1. The Project Risk Management includes processes concerned with:
A. Planning, identification, analysis, responses, monitoring, and control of risks on a project.
B. Planning, implementation, monitoring and control of risks on a project.
C. Identification of risks on a project.
D. Analyzing the impact of identified risks on a project.
2. Which of the following refers to defining the conduct of risk management activities for a project?
A. Plan risk responses
B. Plan risk management
C. Project risk management
D. Project risk analysis
3. How is Project Risk Management related to Project Management from the following?
A. It is uncertain and based on assumptions and constraints.
B. It uses unstructured and disciplined techniques to clear uncertainty.
C. It provides an approach by which uncertainties can be understood, assessed, and managed within projects.
D. It provides inputs to project management processes.
4. All of the following are inputs of the Plan Risk Management process EXCEPT:
A. Risk register
B. Project management plan
C. Stakeholder Register
D. Organizational process assets
5. Which of these statements is FALSE?
A. Project Risk Management is an integral part all the project management processes.
B. In Risk management Practice, the project managers are the key actors in all the processes.
C. Goals and values of the organization should be the basis on which risk management is implemented.
D. Risk Management ensures a positive return on investment to all parties related to the project.
6. The definition of a risk is best described as:
A. Some positive or negative impact that will occur on a project
B. Something negative that will occur on a project
C. Something that may have a positive or negative impact on a project
D. An evaluation of threats on a project
7. Negative risks or threats when they occur are called as:
A. Issues or problems
8. Positive risks or opportunities when they occur are called as:
A. Issues or problems
C. Outputs D. Benefits
9. What is true statement regarding the project life cycle as the project progresses towards completion?
A. Risk and uncertainty decrease; the stakeholders’ ability to influence the end product of the project increases.
B. Risk and uncertainty increase; the cost of changes increases.
C. Risk and uncertainty increase; the cost of changes decreases.
D. Risk and uncertainty decrease; the cost of changes increases.
10. According to PMI, which of the following is the appropriate definition of project risk?
A. ‘Project risk is an uncertain condition that, if it occurs, has a positive effect on a project’s objective’.
B. ‘Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project’s objective’.
C. ‘Project risk is an uncertain event, if it occurs, has a negative effect on a project’s objective’.
D. ‘Project risk is an event or condition that has a positive or a negative effect on a project’s objective’.
11. Which of the following MUST be an agenda item at all team meetings?
A. Discussion of project risks
B. Status of current activities
C. Identification of new activities
D. Review of project problems
12. Who among the following is ultimately responsible for the outcome of the project?
A. Project team members
B. Team Manager
C. Project Manager
D. Program management
13. You and your project team are currently involved in the process to plan your particular approach to risk management on your project and are using a variety of tools and techniques to assist you to produce the risk management plan. Which of the following is NOT a tool and technique used during the Plan Risk Management process?
A. Analytical techniques
B. Risk probability and impact assessment
C. Expert judgment
14. Which of the following is NOT true about risks?
A. Individual risks are specific events or conditions that might have positive or negative effects on project objectives.
B. Individual risks are specific events or conditions that can have only negative effects on overall project objectives.
C. Overall project risk is crucial in strategic decision making.
D. Overall project risk shows the effect of uncertainty on the project in its entirety.
15. You are a project manager in a financial firm with multinational dealings. You feel the financial meltdown in one of the client’s countries could affect your project adversely and you want to hedge your risks. Although the probability of occurrence of the event is low, you are advised to play it safe. In terms of risk attitude, your organization could best be described as?
A. Risk Seeker
B. Risk Averse
C. Risk Neutral
D. Risk Mitigator
16. Risks should be _____________and analyzed regularly, risk responses should be ________, and __________ adjusted accordingly. Fill in the blanks with the correct set of words in order.
A. Identified, planned, project monitoring
B. Identified, monitored, project plans
C. Mitigated, expressed, project outcome
D. Monitored, implemented, project vision
17. All of the following are common results of risk management EXCEPT:
A. Contract terms and conditions are created.
B. The project management plan is changed.
C. The communications management plan is changed.
D. The project charter is changed.
18. The Project Risk Management process should be iterative to:
A. Place low priority risks on a watch list.
B. Store information in the risk registry.
C. Predict the possibility of emergent risks.
D. Plan risk management processes.
19. What should be done with risks on the watch list?
A. Document them for historical use on other projects.
B. Document them and revisit during project monitoring and controlling.
C. Document them and set them aside because they are already covered in your contingency plans.
D. Document them and give them to the customer.
20. Fill in the blank with the correct option. _____________________is a hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks.
