PMI-RMP PMI Risk Management Professional Practice Test Set 3

Your project has several risks that may cause serious financial impact should they happen. You
have studied the risk events and made some potential risk responses for the risk events but
management wants you to do more. They'd like for you to create some type of a chart that
identified the risk probability and impact with a financial amount for each risk event. What is the
likely outcome of creating this type of chart?


Options are :

  • Contingency reserve (Correct)
  • Quantitative analysis
  • Risk response
  • Risk response plan

Answer : Contingency reserve

Wendy is the project manager of the NNJ project for her company. As part of the variance and
trend analysis tool and technique for risk governance she is using earned value management. In
this approach, Wendy wants to track and compare the cost and schedule variances. What is the
point of this tool and technique in regard to risk?


Options are :

  • Wendy can forecast deviation of the project cost and schedule for completion targets. (Correct)
  • Wendy can review quality performance on baselines
  • Wendy can determine a true project completion date
  • Wendy can track the cost and schedule variances

Answer : Wendy can forecast deviation of the project cost and schedule for completion targets.

You are the project manager for your organization. You are working with your project team to
complete the qualitative risk analysis process. The first tool and technique you are using requires
that you assess the probability and what other characteristic of each identified risk in the project?


Options are :

  • Cost
  • Risk owner
  • Impact (Correct)
  • Risk category

Answer : Impact

You work as a project manager for BlueWell Inc. You have declined a proposed change request
because of the risk associated with the proposed change request. Where should the declined
change request be documented and stored?


Options are :

  • Project document updates
  • Project archives
  • Lessons learned
  • Change request log (Correct)

Answer : Change request log

Which of the following components ensures that risks are examined for all new proposed change
requests in the change control system?


Options are :

  • Integrated change control (Correct)
  • Configuration management
  • Scope change control
  • Risk monitoring and control

Answer : Integrated change control

You are the project manager of the NHQ project for your company. Management has told you that
you must implement an agreed upon contingency response if the Cost Performance Index in your
project is less than 0.90. Consider that your project has a budget at completion of $250,000 and is
60 percent complete. You are scheduled to be however, 75 percent complete, and you have spent
$165,000 to date. What is the Cost Performance Index for this project to determine if the
contingency response should happen?


Options are :

  • 0.80
  • 0.88
  • -$37,500
  • 0.91 (Correct)

Answer : 0.91

You are the project manager for your organization. You are preparing for the quantitative risk
analysis. Mark, a project team member, wants to know why you need to do quantitative risk
analysis when you just completed qualitative risk analysis. Which one of the following statements
best defines what quantitative risk analysis is?


Options are :

  • Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives (Correct)
  • Quantitative risk analysis is the planning and quantification of risk responses based on probability and impact of each risk event.
  • Quantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
  • Quantitative risk analysis is the review of the risk events with the high probability and the highest impact on the project objectives.

Answer : Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives

Della works as a project manager for Tech Perfect Inc. She is studying the documentation of
planning of a project. The documentation states that there are twenty-eight stakeholders with the
project. What will be the number of communication channels for the project?


Options are :

  • 300
  • 250
  • 378 (Correct)
  • 28

Answer : 378

Eric is the project manager of the MTC project for his company. In this project a vendor has
offered Eric a sizeable discount on all hardware if his order total for the project is more than
$125,000. Right now, Eric is likely to spend $118,000 with vendor. If Eric spends $7,000 his cost
savings for the project will be $12,500, but he cannot purchase hardware if he cannot implement
the hardware immediately due to organizational policies. Eric consults with Amy and Allen, other
project managers in the organization, and asks if she needs any hardware for their projects. Both
Amy and Allen need hardware and they agree to purchase the hardware through Eric's
relationship with the vendor. What positive risk response has happened in this instance?


Options are :

  • Sharing (Correct)
  • Transference
  • Exploiting
  • Enhancing

Answer : Sharing

Sensitivity analysis is a technique for systematically changing parameters in a model to determine
the effects of such changes and is useful for computer modelers for a range of purposes. Which of
the following purposes does the sensitivity analysis include? Each correct answer represents a
complete solution. Choose all that apply.


