RMP FINAL

RMP Final Mock 1

By pmpsimulator June 20, 2023

Congratulations!

You passed the quiz!

Your score is 76.47%

The average score is 48%

76%
  Restart quiz Exit 

1 / 170

1) A project manager is waiting for material resources from

supplier DELTA. In order to avoid delays, he wants to
implement a contingency plan to buy those resources and
keep the project on track. Within the above context, what
document does include the criteria that trigger the use of a
contingency plan?

Risk Platform

EEE

Risk Management Plan

Risk Register

Explanation:
The Risk register contains the contingency plans and triggers that call for
their execution.

The risk register may include but is not limited to:

· Agreed-upon response strategies;

· Specific actions to implement the chosen response strategy;

· Trigger conditions, symptoms, and warning signs of a risk occurrence;

· Budget and schedule activities required to implement the chosen

responses;
· Contingency plans and risk triggers that call for their execution;

· Fallback plans for use when a risk has occurred and the primary
response proves to be inadequate;

· Residual risks that are expected to remain after planned responses have
been taken, as well as those that have been deliberately accepted; and

· Secondary risks that arise as a direct outcome of implementing a risk

response. Pmbok6 page# 448.
2 / 170

2) You are a project manager of a multinational project for

your organization; you would like to ensure the coverage
of all types of risks. Which of the following can help?

RBS

Brainstorming

AHP

Interviews

Explanation:
The risk breakdown structure (RBS) is a hierarchical framework of
potential sources of risk. An organization may develop a generic or
specific RBS. The RBS helps to identify specific risks in relation to its
category and offers a framework for other risk identification techniques
such as brainstorming. An RBS helps to ensure coverage of all types of
risk and tests for blind spots or omissions. The reference is the standard
for risk
management in portfolios, programs, and projects page# 148.
 3 / 170

3) You are a project manager of a new project. Early in the

project, you conduct risk initial planning to ensure a
common understanding and agreement of the team
members and the stakeholders on the approach and
parameters that will be applied in managing risk in this
project, as well as the scope and objectives of the Project
Risk Management process itself. What other risk-related
tasks should you perform?

Develop the risk register.

Define the risk threshold

Prioritized the project risks

Risk Audit

Explanation:
Establishing risk thresholds is an integral step in linking portfolio,
program, and project risk management to strategy alignment and is
performed as part of early planning. Based on the risk appetite of the
organization, governance may also be responsible for ensuring that risk
thresholds are established and observed, and when the risk should be
escalated to a higher governance level. The reference is the standard for
Risk Management in
Portfolios, Programs, and Projects, page#10.
4 / 170

4) The key areas of focus for the Plan Risk Management

Process are......
 People, tools, and business

People, process, and attitudes

Communication, tools, and attitudes

People, tools, and process

Explanation:
The results of risk management planning are documented in the risk
management plan. The plan serves to provide all project stakeholders
with a common view of how the risk• related activities of the project will
be handled, what has been agreed upon, and a description of the
stakeholders' involvement and responsibilities in these activities. An
overview of the key areas of focus is given in Figure X6-1 (people, tools,
and business). The reference is the standard for risk management in
portfolios, programs, and projects page# 128.
5 / 170

5) You are a project manager of a new airport project. The

risk manager started the risk identification at the end of
the planning stage in order to collect high-quality
information which is required for the identification process.
After the development of the responses of the moderate
and high risks, you noticed that many of the risks are
urgent and the costs of the responses are very high.
Within the above context, what did the risk manager fail to
do?

Invite all stakeholders in the risk identification process because the risk

is everyone's responsibility

Early identification
 Use unbiased data

Engagement of the senior management

Explanation:
Early risk identification is a key success factor that enables key project
decisions to take maximum account of risks inherent in the project and
may result in changes to the project strategy. It also maximizes the time
available for the development and
implementation of risk responses, which enhances efficiency since
responses taken early are often normally less costly than later ones.
6 / 170

6) You are a project manager. Your project has a 60%

chance of a 100,000 USD profit and a 40% chance of a
100,000 USD loss. Within the above context, what is the
expected monetary value (EMV) of the project?

40,000 USD loss

20,000 USD profit

20,000 USD loss

200,000 USD profit

Explanation:
EMV= SUM (IP).
EMV= 0.6100,000- 0.4100,000= 60,000 - 40,000= 20,000 UD profit.
7 / 170

7) Jack is a project manager of an airport project. The risk

manager informs him that a new risk is identified which will
impact the runway if occurs. Jack reviewed the
assessment and the importance of this risk and decided to
change the plan to protect the project objectives. What is
the strategy he will use?

Transfer

Mitigate

Avoid

Accept

Explanation:
Risk avoidance is when the portfolio, program, or project team acts to
eliminate a threat or protect activity from risk impact. It may be
appropriate for a high-priority threat with a high probability of
occurrence and a large negative impact. Avoidance may involve changing
some aspect of the management plan or changing the objective that is in
jeopardy in order to eliminate the threat impact entirely. Should the risk
materialize, it would have no effect with respect to the objective. The risk
owner may also take action to isolate the objective from the risk's impact
if it were to occur. The reference is the standard for risk management in
portfolios, programs, and projects page#36.
8 / 170

8) A project manager works for INTX Inc. He has hired a

subject matter expert to interview the project stakeholders
on certain identified risks within. What will the subject
matter expert do?

Define the dominant persons to avoid bias

Determine the level of probability and impact for each risk event
 Review the risk statements

Determine the impact and the probability of risks on the project

schedule

Explanation:
The level of probability for each risk and its impact on each objective is
evaluated during the interview or meeting. Differences in the levels of
probability and impact perceived by stakeholders are to be expected, and
such differences should be explored. This is done by the subject matter
expert. PMBOK6 page# 423.
9 / 170

9) A risk manager of an IT project. During the execution

phase, a team member has informed the risk manager
that one of the identified risks has occurred. Within the
above context, what should the risk manager do next?

Review and update the risk management plan

Workaround.

Update Risk Register

Escalate the issue to the sponsor

Explanation:
The risk is already identified and occurs, the risk manager has to update
the characteristics of the risk in the register and implement the fallback
plan.
 10 / 170

10) You are a project manager of an IT project. You asked

the risk manager to group the project risks graphically by
subsets of technical risk, commercial risk, and external
risk. Where has this information been captured?

Work Breakdown Structure (WBS)

Risk breakdown structure (RBS)

Risk management plan

Risk register

Explanation:
The RBS is a hierarchical representation of risks according to their risk
categories. Pmbok6 page#406.
11 / 170

11) A risk manager has assessed all identified risks, and

the team is now performing risk urgency assessment and
risk categorization. What tool/technique did the risk
manager use to perform the risk assessment?

Work breakdown structure (WBS).

Assessment session

Risk probability and impact assessment

Risk probability and impact matrix

Explanation:
Probability and impact are assessed for each identified risk. Risks can be
assessed in interviews or meetings with participants selected for their
familiarity with the risk categories on the agenda. Project team members
and knowledgeable persons external to the project are included.
PMBOK6 page# 423.
12 / 170

12) You are a project manager for MAX Inc. You are in the
quantitative risk analysis process. One of the project risks
has a 70% probability, and it will cost the project $90,000 if
the risk occurs. What will be the expected monetary value
of this risk?

-$630000

+$55000

-$59000

None of the above

Explanation:
This risk if occurs will cost the project $90,000, so the risk is threats.
EMV= probability Impact= 0.7 X(-90,000)=- 63,000 $.
13 / 170

13) Which one of the following is the best description of

the risk seeker stakeholder?

Uncomfortable with uncertainty has a low tolerance for ambiguity and

seeks security and resolution in the face of risk

 Implies being reasonably comfortable with most uncertainty, accepting

that it exists as a normal feature of everyday life, including projects and

business. Trends to take uncertainty in their stride, with no apparent or

significant influence on their behavior. And may appear balanced

Sees present risk-taking as a price worth paying for future pay-offs,

seek strategies and tactics that have high future pay-offs. They think

abstractly and creatively and envisage possibilities, enjoying ideas and not

being afraid of change or the unknown. For both threats and opportunities.

He is quite mature, focusing on the longer term and only taking action when

it is likely to lead to significant benefit

Tend to be adaptable and resourceful, enjoying life and not afraid to

take action or even thrill-seeking. This can lead to a somewhat casual

approach towards threats, as welcomes the challenge of tackling the

uncertainty head-on

Explanation:
Risk-averse or adverse is a person or group who feels uncomfortable with
uncertainty, has a low tolerance for ambiguity, and seeks security and
resolution in the face of risk.

Risk Tolerant implies being reasonably comfortable with most

uncertainty, accepting that it exists as a normal feature of everyday life,
including projects and business. The risk• tolerant person or group tends
to take uncertainty in their stride, with no apparent or
significant influence on their behavior. Risk tolerance may appear
balanced, but progress
cannot be made while remaining perfectly balanced.

Risk Neutral sees present risk-taking as a price worth paying for future
pay-offs. Risk-neutral individuals and groups are neither risk-averse nor
risk-seeking, but rather seek strategies and tactics that have high future
pay-offs. They think abstractly and creatively and envisage possibilities,
enjoying ideas and not being afraid of change or the unknown. For both
threats and opportunities, this risk-neutral approach is quite mature,
focusing
on the longer term and only taking action when it is likely to lead to
significant benefit.

Risk Seeker tends to be adaptable and resourceful, enjoy life, and are not
afraid to take action or even thrill-seeking. This can lead to a somewhat
casual approach towards threats, as the risk-seeker welcomes the
challenge of tackling the uncertainty head-on.
14 / 170

14) You are a project manager of a new highway project

for your organization. You are unable to get a consensus
on the project scope from the experts and stakeholders.
This situation has delayed the project for two months. As a
project manager, what should you do to decrease the
delay in the future?

Schedule a meeting with the Stakeholders

Create a Scope change request

Review the project charter

Engage the management including the project sponsor/program

manager/portfolio manager

Explanation:
In the future (during execution) only the change request through CCB will
avoid this type of delay. Engaging the high management will avoid the
competencies between the stakeholders and experts then will help you to
achieve the consensus on the scope during planning only not in the
future.
15 / 170

15) Your company is developing a new cell phone with

new technology, the project is critical to the organization.
The sponsor is worried about the high level of the project
risk that may decrease the stakeholders' support within
the organization. The sponsor informed you that you have
to manipulate the data that will be used in the Monte Carlo
simulator in order to decrease the risk artificially. Within
the above context, what should you do as a project
manager?

Modify the data immediately

Meet the sponsor in a face-to-face meeting

Ignore the request because it's not ethical

Email the sponsor and explains why the data should not be modified

Explanation:
You have to meet with the Sponsor and convince him that the quality and
correct data are very important to get correct results from the Monte
Carlo analysis. He has to know that decreasing the risks artificially will
decrease the effectiveness of the risk management process.
16 / 170

16) In your project, which one of the following options

should the multicultural groups be aware of the project
risks?
 Parent-Child risk relation

Multicultural Alfa risk management tool

References regarding risk attitudes and emotional literacy

Negotiations of risk management practices

Explanation:
The effects of the national cultural differences on risk attitudes and
emotional literacy cannot be ignored, and multicultural groups fail to
understand the effect of the cultural mix at their peril. Clearly, there is a
major role for leadership to ensure that is addressed in the groups for
which they are responsible.
17 / 170

17) The project manager and the project team have done
extensive brainstorming and discussions. The project
manager reviews the organization's process assets and
has come up with a comprehensive list of risks. He and
the team members feel fairly confident now that they know
all the risks. The project manager decides to prioritize the
risks and only focus on the high-priority ones. A team
member indicates that a large number of risks have very
low priority. What should the project manager do next?

Update risk register

Identify new risks

Perform Quantitative Risk Analysis

Plan risk management

Explanation:
Now the project manager is in the performing Qualitative Risk Analysis
process. He should update the risk register and then go to the next
process.
18 / 170

18) The project manager and the project team are just
starting the identify risk process which is scheduled to last
for 9 months. The project team has already identified a
long list of risks that need to be analyzed. How often
should the project manager do risk identification?

According to the instructions of the sponsor.

Many times, until identifying all the risks in the organization

Identifying risks is an iterative process

Twice during the project lifecycle as usual

Explanation:
The purpose of risk identification is to identify risks to the extent
practicable. The emergent nature of risk requires the risk management
process to be iterative, repeating the risk identification activities in order
to find risks that were not previously evident. The reference is the
standard for Risk Management in Portfolios, Programs, and Projects,
Page# 32.
19 / 170

19) A project manager of a new construction project. He

has determined that an activity is dangerous to complete
internally so he decided to hire a licensed contractor to
complete the work. The contractor, however, may not
complete the assigned work on time which could cause
delays in subsequent work. Within the above context,
what is this risk event?

