PMI Risk Management Professional Certification Practice Exam Set 3

Which of the following diagrams displays sensitivity analysis data?


Options are :

  • Tornado (Correct)
  • Fishbone
  • Influence
  • Cause and effect

Answer : Tornado

You are preparing to complete the quantitative risk analysis process with your project team and several subject matter experts. You gather the necessary inputs including the project's cost management plan. Why is it necessary to include the project's cost management plan in the preparation for the quantitative risk analysis process?


Options are :

  • The project's cost management plan can help you to determine what the total cost of the project is allowed to be.
  • The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget. (Correct)
  • The project's cost management plan is not an input to the quantitative risk analysis process.
  • The project's cost management plan provides direction on how costs may be changed due to identified risks.

Answer : The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget.

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 the risk response plan
  • Risk register and the results of risk analysis
  • Risk register and power to assign risk responses

Answer : Risk register and the risk management plan

You work as the project manager for BlueWell Inc. You are monitoring the project performance. You want to make a decision to change the project plan to eliminate a risk in order to protect the project objectives. Which of the following strategies will you use to tackle the risk?


Options are :

  • Risk mitigation
  • Risk avoidance (Correct)
  • Risk acceptance
  • Risk transference

Answer : Risk avoidance

Which of the following processes is described in the statement below? "This is the process of numerically analyzing the effect of identified risks on overall project objectives."


Options are :

  • Perform Qualitative Risk Analysis
  • Monitor and Control Risks
  • Perform Quantitative Risk Analysis (Correct)
  • Identify Risks

Answer : Perform Quantitative Risk Analysis

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 :

  • Exploiting (Correct)
  • Opportunistic
  • Positive
  • Enhancing

Answer : Exploiting

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

Lisa is the project manager of the FKN project for her organization. She is working with Sam, the CIO, to discuss a discount the vendor has offered the project based on the amount of materials that is ordered. Lisa and Sam review the offer and agree that while their project may qualify for the discounted materials the savings is nominal and they would not necessarily pursue the savings. Lisa documents this positive risk response in the risk register. What risk response is this?


Options are :

  • Enhance
  • Transference
  • Share
  • Acceptance (Correct)

Answer : Acceptance

You are completing the qualitative risk analysis process with your project team and are relying on the risk management plan to help you determine the budget, schedule for risk management, and risk categories. You discover that the risk categories have not been created. When should the risk categories have been created?


Options are :

  • Create work breakdown structure process
  • Risk identification process
  • Plan risk management process (Correct)
  • Define scope process

Answer : Plan risk management process

You are the project manager of the GHY project for your company. This project has a budget of $543,000 and is expected to last 18 months. In this project, you have identified several risk events and created risk response plans. In what project management process group will you implement risk response plans?


Options are :

  • Planning
  • In any process group where the risk event resides
  • Executing
  • Monitoring and Controlling (Correct)

Answer : Monitoring and Controlling

You are the project manager of a new project in your organization. You and the project team have identified the project risks, completed risk analysis, and are planning the most appropriate risk responses. Which of the following tools is most effective to choose the most appropriate risk response?


Options are :

  • Project network diagrams
  • Decision tree analysis (Correct)
  • Delphi Technique
  • Cause-and-effect diagrams

Answer : Decision tree analysis

You are the project manager for BlueWell Inc. Your current project is a high priority and high profile project within your organization. You want to identify the project stakeholders that will have the most power in relation to their interest on your project. This will help you plan for project risks, stakeholder management, and ongoing communication with the key stakeholders in your project. In this process of stakeholder analysis, what type of a grid or model should you create based on these conditions?


Options are :

  • Stakeholder power/interest grid (Correct)
  • Influence/impact grid
  • Salience model
  • Stakeholder register

Answer : Stakeholder power/interest grid

Pete works as a project manager for BlueWell Inc. The Management has told him that he must implement an agreed-upon contingency response if the cost performance index in his project is less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is 65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78 percent complete. What is the cost performance index for this project to determine if the contingency response should happen?


