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Question 1
What are common examples used to communicate risk probability and impact?
- A: Risk checklist, risk assessment, regression analysis, and assumption and constraint analysis
- B: Monitor Risks process, multi-dimensional risk assessment, control chart, and Monte Carlo simulation
- C: Probability distributions, sensitivity analysis, modeling and simulation, and probability and impact matrix
- D: Monitor Risks process, assumption and constraint analysis, modeling and simulation, and risk register
Question 2
In the country where a project is being executed, customs procedures are complex and change frequently. During the risk identification process, the project team identifies a risk related to delays in customs on substantial equipment that will likely occur. Equipment delays on this project could lead to the project cancellation.
How should the probability and impact be characterized for this risk?
- A: Low probability/low impact
- B: High probability/low impact
- C: Low probability/high impact
- D: High probability high impact
Question 3
At the completion of a small project, the risk manager performs a risk audit and finds that several identified risks had occurred, and the impact was significantly larger than expected. While the project remained on schedule, the project budget increased by 50%. The project met all risk response milestones and no additional, previously unidentified risks, occurred on the project.
Based on this information, what risk management process improvement should the risk manager recommend for future similar projects?
- A: Increase frequency of risk management meetings with the project manager.
- B: Revise the level of accuracy of probability and impact scores.
- C: Document the risk audit report and capture it in the lessons learned database.
- D: Expand the use of risk identification techniques.
Question 4
The project manager has asked for the P50 estimate for the project schedule. What is the P50 estimate?
- A: 75 days
- B: 73.5 days
- C: 73 days
- D: 72.5 days
Question 5
A project risk manager is concerned about the low performance of risk management on a mission-critical project. After assessing the situation, the risk manager finds that the communication style may be the main contributor.
What could the project risk manager do to adjust the approach to influence team members to improve performance?
- A: Use follow-up emails, adopt an open door policy, and ask for feedback.
- B: Seek hidden agendas, vent frustrations, and allow others to vent frustrations.
- C: Provide continuous support, counseling, build trust, and open communications.
- D: Conduct one-on-one meetings, more frequent follow-up meetings, and implement the management by walking around technique.
Question 6
A project's risk manager successfully implements the risk management plan and the risk register. Furthermore, the risk analysis and the risk response planning are finalized. All results have been documented, and the project management plan and other project documents have been updated accordingly.
What should the risk manager do next?
- A: Perform a lessons learned document update with the defined risks.
- B: Perform regular reserve analysis to ensure that the assigned risk reserve budgets are sufficient.
- C: Perform risk date quality assessments.
- D: Perform continuous risk re-evaluation throughout the project life cycle to ensure risk management effectiveness.
Question 7
Very low = 1, Low = 2, Moderate = 3, High = 4, Very High = 5
A project manager must complete a report for a stakeholder who is concerned about the possibility of a funding shortfall. What is the most effective way to explain the risk to this stakeholder?
- A: The funding shortage is the lowest ranked/scored risk.
- B: The funding shortage is a significant risk.
- C: The funding shortage will have a very high impact on the project and is the highest priority.
- D: The funding shortage has a very low probability of occurring and is not a concern for the project.
Question 8
Which of the following success factors will enhance the Perform Qualitative Risk Analysis process as the risk occurrence gets closer?
- A: Agreed-upon definition
- B: Iterative analysis
- C: High quality information
- D: Agreed-upon approach
Question 9
A project team member identifies, but does not document, a risk early in the project, because it is considered to be trivial. This risk occurs later and negatively impacts the project.
What could the project manager do to avoid this situation?
- A: Conduct team meetings early in the project to ensure team member are familiar with risk identification requirements.
- B: Communicate the punishment and rewards policy to the project team during the project kick-off meeting.
- C: Provide project team members with access to simulation tools and decision tree diagrams.
- D: Provide team members with a risk management prompt list early in the project to ensure risks are not missed.
Question 10
A project in the execution phase at the customer's site has an issue concerning new parts that do not fit properly into a machine. The site project manager cannot find this high probability risk in the risk register.
What action should the site project manager take?
- A: Variance analysis
- B: Workaround
- C: Risk assessment
- D: Risk audit
Question 11
Which of the following represents the best description of the role of project manager for project risk management?
- A: Determining the acceptable levels of risk for the project in consultation with stakeholders, approving the risk management, assessing the impact of proposed scope changes
- B: Determining the acceptable levels of risk for the project in consultation with stakeholders, approving the project management plan, participating in all aspects of the project risk management process
- C: Approving the risk management plan, participating in all aspects of the project risk management process, auditing the risk management processes in the project
- D: Determining the acceptable levels of risk for the project in consultation with stakeholders, approving the risk management plan, participating in all aspects of the project risk management process
Question 12
A risk is identified and documented by the risk manager, but it is unclear how this risk can be proactively managed. In this situation, what type of reserve should be allocated for the risk?
