PMI-RMP PMI Risk Management Professional Practice Test Set 2

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 :

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

Answer : . $1,666,667

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

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

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 amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives. (Correct)
  • The level of detail and reassessment should reflect the priority of the project.

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

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 :

  • Transference (Correct)
  • Avoidance
  • Sharing
  • Mitigation

Answer : Transference

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

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

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

Answer : Perform Qualitative Risk Analysis

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 :

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

Answer : Risk register

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
  • Identify Risks
  • . Perform Qualitative Risk Analysis
  • Perform Quantitative Risk Analysis (Correct)

Answer : Perform Quantitative Risk Analysis

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
  • Involve all stakeholders to vote on the probability and impact of the risk events
  • Establish the definitions of the levels of probability and impact (Correct)

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

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 :

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

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

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

Answer : Perform qualitative analysis

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 :

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

Answer : Risk management plan

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 :

  • Mitigation
  • Acceptance
  • Transference
  • Avoidance (Correct)

Answer : Avoidance

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

Answer : Four

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 a risk governance approach
  • Monitor and control project risks
  • Create the project risk register

Answer : Plan risk responses

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

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

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 probability and cost of the risk event
  • To determine the validity of each risk event
  • 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)

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

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 :

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

Answer : Early concept stage of design

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
  • Delphi Technique
  • Qualitative risk analysis process
  • . Quantitative risk analysis process (Correct)

Answer : . Quantitative risk analysis process

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 :

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

Answer : Delphi technique

Wendy is the project manager of the FBL project for your company. She has identified several
risks within her project and has created a risk contingency reserve of $45,000 total. Her project is
nearly complete and many of the risks have not happened in the project. What should Wendy do
with the funds in the contingency reserve?


Options are :

  • The funds for the risks that have passed and have not happened are released. (Correct)
  • The funds for the risks that have passed and have not happened are transferred to the project budget.
  • The funds remain in the contingency reserve until all of the risks have passed.
  • The funds remain in the contingency reserve until the project is closed.

Answer : The funds for the risks that have passed and have not happened are released.

Ruth is the project manager of ISFH project for her company. This project is forty percent
complete and it appears that some risk events are going to happen in the project that will have an
adverse affect on the project. Ruth creates a change request regarding the risks. Is this a valid
response?


Options are :

  • Yes, change requests can be recommended for corrective actions for contingency plans. (Correct)
  • No, change requests should not address risks, only risk response strategies should be issued.
  • No, change requests should not address pending risks, but only scope changes.
  • Yes, change requests can ask for additional funds to pay for the risk impact.

Answer : Yes, change requests can be recommended for corrective actions for contingency plans.

You are the project manager of the GGG project. You have completed the risk identification
process for the initial phases of your project. As you begin to document the risk events in the risk
register what additional information can you associate with the identified risk events?


Options are :

  • Risk owner
  • Risk potential responses (Correct)
  • Risk schedule
  • Risk cost

Answer : Risk potential responses

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
  • Mitigation
  • . Transference (Correct)

Answer : . Transference

Kelly is the project manager of the NNQ Project for her company. This project will last for one year
and has a budget of $350,000. Kelly is working with her project team and subject matter experts to
begin the risk response planning process. When the project manager begins the plan risk
response process, what two inputs will she need?


Options are :

  • Risk register and the risk management plan (Correct)
  • Risk register and power to assign risk responses
  • Risk register and the risk response plan
  • . Risk register and the results of risk analysis

Answer : Risk register and the risk management plan

Nancy is the project manager of a project with 78 stakeholders. This is a high-profile project and
she needs to express to her project team and to the management the importance of
communication in this project. She would like to show the number of stakeholder communication
channels in the project. Based on this information how many communication channels exist within
this project?


Options are :

  • 6,084
  • 3,003 (Correct)
  • 156
  • 78

Answer : 3,003

There are four inputs to the Monitoring and Controlling Project Risks process. Which one of the
following will NOT help you, the project manager, to prepare for risk monitoring and controlling?


Options are :

  • Change requests (Correct)
  • Work Performance Information
  • Project management plan
  • Risk register
  • None

Answer : Change requests

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 :

  • C. Assumptions analysis
  • A. Delphi Technique
  • D. Brainstorming
  • B. Checklist analysis (Correct)

Answer : B. Checklist analysis

Gary is the project manager of his organization. He is managing a project that is similar to a
project his organization completed recently. Gary has decided that he will use the information from
the past project to help him and the project team to identify the risks that may be present in the
project. Management agrees that this checklist approach is ideal and will save time in the project.
Which of the following statement is most accurate about the limitations of the checklist analysis
approach for Gary?


Options are :

  • The checklist analysis approach is fast but it is impossible to build and exhaustive checklist. (Correct)
  • The checklist is also known as top down risk assessment.
  • The checklist analysis approach saves time, but can cost more.
  • The checklist analysis approach only uses qualitative analysis.

Answer : The checklist analysis approach is fast but it is impossible to build and exhaustive checklist.

You are the project manager of the NGQQ Project for your company. To help you communicate
project status to your stakeholders, you are going to create a stakeholder register. All of the
following information should be included in the stakeholder register except for which one?


Options are :

  • Identification information for each stakeholder
  • Assessment information of the stakeholders' major requirements, expectations, and potential influence
  • Stakeholder classification of their role in the project
  • Stakeholder management strategy (Correct)

Answer : Stakeholder management strategy

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