Contingent plan

Secondary risk

Transfer

Avoidance

Explanation:
Due to the transference response by hiring the contractor. But the
contractor may not complete the assigned work on time which could
cause delays in subsequent work, this
is a secondary risk. Secondary risks are risks that arise as a direct result of
implementing a risk response. Risk responses, when implemented, can
have potential effects on the objectives and as such, can generate
additional risks. These are known as secondary risks and are analyzed and
planned for in the same way as those risks that were initially identified.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 37.
20 / 170

20) You are a project manager for the construction of a

new hospital. You are developing a risk response plan.
However, every time a risk response is suggested,
another risk is identified that is caused by the response.
What is the best action for you to do?

Record the new risks in the risk register and continue the Plan Risk

Responses process
 Invite all the employees in the organization to perform Identify Risks

process

Perform the plan responses process for long period to ensure that the

risk responses are clearly defined

Improve the performance of the project

Explanation:
The question about the secondary and residual risks. You have to record
the new risks and continue the Plan Risk Responses process.

Risk responses, when implemented, can have potential effects on the

objectives and as such, can generate additional risks. These are known as
secondary risks and are analyzed and planned for in the same way as
those risks that were initially identified. There may be residual risks that
remain after the responses are implemented. These residual risks are
clearly identified, analyzed, documented, and communicated to all
relevant stakeholders until they are satisfied. The reference is the
standard for Risk Management in Portfolios, Programs, and Projects,
Page#37.
21 / 170

21) You work as a project manager for MERA-BIO Inc.

You are preparing to plan risk responses for your project
with your project team. How many risk responses are
available for a positive risk event in the project?

6
 4

Explanation:
Risk response plans for positive risks are: escalate, exploit, enhance,
share, and accept. The reference is the standard for risk management in
portfolios, programs, and projects page#36.
22 / 170

22) You are a project manager of a critical project. You are

identifying the risks and assigning the risk owners. What
best describes the job of the risk owner?

Identification of new risks

Description of the new risks

Accountable for the risk management plan

Responsible and accountable for managing risks

Explanation:
The risk owner is the individual responsible for monitoring the risk and
for selecting and implementing an appropriate risk response strategy. It
is the responsibility of the risk owner to manage the corresponding risk
throughout the subsequent risk management processes. The reference is
the standard for Risk Management in Portfolios, Programs, and Projects,
Page# 32.
23 / 170

23) A risk manager is identifying risks. The project sponsor

has informed the risk manager that there is a very
important key stakeholder who has a senior management
position who will join risk identification. The other
stakeholders do not feel comfortable when speaking in
front of this stakeholder. What should the risk manager do
next to identify risks?

Use the Delphi technique to gather all stakeholder opinions

Review the risk register to remove all bias

Use brainstorming to remove the bias

Use a change request to remove the emotional conflict and bias

Explanation:
The Delphi technique uses facilitated anonymous polling of subject
matter experts to identify risks in their area of expertise. The facilitator
gathers the experts' initial responses and circulates them without
attribution to the entire group. The group members may then revise their
contributions based on those of others. The process often generates a
consensus of the experts after a few iterations. The reference is the
standard for risk management in portfolios, programs, and projects,
page# 132.
24 / 170

24) You are the project manager of a new project. While

you are in the execution stage, the project team realizes
that the power supply outlet for the purchased equipment
is not compatible with the existing electrical infrastructure
in the project area. This risk was identified as a risk during
the early stage of the project and its plan to buy a new
power adapter. What of the following will be used to fund
this plan?

Contingency reserve
 Budget reserve

Management reserve

Customer reserve

Explanation:
You are in the execution stage and the plan is not yet executed, so it is
waiting for the trigger that "the power supply outlet for the purchased
equipment is not compatible with the existing electrical infrastructure "

The plan is contingent plan was assigned to the risk in the early stage of
the project.

You decided to manage this identified risk not proactive so the fund from
the contingency reserve to fund the contingent plan when the trigger
occurs.

Contingency reserve is time or money allocated in the schedule or cost

baseline for known risks with active response strategies. Reference is
PMBOK6 page # 702.
25 / 170

25) You are a project manager of two projects of equal

strategic organizational importance. However, due to
budget constraints, only one project can be chosen. There
are uncertainties and risks associated with both projects.
Within the above context, which of the following
techniques should you use to decide which project to
choose?

Pareto diagram
 Sensitivity analysis

Project decision Simulator technique

Decision tree analysis

Explanation:
Decision trees are used to support the selection of the best of several
alternative courses of action. Alternative paths through the project are
shown in the decision tree using branches representing different
decisions or events, each of which can have associated costs and related
individual project risks (including both threats and opportunities). The
end-points of branches in the decision tree represent the outcome of
following that particular path, which can be negative or positive. The
decision tree is evaluated by calculating the expected monetary value of
each branch, allowing the optimal path to be selected. PMBOK6 page#
435.
26 / 170

26) A risk manager wants to reduce the ambiguity in the

identified risk statements. Which of the following can be
used?

Cause -Risk- Effect

Probability and impact matrix

Urgency analysis

Risk categorization

Explanation:
Whichever risk identification techniques are used, it is important that
identified risks are unambiguously described in order to ensure that the
risk process is focused on the actual risks and not distracted or diluted by
no risks. The use of structured risk descriptions can ensure clarity. Risk
metalanguage offers a useful way of distinguishing
risk from its cause(s) and effect(s) by describing each risk using a three-
part statement in the following form: "As a result of a cause, the risk may
occur, which would lead to the effect" The relationship between cause,
risk, and effect. The reference is the standard for
risk management in portfolios, programs, and projects page#129.
27 / 170

27) You are a project manager in a petroleum firm. You

have noted that risks identified from the organization's
unite functions are not properly identified and categorized,
making it difficult to develop an effective risk response.
Within the above context, what should you do to address
this situation?

Hire a consultant to identify the project risks and develop the risk

response plans

Coach the functional groups on how to perform the process properly

Modify the risk strategies to address the identified risks

Advise the functional managers to update their risk register

Explanation:
Coach/mentor team on risk management best practices (servant
leadership). Exam content outline/ domain1/task4.

Coach stakeholders on risk categorization strategies. Exam content.

 28 / 170

28) You are a risk manager of a construction project. After

reviewing the risk analysis results, you notice several risks
that occur more frequently than others. What should you
do?

Transfer these risks to a third party

Use the management reserve for these risks

Implement the risk handling strategies for these risks

Adjust the priority and urgency of these risks on the risk register

Explanation:
Since these risks occur more frequently than others you have to
implement the responses immediate to handle these risks.
29 / 170

29) You are a project manager working on a critical

project. During the identify risk process, more than three
hundred risks were identified. The team seems to be
confused regarding which risks focusing on. You have
informed the team to start assessing the likelihood and
impact of each risk. In which process is this part of?

Perform Quantitative Risk Analysis Process

Plan Risk Responses process

Implement Risk process

 Perform Qualitative Risk Analysis Process

Explanation:
Qualitative techniques are used to gain a better understanding of
individual risks. Qualitative techniques consider a range of characteristics
such as probability or likelihood of occurrence, degree of impact on the
objectives, manageability, timing of possible impacts, relationships with
other risks, and common causes or effects. Assessing individual risks
using qualitative risk analysis evaluates the probability that
each risk if it occurs, would have on the portfolio, program, or project
objectives. As such, this assessment does not directly address the overall
risk that results from the combined effect of all risks and their potential
interactions with each other. This can, however, be achieved through the
use of quantitative risk analysis techniques. The reference is the standard
for Risk Management in Portfolios, Programs, and Projects, Page# 33.
30 / 170

30) A risk manager decides to deal with the external risks

by reducing them to the acceptable level that is
documented in the risk management plan. How is he
dealing with the external risks?

Mitigation

Avoidance

Acceptance

Transference

Explanation:
In risk mitigation, action is taken to reduce the probability of occurrence
and/or impact of a threat. An early mitigation action is often more
effective than trying to repair the
damage after the threat has occurred. Where it is not possible to reduce
the probability, a
mitigation response might reduce the impact by targeting factors that
drive the severity. The reference is the standard for risk management in
portfolios, programs, and projects page#36.
31 / 170

31) You are a project manager of a construction project.

While you are implementing the risk response strategy for
a previously identified risk, some secondary risks were
identified but not documented in the risk
register. you have decided to review the risk management
plan to ensure this does not happen in future, similar
cases. What should you do next?

Update the stakeholder management plan to avoid future problems

Assign risk responses for all identified risks in the register

You should monitor secondary risks in the risk register

You should identify secondary or residual risks for associated risk plans

Explanation:
The secondary and residual risks should be expected and identified
during the plan risk
responses process for each response plan before the implementation.
32 / 170

32) You are a program manager of a critical program. Two

months into the program, multiple work streams are
showing issues. At this point, you require that a risk impact
assessment be performed. What will help you to calculate
the impact?

Risk proactive

Risk identification

Risk analysis

Risk response implementation

Explanation:
Risk assessment is a tool/technique of the perform qualitative risk
analysis.
33 / 170

33) Some team members don't take their risk

management responsibilities seriously. They do not
consider risk management as primary and essential to the
project's success and do not believe that the benefits are
significant. What should you do as a risk manager?

Motivate and influence the project team with risk engagement

activities like workshops

Review the risk management responsibilities to ensure that are clearly

defined in the risk management plan

Meet with the team to identify the risk appetite and threshold

Use a common language during the plan risk management process

Explanation:
Recognizing the value of risk management and Individual
commitment/responsibility are key success factors of risk management.
So, the risk manager has to promote the risk management culture in the
project by training, coaching, influencing, and motivating the
project team.

· Recognizing the value of risk management. Portfolio, program and

project risk management is recognized by organizational management,
stakeholders, and team members as a valuable discipline that provides a
positive return on investment.

· Individual commitment/responsibility. Portfolio, program, and project

participants and stakeholders accept responsibility for undertaking risk-
related activities as required. Risk management is everyone's
responsibility

The reference is the standard for Risk Management in Portfolios,

Programs, and Projects, page#17.
34 / 170

34) Risk management is an important aspect and

essential for all projects small and large. Which of the
following is more accurate about the risk management
process?

Iterative through the execution phase

Alternative in the execution phase

Iterative throughout the entire project

Alternative throughout the entire project

Explanation:
Risks will continue to emerge during the lifetime of the project, so Project
Risk Management processes should be conducted iteratively. Risk is
initially addressed during project planning by shaping the project
strategy. Risk should also be monitored and managed as the project
progresses to ensure that the project stays on track and emergent risks
are addressed. PMBOK6 #398.

The emergent nature of risk requires the risk management process to be

iterative, repeating the risk identification activities in order to find risks
that were not previously evident. The reference is the standard for Risk
Management in Portfolios, Programs, and Projects, page#32.
35 / 170

35) A new CEO of an organization is facing difficulty in

approving the risk contingency reserve. The CEO notices
each project has a different way to report risks and their
impacts. The CEO has decided to create new centralized
risk management to resolve the problem. Which of the
following functions will resolve the problem? (Select
three.)

Select the best ways to improve the collecting, analyzing, and

reporting of performance data

Establishing risk sources and ownership for trigger monitoring

Monitoring the impact against the overall project risk exposure

Providing a standard procedure to identify and communicate risks

 Using different identification approaches for identifying project

individual risks

Explanation:
· Establishing risk sources and ownership for trigger monitoring.

· Monitoring the impact against the overall project risk exposure.

· Providing a standard procedure to identify and communicate risks.

Enterprise risk management (ERM) considers all of an organization's risks

as an interrelated collection. It is a systematic, organized, and structured
methodology of examining and measuring all risks facing an
organization, developing suitable responses, and communicating,
monitoring, and managing these to align with the strategic objectives of
the organization. For ERM to deliver maximum benefits, it is essential that
a common approach to risk management be used across the enterprise.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, page#157,
36 / 170

36) You are a project manager of an important project. The

project's customer has requested that the project should
be completed on P9O established on the Monte Carlo
analysis. What should you do to ensure the P9O date is
met?

Update the issue log periodically

Hire additional resources and crash the schedule

Reduce the probability or/and impact of all risks identified on the

sensitivity analysis

You should conduct a qualitative risk analysis process

Explanation:
You should hire additional resources to crash the schedule to complete
the project on
P9O. Other options can't help you to achieve this request.
37 / 170

37) You are a risk manager in the early stage of the

project. You want to define the risk thresholds. Which of
the following are examples of risk thresholds? (Select
three)

A Manager has defined a risk rating matrix based on the probability

and impact of the risk on the project schedule and budget.

A risk with a less than two months schedule delay will be

communicated through the areas of concerns section in the status report

instead of the risk register.

An organization walks away from a joint venture project due to a 30%

chance of loss.

A department manager agreed that top project risks with more than

200,000 USD impacts would be escalated to the portfolio manager.

Mega organization searches to establish a consistent method for

evaluating and responding to risk internally.

Explanation:
· A risk with a less than two months schedule delay will be communicated
through the areas of concerns section in the status report instead of the
risk register.

· An organization walks away from a joint venture project due to a 306

chance of loss.

· A department manager agreed that top project risks with more than
200,000 USD
impacts would be escalated to the portfolio manager.

