baseline (Correct)
  • Baselines should not be updated, but refined through versions.
  • Risk responses may take time and money to implement.
  • Risk responses protect the time and investment of the project.

Answer : New or omitted work as part of a risk response can cause changes to the cost and/or schedule baseline

John works as a project manager for ABD project. He and his team, are working on the following
activities:
Relative ranking or priority list of project risks
Watchlists of low priority risk
Trends in Qualitative Risk Analysis results
On which of the following processes is John working on?


Options are :

  • Perform Quantitative Risk Analysis
  • Plan Risk Management
  • Perform Qualitative Risk Analysis (Correct)
  • Plan Risk Responses

Answer : Perform Qualitative Risk Analysis

Your project team has identified a project risk that must be responded to. The risk has been
recorded in the risk register and the project team has been discussing potential risk responses for
the risk event. The event is not likely to happen for several months but the probability of the event
is high. Which one of the following is a valid response to the identified risk event?


Options are :

  • Earned value management
  • Risk audit
  • Technical performance measurement
  • Corrective action (Correct)

Answer : Corrective action

Jenny is the project manager for the NBT projects. She is working with the project team and
several subject matter experts to perform the quantitative risk analysis process. During this
process she and the project team uncover several risks events that were not previously identified.
What should Jenny do with these risk events?





Options are :

  • The events should continue on with quantitative risk analysis.
  • The events should be determined if they need to be accepted or responded to
  • The events should be entered into the risk register (Correct)
  • The events should be entered into qualitative risk analysis.

Answer : The events should be entered into the risk register

Virginia is the project manager for her organization. She has hired a subject matter expert to
interview the project stakeholders on certain identified risks within the project. The subject matter
expert will assess the risk event with what specific goal in mind?




Options are :

  • To determine the bias of the risk event based on each person interviewed
  • To determine the level of probability and impact for each risk event (Correct)
  • To determine the probability and cost of the risk event
  • To determine the validity of each risk event

Answer : To determine the level of probability and impact for each risk event

Frank is the project manager of the NHQ project for his company. Frank is working with the project
team, key stakeholders, and several subject matter experts on risks dealing with the new materials
in the project. Frank wants to utilize a risk analysis method that will help the team to make
decisions in the presence of the current uncertainty surrounding the new materials. Which risk
analysis approach can Frank use to create an approach to make decisions in the presence of
uncertainty?


Options are :

  • Monte Carlo Technique
  • Qualitative risk analysis process
  • Delphi Technique
  • Quantitative risk analysis process (Correct)

Answer : Quantitative risk analysis process

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