A. Root Cause.
B. Risk Register.
D. Risk Breakdown Structure
21. Which of the following is NOT TRUE about Project Risk Management?
A. The responsibility of documenting risk-related lessons for future use should also be allocated.
B. Project Risk Management should be included as integral part of all other project processes.
C. Roles and responsibilities associated with Project Risk Management should be clearly defined and communicated.
D. Individuals should not be held responsible and accountable for results.
22. Which statement is correct in terms of “Assumptions”?
A. Assumptions are factors that are true, real, or certain with definite proof or demonstration.
B. Assumptions are not important in project management.
C. Project teams often identify, document, and validate assumptions as part of their planning process.
D. Assumptions rarely involve risk, and are often generic statements.
23. What are the two categories of success criteria for risk management?
A. Process-related criteria and Management-related criteria.
B. Project-related criteria and Planning-related criteria.
C. Project-related criteria and Process-related criteria.
D. Planning-related criteria and Management-related criteria.
24. What are the two levels at which risk-related communication occurs?
A. a) Within the project team b) Within the project stakeholders
B. a) Within the risk management team b) Within the project stakeholders.
C. a) Within the risk management team b) Between the project team and the other project stakeholders
D. a) Within the project team b) Between the project team and the other project stakeholders
25. Which among the following refers to a structured description of a risk which separates cause, effect, and risk?
A. Risk Meta-language
B. Risk Breakdown Structure
C. Risk Model
D. Risk Category
26. Which Tools and Techniques is the quickest way to identify Risk?
A. Checklist Analysis.
C. Delphi Technique.
27. Which Tools and Techniques are performed to review project documents at the time of Identify Risks?
A. Document review.
B. Risk Data Quality assessment
C. Risk Urgency assessment
D. Risk review
28. What are the three perspectives of risk identification?
A. Historical Review, Current Assessment, Future Objective
B. Historical Review, Current Assessment, Creativity Technique
C. Creativity Technique, Future Objective, Current Assessment
D. Future Objective, Historical Review, Current Assessment
29. Which of the following BEST describes the purpose of brainstorming sessions:
A. To obtain a comprehensive list of risks in a group setting by exchanging ideas.
B. To investigate the root cause of risks by grouping them together by cause.
C. To utilize the unbiased opinion of experts in an anonymous setting.
D. To determine whether the project assumptions made are valid and accurate.
30. What three elements does an FMEA risk matrix evaluate?
A. Probability, Impact and Detectability
B. Cost, Likelihood and Urgency
C. Impact, Cause, and Remediation
D. Impact, Probability and Responsibility
31. Which is not a critical success factor for the Identify Risks process?
A. Early identification
B. Iterative Identification
D. Complete Risk Statement
32. Which of the following is used to identify risks, ideas, or solutions to issues by using a group of team members or subject matter expert?
A. Expert judgment
C. Variance analysis
D. Meeting minute
33. Your team is carrying out the process of determining which risks may affect the project and documenting their characteristics. You are using a variety of tools and techniques, including documentation reviews, information gathering techniques, checklist analysis, and SWOT analysis. What is the name of this process?
A. Perform qualitative risk analysis
B. Identify risks
C. Perform quantitative risk analysis
D. Plan risk management
34. You and your team are in the process of identifying all potential uncertainty and risk on your project. You wish to ensure that your risk register is as comprehensive as possible and as such you are looking for as many relevant inputs to assist you in this process as possible. Which of the following is NOT an input into the Identify Risks process?
A. Activity duration estimates
B. Assumptions analysis
C. Stakeholder register
D. Activity cost estimates
35. You have a geographically dispersed team, from whom you would like to get expert opinion about your project. Which information gathering technique should you use:
B. Delphi Technique
C. SWOT Analysis
36. You are the project manager for the ABB project. You are working with your project team to examine the project from four different defined perspectives to increase the breadth of identified risks by including internally generated risks. What risk identification approach are you using in this example?
A. Root cause analysis
B. SWOT analysis
C. Influence diagramming techniques
D. Assumptions analysis
37. You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?
B. Secondary risk
C. Pure risk
38. What are the two types of biases that may occur when dealing with uncertainty?
A. Cognitive bias and judgmental bias
B. Cognitive bias and heuristic bias
C. Cognitive bias and speculative bias
D. Cognitive bias and motivational bias
39. Which among the following documents the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning?
A. Risk register
B. Risk management plan
C. Risk response plan
D. Project performance metrics
40. Which among the following best defines the Identify Risks process?
A.Measures the effect of a risk on one or more objectives of the project.
B.Documents the characteristics of a risk that may affect the project.
C.Identifies threats and develops a plan in anticipation of a risk.
D.Identifies and tracks new risks that might arise during the ongoing project life cycle.