The risk threshold is the measure of acceptable variation around an

objective that reflects the risk appetite of the organization and its
stakeholders. A key element of risk strategy is the establishment and
monitoring of enterprise, portfolio, program, and project risk thresholds.
Examples of risk thresholds include

· A minimum level of risk exposure for a risk to be included in the risk

register.

· Qualitative or quantitative definitions of risk rating.

· The maximum level of risk exposure can be managed before an
escalation is triggered. The reference is the standard for Risk
Management in Portfolios, Programs, and Projects,
page#10
38 / 170

38) A project manager has identified a risk that may cause

health concerns for the workers completing the tasks. The
project manager has decided to hire a subcontractor to
complete these tasks because the risk is very high to
accept internally. Which of the following risk responses did
the project manager select?
 Avoid

Transfer

Accept

Mitigate

Explanation:
The transfer involves shifting the responsibility of a threat to a third party
to manage the risk and to bear the impact if the threat occurs. Risk
transfer often involves payment of a risk premium to the party taking on
the threat. The reference is the standard for Risk Management in
Portfolios, Programs, and Projects, page# 36.
39 / 170

39) You are a risk manager of a large project. You want to

ensure that the organizational process assets are updated
as a result of risk management activities. How will you do
this?

Ensure that Enterprise environmental factors are updated

Ensure that the project sponsor is informed of all information

Ensure that the status of risks is regularly communicated to

stakeholders

Perform periodic risk management process audits

Explanation:
The result of the risk management process audit is consolidated with
specific information with respect to the experience of risk in the portfolio,
program, or project. The results are highlighted, and potential actions are
proposed for applying them in the future. This includes any generally
applicable guidelines for the organization, and the results can lead to an
update of the corresponding organizational process assets. The reference
is the standard for Risk Management in Portfolios, Programs, and
Projects, Page# 39.
40 / 170

40) You are assigned as a project manager for a

construction project. Your organization is a risk seeker,
and the company has specific goals and objectives to
achieve its vision. The overall risk of your project is more
than
the risk levels in the risk management plan. What are the
best actions the company should take with the project
according to the current scope?

Use Monte Carlo simulation to know the possible risk outcomes

Cancel the project, as the overall level of risk remains unacceptable

Monitor the risks closely for any significant changes

Meet the stakeholders to validate the stakeholder risk appetite

Explanation:
The risk management plan contains the appetite, tolerance, and
thresholds that have been determined according to the stakeholder's
attitude (risk seeker). So, the approved risk level in the plan is based on
the stakeholders' risk attitude (risk seeker). If the overall risk is more than
the risk level in the plan, the company should cancel the project because
the overall risk is more than the risk tolerance, so the organization cannot
withstand.
Risk tolerance is the degree, amount, or volume of risk that an
organization or individual will withstand.
41 / 170

41) You are a risk manager of a complex project. The

expected monetary value EMV of the project is 3,000,000
LSD. You are concerned about this situation and decides
to review the related plans and processes to evaluate the
degree of variation from the baseline. Now you want 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 analysis should be
documented?

Lessons learned

Change log

Risk management

Project communication management plan

Explanation:
The Project communications management plan includes information to
be communicated, including language, format, content, level of detail,
Time frame and frequency for the distribution of required information,
the Person responsible for communicating the information, Person or
groups who will receive the information. and where the information
should be documented. PMB0OK6 page#377.
42 / 170

42) A project manager of an IT development project. He is

currently developing a risk management plan. During this
process, he needs to determine the acceptable level of
overall project risk exposure. What should he do first?

Review the organizational process assets

Define the risk appetites of key project stakeholders

Identify all the knowable project risks

Create risk responses to all the project risks to mitigate overall project

risk

Explanation:
The risk appetite of key stakeholders of the project should be recorded in
the risk management plan.
Risk appetite is the degree of uncertainty an organization or individual is
willing to accept in anticipation of a reward. Risk appetite guides the
management of risk and the parameters the organization uses in
deciding whether or not to take on risk. In addition,
risk appetite defines what types of risks an organization pursues. A risk
appetite determination represents the start of embracing risk. Figure 2-1
shows the interrelationship of risk appetite and its direct influence on
business strategy, the risk management framework, and the underlying
policy and processes. The resulting risk appetite determination defines
the amount and type of risk that the organization is willing to take in
order to meet its strategic objectives. The reference is the standard for
Risk Management in Portfolios, Programs, and Projects, Page#9.
43 / 170

43) You are a risk manager of a construction project. Now

you are calculating the reserve that should be allocated for
the identified risks but unclear how this risk can be
proactively managed. What is this reserve?
 Budget reserve

Management reserve

Cost proactive reserve

Contingency Reserve

Explanation:
Contingency Reserve. Time or money allocated in the schedule or cost
baseline for known risks with active response strategies. The reference is
the Standard for Risk Management in Portfolios, Programs, and Projects,
page# 165.
44 / 170

44) You have been assigned to manage an existing

project about a major change in the organization. The
project has experienced three times past failure. The
sponsor believes that the project has not any major risks
that may impact the project schedule, quality, and budget
according to the reports from the previous project
manager. After you have performed the risk management,
you discovered that the project timeline is wrong and two
months behind the schedule. What is your next action if
you know that the organization's risk appetite and
tolerance are low?

Escalate to the project steering committee with a full report and

recommendations to reduce the scope in order to complete the project on

time.
 Review the schedule and recommend fast-tracking or crashing the

critical path.

Meet the sponsor to discuss the project schedule and agree on a

strategy for updating the risk management plan and risk response strategies.

Update risk management plan, and risk response plans and include

more resources to complete the project on time.

Explanation:
A and D are wrong because you have to inform the sponsor about the
wrong information that he knows about the project before the escalation
or taking any actions. Therefore, C is correct.

B is wrong because you already reviewed the schedule and it's two
months behind the schedule.
45 / 170

45) A project manager works in the identify risk process

developing a risk register. The risks register documents
details about all the identified risks during the lifecycle of
the project. What tool/technique should the project
manager use to generate a list of all possible risks?

Sensitivity analysis

Brainstorming

Status Meeting

Trend analysis
Explanation:
Brainstorming is a technique for generating spontaneous ideas either
individually or from a group of people. When brainstorming is used as a
group risk identification method, the ideas and thoughts of one
individual serve to stimulate ideas in the other participants.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects
Page# 131.
46 / 170

46) You are a project manager for the XYZ project. Critical
deliverables are delayed because a key subject matter
expert doesn't have enough time to allocate the tasks.
What will you do to avoid this situation in the future?

Cross-train others to reduce the SME workload

Extend the schedule to wait for the Expert

Replace the expert

Do nothing

Explanation:
In risk management you have to be proactive, so you have to train your
team on risk management to save your project from risks. Coach/mentor
team on risk management best practices (servant leadership). Exam
content outline/ domain1/task4.

Coach stakeholders on risk categorization strategies. Exam content

outline/Domain3/task1.
 47 / 170

47) A project manager of a new project. He is currently

performing the quantitative risk analysis. He is using a
technique that computes the project model many times
with the input values chosen at random for each
iteration. The technique creates a probability distribution
from the iterations for the project schedule. What
technique is he using?

Model simulator

Forced field technique

Pareto modeling

Monte Carlo Technique

Explanation:
Monte Carlo Simulation. An analysis technique where a computer model
is iterated many times, with the input values chosen at random for each
iteration driven by the input data, including probability distributions and
probabilistic branches. Outputs are generated to represent the range of
possible outcomes for the project. PMBOK6 page#711.
48 / 170

48) A project manager working on a strict deadline. He

finds a work package on the critical path which is complex
and will delay the final delivery of the product. After
consulting the customer, he decides to cancel this work
package from the project. Within the above context, which
risk response strategy does the project manager use?
 Avoid

Exploit

Transfer

Acceptance

Explanation:
The project manager uses risk avoidance by canceling the work package.

Risk avoidance is when the portfolio, program, or project team acts to

eliminate a threat or protect activity from risk impact. It may be
appropriate for a high-priority threat with a high probability of
occurrence and a large negative impact. Avoidance may involve changing
some aspect of the management plan or changing the objective that is in
jeopardy in order to eliminate the threat impact entirely. Should the risk
materialize, it would have no effect with respect to the objective. The risk
owner may also take action to isolate the objective from the risk's impact
if it were to occur. The reference is the Standard for Risk Management in
Portfolios, Programs, and Projects, page# 36.
49 / 170

49) During the plan risk management process, you have

to consider some factors to enhance the process. What
are the success factors for the plan risk management
process?

Identification of bias and correcting for it, Acceptance by the

stakeholders, trend analysis

Identification of bias and correcting for it, Management reserve, and

follow steering committee regulations and Practices

 Acceptance by the stakeholders, Alignment with the internal and

external constraints and priorities, and Balance between cost or effort and

benefit

Avoid all risks, Acceptance by the stakeholders, Identification of bias,

and correcting for it

Explanation:
The success factors for plan risk management are:

· Acceptance by the stakeholders,

· Identification of bias and correcting for it,

· Alignment with the internal and external constraints and priorities,

· Balance between cost or effort and benefit,

· The completeness with respect to the needs of the risk management
process. The reference is the Standard for Risk Management in Portfolios,
Programs, and
Projects, Page#31, 32.
50 / 170

50) The building of a factory has been stopped for two

months due to region-specific prohibitions. What should
you do as a project manager to avoid this issue?

Identified this as a risk in the risk register.

Define and prioritize the project constraints

Crashed/fast-track the project schedule

 Use the assumptions probability method to avoid the risk

Explanation:
The region has specific restrictions. So, you should have identified,
analyzed t, and assigned an appropriate response (avoid, mitigate,
accept, escalate).
51 / 170

51) James is the risk manager of a construction project.

James is newly assigned to the project. The project is in
the execution stage. Now he and some of the
stakeholders are in the meeting reviewing the project
documents to identify opportunities for early completion.
Which of the following documents will be updated at the
end of this review session?

Project charter

Scope baseline

Risk register

Risk management plan

Explanation:
The identification process is iterative; you can identify the risks during the
project lifecycle. Once you identify a risk you have to add t to the risk
register.
52 / 170

52) You are a project manager; you need a

communication form that helps in reducing
misunderstandings and improving teamwork. What is this
form?

Informal reports

Push communication

Face-to-face discussion

Written communication

Explanation:
Face-to-face discussion is interactive communication and it is the best
effective way.
53 / 170

53) Which of the following factors can enhance the

perform the qualitative risk analysis process?

Individual commitment/responsibility

Appropriate Project Model

Iterative Qualitative Risk Analysis

Open and honest communication

Explanation:
Key success factors for performing qualitative risk analysis:
· Use the agreed approach,
· Use agreed definitions of risk terms,
· Collect credible information about risks,
· Perform iterative qualitative risk analysis.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 34.
54 / 170

54) You are a project manager of a new train station in

your city. The design and engineering divisions propose to
replace some resources in your project with some highly
skilled resources for the same cost as the existing cost. As
a project manager, what should you do?

You should perform the impact analysis of the new resources and then

exploit the opportunity

Issue a change request to avoid the impacts on the project objectives

Agree to use the new resources to ensure the project's effectiveness

Refuse the proposal

Explanation:
The situation is an opportunity, you have to identify, analyze and assign
an appropriate response. So you have to exploit that opportunity to
accelerate the schedule and before doing that you have to perform the
impact analysis on the project's objectives.
55 / 170

55) The risk manager of a critical project facilitates a

meeting to develop the project risk management plan.
Which of the following factors does the risk manager need
to consider to ensure the effective development of a risk
management plan? (Select two)

Aligning to project constraints and priorities

 Obtaining stakeholder acceptance

Maximize implementation costs

Utilize up-to-date risk management techniques

Mitigate all Risks

Explanation:
SUCCESS FACTORS FOR PLAN RISK MANAGEMENT.
The criteria for a valid risk management plan include:
· Acceptance by the stakeholders,
· Identification of bias and correcting for it,
· Alignment with the internal and external constraints and priorities,
· Balance between cost or effort and benefit,
· Completeness with respect to the needs of the risk management
process.
The reference is the standard for risk management in portfolios,
programs, and projects page# 31&32.
56 / 170

56) You are a risk manager on a large firm-fixed-priced

contract. You have an up-to-date risk register with
accurate and detailed information. What should you do
next?

Delete a few risks from the register to reduce the project risk exposure

Create reports to assess and communicate the project risk level

Inform the client that the project contingency reserve has been

exhausted

Determine the risk exposure that exceeds contingency reserve

Explanation:
The risk register is up-to-date with accurate and detailed information. So,
the contingency reserve is accurate and adequate for the remaining risks.
Therefore A, C, and Dare wrong.
57 / 170

57) You are a project manager of a new project. Now the

project is in the execution stage. While you are
implementing the risk responses, you determine that the
contingency reserve has been depleted. Within the above
context, what should you have done to avoid this
situation?

