PMI Risk Management Professional Certification Practice Exam Set 4

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
  • Mitigation
  • Transference (Correct)
  • Acceptance

Answer : Transference

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
  • Sharing (Correct)
  • Exploiting

Answer : Sharing

Your project uses a piece of equipment that if the temperature of the machine goes above 450 degree Fahrenheit the machine will overheat and have to be shut down for 48 hours. Should this machine overheat even once it will delay the project's end date. You work with your project to create a response that should the temperature of the machine reach 430, the machine will be paused for at least an hour to cool it down. The temperature of 430 is called what?


Options are :

  • Risk event
  • Risk response
  • Risk trigger (Correct)
  • Risk identification

Answer : Risk trigger

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 :

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

Answer : Stakeholder management strategy

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

Answer : The checklist is also known as top down risk assessment.

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 :

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

Answer : Scope creep

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 :

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

Answer : Configuration management system

Holly is the project manager of the NSS Project for her company. She is discussing some of the project risks and the issues that have happened in the project. Holly has faxed the status report to her project client for their review. Based on the standard communication model, which component in this scenario is the decoder?


Options are :

  • Project customer
  • Holly
  • Project customer's fax machine (Correct)
  • Telephone wire

Answer : Project customer's fax machine

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

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

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 :

  • Enhancing
  • Avoidance
  • Accepting
  • Exploiting (Correct)

Answer : Exploiting

Thomas is a key stakeholder in your project. Thomas has requested several changes to the project scope for the project you are managing. Upon review of the proposed changes, you have discovered that these new requirements are laden with risks and you recommend to the change control board that the changes be excluded from the project scope. The change control board agrees with you. What component of the change control system communicates the approval or denial of a proposed change request?


Options are :

  • Change log
  • Configuration management system
  • Scope change control system
  • Integrated change control (Correct)

Answer : Integrated change control

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 :

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

Answer : Planning meetings and analysis

You are the project manager of the NHK Project. Management wants to know how often your risk identification process will occur during the project. Considering that your project is scheduled to last one year and involvs five distinct phases, how often should risk identification take place?


Options are :

  • Monthly
  • Quarterly
  • Once per project life cycle phase
  • Vary depending on the situations within the project (Correct)

Answer : Vary depending on the situations within the project

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 :

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

Answer : 3,003

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 new risks are identified and as 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 the cost management planning and as a 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.

You are the project manager of QSL project for your organization. You are working with your project team and several key stakeholders to create a diagram that shows how various elements of a system interrelate and the mechanism of causation within the system. What diagramming technique are you using as a part of the risk identification process?


Options are :

  • Influence diagrams
  • Predecessor and successor diagramming
  • Cause and effect diagrams
  • System or process flowcharts (Correct)

Answer : System or process flowcharts

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 :

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

Answer : Holly

Jeff works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which of the following are the inputs to the identify risks process that Jeff will use to accomplish the task? Each correct answer represents a complete solution. Choose all that apply.


Options are :

  • Risk register
  • Scope baseline (Correct)
  • Activity cost estimates (Correct)
  • Risk management plan (Correct)

Answer : Scope baseline Activity cost estimates Risk management plan

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 :

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

Answer : ($174,000)

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 :

  • Assumption (Correct)
  • Risk
  • Constraint
  • Issue

Answer : Assumption

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 :

  • Avoidance
  • Transference (Correct)
  • Acceptance
  • Mitigation

Answer : Transference

You are the project manager for the NHH project. You are working with your project team to examine the project from four different defined perspectives to increase the breadth of identified risks by including internally generated risks. What risk identification approach are you using in this example?


Options are :

  • SWOT analysis (Correct)
  • Influence diagramming techniques
  • Assumptions analysis
  • Root cause analysis

Answer : SWOT analysis

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 :

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

Answer : Fallback plan

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 :

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

Answer : Monitor and Control risk

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

Answer : Project risk is uncertain, so no one can predict when the event will happen.

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
  • Transference (Correct)
  • Avoidance
  • Acceptance

Answer : Transference

You are the project manager for a construction project. The project includes a work that involves very high financial risks. You decide to insure processes so that any ill happening can be compensated. Which type of strategies have you used to deal with the risks involved with that particular work?


Options are :

  • Accept
  • Mitigate
  • Avoid
  • Transfer (Correct)

Answer : Transfer

Gary is the project manager for his organization. He is working with the project stakeholders on the project requirements and how risks may affect their project. One of the stakeholders is confused about what constitutes risks in the project. Which of the following is the most accurate definition of a project risk?


Options are :

  • It is an uncertain event or condition within the project execution.
  • It is an unknown event that can affect the project scope.
  • It is an uncertain event that can affect at least one project objective. (Correct)
  • It is an uncertain event that can affect the project costs.

Answer : It is an uncertain event that can affect at least one project objective.

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

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

A project team member has just identified a new project risk. The risk event is determined to have significant impact but a low probability in the project. Should the risk event happen it'll cause the project to b