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PMI PMI-RMP PMI Risk Management Professional Exam Practice Test

Demo: 40 questions
Total 273 questions

PMI Risk Management Professional Questions and Answers

Question 1

Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is calculated during quantitative risk analysis. He is worried about the risk exposure which is too low for the events surrounding his project requirements. How is the risk exposure calculated?

Options:

A.

The risk exposure of a risk event is determined by historical information.

B.

The probability of a risk event times the impact of a risk event determines the true risk exposure.

C.

The probability of a risk event plus the impact of a risk event determines the true risk exposure.

D.

The probability and impact of a risk event are gauged based on research and in-depth analysis.

Question 2

Bill is the project manager of the JKH Project. He and the project team have identified a risk event in the project with a high probability of occurrence and the risk event has a high cost impact on the project. Bill discusses the risk event with Virginia, the primary project customer, and she decides that the requirements surrounding the risk event should be removed from the project. The removal of the requirements does affect the project scope, but it can release the project from the high risk exposure. What risk response has been enacted in this project?

Options:

A.

Mitigation

B.

Transference

C.

Acceptance

D.

Avoidance

Question 3

Your organization has a project that is expected to last 20 months but the customer would really like the project completed in 18 months. You have worked on similar projects in the past and believe that you could fast track the project and reach the 18 month deadline. What increases when you fast track a project?

Options:

A.

Resources

B.

Costs

C.

Communication

D.

Risks

Question 4

In addition to monitoring and controlling the project risks for their status and information the risk monitoring and controlling process accomplishes four key things for a project. Which one of the following is NOT a determination that is made by the risk monitoring and controlling process?

Options:

A.

Determines if the project assumptions are still valid

B.

Determines if the risk management policies and procedures are being followed

C.

Determines if the risk contingency reserves should be modified to be in alignment with the current risk assessment

D.

Determines if the project constraints are still valid

Question 5

You are the project manager of the HJU project for your company. This project will last for 18 months and has a project budget of $567,000. Robert, one of your stakeholders, has introduced a scope change request that will likely have an impact on the project costs and schedule. Robert assures you that he will pay for the extra time and costs associated with the risk event. You tell Robert that the change request may affect more areas of the project than just time and cost and that you are worried about the additional risks the change request will bring. What project management component is responsible for evaluating a change request and its impact on all of the project management knowledge areas?

Options:

A.

Project change control system

B.

Integrated change control

C.

Risk analysis

D.

Configuration management

Question 6

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

Options:

A.

Motivation

B.

Communication

C.

Influencing

D.

Political and cultural awareness

Question 7

Shelly is the project manager of the BUF project for her company. In this project Shelly needs to establish some rules to reduce the influence of risk bias during the qualitative risk analysis process. What method can Shelly take to best reduce the influence of risk bias?

Options:

A.

Group stakeholders according to positive and negative stakeholders and then complete the risk analysis

B.

Determine the risk root cause rather than the person identifying the risk events

C.

Establish risk boundaries

D.

Establish definitions of the level of probability and impact of risk event

Question 8

You work as a project manager for BlueWell Inc. You want to create a visual diagram, which can depict the resources that will be used within the project. Which of the following diagrams will you create to accomplish the task?

Options:

A.

Roles and responsibility matrix

B.

Work breakdown structure

C.

Resource breakdown structure

D.

RACI chart

Question 9

Gary is the project manager of his organization. He is managing a project that is similar to a project his organization completed recently. Gary has decided that he will use the information from the past project to help him and the project team to identify the risks that may be present in the project. Management agrees that this checklist approach is ideal and will save time in the project. Which of the following statement is most accurate about the limitations of the checklist analysis approach for Gary?

Options:

A.

The checklist analysis approach is fast but it is impossible to build and exhaustive checklist.

B.

The checklist analysis approach saves time, but can cost more.

C.

The checklist analysis approach only uses qualitative analysis.

D.

The checklist is also known as top down risk assessment.

Question 10

Joan is the project manager of the BTT project for her company. She has worked with her project to create risk responses for both positive and negative risk events within the project. As a result of this process Joan needs to update the project document updates. She has updated the assumptions log as a result of the findings and risk responses, but what other documentation will need to be updated as an output of risk response planning?

Options:

A.

Scope statement

B.

Lessons learned

C.

Risk Breakdown Structure

D.

Technical documentation

Question 11

Which risk response is acceptable for both positive and negative risk events?

Options:

A.

Transferring

B.

Acceptance

C.

Sharing

D.

Enhancing

Question 12

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:

A.

Network diagram analysis of critical path activities

B.

Symptoms and warning signs of risks

C.

List of potential risk responses

D.

Trends in qualitative risk analysis results

Question 13

You are the project manager of the NGH project for your organization. You want to create a causeand- effect diagram to help discover the root causes of the risks within the project. Harold, the CIO, recommends that you create an Ishikawa diagram instead. What is an Ishikawa diagram?