Options are :

  • 0.96
  • 1.02 (Correct)
  • 0.9
  • 0.89

Answer : 1.02

There are seven risks responses that a project manager can choose from. Which risk response is appropriate for both positive and negative risk events?


Options are :

  • Mitigation
  • Sharing
  • Transference
  • Acceptance (Correct)

Answer : Acceptance

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 :

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

Answer : Risk distributions within the project schedule

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

Answer : Approximately 11 months

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 :

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

Answer : Activity duration estimates

During qualitative risk analysis you want to define the risk urgency assessment. All of the following are indicators of risk priority except for which one?


Options are :

  • Cost of the project (Correct)
  • Risk rating
  • Symptoms
  • Warning signs

Answer : Cost of the project

You are the project manager for the TTR project. You are in the process of gathering information for risk identification. You ask experts to participate in the process through their emails for maintaining anonymity. You collect the responses, summarize them, and are then re-circulated to the experts for further comment. Which of the following techniques are you using for risk identification?


Options are :

  • SWOT analysis
  • Brainstorming
  • Delphi (Correct)
  • Expert judgment

Answer : Delphi

Nancy is the project manager of the NHH project. She and the project team have identified a significant risk in the project during the qualitative risk analysis process. Bob is familiar with the technology that the risk is affecting and proposes to Nancy a solution to the risk event. Nancy tells Bob that she has noted his response, but the risk really needs to pass through the quantitative risk analysis process before creating responses. Bob disagrees and ensures Nancy that his response is most appropriate for the identified risk. Who is correct in this scenario?


Options are :

  • Bob is correct. Bob is familiar with the technology and the risk event so his response should be implemented.
  • Nancy is correct. All risks of significant probability and impact should pass the quantitative risk analysis process before risk responses are created.
  • Nancy is correct. Because Nancy is the project manager she can determine the correct procedures for risk analysis and risk responses. In addition, she has noted the risk response that Bob recommends.
  • Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses. (Correct)

Answer : Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses.

You and your project team are identifying the risks that may exist within your project. Some of the risks are small risks that won't affect your project much if they happen. What should you do with these identified risk events?


Options are :

  • These risks can be dismissed.
  • All risks must have a valid, documented risk response.
  • These risks can be added to a low priority risk watch list. (Correct)
  • These risks can be accepted.

Answer : These risks can be added to a low priority risk watch list.

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 :

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

Answer : Activity cost estimates

Gary is the project manager for his project. He and the project team have completed the qualitative risk analysis process and are about to enter the quantitative risk analysis process when Mary, the project sponsor, wants to know what quantitative risk analysis will review. Which of the following statements best defines what quantitative risk analysis will review?


Options are :

  • The quantitative risk analysis process will analyze the effect of risk events that may substantially impact the project's competing demands. (Correct)
  • The quantitative risk analysis seeks to determine the true cost of each identified risk event and the probability of each risk event to determine the risk exposure.
  • The quantitative risk analysis reviews the results of risk identification and prepares the project for risk response management.
  • The quantitative risk analysis process will review risk events for their probability and impact onthe project objectives.

Answer : The quantitative risk analysis process will analyze the effect of risk events that may substantially impact the project's competing demands.

Sam is the project manager of a construction project in south Florida. This area of the United States is prone to hurricanes during certain parts of the year. As part of the project plan Sam and the project team acknowledge the possibility of hurricanes and the damage the hurricane could have on the project's deliverables, the schedule of the project, and the overall cost of the project. Once Sam and the project stakeholders acknowledge the risk of the hurricane they go on planning the project as if the risk is not likely to happen. What type of risk response is Sam using?


Options are :

  • Mitigation
  • Active acceptance
  • Avoidance
  • Passive acceptance (Correct)

Answer : Passive acceptance

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 :

  • Work Performance Information
  • Change requests (Correct)
  • Project management plan
  • Risk register

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 :

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

Answer : Checklist analysis

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


Options are :

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

Answer : Throughout the project life-cycle.

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

Answer : Risk management plan

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

Answer : Risk potential responses

____ analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen.


Options are :

  • Sensitivity
  • Expert judgment
  • Modeling and simulation
  • Expected monetary value (Correct)

Answer : Expected monetary value