PMI-RMP PMI Risk Management Professional Practice Test Set 7

Jane is the project manager of the GBB project for her company. In the current project a vendor
has offered the project a ten percent discount based if they will order 100 units for the project. It is
possible that the GBB Project may need the 100 units, but the cost of the units is not a top priority
for the project. Jane documents the offer and tells the vendor that they will keep the offer in mind
and continue with the project as planned. What risk response has been given in this project? 


Options are :

  • Enhance
  • Exploiting
  • Sharing
  • Acceptance (Correct)

Answer : Acceptance

You are working with your project stakeholders to identify risks within the JKP Project. You want to
use an approach to engage the stakeholders to increase the breadth of the identified risks by
including internally generated risk. Which risk identification approach is most suited for this goal?


Options are :

  • Brainstorming
  • Assumptions analysis
  • SWOT analysis (Correct)
  • Delphi Technique

Answer : SWOT analysis

Your organization has named you the project manager of the JKN Project. This project has a BAC
of $1,500,000 and it is expected to last 18 months. Management has agreed that if the schedule
baseline has a variance of more than five percent then you will need to crash the project. What
happens when the project manager crashes a project?



Options are :

  • The amount of hours a resource can be used will diminish.
  • The project will take longer to complete, but risks will diminish.
  • Project risks will increase.
  • Project costs will increase. (Correct)

Answer : Project costs will increase.

Which risk response is acceptable for both positive and negative risk events?


Options are :

  • Acceptance (Correct)
  • Enhancing
  • Transferring
  • Sharing

Answer : Acceptance

Which of the following statements describe the purpose of an Issue Log? Each correct answer
represents a complete solution. Choose all that apply. 


Options are :

  • It tracks the actions taken to resolve the issue.
  • It analyzes the impact that the issue is having on the project.
  • It addresses the risks that could affect the project.
  • A,B,C (Correct)
  • It tracks the outcome of the actions taken.

Answer : A,B,C

Jenny is the project manager of the NHJ Project for her company. She has identified several
positive risk events within the project and she thinks these events can save the project time and
money. You, a new team member wants to know that how many risk responses are available for a
positive risk event. What will Jenny reply to you?

.


Options are :

  • Seven
  • Acceptance is the only risk response for positive risk events.
  • Three
  • Four (Correct)

Answer : Four

Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to
last 14 months and has a budget at completion of $4,555,000. Tracy's organization will receive a
bonus of $80,000 per day that the project is completed early up to $800,000. Tracy realizes that
there are several opportunities within the project to save on time by crashing the project work.
Crashing the project is what type of risk response?


Options are :

  • Transference
  • Exploit
  • Mitigation
  • Enhance (Correct)

Answer : Enhance

Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is
calculated during quantitative risk analysis. He is worried about the risk exposure which is too low
for the events surrounding his project requirements. How is the risk exposure calculated?


Options are :

  • The risk exposure of a risk event is determined by historical information.
  • The probability of a risk event times the impact of a risk event determines the true risk exposure (Correct)
  • The probability of a risk event plus the impact of a risk event determines the true risk exposure.
  • The probability and impact of a risk event are gauged based on research and in-depth analysis.

Answer : The probability of a risk event times the impact of a risk event determines the true risk exposure

There are seven risk responses for any project. Which one of the following is a valid risk response
for a negative risk event?


Options are :

  • Exploit
  • Enhance
  • Acceptance (Correct)
  • Share

Answer : Acceptance

You are the program manager for your organization. Management is considering a new program
but they are worried about the program risks that may affect the program success. You know that
there are three positive risks responses and three negative risk responses that each risk can have.
Management asks you which risk response would be most appropriate for a large risk event if they
wanted to hire a third-party to own the risk event for the program. What risk event is most
appropriate? 


Options are :

  • Sharing
  • Avoidance
  • Mitigation
  • Transference (Correct)

Answer : Transference

You are the project manager of the GYH project for your organization. Management has asked
you to begin identifying risks and to use an information gathering technique. Which one of the
following risk identification approaches is an information gathering technique? 


Options are :

  • Documentation reviews
  • SWOT analysis
  • Assumptions analysis
  • Root cause analysis (Correct)

Answer : Root cause analysis

You work as the project manager for Bluewell Inc. Your project has several risks that will affect
several stakeholder requirements. Which project management plan will define who will be
available to share information on the project risks?


Options are :

  • Resource Management Plan
  • Risk Management Plan
  • Communications Management Pla (Correct)
  • Stakeholder management strategy

Answer : Communications Management Pla

Which one of the following is the only output for the qualitative risk analysis process?


Options are :

  • Organizational process assets
  • Project management plan
  • Enterprise environmental factors
  • Risk register updates (Correct)

Answer : Risk register updates

During which of the following processes, probability and impact matrix is prepared?