Options are :

  • Decision making or the development of recommendations for decision makers
  • B,C,D (Correct)
  • Model development
  • Increased understanding or quantification of the system
  • Estimating the average outcome

Answer : B,C,D

You are the project manager of the NNH project. In this project you have created a contingency
response that the cost performance index should be less than 0.93. The NHH project has a budget
at completion of $945,000 and is 45 percent complete - though the project should be 49 percent
complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is
the project's cost performance index?


Options are :

  • 1.06
  • -$30,647
  • 0.93 (Correct)
  • 0.92

Answer : 0.93

Marsha is the project manager of the NHQ Project. There's a risk that her project team has
identified, which could cause the project to be late by more than a month. Marsha does not want
this risk event to happen so she devises extra project activities to ensure that the risk event will not
happen. The extra steps, however, will cost the project an additional $10,000. What type of risk
response is this approach?


Options are :

  • Transference
  • Enhancing
  • Mitigation (Correct)
  • Exploiting

Answer : Mitigation

Adrian is a project manager for a new project using a technology that has recently been released
and there's relatively little information about the technology. Initial testing of the technology makes
the use of it look promising, but there's still uncertainty as to the longevity and reliability of the
technology. Adrian wants to consider the technology factors a risk for her project. Where should
she document the risks associated with this technology so she can track the risk status and responses?


Options are :

  • Risk register (Correct)
  • Risk low-level watch list
  • Project charter
  • Project scope statement

Answer : Risk register

You are the project manager of the NKQ project for your organization. You have completed the 

quantitative risk analysis process for this portion of the project. What is the only output of the
quantitative risk analysis process?


Options are :

  • Risk response
  • Risk register updates (Correct)
  • Probability of reaching project objectives
  • Risk contingency reserve

Answer : Risk register updates

You work as a project manager for BlueWell Inc. You have to communicate the causes of risk
events to the stakeholders. Which risk diagramming technique you will use to communicate the
causes of risk events to project stakeholders?


Options are :

  • Influence diagrams
  • Project network diagrams
  • Ishikawa diagrams (Correct)
  • Process flow charts

Answer : Ishikawa diagrams

As a part of monitoring and controlling the project, the project manager should update the risk
register. The project manager should update the risk register with information on risk
reassessment, risk audits, and periodic risk reviews. What other information should the project
manager update the risk register with?


Options are :

  • Actual outcomes of the project's risks and of the risk responses (Correct)
  • Actual costs and schedule delays of risk events
  • Actual outcomes of risk management duties by the project team.
  • Actual cost of risk events

Answer : Actual outcomes of the project's risks and of the risk responses

Mary is the project manager of the HGH Project for her company. She and her project team have
agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG
Company to fulfill the order. The NBG Company can guarantee orders within three days, but the
costs of their products are significantly more expensive than the current vendor. What type of a
response strategy is this?


Options are :

  • Expert judgment
  • Contingent response strategy (Correct)
  • Internal risk management strategy
  • External risk response

Answer : Contingent response strategy

Joyce is the project manager for her company. Joyce and her project team are working through
the quantitative analysis for certain risk events within her project. According to the enterprise
environmental factors the project manager is to perform sensitivity analysis on any risk with an
impact greater than $5,000 in the project. What is the sensitivity analysis?


Options are :

  • It uses rounds of anonymous surveys to predict probability and impact.
  • It determines which risk events have the most potential impact on the project. (Correct)
  • It uses round of anonymous surveys to predict which events are most likely to happen
  • It determines possible combinations of risk events to predict overall project success, failure, or probability of achieving project objectives.

Answer : It determines which risk events have the most potential impact on the project.

Wendy is about to perform qualitative risk analysis on the identified risks within her project. Which
one of the following will NOT help Wendy to perform this project management activity?


Options are :

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

Answer : Stakeholder register

You are the project manager of a large construction project. You are evaluating the strengths,
weaknesses, opportunities, and threats involved in a project. In which of the following processes
are you on?