Options:

A.

It is a graphical representation of situations showing causal influences.

B.

It is the same thing as a root cause diagram.

C.

It shows how various elements of a system interrelate.

D.

It diagrams the risks according to the work breakdown structure including resources.

Question 14

You work as a project manager for BlueWell Inc. You would like to utilize sensitivity analysis in your project, but the management does not understand how this will be displayed. What type of chart is usually used with sensitivity analysis to show the relative affect of risks on the project?

Options:

A.

Ishikawa chart

B.

Force field analysis chart

C.

GERT Chart

D.

Tornado diagram

Question 15

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:

A.

Avoidance

B.

Exploiting

C.

Accepting

D.

Enhancing

Question 16

You are the project manager of the NKJ Project for your company. The project's success or failure will have a significant impact on your organization's profitability for the coming year. Management has asked you to identify the risk events and communicate the event's probability and impact as early as possible in the project. Management wants to avoid risk events and needs to analyze the cost-benefits of each risk event in this project. What term is assigned to the low-level of stakeholder tolerance in this project?

Options:

A.

Mitigation-ready project management

B.

Risk utility function

C.

Risk avoidance

D.

Risk-reward mentality

Question 17

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:

A.

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

B.

The iterative meetings allow all stakeholders to participate in the risk identification processes throughout the project phases.

C.

The iterative meetings allow the project manager to discuss the risk events which have passed the project and which did not happen.

D.

The iterative meetings allow the project manager to communicate pending risks events during project execution.

Question 18

Sam is the project manager of a construction project in south Florida. This area of the United States is prone to hurricanes during certain parts of the year. As part of the project plan Sam and the project team acknowledge the possibility of hurricanes and the damage the hurricane could have on the project's deliverables, the schedule of the project, and the overall cost of the project. Once Sam and the project stakeholders acknowledge the risk of the hurricane they go on planning the project as if the risk is not likely to happen. What type of risk response is Sam using?

Options:

A.

Active acceptance

B.

Passive acceptance

C.

Avoidance

D.

Mitigation

Question 19

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider the technology factors a risk for her project. Where should she document the risks associated with this technology so she can track the risk status and responses?

Options:

A.

Project scope statement

B.

Risk register

C.

Project charter

D.

Risk low-level watch list

Question 20

Which of the following techniques examines the degree to which organizational strengths offset threats and opportunities that may serve to overcome weaknesses?

Options:

A.

SWOT Analysis

B.

Expert Judgment

C.

Delphi

D.

Brainstorming

Question 21

Beth is a project team member on the JHG Project. Beth has added extra features to the project and this has introduced new risks to the project work. The project manager of the JHG project elects to remove the features Beth has added. The process of removing the extra features to remove the risks is called what?

Options:

A.

Preventive action

B.

Corrective action

C.

Scope creep

D.

Defect repair

Question 22

Billy is the project manager of the HAR Project and is in month six of the project. The project is scheduled to last for 18 months. Management asks Billy how often the project team is participating in risk reassessment in this project. What should Billy tell management if he's following the best practices for risk management?

Options:

A.

Project risk management is scheduled for every month in the 18-month project.

B.

Project risk management has been concluded with the project planning.

C.

At every status meeting the project team project risk management is an agenda item.

D.

Project risk management happens at every milestone.

Question 23

Della works as a project manager for SoftTech Inc. She is working with the project stakeholders to begin the quantitative risk analysis process. Which of the following inputs will be needed for the quantitative risk analysis process in her project? Each correct answer represents a complete solution. Choose all that apply.

Options:

A.

Risk management plan

B.

Project scope statement

C.

Risk register

D.

Cost management plan

Question 24

You work as a project manager for BlueWell Inc. There has been a delay in your project work that is adversely affecting the project schedule. You decided, with your stakeholders' approval, to fast track the project work to get the project done faster. When you fast track the project which of the following are likely to increase?

Options:

A.

Costs

B.

Quality control concerns

C.

Human resource needs

D.

Risks

Question 25

Fill in the blank with an appropriate phrase.

________is the study of how the variation (uncertainty) in the output of a mathematical model can be apportioned, qualitatively or quantitatively, to different sources of variation in the input of a model.

Options:

Question 26

Gary is the project manager for his project. He and the project team have completed the qualitative risk analysis process and are about to enter the quantitative risk analysis process when Mary, the project sponsor, wants to know what quantitative risk analysis will review. Which of the following statements best defines what quantitative risk analysis will review?

Options:

A.

The quantitative risk analysis process will review risk events for their probability and impact on the project objectives.

B.

The quantitative risk analysis seeks to determine the true cost of each identified risk event and the probability of each risk event to determine the risk exposure.

C.

The quantitative risk analysis process will analyze the effect of risk events that may substantially impact the project's competing demands.