41. During which process of risk management are risks prioritized based on their relative probability and impact?
A. Identify Risks.
B. Perform Qualitative risk analysis
C. Perform Quantitative risk analysis
D. Plan Risk Responses
42. A watch list is an output of which risk management process?
A. Plan Risk Responses
B. Perform Quantitative Risk Analysis
C. Perform Qualitative Risk Analysis
D. Plan Risk Management
43. Risk data quality assessment, risk categorization, and risk urgency assessment are tools and techniques of the following process:
A. Plan Risk Management
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Perform Quantitative Risk Analysis
44. Your risk management planning session has produced definitions of risk probability and impact. These are used during what process?
A. Perform Qualitative risk analysis
B. Identify risks
C. Perform Quantitative risk analysis
D. Plan risk management
45. A ranking of Risks and a list of risks for additional analysis are outputs of which process of Risk Management ?
B.Perform Quantitative Risk Analysis.
C. Plan Risk Responses.
D.Perform Qualitative Risk Analysis.
46. A subjective evaluation of the probability of a risk is determined during what part of risk management?
A. Identify Risks
B. Perform Qualitative Risk Analysis
C. Perform Quantitative Risk Analysis
D. Plan Risk Responses
47. Which of the following is NOT an input for qualitative risk analysis?
B.Risk management plan
D.Organizational process assets
48. You are the project manager of the XYZ project in your company. Your company is structured as a functional organization and you report to the functional manager that you are ready to move onto the qualitative risk analysis process. What will you need as inputs for the qualitative risk analysis of the project in this scenario?
A. Qualitative risk analysis does not happen through the project manager in a functional structure.
B. You will need the risk register, risk management plan, scope baseline, and any relevant organizational process assets.
C. You will need the risk register, risk management plan, outputs of qualitative risk analysis, and any relevant organizational process assets.
D. You will need the risk register, risk management plan, permission from the functional manager, and any relevant organizational process assets.
49. You are the project manager of an 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 of each identified risk in the project. Which other characteristic of a risk do you need to assess?
50. Harry is the project manager of the ABC project for his company. His organization has established certain rules in the enterprise environmental factors which affect the approach that Harry takes in managing his project. One of the rules requires Harry to consider the risk attitude of the stakeholders participating in risk analysis. Why must risk attitude be considered as a part of risk analysis?
A. Risk attitude affects the probability and impact of Risks during Qualitative Risk Analysis.
B. Risk attitude can establish a stakeholder’s influence over project decisions.
C. Risk attitude identifies stakeholders that are hygiene seekers or motivation seekers.
D. Risk attitude establishes stakeholders as positive or negative stakeholders.
51. A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide?
A. Prioritized list of project risks
B. Risk triggers
C. Contingency reserves
D.Probability of achieving the time and cost objectives.
52. Which Tools and Techniques are performed in determining whether the information used for risk analysis is credible, of high quality and accurate in Risk Qualitative analysis technique
A. Documentation review
B. Risk Data Quality assessment
C. Risk Urgency assessment
D. Risk review
53. During which Risk Management process ,Risks in Risk Register are categorized?
A. Risk Management Plan
B. Identify risk.
C. Qualitative risk analysis process.
D. Quantitative risk analysis process.
54. If a project has a 60% chance of a U.S. $100,000 profit and a 40% chance of a U.S. $100,000 loss, the expected monetary value of the project is?
A. $20,000 profit
B. $40,000 loss
C. $100,000 profit
D. $60,000 loss
55. You have just completed a Monte Carlo simulation on a mid-size project. You answer the phone and the project scheduler advises they have just discovered some errors with the WBS and some of the estimates were incorrect? What affect will this have on the Monte Carlo results?
A. The Monte Carlo results would still provide good estimates overall, as incorrect estimates are accounted for in the algorithm.
B. The Monte Carlo results would not be of value and should not be used to assess the risk on the project.
C. You would still be able to have a detailed understanding of the project risks.
D. There would be a low to medium impact to the Monte Carlo results.
56.The inputs for conducting the Perform Quantitative Risk Analysis are obtained from:
A.Modeling and simulation.
B.Decision Tree Analysis.
57. A unique aspect of the quantitative risk analysis process is that PMI recommends that quantitative risk analysis:
A. Should be performed in conjunction with quality assurance
B. Should be repeated after Plan Risk Responses to determine if project risk has decreased
C. Can be used in place of Perform Qualitative Risk Analysis
D. Can be used to make unknown risks, visible to the project team
58. What is the expected monetary value (EMV)?
A. The potential cost/benefit of a risk, positive or negative
B. What the project ROI will be
C. The amount of the risk contingency budget
D. The cost baseline minus the risk contingency
59. Your project manager has asked you to calculate the EMV for a construction project, which is to be completed by the end of January. As the materials supply is often hindered, there is a 50% chance that the required materials will arrive late, costing the project $100,000. In addition, the construction company tasked with laying the foundation for your project is in negotiations with their workers’ union. There is a 30% chance they will strike, costing $60 000 in delays. There is a 20% chance that the local municipal government will aid the project with a subsidy of $50,000. What is the EMV.?