Performance analysis

Risk analysis

Risk Reserve analysis

Risk audit

Explanation:
The reserve analysis should have been performed to determine if the
remaining reserve is adequate.

Reserve analysis is an analytical technique to determine the essential

features and relationships of components in the work management plan
to establish a reserve for the schedule duration, budget, estimated cost,
or funds. Tracking the state of the reserve through execution provides
summary information as to the evolution of the status of the
corresponding risks. This information can be useful when reporting up to
the organization's management structure. In addition, once a risk occurs
or ceases to be current (i.e., when it can no longer impact), the
corresponding reserve needs to be reviewed to assess whether it still
provides the agreed-upon level of confidence The Reference is the
standard for Risk Management in Portfolios, Programs, and Projects,
Page#147.
58 / 170

58) You are a project manager of a new power plant

project. You have requested the risk manager to facilitate
risk identification on the project. While the risk manager
facilitating this work, you want to ensure that stakeholders
interact and provide their expertise so that an exhaustive
list of risks is created. Which risk identification technique
should the risk manager utilize?

Nominal group technique

RBS

Delphi technique

Document Review

Explanation:
Expertise definition is "expert skill or knowledge in a particular field" or
"technical expertise",

So, the question hints at Delphi Technique.

The Delphi technique uses facilitated anonymous polling of subject

matter experts to identify risks in their area of expertise. The facilitator
gathers the experts' initial responses and circulates them without
attribution to the entire group. The group members may then revise their
contributions based on those of others. The process
often generates a consensus of the experts after a few iterations. The
reference is the standard for risk management in portfolios, programs,
and projects page#132.
59 / 170

59) You are a project manager of an important project for

your organization. You and your team have identified a
risk that could have an impact on the project of $333,000.
This risk has an 80% probability of occurrence. The
project identifies a solution that will reduce the probability
of the risk event to 10%, but it will cost $200,000 to
implement. Management agrees with the solution and
asks that you include the risk response in the project plan.
What risk response is this?

Avoidance because the risk response caused the project plan to be

changed

This is a change request

Mitigation because the response reduces the probability

Transference

Explanation:
It is mitigation because the response reduces the probability from 80% to
10%.

In risk mitigation, action is taken to reduce the probability of occurrence

and/or impact of a threat. An early mitigation action is often more
effective than trying to repair the
damage after the threat has occurred. Where it is not possible to reduce
the probability, a
mitigation response might reduce the impact by targeting factors that
drive the severity. The reference is the Standard for Risk Management in
Portfolios, Programs, and Projects, page# 36.
60 / 170

60) You are a risk manager of an important project. You

document the causes and effects of risk in the risk register
but need to ensure the risk is adequately described.
Which aspect is critical for you to consider when
describing the causes?

The causes should be considered a project objective

The cause should be considered a hypothetical scenario

The causes represent actual conditions

Each cause is documented clearly and concisely

Explanation:
The risk causes should be documented clearly and concisely to create an
appropriate risk response strategy.
61 / 170

61) You are using a method that allows participants to

anonymously identify risks. What risk identification method
you are using?

Ishikawa

Brainstorming

Delphi technique

SWOT analysis
Explanation:
The Delphi technique uses facilitated anonymous polling of subject
matter experts to identify risks in their area of expertise. The facilitator
gathers the experts' initial responses and circulates them without
attribution to the entire group. The group members may then revise their
contributions based on those of others. The process often generates a
consensus of the experts after a few iterations. The reference is the
Standard for Risk Management in Portfolios, Programs, and Projects,
page# 132.
62 / 170

62) A project manager is performing the qualitative risk

analysis process with the project team. The team is relying
on the risk management plan to help the project manager
to determine the budget, schedule for risk management,
and risk categories. The project manager discovers that
the risk categories have not been created. When should
the risk categories have been created?

Plan risk response process

identify risk process

Plan risk management process

Scope process

Explanation:
Risk categories. Provide a means for grouping individual project risks. A
common way to structure risk categories is with a risk breakdown
structure (RBS), which is a hierarchical representation of potential sources
of risk. An RBS helps the project team consider the full range of sources
from which individual project risks may arise. This can be useful when
identifying risks or when categorizing identified risks. The organization
may have a generic RBS to be used for all projects, or there may be
several RBS frameworks for different types of projects, or the project may
develop a tailored RBS. Where an RBS is not used, an organization may
use a custom risk categorization framework, which may take the form of
a simple list of categories or a structure based on project objectives.
Pmbok6 page# 405.
63 / 170

63) A project manager of a new project for his company.

The team members informed him that they have found a
way to complete the project work for less cost than what
was planned. The project team proposes a new software
that will help to automate the project work. While the
software and the associated training costs $17,000 it will
save the project nearly $45,000 in total costs. The project
manager agrees to the software and changes the project
management plan accordingly. What type of risk response
has been used in this situation?

Avoidance

Enhancing

Exploiting

Sharing

Explanation:
The exploit strategy may be selected for high-priority opportunities
where the organization wants to ensure that the opportunity is realized.
This strategy seeks to capture the benefit associated with a particular
opportunity by ensuring that it definitely happens, increasing the
probability of occurrence to 1006. The reference is the Standard
for Risk Management in Portfolios, Programs, and Projects, Page# 36.
64 / 170

64) You are a risk manager for the construction of a

chemical laboratory. You are unfamiliar with this type of
project; you are unsure of where to start objectively
identifying risks. What should you do?

Identify any threat and opportunity risks in your mind

Determine the safety risk thresholds

Review the published operational experience reports

Import a risk register from other industrial chemical laboratories

Explanation:
Information relevant to risks for a current project can be obtained by
reviewing databases of risks that occurred in previous similar situations.
Such databases might arise from post-project reviews or lessons learned
exercises. They may also exist as repositories of historical information,
either within an organization or industry body.
Historical data. Based on past experience, it is important to identify
systemic risks and automate their treatment. The reference is the
standard for risk management in portfolios, programs, and projects
page# 58
65 / 170

65) A project manager meets the stakeholders at a risk

review meeting. During this meeting, one of the main
vendors highlights that the mitigation plan for a cost and
quality risk has generated a new risk. What should the
project manager do?
 Add the new risk to the risk register as a part of the watch list

Plan additional responses for the new risk

Assign a risk-avoidance plan

Accept the new risk actively

Explanation:
Risk responses, when implemented, can have potential effects on the
objectives and as such, can generate additional risks. These are known as
secondary risks and are analyzed and planned for in the same way as
those risks that were initially identified. So,
you have to identify, analyze and add additional responses for the new
risk. The reference is the Standard for Risk Management in Portfolios,
Programs, and Projects, Page# 37.
66 / 170

66) Two risks A and B are documented in the risk register.

Risk A: The probability of occurrence is 40% and its
monetary impact on the project is 100,000 USD. Risk B:
The probability of occurrence is 60% and its monetary
impact on the project is 20,000 USD. What is the total
contingency budget that should be created?

80,000 USD

52.000 USD

100,000 USD

20,000 USD
Explanation:
Contingency reserve = EMV of Risk A+ EMV of Risk B

= 0.40 X100,000 +0.6X 20,000 = 52,000 USD.

67 / 170

67) You are a risk manager for an environmental

protection project. You have started the process of
monitoring risks. The project manager has asked the
project team to document the results of this process. How
should these results be utilized in the future?

To Create more change requests in the future

To ensure the information is recorded for lessons learned

To comply with the industrial rules

To allocate the risk accountability

Explanation:
Update the Lessons learned register is an output of this process. The
lessons learned register is updated with any risk-related lessons learned
during risk reviews so these can be used in later phases of the project or
future projects. PMB0K6 page# 458.
68 / 170

68) One of the key stakeholders asks you about the

difference between performing qualitative and quantitative
risk analysis. What is the best reply?

Quantitative risk analysis assesses the discrete probability of

occurrence and impact on objectives if it does occur, qualitative risk analysis

predicts likely project outcomes based on combined effects of risks

Qualitative risk analysis addresses individual risks descriptively,

quantitative risk analysis predicts likely project outcomes based on the

combined effects of risks

Quantitative risk analysis assesses the discrete probability of

occurrence and impact on objectives if it does occur; qualitative risk analysis

leads to quantitative risk analysis

Quantitative risk analysis adds to the risk register, qualitative risk

analysis leads to quantitative risk analysis

Explanation:
B is the best answer. Qualitative Risk Analysis:- Addresses individual risks
descriptively, Assesses the discrete probability of occurrence and impact
on objectives if it does Occur, Prioritizes individual risks for subsequent
treatment, Adds to the risk register, and Leads to quantitative risk
analysis

Quantitative Risk Analysis:- Predicts likely project outcomes based on

combined effects of risks, Uses probability distributions to characterize
the risk's probability and impact, Uses project model (e.g. schedule, cost
estimate), Uses a quantitative method, requires
specialized tools - Estimates likelihood of meeting targets and
contingency needed to achieve the desired level of comfort, Identifies
risks with the greatest effect on overall project risk.
69 / 170

69) You are a project risk manager of a pharmaceutical

organization. your organization faces immense
competition in the market and decides to accelerate a key
project. What should you do first if you are the risk
manager of this project?

Discuss the matter with the project's stakeholders

Update the risk management plan

Evaluate the resources

Update the risk register

Explanation:
You should update the risk register since the project acceleration will
increase the risk of
the project.
70 / 170

70) Tommy is the project manager of a big project for his

organization BE Inc. He receives the updated project
schedule report from the consultant; the schedule has
details about dates and durations for critical events on the
project activities. The report is received 30 minutes before
the meeting with the CEO to present the up-to-date
schedule of the critical path. Tommy promised the CEO to
discuss the project schedule many times before. While
Tommy is reviewing the report, he realizes that the
schedule is not realistic and new major risks will be arising
due to that. Many of the key stakeholders want to submit
the report to the CEO. The meeting with the CEO has
been canceled three times before. What should Tommy do
before the meeting with the CEO?
 Present the report to the CEO with a comment that the schedule will be

updated because new information is received and inform him about the

current dates at this time.

Request rescheduling of the meeting before presenting the schedule to

the CEO, and inform him that new major risks were identified and need

assessments and analysis.

Present the schedule to the COE and don't inform him about the new

situation.

Meet the stakeholders to discuss options and solutions.

Explanation:
A is correct, since the meeting is canceled three times before, and he
promised the CEO to discuss the project schedule as well as only 30
minutes before the meeting, so he has to present the report to the CEO
with a comment that the schedule will be updated because new
information is received and informs him about the current dates at this
time.

B is wrong; he can't request a rescheduling of the meeting since he

promised the CEO
many times and has no time to do that.

C is wrong because this behavior is unethical and may impact the project
and the CEO's decisions.

D is wrong because no time to meet the stakeholders.

 71 / 170

71) A project manager of a telecommunication network

project. This project contains 50 stations and 300 towers.
While the project is in the execution stage, he identifies
many of the technical problems. Which of the following
tools can help the project manager?

Brainstorming

Interviews

Technical performance measurement

Cause and effect diagram

Explanation:
Technical performance analysis. Technical performance analysis compares
technical accomplishments during project execution to the schedule of
technical achievement, It requires the definition of objective, quantifiable
measures of technical performance, which can be used to compare actual
results against targets. Such technical performance measures may include
weight, transaction times, number of delivered defects, storage capacity,
etc. Deviation can indicate the potential impact of threats or
opportunities. PMBOK6 page# 456.
72 / 170

72) You are searching for the risk responses effectiveness

from the past projects in the organizational process
assets. Where would you find this information within the
organizational process assets?

In the approved change requests and stakeholder register

 Stakeholder register, lessons learned, and risk reassessment

Risk effectiveness matrix and risk audit

Lessons learned and risk audit

Explanation:
Risk response effectiveness is the main result of the risk audit. And all the
findings from the risk audit will be recorded in the lessons learned.

Risk response effectiveness is a part of the items that will be recorded in

the lessons learned.
73 / 170

73) During the Monitoring and controlling process. If you

are a proactive risk manager, what will you do during this
process?

Collect risk lessons learned and create a risk management plan

Create a risk management plan, develop the risk strategies and stay

alert for risk events

Review lessons learned to identify risks, qualify, quantify and lower the

risk ratings

Review identified risks, stay alert for risk events, and remind team

members to keep the risk manager informed about risk triggers

Explanation:
A, B is wrong because creating a risk management plan in the plan risk
management process. C is wrong because reviewing the lessons learned
to identify risks in the risk identification process.
D is correct. Reassessment or reviewing identified risks, monitoring the
risk, and reporting to the risk manager, all these activities are in the
monitoring and controlling process.
74 / 170

74) The sponsor of your project is unwilling to make

decisions that may cause negative impacts on the project
objectives. Within the above context, what is the risk
attitude of the sponsor?

