## PMI-RMP PMI Risk Management Professional Practice Test Set 2

Options are :

• . \$2,666,667
• -\$8,333
• \$663,333
• \$2,650,000

##### Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events iscalculated during quantitative risk analysis. He is worried about the risk exposure which is too lowfor the events surrounding his project requirements. How is the risk exposure calculated?

Options are :

• The probability and impact of a risk event are gauged based on research and in-depth analysis.f
• The probability of a risk event plus the impact of a risk event determines the true risk exposure.
• The probability of a risk event times the impact of a risk event determines the true risk exposure.
• The risk exposure of a risk event is determined by historical information.

Answer : The probability of a risk event times the impact of a risk event determines the true risk exposure.

##### Your organization, as part of its enterprise environmental factors, has established risk governanceto be implemented in each project. Part of this governance is the reassessment of risks withineach project. How much detail and repetition in approach for risks to be reassessed for probabilityand impact?

Options are :

• Each risk reassessment should go into the same depth as the original risk assessment activity.
• The probability and impact of risk event should determine the level of reassessment throughout the project lifecycle.
• The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives.
• The level of detail and reassessment should reflect the priority of the project.

Answer : The amount of detail of repetition that is appropriate depends on how the project progresses relative to its objectives.

Options are :

• Transference
• Avoidance
• Sharing
• Mitigation

##### Lisa is the project manager of the SQL project for her company. She has completed the riskresponse planning with her project team and is now ready to update the risk register to reflect therisk response. Which of the following statements best describes the level of detail Lisa shouldinclude with the risk responses she has created?

Options are :

• The level of detail is set of project risk governance.
• The level of detail must define exactly the risk response for each identified risk.
• The level of detail is set by historical information.
• The level of detail should correspond with the priority ranking.

Answer : The level of detail should correspond with the priority ranking.

##### John works as a project manager for ABD project. He and his team, are working on the followingactivities:Relative ranking or priority list of project risksWatchlists of low priority riskTrends in Qualitative Risk Analysis resultsOn which of the following processes is John working on?

Options are :

• Perform Qualitative Risk Analysis
• Plan Risk Responses
• . Perform Quantitative Risk Analysis
• Plan Risk Management

Answer : Perform Qualitative Risk Analysis

##### Kelly is the project manager of the BHH project for her organization. She is completing the riskidentification process for this portion of her project. Which one of the following is the only thing thatthe risk identification process will create for Kelly?

Options are :

• Risk register
• . Change requests

##### You are project manager for ABD project. You, with your team, are working on the followingactivities:Probabilistic analysis of a project.Probability of achieving cost and time objectives.Trends in Qualitative Risk Analysis results.On which of the following processes are you working on?

Options are :

• Plan Risk Management
• Identify Risks
• . Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis

Answer : Perform Quantitative Risk Analysis

##### You are the project manager for your organization. You are working with your key stakeholders inthe qualitative risk analysis process. You understand that there is certain bias towards the riskevents in the project that you need to address, manage, and ideally reduce. What solution doesthe PMBOK recommend to reduce the influence of bias during qualitative risk analysis?

Options are :

• Provide iterations of risk analysis for true reflection of a risk probability and impact
• Isolate the stakeholders by project phases to determine their risk bias
• Involve all stakeholders to vote on the probability and impact of the risk events
• Establish the definitions of the levels of probability and impact

Answer : Establish the definitions of the levels of probability and impact

##### You are preparing to start the qualitative risk analysis process for your project. You will be relyingon some organizational process assets to influence the process. Which one of the following isNOT a probable reason for relying on organizational process assets as an input for qualitative riskanalysis?

Options are :

• . Review of vendor contracts to examine risks in past projects
• Studies of similar projects by risk specialists
• Risk databases that may be available from industry sources
• Information on prior, similar projects

Answer : . Review of vendor contracts to examine risks in past projects

##### Fred is the project manager of the CPS project. He is working with his project team to prioritize theidentified risks within the CPS project. He and the team are prioritizing risks for further analysis oraction by assessing and combining the risks probability of occurrence and impact. What process isFred completing?

Options are :

• Perform quantitative analysis
• Risk identification
• Perform qualitative analysis
• Risk Breakdown Structure creation

##### Frank is the project manager of the NHH Project. He is working with the project team to create aplan to document the procedures to manage risks throughout the project. This document willdefine how risks will be identified and quantified. It will also define how contingency plans will beimplemented by the project team. What document is Frank and the NHH Project team creating inthis scenario?

Options are :

• Project plan
• Resource management plan
• Project management plan
• Risk management plan

Options are :

• Mitigation
• Acceptance
• Transference
• Avoidance

##### Jenny is the project manager of the NHJ Project for her company. She has identified severalpositive risk events within the project and she thinks these events can save the project time andmoney. You, a new team member wants to know that how many risk responses are available for apositive risk event. What will Jenny reply to you?

Options are :

• . Seven
• . Three
• Four
• Acceptance is the only risk response for positive risk events.

##### You are the project manager of the NHQ Project for your company. You have completedqualitative and quantitative analysis of your identified project risks and you would now like to findan approach to increase project opportunities and to reduce threats within the project. Whatproject management process would best help you?