D.

The quantitative risk analysis reviews the results of risk identification and prepares the project for risk response management.

Question 27

You are working with your project stakeholders to identify risks within the JKP Project. You want to use an approach to engage the stakeholders to increase the breadth of the identified risks by including internally generated risk. Which risk identification approach is most suited for this goal?

Options:

A.

Delphi Technique

B.

SWOT analysis

C.

Assumptions analysis

D.

Brainstorming

Question 28

You are the project manager of the NNQ Project for your company and are working with your project team to define contingency plans for the risks within your project. Mary, one of your project team members, asks what a contingency plan is. Which of the following statements best defines what a contingency response is?

Options:

A.

Some responses are designed for use only if certain events occur.

B.

Some responses have a cost and a time factor to consider for each risk event.

C.

Some responses must counteract pending risk events.

D.

Quantified risks should always have contingency responses.

Question 29

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:

A.

Predecessor and successor diagramming

B.

System or process flowcharts

C.

Cause and effect diagrams

D.

Influence diagrams

Question 30

Which of the following processes looks at the complex web of actors, rules, conventions, processes, and mechanisms concerned with how relevant risk information is collected, analyzed and communicated, and how management decisions are taken?

Options:

A.

Risk Communication

B.

IRGC

C.

Risk Response Planning

D.

Risk Governance

Question 31

Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan the risk responses for the NNP Project. Mike would like the project team to work together on establishing risk thresholds in the project. What is the purpose of a risk threshold?

Options:

A.

It helps to identify those risks for which specific responses are needed.

B.

It is a limit of the funds that can be assigned to risk events.

C.

It is a warning sign that a risk event is going to happen.

D.

It is a study of the organization's risk tolerance.

Question 32

Harry is a project manager of a software development project. In the early stages of planning, he and the stakeholders operated with the belief that the software they were developing would work with their organization's current computer operating system. Now that the project team has started developing the software it has become apparent that the software will not work with nearly half of the organization's computer operating systems. The incorrect belief Harry had in the software compatibility is an example of what in project management?

Options:

A.

Issue

B.

Assumption

C.

Risk

D.

Constraint

Question 33

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:

A.

Corresponding impact on project objectives

B.

Time frame for a risk response

C.

Prioritization of identified risk events based on probability and impact

D.

Cost of the risk impact if the risk event occurs

Question 34

Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes and is useful for computer modelers for a range of purposes. Which of the following purposes does the sensitivity analysis include? Each correct answer represents a complete solution. Choose all that apply.

Options:

A.

Increased understanding or quantification of the system

B.

Estimating the average outcome

C.

Model development

D.

Decision making or the development of recommendations for decision makers

Question 35

Beth is the project manager of the BFG Project for her company. In this project Beth has decided to create a contingency response based on the performance of the project schedule. If the project schedule variance is greater than $10,000 the contingency plan will be implemented. What is the formula for the schedule variance?

Options:

A.

SV=EV/PV

B.

SV=PV-EV

C.

SV=EV/AC

D.

SV=EV-PV

Question 36

Frank is the project manager of the NHH Project. He is working with the project team to create a plan to document the procedures to manage risks throughout the project. This document will define how risks will be identified and quantified. It will also define how contingency plans will be implemented by the project team. What document is Frank and the NHH Project team creating in this scenario?

Options:

A.

Resource management plan

B.

Project plan

C.

Project management plan

D.

Risk management plan

Question 37

Which of the following processes involves choosing the alternative strategies, executing a contingency or fallback plan, taking corrective action, and modifying the project management plan?

Options:

A.

Monitor and Control risk

B.

Configuration Management

C.

Integrated Change control

D.

Scope Change control

Question 38

You are the project manager of the GGH 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 quantitative risk analysis process. What things will you need as inputs for the quantitative risk analysis of the project in this scenario?

Options:

A.

You will need the risk register, risk management plan, permission from the functional manager, and any relevant organizational process assets.

B.

You will need the risk register, risk management plan, cost management plan, schedule management plan, 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.

Quantitative risk analysis does not happen through the project manager in a functional structure.

Question 39

You are working as a project manager in your organization. You are nearing the final stages of project execution and looking towards the final risk monitoring and controlling activities. For your project archives, which one of the following is an output of risk monitoring and control?

Options:

A.

Quantitative risk analysis

B.

Risk audits

C.

Requested changes

D.

Qualitative risk analysis

Question 40

You are interviewing members of a project team to test their understanding of the assigned risk responses as risk owners. You and the project manager are working together to evaluate the risk responses to determine their effectiveness in the project. What project management technique are you performing with the project manager in this scenario?

Options:

A.

Risk audits

B.

Stakeholder analysis as the project team is a stakeholder

C.

Risk identification with the project team

D.

Risk analysis

Demo: 40 questions
Total 273 questions