Seeker

Averse

Insufficient data to decide the risk attitude of the sponsor

Tolerant

Explanation:
Risk-averse or adverse is a person or group feels uncomfortable with
uncertainty, has a low tolerance for ambiguity, and seeks security and
resolution in the face of risk.
Risk Tolerant implies being reasonably comfortable with most
uncertainty, accepting that it exists as a normal feature of everyday life,
including projects and business. The risk- tolerant person or group tends
to take uncertainty in their stride, with no apparent or significant
influence on their behavior. Risk-tolerance may appear balanced, but
progress cannot be made while remaining perfectly balanced.
75 / 170

75) The management of your organization has requested

you to determine the probability of achieving the specific
cost target of the project. Which of the following tools are
used?

Sensitivity analysis

Decision tree analysis

Force Field Analysis

Monte Carlo simulation

Explanation:
Typical outputs include a histogram presenting the number of iterations
where a particular outcome resulted from the simulation, or a cumulative
probability distribution
(S-curve) representing the probability of achieving any particular
outcome or less. An
example S-curve from a Monte Carlo cost risk analysis. PMBOK6,
page#433.
76 / 170

76) One of the important outputs of the control risk

process is the project document updates. Due to that, the
risk register will be updated by the outcomes of.....

Risk analysis and risk reserve analysis

Risk Reassessments and risk audits

Risk reviews and risk register analysis

Profile analysis and stakeholders' risk attitude

Explanation:
Project documents that may be updated as a result of the Control Risk
process include, but are not limited to the risk register by the outcomes
of risk reassessments, risk audits, and periodic risk reviews. Pmbok6 page
# 458.
77 / 170

77) You are a project manager. You need a tool to create a

quick and simple approach to risk identification to
communicate the project risk with the stakeholders. Which
following should you choose to provide a quick and simple
list of the project risks?

Nominal group technique

Root cause analysis

Checklist analysis

Assumptions/Constraints analysis

Explanation:
Risk identification checklists can be developed based on historical
information and knowledge that has been accumulated from previous,
similar portfolios, programs, or projects and other sources of information.
The lowest level of a risk breakdown structure can also be used as a risk
checklist. While a checklist can be quick and simple, it is impossible to
build an exhaustive one. Care should be taken to explore items that do
not appear on the checklist. The checklist should be reviewed during
closure to improve it for use in the future. The reference is the Standard
for Risk Management in Portfolios, Programs, and Projects, Page#
1318132.
 78 / 170

78) During the execution of your project, a risk remains

after implementing a risk response plan, how can you deal
with the remaining risk?

workaround

Fallback plan

Analyzed and planned for in the same way as those risks which were

initially identified

Analyze this risk and update the risk register

Explanation:
The residual risk should be clearly identified, analyzed, documented, and
communicated to all relevant stakeholders. The reference is the standard
for Risk Management in Portfolios, Programs, and Projects, Page#37.
79 / 170

79) Which of the following indicates that the organization

has a successful risk management process?

The number of identified and unidentified risks increased

The high-risk Projects are given additional time

Accelerate the project with additional resources

The profitability of the organization has increased due to the risk

management process
Explanation:
An effective and successful risk management process will improve the
effectiveness of the project and increase the chance of success. Due to
this, the profitability will be increased.
80 / 170

80) Kelly is a project manager of a telecommunications

project. She wants an appropriate channel for risk
response assistance, risk visibility, and escalation support.
Which of the following is the correct choice?

Project management office

Program management

Change the control board

Project governance board

Explanation:
The project management office PMO provides support, assistance,
templates, and
training for the project.
81 / 170

81) You are a risk manager for the construction of a new

hospital. You want to determine what is to be measured,
how it is to be measured, and what project outcomes are
to be measured. In which processes group should the
above be established?

Closing
 Initiating

Monitoring and controlling

Planning process

Explanation:
"What is to be measured, how it is to be measured, and what project
outcomes are to be measured" are documented in the project
management plan and the subsidiary plans during the planning process.
82 / 170

82) You heard your team members discussing a chosen

mental disposition towards uncertainty, adopted explicitly
or implicitly by individuals and groups, driven by
perception, and evidenced by observable behavior and
about an uncertain event or condition that, if it occurs, has
a positive or negative effect on a project's objectives.
What are your team members discussing?

Risk Tolerance/risk-averse

Risk Tolerance/risk

Risk Tolerance/Event

Risk attitude /Risk

Explanation:
Definition of attitude/definition of risk. Reference is the standard for Risk
Management in
Portfolios, Programs, and Projects, Page#8.
 83 / 170

83) You are a project manager of a pipeline project. You

and the project team have identified a risk with a high
probability of occurrence and a high-cost impact on the
project. The customer decides that the requirements
surrounding the risk should be removed from the project.
The removal of the requirements does affect the project
scope, but it can release the project from high-risk
exposure. What risk response
has been taken in this project?

Exploit

Avoidance

Accept

Mitigate

Explanation:
Risk avoidance is when the portfolio, program, or project team acts to
eliminate a threat or protect activity from risk impact. It may be
appropriate for a high-priority threat with a high probability of
occurrence and a large negative impact. Avoidance may involve changing
some aspect of the management plan or changing the objective that is in
jeopardy in order to eliminate the threat impact entirely. Should the risk
materialize, it would have no effect with respect to the objective. The risk
owner may also take action to isolate the objective from the risk's impact
if it were to occur. The reference is the standard for Risk Management in
Portfolios, Programs, and Projects, page 36
 84 / 170

84) You are a project manager of a construction project.

During the execution, you have received reports from a
supplier that he is over capacity, which may delay the
delivery. What should you update next?

Risk register

OPA

Issue log

Cost baseline

Explanation:
You should identify this risk, record it in the risk register, perform an
analysis to assess the impact of this delay on the project objectives, and
assign a risk response plan.
85 / 170

85) You are a project manager in your organization, you

identified all knowable risks that may impact the project,
assessed, prioritized and response plans are assigned to
the risks. While you are in the execution stage of the
project, one unidentified risk occurs. How will you deal
with this risk?

Workaround

Fallback plan

Contingency Reserve
 Expert judgment

Explanation:
The Unidentified risks are handled by workaround if occur. Workarounds
are responses that were not initially planned but are required to deal with
emerging risks that were previously unidentified or accepted passively.
86 / 170

86) Which of the following are regulatory requirements

when evaluating the project environment for risk
threats/opportunities?

Project information

Organizational policies, processes, standards, and procedures

Organizational channels requirements

Portfolio information and the acquisition system

Explanation:
Organizational standard policies, processes, and procedures are legal and
regulatory requirements.
87 / 170

87) You are a risk manager recording the causes and

effects of risks in the risk register but need to ensure the
risk is adequately described. Which one of the following is
critical for the risk manager to consider when describing
the causes?

Each cause has a risk manager

 Each cause should be approved by the executive manager

Each cause should represent real conditions

Each cause has a degree of uncertainty

Explanation:
The risk manager needs to determine the degree of uncertainty to define
how will address the risk properly.
88 / 170

88) You are a project manager of a new project. You are

discussing with the project management office PMO the
implementation of risk audits in the project. What is the
purpose of a risk audit?

Allows verifying the project management plan

Allows validating the existence of a risk management plan

Allows considering the effectiveness of the risk management response

strategy

Allows considering the effectiveness of the entire risk management

process

Explanation:
The risk audits examine and document the effectiveness of risk responses
in dealing with identified risks and their root causes, as well as the
effectiveness of the risk management process.
 89 / 170

89) A petrochemical organization starts a new project with

a high budget. The organization pursues high margins on
investments and has an aggressi ve growth plan. The
company has a central project management office to
support and assist the new projects and record
information on the past project's performance. The
executive managers regularly request comprehensive
reports. The project manager has a
very good experience in project management and risk
management. The PMO regularly requires full
documentation of the project management plans and in
particular risk management. Within the above context,
what is the risk management strategy of this project?

The stakeholders' risk appetite is high, leverage historical information,

define standard metrics and reports, and create a formal risk management

plan.

The stakeholders' risk appetite is high, leverage historical information,

use informal metrics and reports, and use an informal risk management plan.

The stakeholders' risk appetite is low, leverage historical information,

define standard metrics and reports, and create a formal risk management

plan.

The stakeholders' risk appetite is low, leverage historical information,

use informal metrics and reports, and use an informal risk management plan.

Explanation:
It's clear that the organization has an aggressive plan to achieve high
margins, so it's willing to take a high degree of risk (high appetite). The
PMO is the central follow up all the projects, so the reports and metrics
should be in specific formats (standard formats). The PMO records the
data from the past projects to support and assist the new projects, so the
project leverages the historical information.
A project management office (PMO) is a management structure that
standardizes the project-related governance processes and facilitates the
sharing of resources, methodologies, tools, and techniques.
90 / 170

90) A project manager of a one-year project with a budget

of US$4 million has completed about 60% of the work
after 6 months. The actual cost incurred is about US$3
million. During the risk analysis, the risk manager
determines that the Splits 1.2 and the CPl is 0.53. How
should the risk manager justify the low CPI?

The project scope is wrong

The risks related to the costs are not effectively managed

The approved budget is not accurate

Cost control processes are not effective

Explanation:
The risks related to the costs are not effectively managed. So, some cost-
related risks occur and impact the costs.
91 / 170

91) A project manager of a new power plant project. After

identifying risks, he starts the qualitative risk analysis
process, and now he is prioritizing them. Which of the
following tools/techniques is he using now?

Monte Carlo

Status meeting

Probability and impact matrix

Brainstorming

Explanation:
He is in the qualitative risk analysis process prioritizing the risks using the
probability and impact matrix.
92 / 170

92) You are a project manager for the construction of a

new Substation project. You have scheduled the fourth
workshop for qualitative risk analysis. One of the team
members complains that the risk analysis should be done
only one time in the early stage of the project. What
should you do to handle this situation?

Yes, the team member is right because the risk analysis is in the

planning stage only

Continue with the workshop, but discipline the team member because

he is against your decision

Explain to the team member that the perform qualitative analysis

should be performed throughout the life of the project

 Continue with the meeting, but remove the team member from the

participant's list

Explanation:
Performing Iterative Qualitative Risk Analysis is a key success factor of
this process. The success of qualitative risk analysis is enhanced if the
process is used periodically throughout the project. The reference is the
standard for risk management in portfolios, programs, and projects
page#34.
93 / 170

93) You are a project manager of a new project. You are

working on a critical path activity and notice a delay in
product delivery due to an anticipated event. What should
you do first?

Use the contingency reserve

Issue a change request

Follow the risk response strategy

Update the risk register

Explanation:
The delay(impact) is due to an identified risk (anticipated event). The risk
was in the register and has already been analyzed and has a response
plan. The project is in the execution so the risk response plan has already
been implemented but failed or is not effective. The first action you
should update the status of the risk and response then perform the
fallback plan.
 94 / 170

94) You are a risk manager of a three months project. The

project is not complicated in the technical points but the
completion time is critical and can't be delayed. The cost
reserve is very small to address the problems. Therefore
you start to define the probability and impact scales
according to the current situation. What is the most
important point when you are defining the impact scales of
the risks?

Cost

Technical points

Schedule

Methodology performance

Explanation:
The probability and impact scales should reflect the stakeholder's risk
tolerance. The project can't delay and the time is critical, so the tolerance
regarding time is very small (Averse). Therefore the most important point
is the schedule.
The agreed-upon definitions of probabilities and impacts reflect
stakeholders' risk tolerances and thresholds.
95 / 170

95) You are a risk manager of a new pipeline project.

According to past experience, you selected DAN inc. is
that the main supplier of critical materials that may not
deliver on time. You have already accounted for this risk in
the risk management plan. If this risk materializes, you
plan to purchase the material from another supplier. A new
risk in this plan is that there may be differences in the
material provided by the two suppliers. What is the type of
the new risk?

Procurement risk

Secondary risk

Residual risk

Primary risk

Explanation:
The new risk is a secondary risk because it arises due to the
implementation of a primary response "lf this risk materializes, you plan
to purchase the material from another supplier. A new risk in this plan is
that there may be differences in the material provided by the two
suppliers "
Risk responses, when implemented, can have potential effects on the
objectives and as such, can generate additional risks. These are known as
secondary risks and are analyzed and planned for in the same way as
those risks that were initially identified. The reference is the standard for
Risk Management in Portfolios, Programs, and Projects, Page# 37.
96 / 170

96) You are a project manager for a new project out of

your country. In the country where the project is being
executed, customs procedures change frequently. During
the identify risk process, one of the stakeholders identifies
a risk about a delay of an essential material that if occurs
will delay the project and will be canceled. The delay in
customs in this country is likely to occur. Why should you
use a mitigation plan for this risk?

Because the response strategies should be assigned for all identified

risks

Because this activity is on the critical path

Because it is a high-priority risk

Because it is a financial risk

Explanation:
A is wrong because the low-priority risks don't need responses.

B is wrong because not all risks on the critical path need mitigation.

C is correct because the impact is very high that will cancel the project if
occurs and the probability is high, so the risk is a high priority risk and
should be mitigated.

D is wrong, because the risk will delay the project, so it's a schedule risk
not a financial.
97 / 170

97) James is the risk manager of a construction project.

