PMI Risk Management Professional Certification Practice Exam Set 5

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 :

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

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

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

Answer : Risk management plan

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

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

Linda is the project manager of the NAB Project. One of the risks her project team has identified is too dangerous for the project team to manage internally so she has hired a vendor to complete this portion of the project and to manage the identified risk. What risk response has Linda used in this instance?


Options are :

  • Transference (Correct)
  • Mitigation
  • Avoidance
  • Contractual

Answer : Transference

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.


Options are :

  • Organizational process assets (Correct)
  • Risk register (Correct)
  • Cost management plan
  • Project scope statement (Correct)

Answer : Organizational process assets Risk register Project scope statement

Amy is the project manager for her company. In her current project the organization has a very low tolerance for risk events that will affect the project schedule. Management has asked Amy to consider the affect of all the risks on the project schedule. What approach can Amy take to create a bias against risks that will affect the schedule of the project?


Options are :

  • She can shift risk-laden activities that affect the project schedule from the critical path as much as possible.
  • She can filter all risks based on their affect on schedule versus other project objectives.
  • She can create an overall project rating scheme to reflect the bias towards risks that affect the project schedule. (Correct)
  • She can have the project team pad their time estimates to alleviate delays in the project schedule.

Answer : She can create an overall project rating scheme to reflect the bias towards risks that affect the project schedule.

Ben works as a project manager for the MJH Project. In this project, Ben is preparing to identify stakeholders so he can communicate project requirements, status, and risks. Ben has elected to use a salience model as part of his stakeholder identification process. Which of the following activities best describes a salience model?


Options are :

  • Grouping the stakeholders based on their level of authority ("power") and their level or concern ("interest") regarding the project outcomes.
  • Influence/impact grid, grouping the stakeholders based on their active involvement ("influence") in the project and their ability to affect changes to the project's planning or execution ("impact").
  • Grouping the stakeholders based on their level of authority ("power") and their active involvement ("influence") in the project.
  • Describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate). (Correct)

Answer : Describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).

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 :

  • Avoidance
  • Enhance
  • Transference
  • Mitigation (Correct)

Answer : Mitigation

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 accepted.
  • 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.

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

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 :

  • Resources
  • Costs
  • Communication
  • Risks (Correct)

Answer : Risks

You are the project manager of the NHQ Project for your company. You are discussing some of the project issues that need to be resolved in the project. You and the project stakeholders come to an agreement about the risk issues and how they will be resolved. Where should you document this information for issue resolution?


Options are :

  • Issue log (Correct)
  • Lessons learned documentation
  • Project management plan for execution
  • Risk response plan

Answer : Issue log

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 :

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

Answer : Technical documentation

You are the project manager of the NHQ project for your company. You are working with your project team to complete a risk audit. A recent issue that your project team responded to, and management approved, was to increase the project schedule because there was risk surrounding the installation time of a new material. Your logic was that with the expanded schedule there would be time to complete the installation without affecting downstream project activities. What type of risk response is being audited in this scenario?


Options are :

  • Lag Time
  • Avoidance (Correct)
  • Mitigation
  • Parkinson's Law

Answer : Avoidance

You are the project manager of the GHY Project for your company. You need to complete a project management process that will be on the lookout for new risks, changing risks, and risks that are now outdated. Which project management process is responsible for these actions?


Options are :

  • Risk monitoring and controlling (Correct)
  • Risk planning
  • Risk analysis
  • Risk identification

Answer : Risk monitoring and controlling

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 :

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

Answer : Qualitative risk analysis

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
  • Project change control system
  • Risk analysis
  • Integrated change contro (Correct)

Answer : Integrated change contro

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
  • Utility function (Correct)
  • Quantitative risk analysis

Answer : Utility function

Mary is the project manager for the BLB project. She has instructed the project team to assemble, to review the risks. She has included the schedule management plan as an input for the quantitative risk analysis process. Why is the schedule management plan needed for quantitative risk analysis?


Options are :

  • Mary will utilize the schedule controls to determine how risks may be allowed to change the project schedule.
  • Mary will utilize the schedule controls and the nature of the schedule for the quantitative analysis of the schedule. (Correct)
  • Mary will schedule when the identified risks are likely to happen and affect the project schedule.
  • Mary will use the schedule management plan to schedule the risk identification meetings throughout the remaining project.

