PMI-RMP PMI Risk Management Professional Practice Test Set 6

Your organization has a project that is expected to last 20 months but the customer would really
like the project completed in 18 months. You have worked on similar projects in the past and
believe that you could fast track the project and reach the 18 month deadline. What increases
when you fast track a project?


Options are :

  • Risks (Correct)
  • Communication
  • Resources
  • Costs

Answer : Risks

Fred is the project manager of a large project in his organization. Fred needs to begin planning the
risk management plan with the project team and key stakeholders. Which plan risk management
process tool and technique should Fred use to plan risk management?


Options are :

  • Planning meetings and analysis (Correct)
  • Variance and trend analysis
  • Information gathering techniques
  • Data gathering and representation techniques

Answer : Planning meetings and analysis

Adrian is the project manager of the NHP Project. In her project there are several work packages
that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a
vendor to complete all work packages that deal with the electrical wiring. By removing the risk
internally to a licensed electrician Adrian feels more comfortable with project team being safe.
What type of risk response has Adrian used in this example?


Options are :

  • Transference (Correct)
  • Acceptance
  • Mitigation
  • Avoidance

Answer : Transference

Rex is the project manager of the BDF Project. This project will last for two years and has a
budget of $2,345,000. Management has instructed Rex that the project must not go over budget
as funds are very tight in the organization. During the project planning Rex and the project team
discover a positive risk event to save $75,000. Rex wants to make certain that this risk event
happens so which risk response method is most appropriate?


Options are :

  • Mitigation
  • Enhance
  • Exploit (Correct)
  • Share

Answer : Exploit

Mary is the project manager of PKT project. In Mary's project there are certain enterprise
environmental factors that require Mary to use modeling and simulation techniques to predict the
likelihood of achieving cost and schedule objectives in the project. Mary is using a technique for
which the cost estimates are chosen at random for each iteration of the analysis, such as
pessimistic, most likely, and worst-case scenarios. What type of analysis is Mary using in this
project?


Options are :

  • Quantitative analysis
  • Qualitative analysis
  • Risk distribution
  • Monte Carlo Analysis (Correct)

Answer : Monte Carlo Analysis

Fred is the project manager of the PKL project. He is working with his project team to complete the
quantitative risk analysis process as a part of risk management planning. Fred understands that
once the quantitative risk analysis process is complete, the process will need to be completed
again in at least two other times in the project. When will the quantitative risk analysis process
need to be repeated?


Options are :

  • Quantitative risk analysis process will be completed again after the cost management planning and as a part of monitoring and controlling. .
  • Quantitative risk analysis process will be completed again after the plan risk response planning and as part of procurement
  • Quantitative risk analysis process will be completed again after the risk response planning and as a part of monitoring and controlling. (Correct)
  • Quantitative risk analysis process will be completed again after new risks are identified and as part of monitoring and controlling.

Answer : Quantitative risk analysis process will be completed again after the risk response planning and as a part of monitoring and controlling.

Joan is the project manager of the BTT project for her company. She has worked with her project
to create risk responses for both positive and negative risk events within the project. As a result of
this process Joan needs to update the project document updates. She has updated the
assumptions log as a result of the findings and risk responses, but what other documentation will
need to be updated as an output of risk response planning?


Options are :

  • Risk Breakdown Structure
  • Technical documentation (Correct)
  • Lessons learned
  • Scope statement

Answer : Technical documentation

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

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

You work as a project manager for SoftTech Inc. You are working with the project stakeholders to
begin the qualitative risk analysis process. Which of the following inputs will be needed for the
qualitative risk analysis process in your project? Each correct answer represents a complete
solution. Choose all that apply.
A.
Organizational process assets
B.
Cost management plan
C.
Project scope statement
D.
Risk register


Options are :

  • D,C,A
  • A,C,D (Correct)
  • A,B.C
  • B,C,D

Answer : A,C,D

Gary has identified a project risk that could injure project team members. He does not want to
accept any risk where someone could become injured on this project so he hires a professional
vendor to complete this portion of the project work. This workaround to the risk event is known as
what type of risk response?