James is newly assigned to the project. The project is in
the execution stage. Now he and some of the
stakeholders are in the meeting reviewing the project
documents to identify opportunities for early completion.
Which of the following documents will be updated at the
end of this review session?
 Project charter

Scope baseline

Risk register

Risk management plan

Explanation:
The identification process is iterative; you can identify the risks during the
project lifecycle. Once you identify a risk you have to add it to the risk
register.
98 / 170

98) John is a project manager for a new software project

for a multinational company. He is working on the
quantitative risk analysis process and collecting data to
select an appropriate probability distribution to represent
the uncertainty in the project model. Due to some
circumstances, the collected data for each activity are only
the maximum and the minimum values. The project
manager now wants to select a probability distribution.
Which of the following probability distributions can help in
the above situation?

Triangular.

Normal

Uniform

PERT
Explanation:
Uniform distributions can be used if there is no obvious value that is
more likely than any other between specified high and low bounds, such
as in the early concept stage of design.
99 / 170

99) You are a project manager of a new construction

project. During the execution phase, you have been
informed that there are several unexpected issues. The
customer is dissatisfied because the deliverables are
taking longer than planned time and the quality of
deliverables is low. What process should you have
conducted with greater emphasis during project planning?

Implement risk response process

Perform qualitative risk analysis process

Identify risk process

Monitor risk process

Explanation:
You should focus on the identify risk process and follow all the key
success factors to identify all the knowable project risks that may impact
the project, analyze the risks and assign strategies to handle these risks
proactively.
100 / 170

100) You are a project manager in your organization ADA.

Now you and your team in identify risk process using a
technique that examines the project from four
perspectives to increase the breadth of identified risks by
including internally generated risks. What is that
technique?

AHF

RBS

FMEA

SWOT

Explanation:
SWOT is a technique that examines the project from each of the
strengths, weaknesses, opportunities, and threats (SWOT) perspectives to
increase the breadth of identified risks by including internally generated
risks. The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page#135.
101 / 170

101) The management of the stakeholder expectations in

a high-risk project is the responsibility of......

Project sponsor

Project officer

Senior Manager

Project manager

Explanation:
The project manager is responsible for the management of stakeholder
expectations in the project.
 102 / 170

102) You are a risk manager creating the risk

management plan and other risk artifacts. What are the
critical success factors for risk management?

Interrelationships Between Risks in Quantitative Risk Analysis,

Recognize the value of Risk Management and Prior Risk Identification and

Qualitative Risk Analysis.

Recognize the value of Risk Management, Open and honest

communication, and integration with Organizational Project Management

(OPM).

Interrelationships Between Risks in Quantitative Risk Analysis,

Recognize the Value of Risk Management, and integration with

Organizational Project Management( OPM).

Interrelationships Between Risks in Quantitative Risk Analysis,

Recognize the Value of Risk Management and Perform iterative Qualitative

Risk Analysis.

Explanation:
· Recognizing the value of risk management.

· Individual commitment/responsibility.

· Open and honest communication.

· Organizational commitment.
· Tailoring risk effort.

· Integration with organizational project management.

The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 17.
103 / 170

103) Which of the following is correct about the risk

tolerance?

Ability to develop the risk register and manage the project risk

Ability to avoid risks

Willingness to accept varying degrees of risks

Ability to exploit risks

Explanation:
Risk tolerance is the willingness to accept varying degrees of risks within
a specific range.
104 / 170

104) You are a risk manager working with your project

team to create a response that should the temperature of
the machine reach 130, the machine will be paused for at
least an hour to cool it down. A temperature of
130 is called............

Risk changer

Risk trigger

Risk identifier
 Risk origin

Explanation:
Trigger Condition. An event or situation that indicates that a risk is about
to occur. The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 168.
105 / 170

105) You are a project manager using a project artifact to

capture risks, strategies, and ownership patterns. What
artifact are we talking about?

Risk response plan

Risk register

Issue log

Risk management plan

Explanation:
The risk register captures details of identified individual project risks. The
results of Perform Qualitative Risk Analysis, Plan Risk Responses,
Implement Risk Responses, and Monitor Risks are recorded in the risk
register as those processes are conducted throughout the project. The
risk register may contain limited or extensive risk information depending
on project variables such as size and complexity. PMBOK6 Page# 417.
106 / 170

106) A risk manager is responsible for the management of

risk on a critical project. Which project management
process is responsible for the lookout for new risks,
evaluating current risks, and risks that are now outdated,
or Closing risks?

Identify risk process

Monitor and Close Risks

Qualitative risk analysis

Risk planning

Explanation:
Monitor Risks is the process of monitoring the implementation of
agreed-upon risk response plans, tracking identified risks, identifying and
analyzing new risks, and evaluating risk process effectiveness throughout
the project. The key benefit of this process is that it enables project
decisions to be based on current information about overall project risk
exposure and individual project risks. PMBOK6 page# 453.
107 / 170

107) A risk manager working on the qualitative risk

analysis. Which one of the following statements best
describes the requirements for the data used in this
process?

Unbiased stakeholders with biased risk tolerances

An accurate and unbiased data to be credible

Biased data to reveal risk tolerances

Fast and simple data

Explanation:
Key success factors for performing qualitative risk analysis:

· Use agreed approach,

· Use agreed definitions of risk terms,

· Collect credible information about risks, and

· Perform iterative qualitative risk analysis.

The reference is the standard for Risk Management in Portfolios,

Programs, and Projects,
Page 34.
108 / 170

108) You are a risk manager for a construction project.

You want to conduct risk audit reviews at the project
completion. Which of the following represents the correct
steps of the risk audit reviews?

Identify stakeholders, conduct the status meeting, document results

and update the risk management plan

Prepare the agenda, identify participants, prepare recommendations

and update the risk register

Conduct risk audits reviews, identify participants, and document the

risk audit report

Identify participants, conduct risk audit reviews, prepare

recommendations and document the risk audit report

Explanation:
You have to identify the participants, conduct the audit review, prepare
recommendations then document the report.
109 / 170

109) A project manager decides to allocate a contingency

reserve to handle the threat if it occurs. What type of
strategy does he select?

Mitigation

Passive acceptance

Avoidance

Active acceptance

Explanation:
The most common active acceptance strategy is to establish a
contingency reserve, including amounts of time, money, or other
resources to handle the threat if it occurs. The reference is the standard
for Risk Management in Portfolios, Programs, and Projects, page#36.
110 / 170

110) You are a project manager of a mid-sized

infrastructure project. Recently you have hired a risk
manager. The risk manager becomes aware that they
have an inexperienced project team. What items should
the risk manager have their team review to prepare for the
next risk identification workshop? (Select two)

Risk management plan

 Pre-paid contract list

Scope of work and requirements

Government chart for city permit department

Sensitivity analysis from a similar project

Explanation:
The risk management plan, scope of work, and requirements are inputs
to the risk
identification process.
PMBOK6 Page#409
111 / 170

111) A project manager has a lot of project risk

management experience. He believes that risks should be
continuously monitored properly. Which of the following
options will you perform as part of risk monitoring?

Transfer the response to actions to implement the response as an

integral part of the project

Identify all risks in the project

Review any secondary risks which arise due to agreed risk responses

Assess the probability and impact of all the identified risks

Explanation:
The Monitor Risks process enables the portfolio, program, or project
management team to reevaluate the status of previously identified risks;
identify emergent, secondary, and residual risks; and determine the
effectiveness of the risk management processes. The portfolio, program,
or project environment may change as some risks occur, whether
foreseen or unforeseen, and other risks become or cease to be relevant.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects page# 39.
112 / 170

112) You are a risk manager for a construction project. You

want to conduct risk audit reviews at the project
completion. Which of the following represents the correct
steps of the risk audit reviews?

Identify stakeholders, conduct a status meeting, document results and

update the risk management plan

Prepare the agenda, identify participants, prepare recommendations

and update the risk register

Conduct risk audits reviews, identify participants, and document the

risk audit report

Identify participants, conduct risk audit reviews, prepare

recommendations and document the risk audit report.

Explanation:
You have to identify the participants, conduct the audit review, prepare
recommendations then document the report.
113 / 170

113) You are a risk manager for a small project. You are
preparing for a risk planning session and sending
invitations to the relevant stakeholders. As soon as one of
the key stakeholders receives the invitation, he sends an
email that the project is small and no risk management
plan is needed, and it will increase the project budget. In
the context above, what should you do?

Cancel the risk management activities

Cancel the project

Evaluate the impact of removing the risk management processes

Advise the stakeholder that risk management must be applied to all

projects as it is valuable and essential

Explanation:
Project Risk Management is not an optional activity; it is essential to
successful project management. It should be applied to all projects. So,
advise the key stakeholder that risk management must be applied to all
projects as it is valuable and essential.
The reference is the standard for risk management in portfolios,
programs, and projects page#1817.
114 / 170

114) A project manager for the construction of a new

bridge. A stakeholder informs that if there is less than a
35% probability of rain, construction should continue.
Another stakeholder informs that if there is less than a
55% rain probability, construction should continue. What
should the project manager do next to determine the
correct limit?

Review the approved risk tolerance

 Use the risk thresholds of another project in the same organization

Conduct a sensitivity analysis

Find out the stakeholders' risk appetite

Explanation:
Risk appetite is the degree of uncertainty an organization or individual is
willing to accept in anticipation of a reward. Risk appetite guides the
management of risk and the parameters the organization uses in
deciding whether or not to take on risk. In addition, risk appetite defines
what types of risks an organization pursues. The reference is the standard
for Risk Management in Portfolios, Programs, and Projects, Page#9.
115 / 170

115) You are a project manager of a three months project.

You have only 4 team members for the project. The
project sponsor doesn't agree with you that risk
management is necessary since your project is small.
Would it be appropriate for you to implement some levels
of risk management?

Yes, because the decision of the risk management Implementation is

the project manager's responsibility

Yes, because the small and the large projects require risk management

No, because the risk management should be started with the sponsor's

consent

No, because small projects do not require risk management

Explanation:
Project Risk Management is not an optional activity; it is essential to
successful project management. It should be applied to all projects, but
you can't start the Implementation of risk management without the
sponsor's approval. You have to meet the sponsor and convince him that
risk management is necessary.
116 / 170

116) You are in the qualitative risk analysis process,

categorizing the risks. Some of the risks related to a
quality defect on project deliverables. What is the
Category of these risks?

Political Risk

Technical Risk

Customer priority Risk

Internal Risk

Explanation:
In the RBS the scope and requirements definitions are categorized as
technical risks.
PMBOK6 Page# 406.
117 / 170

117) You have been assigned as a project manager to an

ongoing project. When you review the project
documentation, you notice that the risk register items do
not comply with the scope. you want to use an objective
method to determine the key project risks and develop risk
responses. What action should the project risk manager
suggest?

Earned value analysis

Use the lessons learned from other projects

Perform a Monte Carlo analysis

Hire an SME to perform a PESTLE evaluation

Explanation:
You should review the lessons learned from other projects as an objective
method to determine the key project risks and develop response plans.

Historical records and data from past projects, programs, and portfolios
help to identify common risks and prevent repeating mistakes. The
reference is the standard for Risk Management in Portfolios, Programs,
and Projects, Page#133.
118 / 170

118) You are a risk manager updating the risk register with
the minimum acceptable level of exposure and impact for
each risk. You also want to determine that you have
reached the maximum level of exposure before escalating
the risk. What should you perform in the above situation?

Risk quality assessment

Monitor risks

Quantitative risk analysis

 Plan risk management

Explanation:
Quantitative risk analysis: A numerical analysis of risk exposure based on
the probability and impact of identified risks, which predicts possible
outcomes and allows an estimate of overall project risk. ATOM
119 / 170

119) You are a risk manager managing risks of a critical

application. You hired a subject matter expert. he asks you
to treat even a single risk identified as an extremely high
priority. Within the above context, what should you do?

Escalate to the project sponsor

Perform a sensitivity analysis and determine the correct priority of

every identified risk

Mark all the previously identified risks as (L, M, H) priority according to

the probability and impact matrix and mark any future risks as an extremely

high priority

Agree with the subject matter expert

Explanation:
Perform a sensitivity analysis to get the correct priorities of the identified
risks. Sensitivity Analysis. An analysis technique to determine which
individual project risks or
other sources of uncertainty have the most potential impact on project
outcomes, by correlating variations in project outcomes with variations in
elements of a quantitative risk analysis model. PMBOK page#434.
 120 / 170

120) A risk manager of a high-priority construction project.

he had identified five opportunities and analyzed and
recorded the risk responses in the register. Although risk
responses were adequate for the identified opportunities,
three of those opportunities were not acted upon. During
the risk audit, the project manager noticed that several of
the planned risk responses were not implemented. What
should the risk manager have done to avoid the above
situation?