60. Before deciding to go ahead with the project you must choose a contractor. Contractor A has a 60% probability of meeting the deadline of January 31st, with a confidence of 50%. Contractor B has a 75% probability of reaching the same deadline with a 30% confidence. Which contractor is the safer option?
A. Contractor B.
B. Contractor A.
C. Both are equal.
D. There is insufficient information provided to determine the best option.
61. What is the output of quantitative risk analysis?
A. Risk Register
B. Project Performance Examination
C. Project Documents Updates
D. Project Management plan updates
62. Which of the following simulation or modeling tools is used in case of quantitative risk analysis?
A. Monte Carlo Simulation
B. Trend Analysis
C. Three-Point Estimate
D. Sampling Technique
63. There are six inputs to the Quantitative risk analysis process. Which one of the following is NOT an input to the perform quantitative risk analysis process?
A. Schedule Management Plan
B. Risk management plan
C. Cost management plan
D. Scope Baseline
64. ____ analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen.
A. Expert judgment
B. Expected monetary value
D. Modeling and simulation
65. Which of the following diagrams describes the statement below?
“A special type of bar chart used in sensitivity analysis for comparing the relative importance of variables.”
66. A project management team needs to take a decision for a future scenario, the outcome of which is uncertain . In order to work through the best scenario , what technique can the team use?
A. Probability distribution.
C. Monte Carlo
D. Decision tree analysis.
67. What is NOT a true statement about the Perform Quantitative Risk Analysis process?
A. Uses project models for cost and schedule.
B. Predicts likely project outcomes based on combined effects of the risk.
C. Assesses the discrete probability of occurrence and impact on objectives if a risk event does occur.
D. Identifies risks with greatest effect on overall project risk.
68. Which among the following is not a function of the risk owner?
A. Ensure selection of appropriate response strategy
B. Ensure implementation of response strategy.
C. Determine suitable risk actions to implement chosen strategy.
D. Carry out the approved risk action.
69. You discover that there is a part of the project that contains some risk. Your strategy to deal with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following must you do?
A. You should make certain that the project team does not reveal the risk to the supplier until the contract is signed .
B. You should make every effort to make sure that the supplier is made aware of the risk after the contract is signed
C. You should make sure that the supplier understands the risk before the contract is signed
D. You should assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly if it occurs.
70. What does the response strategy of transferring the risk accomplish?
A. It makes another party responsible for the risk.
B. Nothing, since it is still your project.
C. It avoids any possibility of residual risk.
D. It makes it impossible to calculate the cost impact of the risk.
71. Who is a risk owner?
A.The person who is responsible for ensuring that a risk is identified and assessed, risk response actions are determined, and a risk action owner is assigned for each risk action.
B.The person who is responsible for carrying out the approved risk actions for responding to a given risk.
C.The person who is responsible for ensuring that a response strategy for a risk is selected and implemented, risk response actions are determined, and a risk action owner is assigned for each risk action.
D.The person who is responsible for monitoring the activities of risk management on a project.
72. Who is a risk action owner?
A.The person responsible for assessing the impact of the risk actions implemented for a given risk.
B.The person responsible for determining the risk actions for responding to a given risk.
C.The person responsible for approving the risk actions to respond to a given risk.
D.The person responsible for carrying out the approved risk actions for responding to a given risk.
73. A risk trigger is:
A. An individual assigned to manage a specific risk.
B. An indication that a specific risk has occurred or is about to occur.
C. An impact of a risk that is greater than expected.
D. A risk that is planned for, but does not occur, during the project.
74. Which risk response is acceptable for both positive and negative risk events?
75. The probabilistic analysis of the project is an input to which part of the risk management process?
A. Identify Risks.
B. Perform Qualitative Risk Analysis.
C. Perform Quantitative Risk Analysis.
D. Plan Risk Responses.
76. Which of the following item and its definition do not match?
A. Plan Risk Management: The process of defining how to conduct risk management activities for a project.
B. Plan Risk Responses: Informal and broadly framed actions based on the needs of the project.
C. Risk Management Plan: Document that describes how Project Risk Management will be structured and performed on the project.
D. Assumptions: Factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration.
77. You have just been assigned as the risk owner for all the technical opportunities for the new back-end financial system project to be launched worldwide next year. You call a meeting with a few colleagues to assist you in determining the best response to the opportunities. How many responses are available for the group to choose from?
C. Acceptance is the only risk response to an opportunity.
78. You have just experienced a risk trigger on your project. What type of risk response usually occurs when a risk is triggered?
A. Mitigation response
B. Contingency response
C. Avoidance Response
D. Workaround response
79. Since you had indicated that unavailability of resources was a risk on your project, you had a contingency strategy in place that allowed for a temporary staff augmentation. Management signed off on this approach. This risk was realized and you implemented the contingency plan, however the new staff may take longer to get up to speed in the environment than originally thought. What does this new situation describe?