- A: Contingency
- B: Management
- C: Budget
- D: Residual
Question 13
For the last several months, a project manager for a global technology program is focused on improving the project outsourcing process and analyzing the vendor supply chain as key pieces of the cost containment strategy. Early in the project, these two areas were identified as key risks to the final delivery of the project.
Since that initial risk identification, the risk manager works to identify additional risks, as well as analyze the potential impact to the project cost baseline. After performing a cost-risk sensitivity analysis, the risk manager produces this chart.
Based on this analysis, which two risk areas should the project manager focus on to control project cost?
- A: Vendor supply chain disruption and final system test
- B: Vendor supply chain disruption and software design changes
- C: Outsourcing negotiations and vendor supply chain disruption
- D: Labor rate increases and management reviews
Question 14
A risk manager is assigned to a short-term telecommunications upgrade project. This project is not technically complex, but has rigorous implementation timelines, and very little cost reserve available to address potential problems. The project manager indicates that completing the project on time is critical, but should not be done at the expense of performance.
Which aspect of risk impact is most important when designing the risk impact scale?
- A: Technical performance
- B: Cost
- C: Technical requirements
- D: Schedule
Question 15
A risk manager works with the project team, senior management team, subject matter experts and other stakeholders to identify the project risks. Which of the following tools/methods from the risk management plan can be used to identify a risk, which is based on project objectives by category?
- A: Affinity diagram
- B: Risk breakdown structure
- C: Decision tree method
- D: Work breakdown structure
Question 16
As a result of the Control Risk process, the project manager updates the project risk documents using outcomes from which of the following?
- A: Risk reserve analysis and risk thresholds
- B: Risk response strategies and risk analysis
- C: Risk reviews and risk register analysis
- D: Risk assessments and risk audits
Question 17
The risk manager is prioritizing risks based on the potential impact to cost and schedule and identifies the following 4 risks:
Risk 1 has a US$500,000 potential cost increase, and a 60 day potential schedule slippage, with a 25% probability of occurring.
Risk 2 has a US$200,000 potential cost increase, and a 20 day potential schedule slippage, with a 60% probability of occurring.
Risk 3 has a US$1,200,000 potential cost increase, and a 90 day potential schedule slippage, with a 10% probability of occurring.
Risk 4 has a US$600,000 potential cost increase, and a 70 day potential schedule slippage, with a 20% probability of occurring.
Using expected monetary value calculation, which risk has the greatest potential impact to cost and schedule?
- A: Risk 1
- B: Risk 2
- C: Risk 3
- D: Risk 4
Question 18
The expected monetary value of a project is above USS1 million. The risk manager is concerned about this situation, and decides to review the related plans and processes to evaluate the degree of variation from the baseline. Next, the risk manager needs to document the results of such an analysis.
What is the best document for the project manager to reference to find out where the results of such an analysis should be documented?
- A: Communications management plan
- B: Issues log
- C: Risk management plan
- D: Lessons learned
Question 19
The project manager requests a method to analyze risk data in a simple format. Which of the following formats should the risk manager suggest for preliminary review of the data?
- A: Monte Carlo analysis
- B: Fishbone diagram
- C: Latin Hypercube analysis
- D: Data tables
Question 20
A newly assigned project manager is reviewing the project documents with stakeholders to identify opportunities that will fast track the project and realize the financial benefits of early completion. What document should be updated at the end of the review?
- A: Risk register
- B: Risk response plan
- C: Risk management plan
- D: Risk identification plan
Question 21
The feasibility of the risk management planning is dependent upon which of the following aspects of the organization?
- A: Competitive market share
- B: Level of risk management maturity
- C: Alignment with industry standard requirements
- D: Culture, people and infrastructure capabilities
Question 22
Which of the following is an effective channel for risk mitigation assistance, project risk visibility and risk escalation support?
- A: Project steering committee
- B: Project management office (PMO)
- C: Change control board (CCB)
- D: Board of directors
Question 23
The team has just completed a risk response planning session and identified responses for all the high and medium priority risks. What should the team do with the remaining low priority risks?
- A: Create risk responses later, as time allows.
- B: Add the risks to a watchlist for periodic monitoring.
- C: Remove the risks from the risk register.
- D: Conduct a low priority risk response planning workshop with key stakeholders.
Question 24
PESTLE, TECOP, and SPECTRUM are three examples of prompt lists that can be used during risk management activities. Prompt lists are used to do which of the following?
- A: Simulate risk identification.
- B: Perform a simulation with all prompted risks varying simultaneously.
- C: Identify basic causes of risks of more fundamental forces.
- D: Achieve the relative weighting of the risks.
Question 25
During a major project review, the project manager discovers that large groups of internal management issues are obstructing progress. In reviewing the risk management plan, the project risk categories largely contain technical and customer relationship type risks. The project manager wants the risk management plan revised to account for these risk areas, particularly because the project has several more months before completion.
Who should the project manager collaborate with to revise the risk management plan at this stage of the project?
- A: Risk manager, technical manager, and customers
- B: Project sponsor, product owner, and risk owners
- C: Risk manager, product owner, and risk owners
- D: Risk manager, risk owners, and project sponsor
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