PMI-RMP PMI Risk Management Professional Practice Test Set 7

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 :

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

Answer : Quality assurance programs within the company

You are the project manager for a construction project. The project includes a work that involves
very high financial risks. You decide to insure processes so that any ill happening can be
compensated. Which type of strategies have you used to deal with the risks involved with that
particular work?


Options are :

  • Avoid
  • Mitigate
  • Transfer (Correct)
  • Accept

Answer : Transfer

You are the project manager of the HJK project for your organization. You and the project team
have created risk responses for many of the risk events in the project. A teaming agreement is an
example of what risk response?


Options are :

  • Acceptance
  • Sharing (Correct)
  • . Transference
  • Mitigation

Answer : Sharing

A project team member has just identified a new project risk. The risk event is determined to have
significant impact but a low probability in the project. Should the risk event happen it'll cause the
project to be delayed by three weeks, which will cause new risk in the project. What should the
project manager do with the risk event?


Options are :

  • Add the identified risk to the risk register. (Correct)
  • Add the identified risk to a quality control management control chart.B.
  • Add the identified risk to the low-level risk watchlist.
  • Add the identified risk to the issues log.

Answer : Add the identified risk to the risk register.

Thomas is a key stakeholder in your project. Thomas has requested several changes to the
project scope for the project you are managing. Upon review of the proposed changes, you have
discovered that these new requirements are laden with risks and you recommend to the change
control board that the changes be excluded from the project scope. The change control board
agrees with you. What component of the change control system communicates the approval or
denial of a proposed change request?


Options are :

  • Change log
  • Scope change control system
  • Configuration management system
  • Integrated change control (Correct)

Answer : Integrated change control

In what portion of a project are risk and opportunities greatest and require intense planning and
anticipation of risk events?


Options are :

  • Planning
  • . Executing
  • Closing
  • Initiating (Correct)

Answer : Initiating

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 :

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

Answer : The availability of the individual

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 all stakeholders to participate in the risk identification processes throughout the project phases.
  • 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 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 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
  • Mitigation
  • Avoidance (Correct)
  • Parkinson's Law

Answer : Avoidance

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 :

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

Answer : Mitigation

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 :

  • 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.
  • 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.

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

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 :

  • Exploit
  • Mitigation
  • Transference (Correct)
  • Avoidance

Answer : Transference

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

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

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

Answer : Risk monitoring and controlling

Harry is the project manager of the MMQ Construction Project. In this project, Harry has identified
a supplier who can create stained glass windows for 1,000 window units in the construction
project. The supplier is an artist who works by himself, but creates windows for several companies
throughout the United States. Management reviews the proposal to use this supplier and while
they agree that the supplier is talented, they do not think the artist can fulfill the 1,000 window units
in time for the project's deadline. Management asked Harry to find a supplier who can fulfill the
completion of the windows by the needed date in the schedule. What risk response has
management asked Harry to implement?


Options are :

  • Transference
  • Avoidance
  • Acceptance
  • Mitigation (Correct)

Answer : Mitigation

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 :

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

Answer : Change log

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 filter all risks based on their affect on schedule versus other project objectives.
  • She can shift risk-laden activities that affect the project schedule from the critical path as much as possible.
  • . 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.

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 :

  • Avoidance
  • Mitigation
  • Transference . (Correct)
  • Contractual

Answer : Transference .

You are the project manager of the NHK Project. Management wants to know how often your risk
identification process will occur during the project. Considering that your project is scheduled to
last one year and involvs five distinct phases, how often should risk identification take place?


Options are :

  • Vary depending on the situations within the project (Correct)
  • Quarterly
  • Monthly
  • Once per project life cycle phase

Answer : Vary depending on the situations within the project

Gary is the project manager for his organization. He is working with the project stakeholders on
the project requirements and how risks may affect their project. One of the stakeholders is
confused about what constitutes risks in the project. Which of the following is the most accurate
definition of a project risk?


Options are :

  • It is an unknown event that can affect the project scope.
  • It is an uncertain event or condition within the project execution.
  • It is an uncertain event that can affect at least one project objective. (Correct)
  • It is an uncertain event that can affect the project costs.

Answer : It is an uncertain event that can affect at least one project objective.

You are the project manager of the GHY project. In your organization you must follow certain
enterprise environmental factors that establish the rules for risk management . One of the policies
your project must adhere to requires periodic rapid analysis of risks within the project. These rapid,
cost-effective session must be documented and performed monthly. What type of analysis are you
required to perform according to your enterprise environmental factors?


Options are :

  • Delphi Technique
  • Quantitative analysis
  • Brainstorming
  • Qualitative analysis (Correct)

Answer : Qualitative analysis

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

Answer : Stakeholder register

Frances is the project manager of a project in her organization. This project has a budget of
$567,000 and is schedule to last for three years. Frances wants to examine the risk events to
determine which risk events have the most potential impact on the project. Which modeling
technique can help Frances to accomplish this goal?


Options are :

  • Expected monetary value
  • Quantitative risk analysis
  • Modeling and simulation
  • Sensitivity analysis (Correct)

Answer : Sensitivity analysis

Where can a project manager find risk-rating rules?


Options are :

  • Organizational process assets (Correct)
  • Enterprise environmental factors
  • Risk management plan
  • Risk probability and impact matrix

Answer : Organizational process assets

You are the project manager for BlueWell Inc. You are reviewing the risk register for your project.
The risk register provides much information to you, the project manager and to the project team
during the risk response planning. All of the following are included in the risk register except for
which item?


Options are :

  • Symptoms and warning signs of risks
  • Trends in qualitative risk analysis results
  • List of potential risk responses
  • Network diagram analysis of critical path activities (Correct)

Answer : Network diagram analysis of critical path activities

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 determines possible combinations of risk events to predict overall project success, failure, or probability of achieving project objectives.
  • 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.

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

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 :

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

Answer : Risk register updates

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 :

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

Answer : Cause and effect diagrams

You are the project manager of the NHH project for your company. You have completed the first
round of risk management planning and have created four outputs of the risk response planning
process. Which one of the following is NOT an output of the risk response planning?


Options are :

  • Risk register updates
  • Organizational process assets updates (Correct)
  • Risk-related contract decisions
  • Project document updates

Answer : Organizational process assets updates

You are the project manager of the GHG project for your company. You have identified the project
risks, completed qualitative and quantitative analysis, and created risk responses. You also need
to document how and when risk audits will be performed in the project. Where will you define the
frequency of risk audits?


Options are :

  • Schedule management plan
  • Risk response plan
  • Quality management plan
  • Risk management plan (Correct)

Answer : Risk management plan

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