Options are :

  • Monitoring and Control Risks
  • Perform Quantitative Risk Analysis
  • Perform Qualitative Risk Analysis (Correct)
  • Plan Risk Responses

Answer : Perform Qualitative Risk Analysis

Beth is the project manager of the BFG Project for her company. In this project Beth has decided
to create a contingency response based on the performance of the project schedule. If the project
schedule variance is greater than $10,000 the contingency plan will be implemented. What is the
formula for the schedule variance?


Options are :

  • SV=EV/AC
  • SV=PV-EV
  • SV=EV-PV (Correct)
  • SV=EV/PV

Answer : SV=EV-PV

Tom 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, and
provides a quantitative assessment of the likely cost to complete the scheduled activities? 


Options are :

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

Answer : Activity cost estimates

You work as a project manager for BlueWell Inc. You want to create a visual diagram, which can
depict the resources that will be used within the project. Which of the following diagrams will you
create to accomplish the task?




Options are :

  • RACI chart
  • Roles and responsibility matrix
  • Resource breakdown structure (Correct)
  • Work breakdown structure

Answer : Resource breakdown structure

You are project manager for ABD project. You, with your team, are working on the following
activities:
Probabilistic analysis of a project.
Probability of achieving cost and time objectives.
Trends in Qualitative Risk Analysis results.
On which of the following processes are you working on?


Options are :

  • Plan Risk Management
  • Perform Quantitative Risk Analysis (Correct)
  • Perform Qualitative Risk Analysis
  • Identify Risks

Answer : Perform Quantitative Risk Analysis

You are the project manager of the NHQ Project for your company. You have completed
qualitative and quantitative analysis of your identified project risks and you would now like to find
an approach to increase project opportunities and to reduce threats within the project. What
project management process would best help you?




Options are :

  • Plan risk responses (Correct)
  • Create the project risk register
  • Create a risk governance approach
  • Monitor and control project risks

Answer : Plan risk responses

Frank is the project manager of the NHH Project. He is working with the project team to create a
plan to document the procedures to manage risks throughout the project. This document will
define how risks will be identified and quantified. It will also define how contingency plans will be
implemented by the project team. What document is Frank and the NHH Project team creating in
this scenario?


Options are :

  • Resource management plan
  • Risk management plan (Correct)
  • Project plan
  • Project management plan

Answer : Risk management plan

Rachel is the project manager of the KJH Project for her company. She needs a method to create
a quick and simple approach to risk identification to communicate the project risk with the
stakeholders. Which one of the following approaches to risk identification should Rachel choose to
provide a quick and simple listing of the project risks?


Options are :

  • Checklist analysis (Correct)
  • Delphi Technique
  • Brainstorming
  • Assumptions analysis

Answer : Checklist analysis

You are the project manager for a construction project. The project involves casting of a column in
a very narrow space. Because of lack of space, casting it is highly dangerous. High technical skill
will be required for casting that column. You decide to hire a local expert team for casting that
column. Which of the following types of risk response are you following?


Options are :

  • Avoidance
  • Acceptance
  • Transference (Correct)
  • Mitigation

Answer : Transference

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 :

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

Answer : Activity duration estimates

Who is responsible for the stakeholder expectations management in a high-profile, high-risk
project


Options are :

  • Project risk assessment officer
  • None
  • Project manager (Correct)
  • Project management office
  • Project sponsor

Answer : Project manager

You work as a project manager for BlueWell Inc. You are working with your team members on the
risk responses in the project. Which risk response will likely cause a project to use the
procurement processes?


Options are :

  • Acceptance
  • Mitigation
  • Exploiting
  • Sharing (Correct)

Answer : Sharing

You are the project manager of a large project that will last four years. In this project, you would
like to model the risk based on its distribution, impact, and other factors. There are three modeling
techniques that a project manager can use to include both event-oriented and project-oriented
analysis. Which modeling technique does NOT provide event-oriented and project-oriented
analysis for identified risks?


Options are :

  • Sensitivity analysis
  • Expected monetary value
  • Jo-Hari Window (Correct)
  • Modeling and simulation

Answer : Jo-Hari Window

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 :

  • 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?
  • Positive
  • Exploiting (Correct)
  • Opportunistic
  • Enhancing

Answer : Exploiting

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 :

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

Answer : Risk distributions within the project schedule

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 :

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

Answer : Scope creep

Bill is the project manager for a project that will last six months and has a budget of $580,000. In
this project a high-risk has been identified with the new materials the project will be using. Bill
would like to assign one person, Beth, to be responsible to monitor this risk. Bill assigns Beth the
authority to respond to the risk event if it appears in the risk events that is likely to happen. In
addition, Bill hires a consultant to work with Beth on this area of the project. In this instance, who is
the risk response owner?


Options are :

  • The consultant working with Beth, because this is transference
  • Bill, because he is the project manager
  • Beth, because she has the authority to respond to the risk event (Correct)
  • Beth and the consultant are the risk owners

Answer : Beth, because she has the authority to respond to the risk event

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