A. Residual risk
B. Risk trigger
C. Secondary risk
D. Passive risk response”
80. Which of the following processes must be repeated after Plan Risk Responses, as well as part of the Monitor and Control Risks, to determine if the overall project risk has been satisfactorily decreased? “A. Risk Limitation
B. Perform Qualitative Risk Analysis
C. Identify Risk
D. Perform Quantitative Risk Analysis
81. A mid-sized company is rolling out a time management software that will be developed in 5 different language versions to sell globally. The project team is currently in the planning stages of risk management and has discovered a potential risk pertaining to the language translation of the software. The concern is that keyboards used in different countries may not contain all of the functions required by the program. It was determined that the team would hire a consulting company specializing in product testing to deal with the risk. What risk strategy did the project team utilize?
82. The project manager has just been informed that a risk trigger may have occurred.
Before executing the planned response, the project manager wanted to consult with the individual responsible for that particular risk. Where would the project manager look to identify who is responsible for the risk?
A. Risk management plan
B. Risk register
C. Human resource management plan
D. Communications management plan
83. The project team is in the process of developing risk responses. While dealing with a particular risk, the team discovers that it cannot be avoided, since avoiding the risk would require major changes to the project schedule, and attempts to transfer or mitigate the risk have been unsuccessful. What should the team do?
A. Continue investigating ways to reduce the impact of the risk.
B. Continue investigating ways to transfer the risk.
C. Reduce the project scope so that the risk can be avoided.
D. Accept the risk.
84. Which of the following strategies is used when all the other risk response strategies are considered to be inapplicable or unfeasible?
85. The strategy of taking actions to address a threat in order to ensure that it does not occur or does not have any effect on the project is called as:
86. You are the manager running a project for an organization, and during the course of the project, the organization receives an additional funding from VCs as bonus, which can be used for your project to compress the schedule by crashing. Which response helps in utilization of opportunity?
87. Which of the following is an example of the avoidance risk response strategy?
A. The team member does not know how to do the work, so training is scheduled.
B. The team member keeps adding extra features to the product.
C. The team member causes a lot of problems so he is removed from the project.
D. The team member is so over-allocated that he cannot do the work assigned.
88. What are residual risks?
A.The new risks that are identified after the implementation of a risk response.
B.The risks that remain even after the assessment of a risk and the implementation of the corresponding risk response.
C.The risks that affect the project as a whole and expose the stakeholders to the implications of variations in the outcomes of a project.
D.The risks that influence the stakeholders’ risk attitudes and result in the premature closure of a project.
89. Which of the following are risk response strategies for threats? “A. Exploit, share, mitigate,avoid
B. Accept, transfer, avoid,mitigate
C. Accept, mitigate, share,avoid
D. Accept, mitigate, exploit,share
90. All of the following strategies are used for dealing with positive risks EXCEPT:
91. Which of the following is the CORRECT definition of Trend analysis?
A. It determines whether a risk process is effective by setting thresholds for actions using earned value analysis formulae.
B. It is a technique used to assess whether an implemented risk response action is bearing the desired results, whether additional actions are required, and how the risk profile is changing.
C. Analysis conducted to verify if all the risk management rules are being implemented as specified and whether they are adequate for project control.
D. It is an analytical technique used to establish a reserve for schedule duration, budget, estimated cost, etc. for a project.
92. Which of the following processes is described in the statement below?
“It is the process of implementing risk response plans, tracking identified risks, monitoring residual risk, identifying new risks, and evaluating risk process effectiveness throughout the project.””
A. Identify risks
B. Perform qualitative risk analysis
C. Control risks
D. Perform quantitative risk analysis
93. Risk can be best represented and presented to the top management using which tool ?
A. Bar chart
B. Critical Chain method
C. Critical path method
D. GERT Chart
94. All of the following are outputs of the Control Risks process EXCEPT
A. Work performance data
B. Change requests
C. Organizational process assets updates
D. Project management plan updates
95. The main purpose of a risk audit is to: “A. Assess the thoroughness of the PM’s risk management plan
B. Reassess current risks listed in the risk register
C. Examine and document the effectiveness of risk responses and the risk management process
D. Evaluate variances and trends in project risks
96. All of the following are primary objectives of Control Risks process except:
A. Tracking identified risks
B. Identifying new risks
C. Implementing risk response plans
D. Categorization of Risks
97. During the risk control the risk response owner should be:
A. Identifying which risks he/she wants to monitor
B. Controlling the identification of response strategies
C. Informing the project manager of any mid-course correction needed
D. Updating stakeholders of new strategies for mitigating risks
98. Every status meeting should have time allotted for risk monitoring and control. Which of the following sentences about risk monitoring and control is not true?
