PMI-RMP PMI Risk Management Professional Practice Test Set 8

During qualitative risk analysis you want to define the risk urgency assessment. All of the following
are indicators of risk priority except for which one?


Options are :

  • Cost of the project (Correct)
  • Warning signs
  • Risk rating
  • Symptoms

Answer : Cost of the project

You and your project team are identifying the risks that may exist within your project. Some of the
risks are small risks that won't affect your project much if they happen. What should you do with
these identified risk events?


Options are :

  • These risks can be accepted.
  • All risks must have a valid, documented risk response.
  • These risks can be dismissed
  • These risks can be added to a low priority risk watch list. (Correct)

Answer : These risks can be added to a low priority risk watch list.

Which of the following processes is described in the statement below? "This is the process of
numerically analyzing the effect of identified risks on overall project objectives." 


Options are :

  • Identify Risks
  • Perform Qualitative Risk Analysis
  • Monitor and Control Risks
  • Perform Quantitative Risk Analysis (Correct)

Answer : Perform Quantitative Risk Analysis

PMI Risk Management Professional Certification Practice Exam Set 3

You are the project manager of the GHY project for your company. This project has a budget of
$543,000 and is expected to last 18 months. In this project, you have identified several risk events
and created risk response plans. In what project management process group will you implement
risk response plans?


Options are :

  • Monitoring and Controlling (Correct)
  • Executing
  • In any process group where the risk event resides
  • Planning

Answer : Monitoring and Controlling

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

Answer : Project customer's fax machine

You are the project manager of the AMD project for your organization. In this project, you are
currently performing quantitative risk analysis. The tool and technique you are using is simulationwhere the project model is computed many times with the input values chosen at random for each
iteration. The goal is to create a probability distribution from the iterations for the project schedule.
What technique will you use with this simulation?


Options are :

  • Expected Monetary Value
  • Pareto modeling
  • Monte Carlo Technique (Correct)
  • Analogous modeling

Answer : Monte Carlo Technique

PMI PGMP Program Management Professional Practice Test Set 7

You are the project manager of a new project in your organization. You and the project team have
identified the project risks, completed risk analysis, and are planning the most appropriate risk
responses. Which of the following tools is most effective to choose the most appropriate risk
response?


Options are :

  • Delphi Technique
  • Project network diagrams
  • Decision tree analysis (Correct)
  • Cause-and-effect diagrams

Answer : Decision tree analysis

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


Options are :

  • Risk schedule
  • Risk
  • Risk cost
  • Risk potential responses (Correct)

Answer : Risk potential responses

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

PMI-SP Scheduling Professional Practice Exam Set 5

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


Options are :

  • The funds for the risks that have passed and have not happened are released (Correct)
  • 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 the project is closed.
  • The funds remain in the contingency reserve until all of the risks have passed.

Answer : The funds for the risks that have passed and have not happened are released

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

Answer : System or process flowcharts

You are preparing to complete the quantitative risk analysis process with your project team and
several subject matter experts. You gather the necessary inputs including the project's cost
management plan. Why is it necessary to include the project's cost management plan in the
preparation for the quantitative risk analysis process?


Options are :

  • C. The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget. (Correct)
  • The project's cost management plan provides direction on how costs may be changed due toidentified risks.
  • The project's cost management plan can help you to determine what the total cost of the project is allowed to be.
  • The project's cost management plan is not an input to the quantitative risk analysis process.

Answer : C. The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget.

PMI-SP Scheduling Professional Certification Practical Exam Set 1

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


Options are :

  • Project management plan
  • Work Performance Information
  • Risk register
  • Change requests (Correct)

Answer : Change requests

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


Options are :

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

Answer : Risk register and the risk management plan

The only output of the perform qualitative risk analysis are risk register updates. When the project
manager updates the risk register he will need to include several pieces of information including all
of the following except for which one?


Options are :

  • Watchlist of low-priority risks
  • Risk probability-impact matrix (Correct)
  • Risks grouped by categories
  • Trends in qualitative risk analysis

Answer : Risk probability-impact matrix

PMI-SP Scheduling Professional Certification Practical Exam Set 7

Nancy is the project manager of the NHH project. She and the project team have identified a
significant risk in the project during the qualitative risk analysis process. Bob is familiar with the
technology that the risk is affecting and proposes to Nancy a solution to the risk event. Nancy tells
Bob that she has noted his response, but the risk really needs to pass through the quantitative risk
analysis process before creating responses. Bob disagrees and ensures Nancy that his response
is most appropriate for the identified risk. Who is correct in this scenario?


Options are :

  • Nancy is correct. Because Nancy is the project manager she can determine the correct procedures for risk analysis and risk responses. In addition, she has noted the risk response that Bob recommends
  • Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses. (Correct)
  • Nancy is correct. All risks of significant probability and impact should pass the quantitative risk analysis process before risk responses are created.
  • Bob is correct. Bob is familiar with the technology and the risk event so his response should be implemented.

Answer : Bob is correct. Not all risk events have to pass the quantitative risk analysis process to develop effective risk responses.

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 :

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

Answer : Configuration management system

You are completing the qualitative risk analysis process with your project team and are relying on
the risk management plan to help you determine the budget, schedule for risk management, and
risk categories. You discover that the risk categories have not been created. When should the risk
categories have been created?


