PMI-RMP PMI Risk Management Professional Practice Test Set 5

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 :

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

Answer : The availability of the individual

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 :

  • A,C,D (Correct)
  • Project scope statement
  • Risk register
  • Cost management plan
  • Organizational process assets

Answer : A,C,D

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 :

  • Risks (Correct)
  • Communication
  • Costs
  • Resources

Answer : Risks

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 :

  • Acceptance
  • Avoidance
  • 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
  • Exploit
  • Transference
  • Mitigation (Correct)

Answer : Mitigation

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 :

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

Answer : Issue log

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 :

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

Answer : Holly

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 :

  • Utility function (Correct)
  • Risk mitigation
  • Risk conscience
  • Quantitative risk analysis

Answer : Utility function

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 :

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

Answer : Planning meetings and analysis

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 :

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

Answer : Qualitative risk analysis

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 :

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

Answer : Quality assurance programs within the company

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.
A.
Risk management plan
B.
Project scope statement
C.
Risk register
D.
Cost management plan


Options are :

  • A,B,C
  • B,C,D
  • A,C,D (Correct)
  • B,C,D

Answer : A,C,D

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 :

  • Exploit (Correct)
  • Mitigation
  • Share
  • Enhance

Answer : Exploit

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 identified, but dismissed
  • 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.

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

You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your
company. 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. Which of the following
risk response planning techniques will you use to shift the impact of a threat to a third party,
together with the responses?


Options are :

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

Answer : Risk transference

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

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

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

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 :

  • Acceptance
  • Avoidance
  • Mitigation
  • Transference (Correct)

Answer : Transference

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 :

  • Transference
  • Sharing
  • Avoidance
  • Acceptance (Correct)

Answer : Acceptance

A project manager must have certain interpersonal skills to communicate with stakeholders and
manage their expectations of the project work. Which of the following interpersonal skills has been
identified as one of the biggest reasons for project success or failure?


Options are :

  • Motivation
  • Political and cultural awareness
  • Influencing
  • Communication (Correct)

Answer : Communication

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?
A.


Options are :

  • None
  • Risk may be listed by the responses in the near-term
  • Risks may be listed by priority separately for schedule, cost, and performance (Correct)
  • Risks may be listed by categories
  • Risks may be listed by the additional analysis and response

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

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)
  • Contractual
  • Avoidance
  • Mitigation

Answer : Transference

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 :

  • Mitigation
  • Transference (Correct)
  • Avoidance
  • Acceptance

Answer : Transference

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 :

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

Answer : -$174,000

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 :

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

Answer : Risk management 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 :

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

Answer : Monitor and Control risk

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
  • Issue log
  • Stakeholder register
  • Change log (Correct)

Answer : Change log

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 communicate pending risks events during project execution
  • 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.

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

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
  • Transference
  • Mitigation (Correct)
  • Enhance

Answer : Mitigation

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

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

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