A. Risk identification and monitoring should occur throughout the life of the project.
B. Risk audits should occur throughout the life of the project and are specifically interested in measuring the team’s performance in the risk identification and control risks processes.
C. Risks should be monitored for their status and to determine whether the impacts to the objectives have changed.
D. Technical performance measurement variances may indicate that a risk is looming and should be reviewed at status meetings.
99. A risk review:
A. Looks forward in time to ensure existing risk response plans are adequate.
B. Evaluates the effectiveness of the team’s risk management efforts.
C. Indicates that an identified risk is about to occur.
D. Is an evaluation by the project manager of the work done by risk owners.
100. During project executing, a major problem occurs that was not included in the risk register.What should you do FIRST?
A. Create a workaround.
B. Reevaluate the Identify Risks process.
C. Look for any unexpected effects of the problem.
D. Tell management.
|1.||B.||The PMBok Guide is generally recognized as a project management framework , not as a methodology.|
|1.||A.||The definition of Project Risk Management as identified in the PMBOK® Guide is the basis for the practice standard: “Project Risk Management includes processes concerned with conducting risk management planning, identification, analysis, responses, monitoring and control on a project. The objectives are also to increase the probability and impact of positive events and decrease the probability and impact of negative events in the project.”Reference:Practice Standard for Project Risk Management, Page Number:4.|
|2.||B.||Plan Risk Management: The process of defining how to conduct risk management activities for a project.|
Reference:Practice Standard for Project Risk Management, Page Number:110
|3.||C.||Project Risk Management provides an approach by which uncertainties can be understood, assessed, and managed within projects.Reference:Practice Standard for Project Risk Management, Page Number:13|
|4.||A.||The risk register is created during the Identify Risks process, which occurs after the Plan Risk Management process.|
|5.||B.||1.This statement is true. Project Risk management identifies and controls risks in every aspect of project management. 2. This statement is false. Risk management is the responsibility of all the project team members including stakeholders, and not just the project managers. 3. This statement is true. Organizational Commitment is achieved if risk management is implemented according to the goals and values of the organization. 4. This statement is true.|
Risk Management ensures a positive return on investment for an organization, the stakeholders, and project team members.Reference: Section 1.4, page 5, Practice Standard for Project Risk Management
|26.||A.||Reference:Practice Standard for Project Risk Management,Page Number:78|
|27.||A.||Reference:Practice Standard for Project Risk Management,Page Number:78|
|28.||B.||Three categories of tools and techniques: Historical Review: This is based on selection of comparable projects from the past-from the same organization or from other organizations- and identifying risk situations similar to those that might arise in the current project. Current Assessments: This is different from historical review in that it relies on detailed examination of the features of the project itself to expose areas of uncertainty, rather than use outside reference points. Creativity Techniques: The effectiveness of the use of project stakeholders imagination (effected either singly or in groups) to find risks that might affect the project depends on their ability to think creatively.Reference:Practice Standard for Project Risk Management, Page Number:28|
|29.||A.||The correct description is A. Option B describes root-cause identification; option C describes the Delphi technique, and option D describes assumptions analysis.|
|30.||A.||The FMEA calculates the probability, impact and detectability of a potential risk event|
|31.||C.||One of the critical success factors for the Identify Risks process is Objectivity. Subjectivity cannot be an option.Reference:Practice Standard for Project Risk Management, Page Number:25,26and27|
|32.||B.||Reference:Practice Standard for Project Risk Management,Page Number: 72|
|33.||B.||Identify risks is the first stage in the risk management process after you have completed your risk management plan and uses these tools and techniques to prepare the first iteration of the risk register.|
|34.||B.||Activity duration estimates are a useful input when identifying risks as they allow you to focus on specific time allowances that may be required.|
Assumptions analysis is a tool and technique, not an input, used in the Identify Risks process.
The stakeholder register is a useful input as it identifies stakeholders, and they can then be asked for input to assist with the identified risks.