Improve the communication to influence stakeholders

Revise the schedule and cost with risk owner implementation tasks

Define risk triggers and Thresholds in the risk response strategies

Provided regular training to the risk owners for plans implementation

Explanation:
Ineffective or badly applied risk management can cause more problems
than it solves. Where this is the case, measures must be put in place to
make the risk management process more effective, perhaps by training
project team members or improving risk processes. Reference is Atom.
121 / 170

121) You want to use new technology to improve a

project's performance. But the costs associated with the
new technology are beyond the current budget, and the
proposed technology has not been applied to any
organization before. What should you do in the above
situation?

Implementation of the new technology as soon as possible

Exploit the risk associated with this new technology

Enhance this opportunity to improve the project performance

Escalate this initiative to project decision-makers and sponsors

Explanation:
The new technology is beyond the current budget, so you should
Escalate this initiative to project decision-makers and sponsors.
122 / 170

122) Which of the following options are key success

factors for the risk identification process?

The process should be based on agreed-upon definitions, Collect High-

Quality Information about Risks

Use an appropriate Project Model, the process performed as early in

the project life cycle as possible, Risks should be clearly described

The process of Risk identification should be performed as early in the

project life cycle as possible, Risks should be clearly described, and linked to

project objectives

The process is performed as early in the project life cycle as possible,

and Interrelationships Between Risks in Quantitative Risk Analysis

Explanation:
KEY SUCCESS FACTORS FOR IDENTIFYING RISKS
Early identification, Iterative identification, Emergent identification,
Comprehensive identification, Explicit identification of opportunities,
Multiple perspectives, Risks linked to objectives, Complete risk statement,
Ownership and level of detail, Frequent and effective communication,
and Objectivity to minimize bias.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 33.
123 / 170

123) You are a project manager working with the project

team to develop the risk register, analyze risks and assess
their probability and impact. There is valuable historical
data available that may be used to simulate the overall
risk outcome. Which type of analysis should you use in
this instance?

Ishikawa

Quantitative analysis

Professional meeting agenda

Probability and impact matrix

Explanation:
Simulation of the overall risk outcome is an output of Monte Carlo
simulation which is a tool/technique in the quantitative risk analysis
process. The reference is the standard for Risk Management in Portfolios,
Programs, and Projects page#134,
124 / 170

124) You are a project manager of an lt project. You have

been informed that the testing of the latest component in
the project was not successful. As a result, the delivery
dates for the project will be delayed. You did not
previously identify this as a risk to the project. What
should you do next to avoid similar risks?

Prioritize risks using new assumptions and constraints analysis

Add the issue to the issue log and update the project management

plan

Update the risk response plan

Allocate contingency reserves to other tasks to mitigate similar risks

Explanation:
You have to add the issue to the issue log and update the project
management plan. The cause of the delay occurred so the schedule will
be delayed.
125 / 170

125) A risk manager in the risk review meeting for a

project nearing completion, a new risk has been identified.
This risk may affect the project's schedule and cost. What
should the risk manager do first?

Transfer the risk

Mitigate the risk

Escalate to the sponsor

Analyze the risk

Explanation:
After risk identification, the risk manager should analyze the risk first to
assess the probability and impact and the priority for further analysis or
planning.
126 / 170

126) The Risk Manager conducted a risk survey before

the next workshop. Those invited to the workshop
participated in the survey and presented many risks
covering all stages of the project and risk areas. The risk
manager sorts the risks according to their similarities and
categories. What should the risk manager do next to
visually regulate risk?

Issue a change request through the CCB

Use the probability and impact matrix (L, M, and H).

u=eAHP

Use an affinity diagram

Explanation:
An affinity diagram is used to organize specific ideas or factors that
contribute to risk. It helps to sort risks by similarities or generic risk
categories. The reference is the standard for Risk Management in
Portfolios, Programs, and Projects. Page# 136.
127 / 170

127) A project manager of an infrastructure project. The

project is 40% complete, During the initial analysis risks, X
and Y were identified. Risk Y has a probability of 60% and
an impact of 50,000 USD. Risk Y has a probability of 80%
and an impact of 60,000 USD. After implementing the risk
response for risk Y, the probability of risk Y has been
reduced to 30%. What is the current project risk
exposure?

33,000 USD

18,000 USD

48,000 USD

30,000 USD

Explanation:
The current risk exposure means after the implementation of the
response of risk Y.
Project risk exposure = EMV = SUM(Pl) = 0.6 50,000 + 0.3 60,000 =
30,000 +
18,000 = 48,000 USD.
128 / 170

128) You are a risk manager of a project for evaluating

new software to enhance the existing purchase order
process. The existing process is labor-intensive and
involves printing papers, manual signatures, scanning,
and emailing. The project team gathers the data to gauge
the existing process and assess the new process. What
should you do next with the data?

Conduct a project review meeting

Conduct a probability and impact matrix

 Perform what if

Conduct a risk data quality assessment

Explanation:
Perform a risk data quality assessment is correct.
The results of the risk analysis are only as good as the data collected. A
review of the reliability and sufficiency of the data ensures that the
analysis is based on high-quality information. Data that are deemed to be
of lesser quality may be further researched or excluded from the risk
analysis. Care should be taken when excluding poor quality data to avoid
a less-than-robust qualitative analysis. The reference is the standard for
Risk Management in Portfolios, Programs, and Projects, Page# 139.
129 / 170

129) A risk manager for a new construction project. During

the initial planning of the project, he identifies risk and
defines a mitigation plan for this risk. Later during the
project execution phase, this risk still leaves residual risk.
What should the risk manager do to address the above
situation?

Consider the residual risk as a significant risk and escalate it to the

project sponsor

Revisit this risk in the risk register and redefine the mitigation plan

Use the contingency plan to address this risk during execution

Request additional funds from the project sponsor

Explanation:
These residual risks are clearly identified, analyzed, documented, and
communicated to all relevant stakeholders until they are satisfied. The
reference is the standard for Risk Management in Portfolios, Programs,
and Projects, Page# 37.
Once the risk responses have been defined and integrated into the
project management plan, the individual and overall residual risks related
to this plan are evaluated in order to determine whether additional
response planning is required.
130 / 170

130) You are a risk manager of a new project. A list of

risks was Identified that could occur during the
construction phase. Now, the team finished the
construction phase, and those risks did not materialize.
Within the above context, what should you do next?

Issue change request to update the risk register

Close the risks and update their status in the risk register

Release their contingency with other risks

Remove the risk from the register

Explanation:
lf the identified risks did not materialize and no longer happen, you
should Close the risks and update their status in the risk register, and do
not remove them from the risk
register.
The risk should be closed when the risk no longer happens or have an
impact on the activity, or it has materialized and has been transferred
onto the issue log for action.
lt is good practice to document the reasons for closure in the risk
register, for example:
•• Risk impacted, managed as an issue
•• Risk did not occur
•• Risk successfully managed.
131 / 170

131) You are a project manager of an infrastructure

project. You assume that there will be no more than one
error in the design. During the construction, you notice
that two important pieces of infrastructure that conflict
will fall in the same place. What should you do?

Cancel the construction immediately and escalate the problem to the

sponsor

Ask a subject matter expert to revise the schedule and cost

Update the assumptions log that the error/omission has been met

Update the assumptions log and assess the risk associated with it

Explanation:
You assume that there will be no more than one error in the design. This
is an assumption. The assumption became false. So, you should update
the assumptions log and assess the risk associated with it.

Assumptions are used to determine risk impact. They are statements

accepted as true but need to be validated and continually reviewed
during the iteration process and throughout the risk management work
related to portfolio, program, and project life cycles. This technique
requires three steps: (1)list; (2) test the validity; and (3) identify impacts
on the project, program, or portfolio. The reference is the standard for
Risk Management in Portfolios, Programs, and Projects. Page# 130.
 132 / 170

132) An organization is developing a formal response to

bid on a project for the construction of the infrastructure.
When should the risk register be created to document the
identified risks?

At the end of the project record all the identified risks with the final

status

When the stakeholders request the high management to develop the

register to record the risks one by one

At the end of the planning phase avoid any change and approve the

risk register

Before the formal bid response is provided to the client to gain a

greater understanding of the project's risk profile

Explanation:
The response should be created after risk identification and analysis. So,
the risk register developed before developing the formal response.
133 / 170

133) A risk manager has identified a risk with a probability

of 0.35 and a cost impact of 700,000 USD. During the plan
risk response process, he wants to create a risk response
for this event. What is the risk exposure of
the event that must be considered for the cost of the risk
response?

245,000 USD
 590,000 USD

335,000 USD

750,000 USD

Explanation:
The risk exposure of the event= EMV=P 1= 0.35 700,000 = $245,000
USD.
134 / 170

134) Which one of the following sources is the best to

provide information that can reduce the risk?

Lessons learned from old projects similar in nature by reviewing

organizational process assets (OPA)

Using a Tornado diagram

By using observations and conversations during the review meeting of

the current projects

Using Brainstorming and interviews

Explanation:
Lessons learned from old projects which are similar in nature prevent
making the same mistakes or missing the same opportunities twice. The
reference is the standard for Risk Management in Portfolios, Programs,
and Projects, Page#133.
 135 / 170

135) You are a project manager for a construction project.

During the project review meeting, the stakeholders
decided to respond to known and new risks encountered
during project execution. Which of the following artifacts
should the stakeholders review?

Document management plan

Project log

Assumption/constraints log

Risk-adjusted backlog

Explanation:
A risk-adjusted backlog is a backlog that includes work and actions to
address threats and opportunities. Pmbok7 page#185.
The risk-adjusted backlog is a sprint or release backlog containing risk
response tasks for actionable risks. For negative risks, these actions
include avoiding, mitigating, and transferring. For positive risks, they
include exploiting, enhancing, and sharing.
136 / 170

136) You are a project manager of an important

construction project for your organization EETA Inc. You
believe that the success of the project will be determined
by using successful risk management. As you know that
successful risk identification can help you to prepare
successful risk response strategies. You discuss and
consult with other project managers in the organization.
One of them suggests SWOT analysis to identify risks.
What should you do next as a part of this tool/technique?

Meet with the CEO to inform him about the technique and get

approval

Review the issue log with risk experts in the organization to avoid

similar problems in your project

Identify and list organizational strengths and weaknesses

Meet all stakeholders to implement SWOT

Explanation:
SWOT (strength, weakness, opportunity, and threat) is a technique that
examines the initiative from each of the SWOT perspectives to increase
the breadth of considered risks. It ensures equal focus on both threats
and opportunities. This technique focuses on internal (organizational
strengths and weaknesses) and external (opportunities and threats)
factors. A method for structuring the results of a SWOT analysis
Step 1: Identify and list organizational strengths and weaknesses using
brainstorming.
Step 2: Derive opportunities from strengths, and threats from
weaknesses, using risk
meta-language.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, page#135
137 / 170

137) A project manager for the construction of a school

project. The project manager informs the project sponsor
that the major risk mitigation strategy has not worked. The
sponsor states that the same risk response was carried
out a few months ago in a similar project with the same
result. How could this situation have been avoided?

The project manager should determine the effectiveness of the

response before the implementation

The project manager should review lessons learned and register for

knowledge gained throughout similar past projects

The project manager should have reviewed the lessons learned

repository for knowledge gained throughout similar past projects

The project manager should have implemented avoid response

strategy because the risk had been seen before in past projects

Explanation:
Lessons learned about effective risk responses used in earlier phases of
the project are reviewed to determine if similar responses might be
useful during the remainder of the project. PMBOK6 page# 440.

The lessons learned register may record challenges, problems, realized

risks and opportunities, or other content as appropriate. The lessons
learned register is created as an output of this process early in the
project. Thereafter it is used as an input and updated as an output in
many processes throughout the project. The persons or teams involved in
the work are also involved in capturing the lessons learned. Knowledge
can
be documented using videos, pictures, audio, or other suitable means
that ensure the efficiency of the lessons captured. At the end of a project
or phase, the information is transferred to an organizational process
asset called a lessons learned repository. PMBOK6 page# 104.
 138 / 170

138) A risk manager working on the monitor risk process.

What is the difference between a risk audit and a risk
reassessment?

The customer conduct risk audits, but management conducts

reassessments

They are the same

A risk reassessment is conducted at the end of the process, but risk

audits are conducted after the project is complete

Risk reassessments are regularly scheduled; risk audits are performed

as defined in the project's risk management plan

Explanation:
Risk reassessment is an iterative activity. Risk audits are performed during
the project life cycle to examine and document the effectiveness of risk
responses. They are conducted at appropriate frequencies as defined in
the risk management plan.
139 / 170

139) A project manager wants to obtain agreement on

project risk responses by the stakeholders, which of the
following options are conditions for the stakeholders to
agree on the risk response strategies?

Appropriate, timely, and effective

Scaled according to the project, addressing threats and opportunities,

iteration
 Scheduled, budgeted, and easy to understand

Cost-effective, validated by sensitivity analysis and assigned to the

action owner

Explanation:
Key success factors for plan risk responses:
· Clearly define risk-related roles and responsibilities;
· Specify the timing of risk responses;
· Provide resources, budget, and schedule for responses;
· Address the interaction of risks and responses taking into account
secondary and residual risks;
· Ensure appropriate, timely, effective, and agreed responses, and
· Address both threats and opportunities.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, page#38.
140 / 170

140) An organization has been awarded a contract that

includes a 25% bonus if the project is completed four
months early. The project manager considers several
options to exploit this opportunity. What is the best option
for the project manager to increase the probability of
getting the bonus?