Options are :

  • Plan Risk Management
  • Define Scope
  • Identify Risks (Correct)
  • None of the above
  • Plan Risk Responses

Answer : Identify Risks

You are the project manager of RTF project for your organization. You are working with your
project team and several key stakeholders to create a diagram that shows causal factors for an
effect to be solved. What diagramming technique are you using as a part of the risk identification
process?


Options are :

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

Answer : Cause and effect diagrams

You are the project manager of the GHY Project for your company. You have completed the risk
response planning with your project team. You now need to update the WBS. Why would the 

project manager need to update the WBS after the risk response planning process? Choose the
best answer.


Options are :

  • Because of new work generated by the risk responses (Correct)
  • Because of risks associated with work packages
  • Because of work that was omitted during the WBS creation

Answer : Because of new work generated by the risk responses

You work as a project manager for BlueWell Inc. You are preparing to plan risk responses for your
project with your team. How many risk response types are available for a negative risk event in the
project?


Options are :

  • Three
  • Seven
  • Four (Correct)
  • One

Answer : Four

You are the project manager of the NHH Project for your company and you have completed the
risk analysis processes for the risk events. You and the project team have created risk responses
for most of the identified project risks. Now, you would like to assign risk owners to the events.
Which risk events should have risk response owners?


Options are :

  • Only the risk events that are considered a negative risk event with a high risk rating
  • Each agreed-to and funded risk response should have a risk response owner (Correct)
  • Only the risks with a high risk rating
  • Each risk that has a risk response should have a risk response owner

Answer : Each agreed-to and funded risk response should have a risk response owner

Which of the following processes looks at the complex web of actors, rules, conventions,
processes, and mechanisms concerned with how relevant risk information is collected, analyzed
and communicated, and how management decisions are taken?


Options are :

  • Risk Response Planning
  • Risk Governance (Correct)
  • IRGC
  • Risk Communication

Answer : Risk Governance

You are the project manager for your company and a new change request has been approved for
your project. This change request, however, has introduced several new risks to the project. You
have communicated these risk events and the project stakeholders understand the possible
effects these risks could have on your project. You elect to create a mitigation response for the 

identified risk events. Where will you record the mitigation response?


Options are :

  • Project management plan
  • Risk register (Correct)
  • Risk management plan
  • Risk log

Answer : Risk register

You are the project manager of the CUL project in your organization. You and the project team are
assessing the risk events and creating a probability and impact matrix for the identified risks.
Which one of the following statements best describes the requirements for the data type used in
qualitative risk analysis?


Options are :

  • A qualitative risk analysis required unbiased stakeholders with biased risk tolerances
  • A qualitative risk analysis requires fast and simple data to complete the analysis
  • A qualitative risk analysis requires accurate and unbiased data if it is to be credible (Correct)
  • A qualitative risk analysis encourages biased data to reveal risk tolerances

Answer : A qualitative risk analysis requires accurate and unbiased data if it is to be credible

Elizabeth is a project manager for her organization and she finds risk management to be very
difficult for her to manage. She asks you, a lead project manager, at what stage in the project will
risk management become easier. What answer best resolves the difficulty of risk management
practices and the effort required?


Options are :

  • Risk management is an iterative process and never becomes easier
  • Risk management only becomes easier when the project is closed
  • Risk management only becomes easier the more often it is practiced (Correct)
  • Risk management only becomes easier when the project moves into project execution

Answer : Risk management only becomes easier the more often it is practiced

You work as a project manager for SoftTech Inc. You are working with the project stakeholders to
begin the qualitative risk analysis process. You will need all of the following as inputs to the
qualitative risk analysis process except for which one?


Options are :

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

Answer : Stakeholder register

You work as a project manager for BlueWell Inc. You are performing the quantitative risk analysis
for your project. One of the project risks has a 50 percent probability of happening, and it will cost
the project $55,000 if the risk happens. What will be the expected monetary value of this risk
event?


Options are :

  • Negative $55,000
  • Zero - the risk event has not yet occurred
  • Negative $27,500 (Correct)
  • Negative $26,000

Answer : Negative $27,500

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