Activity cost estimates are useful in identifying risks as they provide a quantitative assessment of the risk
|35.||B.||The Delphi Technique is a way to reach a consensus of experts on a subject. Project risk experts participate in this technique anonymously.|
Reference: PMBOK Fifth Edition, Page Number: 324
|36.||B.||Reference:Practice Standard for Project Risk Management,Page Number:84|
|37.||B.||Secondary Risk is a risk that arises as a direct result of implementing a risk response.|
|38.||D.||Motivational bias (where someone is trying to bias the result in one direction or another) and cognitive bias (where biases occur as people are using their best judgment and applying heuristics) should be recognized and addressed, and their sources exposed, to minimize subjectivity and to allow honest identification of as many risks as possible.Reference:Practice Standard for Project Risk Management,Page Number:27|
|39.||A.||Risk Register is the document containing the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning. It details all identified risks, with description, category, cause, probability of occurring, impact(s) on objectives, proposed responses, owners, and current status.Reference:Practice Standard for Project Risk Management, Page Number:112|
|40.||B.||Identify Risks is defined as the process of determining which risks may affect the project and documenting their characteristics.Reference:Practice Standard for Project Risk Management, Page Number:109|
|41.||B.||Perform Qualitative Risk Analysis assesses the impact and likelihood of identified risks. During this process the risks are prioritized based on their relative probability and impact. [PMBOK 5th edition, Page 329]|
|42.||B.||A watch list is made up of low-priority risks that, in the Perform Qualitative Risk Analysis process, were determined to be of too low priority or low impact to move further in the risk management process.|
|43.||B.||The listed tools and techniques belong to the Perform Qualitative Risk Analysis process. Other tools and techniques include: risk probability and impact assessment, and probability and impact matrix.|
|44.||A.||The purpose of the standardized definitions of risk probability and impact is to assist with the Perform Qualitative Risk Analysis Process.|
|45.||D.||These are outputs of the Perform Qualitative Risk Analysis process.|
|46.||B.||Subjective evaluations are done during the Perform Qualitative Risk Analysis process, and numerical evaluations are done during the Perform Quantitative Risk Analysis process. Thus, choice B is the best choice provided.|
|47.||C.||Except for stakeholder register, all other options provided here are inputs for qualitative risk analysis process.|
|48.||B.||[PMBOK 5th edition, Page 328].|
|49.||A.||Qualitative risk analysis process uses the probability and impact matrix as one of its tools and techniques.|
|50.||A.||Reference:Practice Standard for Project Risk Management,Page Number: 31|
|51.||A.||This question essentially asks, “What is an output of Perform Qualitative Risk Analysis?” The probability of achieving time and cost objectives is determined during the Perform Quantitative Risk Analysis process. Risk triggers and contingency reserves are parts of the Plan Risk Responses process. A prioritized list of risks is an output of Perform Qualitative Risk Analysis.|
|52.||B.||Reference: PMBOK Fifth Edition, Page Number: 328|
|53.||C.||Reference: PMBOK Fifth Edition, Page Number: 328|
|54.||A.||EMV=Probability x Impact 0.6 x $100,000=$60,000 … .4 x ($100,000)=($40,000) … $60,000-$40,000=$20,000 profit. [PMBOK 5th edition,Page 339]|
|55.||B.||Like all software programs, the Monte Carlo is only as effective as the information provided. If the information input is not accurate then the results of the simulation are useless. The old “GIGO” rule applies. Garbage IN, Garbage OUT.|
|56.||C.||The Risk register lists the prioritized risks and opportunities the project team has identified during qualitative risk analysis process.Reference:Practice Standard for Project Risk Management, Page Number:37,42|
|57.||B.||Quantitative risk analysis should be repeated after plan risk responses to determine if the project risk has decreased.|
|58.||A.||The expected monetary value (EMV) outlines the potential cost of a negative risk or the potential benefit of a positive risk.|
|59.||A.||A is correct: EMV is the sum of all the probabilities x the expected gain or loss. In this case:|
50% chance material will be late with a loss of $100k = $50k
30% chance of strike with loss of $60k = $18k
20% chance government aid will be provided of $50k = $10k
Adding the losses $50k + $18k and subtract the $10k gain results in an EMV of -$58k
|60.||B.||Contractor A Probability of completion is .60 x .50= .30 x 100 = 30%|
Contractor B Probability of completion is .75 x. 30= .22. 5 x100 = 22.5%
|61.||C.||Project documents updates are the output of quantitative risk analysis process.|
|62.||A.||Monte Carlo simulation is used in determining the numerical impact due to risk in the project.|
|63.||D.||Reference:PMBOK Guide 5th edition, Page Number:334|
|64.||B.||Reference:Practice Standard for Project Risk Management, Page Number:92|
|65.||C.||Reference:PMBOK Guide 5th edition, Page Number:338|
|66.||D.||Reference:Practice Standard for Project Risk Management, Page Number:94|
|67.||C.||A, B and D are all true statements of the quantitative risk process.|
C is a true statement for the qualitative risk process.
|68.||D.||Risk Owner is the person responsible for ensuring that an appropriate response strategy is selected and implemented, and for determining suitable risk actions to implement the chosen strategy, with each risk action assigned to a single risk action owner.Reference:Practice Standard for Project Risk Management, Page Number:111|
|69.||C.||In a fixed-price contract the supplier is obligated to deliver the contracted-for item at a fixed price. The supplier is aware of the risk and will put an allowance for the risk in the contracted price.|
This often means that the project team will pay the supplier for the cost of the risk regardless of the fact whether the risk occurs or not.
