PMI-RMP PMI Risk Management Professional Practice Test Set 4

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 :

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

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

You are the project manager of the GGK project for your company. The GGK project has a budget
of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the
project to increase the likelihood of completing the project early as the project was only scheduled
to be 35 percent complete at this time. This positive risk response, while keeping the project
ahead of schedule, has added significant costs to the project. You have already spent $575,000 to
reach this point in the project. Management would like to know what your cost performance index
and the schedule performance index is for this project. What are these values?


Options are :

  • The CPI is 1.14 and the SPI is .88.
  • The CPI is .88 and the SPI is zero.
  • The CPI is -$68,960 and the SPI is $63,255.
  • The CPI is .88 and the SPI is 1.14. (Correct)

Answer : The CPI is .88 and the SPI is 1.14.

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


Options are :

  • Project manager (Correct)
  • Project risk assessment officer
  • Project management office
  • Project sponsor

Answer : Project manager

You are the project manager for your organization. You have identified a risk event you're your
organization could manage internally or externally. If you manage the event internally it will cost
your project $578,000 and an additional $12,000 per month the solution is in use. A vendor can
manage the risk event for you. The vendor will charge $550,000 and $14,500 per month that the
solution is in use. How many months will you need to use the solution to pay for the internal
solution in comparison to the vendor's solution?


Options are :

  • Approximately 13 months
  • Approximately 15 months
  • Approximately 11 months (Correct)
  • Approximately 8 months

Answer : Approximately 11 months

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
  • Exploiting
  • Mitigation
  • Sharing (Correct)

Answer : Sharing

Henry is the project manager of the QBG Project for his company. This project has a budget of
$4,576,900 and is expected to last 18 months to complete. The CIO, a stakeholder in the project,
has introduced a scope change request for additional deliverables as part of the project work.
What component of the change control system would review the proposed changes' impact on the
features and functions of the project's product?


Options are :

  • Scope change control system
  • Integrated change control
  • Configuration management system (Correct)
  • Cost change control system

Answer : Configuration management system

When does the Identify Risks process take place in a project?


Options are :

  • At the Executing stage.
  • At the Initiating stage. (Correct)
  • At the Planning stage.
  • Throughout the project life-cycle.

Answer : At the Initiating stage.

Shawn is the project manager of the WHT Project for his company. In this project Shawn's team
reports that they have found a way to complete the project work for less cost than what was
originally planned. The project team presents a new software that will help to automate the project
work. While the software and the associated training costs $25,000 it will save the project nearly
$65,000 in total costs. Shawn agrees to the software and changes to the project management plan
accordingly. What type of risk response has been used in this instance?


Options are :

  • Exploiting (Correct)
  • Accepting
  • Enhancing
  • Avoidance

Answer : Exploiting

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

Answer : Jo-Hari Window

You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of your 

company, on several risks within the project. Nancy understands that through qualitative analysis
you have identified 80 risks that have a low probability and low impact as the project is currently
planned. Nancy's concern, however, is that the impact and probability of these risk events may
change as conditions within the project may change. She would like to know where will you
document and record these 80 risks that have low probability and low impact for future reference.
What should you tell Nancy?


Options are :

  • All risks, regardless of their assessed impact and probability, are recorded in the risk log.
  • Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.
  • Risks with low probability and low impact are recorded in a watchlist for future monitoring. (Correct)
  • All risks are recorded in the risk management plan.

Answer : Risks with low probability and low impact are recorded in a watchlist for future monitoring.

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 :

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

Answer : Uncertainty in values such as duration of schedule activities

You and your project team have identified the project risks and now are analyzing the probability
and impact of the risks. What type of analysis of the risks provides a quick and high-level review of
each identified risk event?


Options are :

  • A risk probability-impact matrix
  • Qualitative risk analysis (Correct)
  • Seven risk responses
  • Quantitative risk analysis

Answer : Qualitative risk analysis

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

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

You work as a project manager for BlueWell Inc. There has been a delay in your project work that
is adversely affecting the project schedule. You decided, with your stakeholders' approval, to fast
track the project work to get the project done faster. When you fast track the project which of the
following are likely to increase?



Options are :

  • Risks (Correct)
  • Costs
  • Human resource needs
  • Quality control concerns

Answer : Risks

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

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

You work as a project manager for BlueWell Inc. You are preparing for the risk identification
process. You will need to involve several of the project's key stakeholders to help you identify and
communicate the identified risk events. You will also need several documents to help you and the
stakeholders identify the risk events. Which one of the following is NOT a document that will help
you identify and communicate risks within the project?


Options are :

  • Activity cost estimates
  • Stakeholder register
  • Risk register (Correct)
  • Activity duration estimates

Answer : Risk register

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 :

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

Answer : Delphi Technique

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 :

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

Answer : 51,040

You are the project manager for your organization. You are preparing for the quantitative risk
analysis. Mark, a project team member, wants to know why you need to do quantitative risk
analysis when you just completed qualitative risk analysis. Which one of the following statements
best defines what quantitative risk analysis is?



Options are :

  • Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives. (Correct)
  • Quantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
  • Quantitative risk analysis is the planning and quantification of risk responses based on probability and impact of each risk event.
  • Quantitative risk analysis is the review of the risk events with the high probability and the highest impact on the project objectives.

Answer : Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives.

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
  • Exploiting
  • Sharing (Correct)

Answer : Sharing

Which of the following techniques examines the degree to which organizational strengths offset
threats and opportunities that may serve to overcome weaknesses?


Options are :

  • Delphi
  • SWOT Analysis (Correct)
  • Brainstorming
  • Expert Judgment

Answer : SWOT Analysis

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 :

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

Answer : Opportunities

Which positive risk response best describes a teaming agreement?


Options are :

  • Enhance
  • Share (Correct)
  • Venture
  • Exploit

Answer : Share

Joan is the project manager of the KYU project for her company. She is working with management
on defining a contingency reserve for her project. Currently the project is scheduled to last 18
months and it has a cost budget of $2.5 million. What two areas of the project can the contingency
reserve address in regard to risk management?


Options are :

  • Costs and schedule (Correct)
  • Risk and project planning
  • Cost and resource management
  • Quality and costs

Answer : Costs and schedule

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 :

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

Answer : Look-up table

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

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

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 owner (Correct)
  • Risk coordinator

Answer : Risk owner

You are the project manager of your organization. Your organization will receive a bonus if the project finishes by December 20. Management has communicated this bonus to you and your project team and has asked you to evaluate the project to see if it is possible to realize the reward.The bonus offered to your organization is $750,000. You have examined the project and believe that you can crash the project for an additional $275,000 and reach the December 20 date. Management is thrilled with your assessment and they approve the crash fee. What risk response is this?


Options are :

  • Crashing can be considered transference because of the $275,000 is actually paid from the bonus, which is paid by the project customer.
  • Crashing can be a type of the enhancing risk response. (Correct)
  • Crashing can be a type of the exploit risk response.
  • Crashing is the addition of labor, not a risk response.

Answer : Crashing can be a type of the enhancing risk response.

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
  • 0.93 (Correct)
  • 0.92
  • 1.06

Answer : 0.93

Don is the project manager of the PFO project for his organization. Don is working with the project
team members and two subject matter experts to assess the identified risk events in the project.
Which of the following approaches is the best to assess the risk events in the project?


Options are :

  • Interviews or meetings (Correct)
  • Determination of the true cost of the risk event
  • Probability and Impact Matrix
  • Root cause analysis

Answer : Interviews or meetings

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