Options are :

  • Define scope process
  • Create work breakdown structure process (Correct)
  • Risk identification process
  • Create work breakdown structure process

Answer : Create work breakdown structure process

PMI-SP Scheduling Professional Certification Practice Test Set 9

You are the project manager for the TTR project. You are in the process of gathering information
for risk identification. You ask experts to participate in the process through their emails for
maintaining anonymity. You collect the responses, summarize them, and are then re-circulated to
the experts for further comment. Which of the following techniques are you using for risk
identification?


Options are :

  • Brainstorming
  • SWOT analysis
  • Delphi (Correct)
  • Expert judgment

Answer : Delphi

When does the Identify Risks process take place in a project?


Options are :

  • At the Initiating stage.
  • At the Executing stage
  • At the Planning stage.
  • Throughout the project life-cycle. (Correct)

Answer : Throughout the project life-cycle.

Ruth is the project manager of ISFH project for her company. This project is forty percent
complete and it appears that some risk events are going to happen in the project that will have an
adverse affect on the project. Ruth creates a change request regarding the risks. Is this a valid
response?


Options are :

  • No, change requests should not address pending risks, but only scope changes.
  • No, change requests should not address risks, only risk response strategies should be issued.
  • Yes, change requests can be recommended for corrective actions for contingency plans (Correct)
  • 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

PMI-SP Scheduling Professional Certification Practice Test Set 1

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 :

  • Avoidance
  • Accepting
  • Enhancing
  • Exploiting (Correct)

Answer : Exploiting

You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of yourcompany, on several risks within the project. Nancy understands that through qualitative analysis
you have identified 80 risks that have a low probability and low impact as the project is currently
planned. Nancy's concern, however, is that the impact and probability of these risk events may
change as conditions within the project may change. She would like to know where will you
document and record these 80 risks that have low probability and low impact for future reference.
What should you tell Nancy?


Options are :

  • All risks are recorded in the risk management plan
  • All risks, regardless of their assessed impact and probability, are recorded in the risk log
  • Risks with low probability and low impact are recorded in a watchlist for future monitoring. (Correct)
  • Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.

Answer : Risks with low probability and low impact are recorded in a watchlist for future monitoring.

You are the project manager of the GHQ project for your company. You are working with your
project team to prepare for the qualitative risk analysis process. Mary, a project team member,
does not understand why you need to complete qualitative risks analysis. You explain to Mary that
qualitative risks analysis helps you determine which risks needs additional analysis. There are
also some other benefits that qualitative risks analysis can do for the project. Which one of the
following is NOT an accomplishment of the qualitative risk analysis process?


Options are :

  • Cost of the risk impact if the risk event occurs (Correct)
  • Time frame for a risk response
  • Corresponding impact on project objectives
  • Prioritization of identified risk events based on probability and impact

Answer : Cost of the risk impact if the risk event occurs

PMI-SP Scheduling Professional Certification Practice Test Set 7

You are the project manager for TTP project. You are in the Identify Risks process. You have to
create the risk register. Which of the following are included in the risk register? Each correct
answer represents a complete solution. Choose two.


Options are :

  • List of key stakeholders
  • List of potential responses
  • List of mitigation techniques
  • List of identified risks
  • C,D (Correct)

Answer : C,D


You are the project manager for your organization. You have identified a risk event you're your
organization could manage internally or externally. If you manage the event internally it will cost
your project $578,000 and an additional $12,000 per month the solution is in use. A vendor can
manage the risk event for you. The vendor will charge $550,000 and $14,500 per month that the
solution is in use. How many months will you need to use the solution to pay for the internal
solution in comparison to the vendor's solution
?


Options are :

  • Approximately 13 months
  • Approximately 8 months
  • Approximately 15 months
  • Approximately 11 months (Correct)

Answer : Approximately 11 months

Ben is the project manager of the CMH Project for his organization. He has identified a risk that
has a low probability of happening, but the impact of the risk event could save the project and the
organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs
her to research the time, cost, and method to improve the probability of the positive risk event. Ben
then communicates the risk event and response to management. What risk response has been
used here?


Options are :

  • Sharing
  • Exploit
  • Transference
  • Enhance (Correct)

Answer : Enhance

PMI-RMP PMI Risk Management Professional Practice Test Set 9

You work as the project manager for BlueWell Inc. You are monitoring the project performance.
You want to make a decision to change the project plan to eliminate a risk in order to protect the
project objectives. Which of the following strategies will you use to tackle the risk?


Options are :

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

Answer : Risk avoidance

There are seven risks responses that a project manager can choose from. Which risk response is
appropriate for both positive and negative risk events?


Options are :

  • Acceptance (Correct)
  • Transference
  • Sharing
  • Mitigation

Answer : Acceptance

Pete works as a project manager for BlueWell Inc. The Management has told him that he must
implement an agreed-upon contingency response if the cost performance index in his project is
less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is
65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78
percent complete. What is the cost performance index for this project to determine if the
contingency response should happen? 


Options are :

  • 1.02 (Correct)
  • 0.90
  • 0.89
  • 0.96

Answer : 1.02

PMI PGMP Program Management Professional Practice Exam Set 8

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