Answer : Mary will utilize the schedule controls and the nature of the schedule for the quantitative analysis of the schedule.

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.


Options are :

  • Project scope statement
  • Risk register (Correct)
  • Risk management plan (Correct)
  • Cost management plan (Correct)

Answer : Risk register Risk management plan Cost management plan

You are the project manager of a large construction project. This project will last for 18 months and will cost $750,000 to complete. You are working with your project team, experts, and stakeholders to identify risks within the project before the project work begins. Management wants to know why you have scheduled so many risk identification meetings throughout the project rather than just initially during the project planning. What is the best reason for the duplicate risk identification sessions?


Options are :

  • The iterative meetings allow the project manager and the risk identification participants to identify newly discovered risk events throughout the project. (Correct)
  • The iterative meetings allow the project manager to discuss the risk events which have passed the project and which did not happen.
  • The iterative meetings allow all stakeholders to participate in the risk identification processes throughout the project phases.
  • The iterative meetings allow the project manager to communicate pending risks events during project execution.

Answer : The iterative meetings allow the project manager and the risk identification participants to identify newly discovered risk events throughout the project.

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

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

You are the project manager for Genpact Inc. You have established quarterly risk management meetings. Which of the following is not a component of a risk management meeting?


Options are :

  • Assessing the overall status of risks in the project
  • The availability of the individual (Correct)
  • Review of risk responses
  • Assessment or risk

Answer : The availability of the individual

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 :

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

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

Stephen is the project manager of the GBB project. He has worked with two subject matter experts and his project team to complete the risk assessment technique. There are approximately 47 risks that have a low probability and a low impact on the project. Which of the following answers best describes what Stephen should do with these risk events?


Options are :

  • The low probability and low impact risks should be added to the risk register.
  • Because they are low probability and low impact, the risks can be dismissed.
  • Because they are low probability and low impact, Stephen should accept the risks.
  • The low probability and low impact risks should be added to a watchlist for future monitoring. (Correct)

Answer : The low probability and low impact risks should be added to a watchlist for future monitoring.

You are the project manager of the BJA Project for your company. Management is worried about one of the identified risks in your project. The risk event has a probability of 90 percent and a cost impact of $85,000. Management and you discuss possible solutions to address the risk. You share with them that for $75,000 you can reduce the probability of the risk event to 15 percent and the impact to $25,000. This solution will add three weeks to the project schedule. Management thinks this is a good idea and they would like you to add the time and cost additions to your project plan. What type of risk response is used?


Options are :

  • Avoidance
  • Acceptance
  • Mitigation (Correct)
  • Exploit

Answer : Mitigation

Which of the following is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold?


Options are :

  • Avoidance
  • Transference
  • Mitigation (Correct)
  • Exploit

Answer : Mitigation

You are the project manager of the HQQ Project for your company. You are working with your project stakeholders to discuss the risks in the project that can adversely affect the project objectives. You are discussing the possibilities of causes for an identified risk event in your project. Your stakeholder is confused on the difference between causes and risk events. Which of the following is NOT an example of a cause for a project risk?


Options are :

  • Limited team members to complete the project work
  • Quality assurance programs within the company (Correct)
  • Work permit requirements
  • Schedule constraints on the project

Answer : Quality assurance programs within the company

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 :

  • Enhance
  • Share
  • Exploit (Correct)
  • Mitigation

Answer : Exploit

Yolanda is the project manager of a high-profile project for her organization. This project has 124 stakeholders from across the organization and many of the stakeholders have high demands and expectations for the project. Yolanda will need several pieces of project information as she begins to communicate and manage the stakeholder expectations. Which of the following inputs of the manage stakeholder expectations process directly addresses the risks that could affect the project and which must be communicated to the project stakeholders?


Options are :

  • Low-level risks watchlist
  • Stakeholder register
  • Issue log
  • Change log (Correct)

Answer : Change log

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 :

  • Acceptance (Correct)
  • Sharing
  • Avoidance
  • Transference

Answer : Acceptance

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