Options are :

• Plan risk responses
• Create a risk governance approach
• Monitor and control project risks
• Create the project risk register

##### Ted is the project manager of the HRR project for his company. Management has asked that Tedperiodically reviews the contingency reserve as risk events happen, pass, or are still pending.What is the purpose of reviewing the contingency reserve?

Options are :

• It helps to determine how much more funds will need to be invested in the project.
• It helps to evaluate secondary and residual risks related to the risk responses and their costs.
• It helps to evaluate if the remaining reserve is adequate for the risk exposure.
• It helps to determine the probability and impact of project risks.

Answer : It helps to evaluate if the remaining reserve is adequate for the risk exposure.

##### Virginia is the project manager for her organization. She has hired a subject matter expert tointerview the project stakeholders on certain identified risks within the project. The subject matterexpert will assess the risk event with what specific goal in mind?

Options are :

• . To determine the probability and cost of the risk event
• To determine the validity of each risk event
• To determine the bias of the risk event based on each person interviewed
• To determine the level of probability and impact for each risk event

Answer : To determine the level of probability and impact for each risk event

##### You are working with Anna on your project to determine and map the probability distributions ofrisk within the project. You have indicated that you will use the uniform distribution method for aportion of the project. Which part of your project is most likely to have a uniform risk distribution?

Options are :

• Late completion stages of a project
• Project phases that deal with "cutover" technologies
• Early concept stage of design
• Project initiating

Answer : Early concept stage of design

##### Frank is the project manager of the NHQ project for his company. Frank is working with the projectteam, key stakeholders, and several subject matter experts on risks dealing with the new materialsin the project. Frank wants to utilize a risk analysis method that will help the team to makedecisions in the presence of the current uncertainty surrounding the new materials. Which riskanalysis approach can Frank use to create an approach to make decisions in the presence ofuncertainty?

Options are :

• Monte Carlo Technique
• Delphi Technique
• Qualitative risk analysis process
• . Quantitative risk analysis process

Answer : . Quantitative risk analysis process

##### Your project spans the entire organization. You would like to assess the risk of the project but areworried that some of the managers involved in the project could affect the outcome of any riskidentification meeting. Your worry is based on the fact that some employees would not want topublicly identify risk events that could make their supervisors look bad. You would like a methodthat would allow participants to anonymously identify risk events. What risk identification methodcould you use?

Options are :

• Delphi technique
• Root cause analysis
• SWOT analysis
• Isolated pilot groups

##### Wendy is the project manager of the FBL project for your company. She has identified severalrisks within her project and has created a risk contingency reserve of \$45,000 total. Her project isnearly complete and many of the risks have not happened in the project. What should Wendy dowith the funds in the contingency reserve?

Options are :

• The funds for the risks that have passed and have not happened are released.
• 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 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.

##### Ruth is the project manager of ISFH project for her company. This project is forty percentcomplete and it appears that some risk events are going to happen in the project that will have anadverse affect on the project. Ruth creates a change request regarding the risks. Is this a validresponse?

Options are :

• Yes, change requests can be recommended for corrective actions for contingency plans.
• No, change requests should not address risks, only risk response strategies should be issued.
• No, change requests should not address pending risks, but only scope changes.
• Yes, change requests can ask for additional funds to pay for the risk impact.

Answer : Yes, change requests can be recommended for corrective actions for contingency plans.

##### You are the project manager of the GGG project. You have completed the risk identificationprocess for the initial phases of your project. As you begin to document the risk events in the riskregister what additional information can you associate with the identified risk events?

Options are :

• Risk owner
• Risk potential responses
• Risk schedule
• Risk cost

##### You are the project manager for a construction project. The project involves casting of a column ina very narrow space. Because of lack of space, casting it is highly dangerous. High technical skillwill be required for casting that column. You decide to hire a local expert team for casting thatcolumn. Which of the following types of risk response are you following?

Options are :

• Avoidance
• Acceptance
• Mitigation
• . Transference

##### Kelly is the project manager of the NNQ Project for her company. This project will last for one yearand has a budget of \$350,000. Kelly is working with her project team and subject matter experts tobegin the risk response planning process. When the project manager begins the plan riskresponse process, what two inputs will she need?

Options are :

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

Answer : Risk register and the risk management plan

Options are :

• 6,084
• 3,003
• 156
• 78

##### There are four inputs to the Monitoring and Controlling Project Risks process. Which one of thefollowing will NOT help you, the project manager, to prepare for risk monitoring and controlling?

Options are :

• Change requests
• Work Performance Information
• Project management plan
• Risk register
• None

##### Rachel is the project manager of the KJH Project for her company. She needs a method to createa quick and simple approach to risk identification to communicate the project risk with thestakeholders. Which one of the following approaches to risk identification should Rachel choose toprovide a quick and simple listing of the project risks?

Options are :

• C. Assumptions analysis
• A. Delphi Technique
• D. Brainstorming
• B. Checklist analysis

##### Gary is the project manager of his organization. He is managing a project that is similar to aproject his organization completed recently. Gary has decided that he will use the information fromthe past project to help him and the project team to identify the risks that may be present in theproject. 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 analysisapproach for Gary?

Options are :

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

Answer : The checklist analysis approach is fast but it is impossible to build and exhaustive checklist.

##### You are the project manager of the NGQQ Project for your company. To help you communicateproject status to your stakeholders, you are going to create a stakeholder register. All of thefollowing information should be included in the stakeholder register except for which one?

Options are :

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