Options are :

  • Mitigation
  • Avoidance
  • . Acceptance
  • Transference (Correct)

Answer : Transference

You are the project manager of the GHY project for your organization. You are about to start the
qualitative risk analysis process for the project and you need to determine the roles and
responsibilities for conducting risk management. Where can you find this information?


Options are :

  • Risk management plan (Correct)
  • Staffing management plan
  • Risk register
  • Enterprise environmental factors .

Answer : Risk management plan

You work as a project manager for BlueWell Inc. You are working on a project and the
management wants a rapid and cost-effective means for establishing priorities for planning risk

responses in your project. Which risk management process can satisfy management's objective
for your project?



Options are :

  • Qualitative risk analysis (Correct)
  • Rolling wave planning
  • Historical information
  • Quantitative analysis

Answer : Qualitative risk analysis

Holly is the project manager of the NHQ project for her company. Her project sponsor, Tracy, has
requested that Thomas, the department manager, from the Risk Management Department, will
work with Holly to determine the effectiveness of the risk responses. Tracy and Thomas are
concerned that some of the risks within Holly's project may not be addressed to depth they would
like. In this scenario, who is responsible for ensuring that risk audits are performed at an
appropriate frequency throughout the project?


Options are :

  • Tracy
  • The project team
  • Thomas
  • Holly (Correct)

Answer : Holly

Ben is the project manager of the YHT Project for his company. Alice, one of his team members, is
confused about when project risks will happen in the project. Which one of the following
statements is the most accurate about when project risk happens?


Options are :

  • Project risk happens throughout the project execution.
  • Project risk is uncertain, so no one can predict when the event will happen
  • Project risk can happen at any moment.
  • Project risk is always in the future. (Correct)

Answer : Project risk is always in the future.

Della works as a project manager for SoftTech Inc. She is working with the project stakeholders to
begin the quantitative risk analysis process. Which of the following inputs will be needed for the
quantitative risk analysis process in her project? Each correct answer represents a complete
solution. Choose all that apply.

A.
Risk management plan
B.
Project scope statement
C.
Risk register
D.
Cost management plan



Options are :

  • B,C,D
  • A,C,D (Correct)
  • C,B,A
  • A,B,D

Answer : A,C,D

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

Answer : It can lead to developing effective risk responses.

Neil works as a project manager for SoftTech Inc. He is working with Tom, the COO of his
company, on several risks within the project. Tom understands that through qualitative analysis
Neil has identified many risks in the project. Tom's concern, however, is that the priority list of
these risk events are sorted in "high-risk," "moderate-risk," and "low-risk" as conditions apply
within the project. Tom wants to know that is there any other objective on which Neil can make the
priority list for project risks. What will be Neil's reply to Tom?


Options are :

  • Risk may be listed by the responses in the near-term
  • Risks may be listed by the additional analysis and response
  • Risks may be listed by priority separately for schedule, cost, and performance (Correct)
  • Risks may be listed by categories

Answer : Risks may be listed by priority separately for schedule, cost, and performance

A high-profile, high-priority project within your organization is being created. Management wants 

you to pay special attention to the project risks and do all that you can to ensure that all of the
risks are identified early in the project. Management has to ensure that this project succeeds.
Management's risk aversion in this project is associated with what term?


Options are :

  • Risk conscience
  • Risk mitigation
  • Quantitative risk analysis
  • Utility function (Correct)

Answer : Utility function

You are the project manager of the GGH Project in your company. Your company is structured as
a functional organization and you report to the functional manager that you are ready to move onto
the quantitative risk analysis process. What things will you need as inputs for the quantitative risk
analysis of the project in this scenario?


Options are :

  • You will need the risk register, risk management plan, cost management plan, schedule management plan, and any relevant organizational process assets. (Correct)
  • You will need the risk register, risk management plan, outputs of qualitative risk analysis, and any relevant organizational process assets.
  • You will need the risk register, risk management plan, permission from the functional manager, and any relevant organizational process assets.
  • Quantitative risk analysis does not happen through the project manager in a functional structure

Answer : You will need the risk register, risk management plan, cost management plan, schedule management plan, and any relevant organizational process assets.

There are seven risk responses, a project manager can use to address risk events. Which one of
the following is a risk response that is appropriate for positive or negative risk events depending
on the scenario in the project?