|70.||A.||Choice A is the only correct answer. Transferring a risk makes another party responsible for the risk.|
|71.||C.||The risk owner is the person who is responsible for ensuring that an appropriate response strategy is selected and implemented, and for determining risk actions to implement the chosen strategy, with each risk action assigned to a single risk action owner.Reference:Practice Standard for Project Risk Management, Page Number:111|
|72.||D.||A risk action owner is the person responsible for carrying out the approved risk actions for responding to a given risk.Reference:Practice Standard for Project Risk Management, Page Number:111|
|73.||B.||A risk trigger is an indication that a risk has occurred or is about to occur. The individual assigned to each risk is the risk owner. This person is responsible for watching for triggers and carrying out the risk response if the risk occurs.|
|74.||B.||Accept is the only risk response which is used both in positive and negative risk response planning.|
|75.||D.||A prioritized list of quantified risks from Quantitative Risk Analysis are an input to the Plan Risk Responses process.|
|76.||B.||Plan Risk Responses is actually defined as, “The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.”Reference: page 110, Practice Standard for Project Risk Management.|
|77.||D.||The four responses to positive risks or opportunities are: Exploit, Enhance, Accept and Share.|
|78.||B.||The contingency response is the most common in this case|
|79.||C.||This is a classic example of a secondary risk: A new risk that is identified as a direct outcome of implementing a risk response.|
|80.||D.||Quantitative risk analysis is repeated to see if the overall risk management is fine or not after the implementation of risk reponse|
|81.||D.||The project team has responded to the risk by transferring the responsibility and management of the risk to a third party, which in this case is the consulting company.|
|82.||B.||The risk register contains the risk assignments and owners.|
|83.||D.||At this point, the best option would be to accept the risk and factor in a contingency reserve if possible. Unless absolutely unavoidable, altering the project scope would not be a good option or a first choice.|
|84.||B.||The ‘accept’ risk response strategy applies when the other strategies are not considered applicable or feasible. Acceptance entails taking no action unless the risk actually occurs, in which case contingency or fallback plans may be developed ahead of time, to be implemented if the risk presents itself. Reference:Practice Standard for Project Risk Management, Page Number:47|
|85.||A.||The ‘avoid’ strategy involves taking the actions required to address a threat or an opportunity in order to ensure either that the threat cannot occur or can have no effect on the project, or that the opportunity will occur and the project will be able to take advantage of it.Reference:Practice Standard for Project Risk Management, Page Number:47|
|86.||D.||You are enhancing the opportunity to make project delivery at a lesser duration than that committed to the customer.|
|87.||C.||Choice C is correct. Choice A is a contingency response. Choice B is gold plating and should not be done. Choice D is a risk, not a response.|
|88.||B.||Residual risks are the risks that remain after the response actions for risks have been implemented.|
Reference:Practice Standard for Project Risk Management, Page Number:43
|89.||B.||The correct answer is choice B. Exploit and share are response strategies for opportunities.|
|90.||D.||Mitigate is a strategy used for dealing with negative risks or threats.|
|91.||B.||Trend Analysis is a technique used to assess whether an implemented risk response action is bearing the desired results, whether additional actions are required, and how the risk profile is changing.|
|92.||C.||Reference: PMBOK Fifth Edition, Page Number: 349|
|93.||A.||Milestone chart and Bar chart are generally used for Management Reporting.|
|94.||A.||A. Work performance data is an input into the Control Risks process.|
B. As a result of Monitoring and controlling your risks you may detect variance or a need for changes to be made. If so, will raise a change request and submitted by your approved change control process.
C. Particular organizational process assets that will be updated will relate to how the organisation plans and controls risks on projects.
D. Specific parts of the project management plan that will be updated as a result of monitoring and controlling risks will be the risk management plan.
|95.||C.||The risk audit evaluates the effectiveness of risk responses and of the risk management process overall|
|96.||D.||Risk Categorization is a tool and technique of Perform Qualitative Risk Analysis.|
|97.||C.||The risk response owner needs to ensure carrying out the risk responses and must keep the project manager informed of any mid-course correction needed.|
|98.||B.||Risk auditing happens as per the predefined period, usually once or twice in between the project and at the end.The frequency of auditing is less compared to the status meeting in which Risks are reveiewed in the risk register for identification of new risk and monitoring of risk responses.|
|99.||A.||Choice A is the correct definition of a risk review. A risk audit evaluates the effectiveness of the team’s risk management efforts (choice B). Choice C is the definition of a risk trigger.|
|100.||A.||Following the right process is part of professional and social responsibility. Because an unidentified problem or risk occurred, it is important to reevaluate the Identify Risks process as well as to look for unexpected effects of the problem. However, they are not your first choices.You might need to inform management, but this is reactive, not proactive, and not the first thing you should do. Since this is a problem that has occurred, rather than a problem that has just been identified, the first thing you must do is address the risk by creating a workaround.|