Options are :

  • Transference
  • Avoidance
  • Acceptance (Correct)
  • Sharing

Answer : Acceptance

Which of the following processes involves choosing the alternative strategies, executing a
contingency or fallback plan, taking corrective action, and modifying the project management
plan?


Options are :

  • Scope Change control
  • Monitor and Control risk (Correct)
  • Integrated Change control
  • Configuration Management

Answer : Monitor and Control risk

Harry is a project manager of a software development project. In the early stages of planning, he
and the stakeholders operated with the belief that the software they were developing would work
with their organization's current computer operating system. Now that the project team has started
developing the software it has become apparent that the software will not work with nearly half of
the organization's computer operating systems. The incorrect belief Harry had in the software
compatibility is an example of what in project management?


Options are :

  • Constraint
  • Assumption (Correct)
  • Risk
  • Issue

Answer : Assumption

You work as a project manager for BlueWell Inc. Management has asked you to work with the key
project stakeholder to analyze the risk events you have identified in the project. They would like
you to analyze the project risks with a goal of improving the project's performance as a whole.
What approach can you use to achieve the goal of improving the project's performance through
risk analysis with your project stakeholders?


Options are :

  • Focus on the high-priority risks through qualitative risk analysis (Correct)
  • Involve subject matter experts in the risk analysis activities
  • Involve the stakeholders for risk identification only in the phases where the project directly affects them
  • Use qualitative risk analysis to quickly assess the probability and impact of risk events

Answer : Focus on the high-priority risks through qualitative risk analysis

You are the project manager of the NJJ project. Your enterprise environmental factors require that
you establish certain risk management rules regarding low risks within your project. What is the
best policy for risks with low probability and low impact in the project management?


Options are :

  • These risks should be placed on a watchlist for future monitoring. (Correct)
  • These risks should be placed in the risk register
  • These risks should be identified, but dismissed
  • These risks should be accepted.

Answer : These risks should be placed on a watchlist for future monitoring.

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 :

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

Answer : Change requests

You are the project manager of the HJU project for your company. This project will last for 18
months and has a project budget of $567,000. Robert, one of your stakeholders, has introduced a
scope change request that will likely have an impact on the project costs and schedule. Robert
assures you that he will pay for the extra time and costs associated with the risk event. You tell
Robert that the change request may affect more areas of the project than just time and cost and
that you are worried about the additional risks the change request will bring. What project
management component is responsible for evaluating a change request and its impact on all of
the project management knowledge areas?


Options are :

  • Configuration management
  • Integrated change control (Correct)
  • Risk analysis .
  • Project change control system

Answer : Integrated change control

You work as a project manager for SoftTech Inc. You have implemented the risk action plan and it
was not effective. What type of plan should you as a project manager will create for
implementation if a selected risk strategy fails to be fully effective?


Options are :

  • Mitigation plan
  • Fallback plan (Correct)
  • Risk response plan
  • Mitigation management plan

Answer : Fallback plan

Melody is the project manager for her organization. She has created a risk response to conduct
more tests on the software her project is creating. The identified risk that prompted this response
was that the software is mission-critical and must be flawless before it can be put into product.
What type of a risk response has Melody used in this scenario?


Options are :

  • Mitigation (Correct)
  • Avoidance
  • Transference
  • . Enhance .

Answer : Mitigation

Consider a project with a budget at completion of $1,345,000 and it is supposed to be completed
by today, but it is only 80 percent complete. This project has spent $1,250,000 to reach this point
of completion. What is the schedule variance for this project?


Options are :

  • -$269,000
  • 20 percent
  • -$174,000 (Correct)
  • -$217,500

Answer : -$174,000

You work as a project manager for BlueWell Inc. You with your team are using a method or a
(technical) process that conceives the risks even if all theoretically possible safety measures
would be applied. One of your team member wants to know that what is a residual risk. What will
you reply to your team member?


Options are :

  • It is a risk that remains because no risk response is taken.
  • It is a risk that can not be addressed by a risk response.
  • It is a risk that will remain no matter what type of risk response is offered.
  • It is a risk that remains after planned risk responses are taken. (Correct)

Answer : It is a risk that remains after planned risk responses are taken.

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