Change resources leveling

Use insurance

Crash the project schedule

Cancel 25% of the project scope

Explanation:
Crashing. A technique used to shorten the schedule duration for the least
incremental cost by adding resources. Examples of crashing include
approving overtime, bringing in additional resources, or paying to
expedite delivery to activities on the critical path. Crashing works only for
activities on the critical path where additional resources will shorten the
activity's duration. Crashing does not always produce a viable alternative
and may result in increased risk and/or cost. PMBOK6 page#215.
141 / 170

141) Kelly is a project manager of a new project. She has

just finished updating the risk register with the risk urgency
information. In which project risk management process
was she working?

Perform qualitative risk analysis

Perform quantitative risk analysis

Plan risk management

Plan risk responses process

Explanation:
Kelly is currently in the perform a qualitative risk analysis process. In the
Qualitative process, the risk register is updated with the following:

Risk ranking, probability, and impact, risk urgency information, list of risks
requiring near-
term responses, List of risks that needs additional analysis and response,
Watch list of low-priority risks and trends in qualitative risk analysis.
 142 / 170

142) You are a project manager have just started a new

project for a risk-averse organization. The project sponsor
is extremely concerned that the project may run over
budget and is looking to you to confirm that this won't
happen. What should you do to alleviate the sponsor's
concerns?

You should use historical data analysis

Perform a strengths, weaknesses, opportunities, and threats (SWOT)

analysis

Use the probability and impact matrix

You should use the Monte Carlo simulation

Explanation:
SWOT analysis. This technique examines the project from each of the
strengths, weaknesses, opportunities, and threats (SWOT) perspectives.
For risk identification, it is used to increase the breadth of identified risks
by including internally generated risks. The technique starts with the
identification of the strengths and weaknesses of the organization,
focusing on either the project, organization or the business area in
general. SWOT analysis then identifies any opportunities for the project
that may arise from strengths, and any threats resulting from weaknesses.
The analysis also examines the degree to which organizational strengths
may offset threats and determines if weaknesses might hinder
opportunities. PMBOK6 Page#415.
143 / 170

143) A risk manager develops a new response for an

existing risk that will reduce the cost by 10,000 UD. What
document should the risk manager update?

Probability and impact matrix

Cost management plan

Risk register

Risk management plan

Explanation:
The risk responses and their actions should be recorded in the risk
register.
144 / 170

144) You are a project manager of a project in the

execution phase. While you are reviewing the project
performance, an unknown risk has occurred. You decide
to use a workaround. Which of the following is the best
description of the workaround?

A planned response to an identified risk

Hand over plan to avoid failure

A planned response to unknown and known risks

An unplanned response to an unknown risk

Explanation:
A workaround is an unplanned risk response to an unknown risk or a
known risk that didn't have a planned risk response (for unplanned risks)
 145 / 170

145) A project manager is using Monte Carlo simulation

for the project at the end of a phase. Monte Carlo reveals
a key activity is now on the critical path. What should the
project manager do next?

Review the plans for the key activity

Allocate additional contingency to the project

Add 25 days float to the key activity

Request additional funds for the key activity

Explanation:
lt is not mentioned in the question any risk or problem related to the key
activity. So you have to review the responses related to this activity.
146 / 170

146) An organization has performed overall audits. They

found that few lessons learned about risk management
are available in the database. What should the
organization do to increase the risk management lessons
learned in the database?

Require the steering committee to record the lessons learned for risk

management

Require PMO to update the policy and procedures of the lessons

learned
 Require the project managers to record significant risk management

information to provide concrete data in the lessons learned database

Require the project managers to sign the lessons learned agreement

with the steering committee and PMO

Explanation:
At the end of the program or project, an integrated analysis of the risk
management process is carried out with a focus on long-term process
improvements. This analysis consolidates the findings of the periodic
audits to identify lessons that are applicable to a large proportion of the
organization's future programs or projects, such as appropriate levels of
resources, adequate time for the analysis, use of tools, and level of detail,
etc.
The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page# 39.
147 / 170

147) A project manager wants to minimize

misunderstanding and reinforce teamwork in the project.
What is the communication method that can help him?

Electronic communication

Face-to-face discussions

Push communication

Pull communication

Explanation:
Interactive communication between two or more parties performs a
multidirectional exchange of information. It is the most efficient way to
ensure a common understanding by all participants on specified topics
and includes meetings, phone calls, instant messaging, and video
conferencing. PMBOK6.
148 / 170

148) A risk manager of a large project for the construction

of oil pipelines with a complete automation system. The
project manager hears from another project manager of a
similar project in nature that many of the installation
equipment have been stolen by thieves. Immediately he
informs the risk manager that the risks related to theft are
very important and should be managed proactively. The
risk manager clarifies that no
risk regarding theft available in the risk register. Within the
above context, what should the project manager
do?

Develop workarounds to deal with the issue

Update the project management plan and the risk register to avoid

that type of risk

Create a fallback plan to deal with the risk and update the risk register

Ask the risk manager to transfer the risk of theft to an insurance

company and capture that in the lessons learned

Explanation:
The best response to deal with theft risks is transference by insurance.
 149 / 170

149) A new project manager has just been assigned to

manage a project in the execution phase. The new project
manager has issues with some undiscovered risks on
previous projects. What document should the new project
manager review to ensure that all possible risks are
documented in risk identification?

Stakeholder register

Status meeting agenda

Risk register

Issue log

Explanation:
The risk register captures details of identified individual project risks. The
results of Perform Qualitative Risk Analysis, Plan Risk Responses,
Implement Risk Responses, and Monitor Risks are recorded in the risk
register as those processes are conducted throughout the project. The
risk register may contain limited or extensive risk information depending
on project variables such as size and complexity. PMBOK6 Page# 417.
150 / 170

150) A risk manager is educating/coaching the project

team members on the risk management process in
particular the role of threats and opportunities. The team
decides to record the opportunities in the risk register to
try to maximize their probability of occurrence. Within the
above context. what should the project team members do
next?
 Perform probability and impact matrix

Record the threats in the risk register to maximize the probability of

occurrence

Perform probability and impact assessments

Record the threats in the risk register to try to minimize the probability

of occurrence

Explanation:
The team should record both threats and opportunities. The definition of
risk also encompasses uncertain events that could have a negative or
positive effect on objectives. Both of these uncertain situations are
considered to be risks when they could have an adverse or positive effect
on the achievement of objectives. lt is essential to address both situations
within an enterprise, portfolio, program, and project risk management
process. The reference is the standard for Risk Management in Portfolios,
Programs, and Projects, Page#11.

The objectives of Project Risk Management are to increase the

probability and/or impact of opportunities and to decrease the
probability and/or impact of threats in order to optimize the chances of
project success. The reference is the standard for Risk Management in
Portfolios, Programs, and Projects, Page#15.
151 / 170

151) You are a project manager for a new construction

project. You have initiated the project and the team's roles
and responsibilities have been assigned. During the
development of the project management plan, you review
lessons learned from previous projects and discover that
the same team has been missing delivery dates. What
should you do to ensure timely delivery?

Escalate to the sponsor

Ask the functional manager to assign another team

Review the issue log

Add this to the risk register

Explanation:
You should update the risk register with the new risk. The new risk was an
issue in the previous projects, but in your project is still a risk. You should
identify it, analyze and select appropriate risk responses.
152 / 170

152) A project manager has been assigned to an IT

project. He and the project team have established the
priorities of individual project risks that have been
identified earlier in the project. Now the project manager is
performing further analysis and quantifying overall project
risk exposure. In What process is the project manager
currently working?

Status meeting process

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Identify the risk process

Explanation:
The Perform Quantitative Risk Analysis process provides a numerical
estimate of the overall effect of risk on the objectives. Results from this
analysis are used to evaluate the likelihood of success in achieving
objectives and to estimate any contingency reserves. Analyzing
uncertainty using quantitative techniques provides a more realistic
estimate than a no probabilistic approach. However, quantitative risk
analysis is not always required or possible. Therefore, during the Plan Risk
Management process, the benefits of quantitative risk analysis should be
weighed against the effort required to ensure that the additional insights
and value justify the additional effort. The reference is the standard for
Risk Management in Portfolios, Programs, and Projects, page# 34,
153 / 170

153) A project team is identifying the risks that may impact

the project. Some of the risks are small risks that won't
affect the project much if they occur. What should the
team do with these identified risk events?

Accept the risks

Develop risk response plans for these risks

Ignore these risks

Add these risks to a low-priority risk watch list

Explanation:
Since the risk with low priority, you should add it to the watch list. Risks
with low probability and impact may be included within the risk register
as part of a watch list for future monitoring. PMBOK6 page# 423.
 154 / 170

154) A project manager of a new hospital project. During

the project execution an issue that had not been
registered as a risk appeared. This issue may have a big
impact on the project. Within the above context, what
should the project manager do next?

Ignore the issue since it was not registered as a risk for the project

Inform the stakeholders that the issue is handled successfully

Hold the project for one month until the issue is addressed

Meet with the project team and relevant stakeholders to agree on the

best way to manage the issues

Explanation:
The project manager should meet the stakeholders and the team to
select the best actions to address the issue.
155 / 170

155) A risk manager is working on the quantitative risk

analysis process using sensitivity analysis. Which of the
following diagrams displays sensitivity analysis data?

SWOT

Tornado

Root cause analysis

Prompt lists
Explanation:
One typical display of sensitivity analysis is the tornado diagram, which
presents the calculated correlation coefficient for each element of the
quantitative risk analysis model that can influence the project outcome.
This can include individual project risks, project activities with high
degrees of variability, or specific sources of ambiguity. Items are ordered
by descending strength of correlation, giving the typical tornado
appearance. PMBOK6 Page#434.
156 / 170

156) You are a project manager in Your Organization. You

and your team in the identify risks process; you requested
the team to describe the risk unambiguously in order to
ensure that the project risk process is focused on the
actual risks. What are the structured formal statement to
describe the risk and separate cause, effect, and risk?

Meta-language

EFFECT-Risk-CAUSE

CAUSE-RISK

Group thinking

Explanation:
The use of structured risk descriptions can ensure clarity. Risk meta-
language offers a useful way of distinguishing risk from its cause(s) and
effect(s), describing each risk using three-part statements in the form: As
a result of , may occur, which
would lead to ". The reference is the standard for Risk Management in
Portfolios, Programs, and Projects, Page#129.
 157 / 170

157) An agricultural Ministry city branch faces various

challenges with farmers and owners in implementing its
growth strategy. The branch decided to establish a risk
management unit to identify risks, analyze risks and
provide a booklet explaining how to deal with the
uncertainty. What should the risk manager recommend to
the city branch to do first to identify risks and develop the
booklet?

Follow the standard of agricultural probability and impact

Consult an agriculture expert who can develop the required handbook

Discuss the risk management with the agriculture minister

Conduct facilitated workshops, meetings, and interviews with

stakeholders to identify potential risks

Explanation:
Facilitated workshops, meetings, and interviews with stakeholders are
tools/techniques for identifying potential risks process.
158 / 170

158) While the project manager is performing project

work, a team member notices that there is a potential new
risk, which could impact the project's critical path. What
should the project team member do immediately?

Create a monthly risk report using qualitative analysis

Use the fallback plan since the critical path is at risk

 Record the risk in the risk register

Request the project manager to hold the project for a month to avoid

the risk

Explanation:
Risk Register. A repository in which outputs of risk management
processes are recorded. The reference is the Standard for Risk
Management in Portfolios, Programs, and
Projects, Page# 168.
The team member should immediately document the new risk in the risk
register and then analyze and select an appropriate risk response plan.
159 / 170

159) You are a project manager who determines the

opportunity that has been discovered by the project team
is outside the scope of the project. You have decided to
update the risk register and escalate the opportunity to a
higher level. What should you do next with this
opportunity?

No more action is required

Allocate a contingency reserve to address this risk

You should monitor the opportunity

Transfer this risk to another project

Explanation:
Since the opportunity is of the project scope, you have to update the risk
register and
escalate it then no action is required from you.

Escalate. This risk response strategy is appropriate when an opportunity

is outside the portfolio, program, or project scope or when the proposed
response exceeds a given manager's authority. Escalated opportunities
are managed at the program domain, portfolio domain, or other relevant
parts of the organization. It is important that ownership of an escalated
opportunity is accepted by the relevant party in the organization.
Opportunities are usually escalated to the right level that matches the
objectives that would be affected if the opportunity occurred. The
reference is the Standard for Risk Management in Portfolios, Programs,
and Projects, Page# 36.
160 / 170

160) You are a project manager for a small project. You

and your team are planning risk management activities.
The project team has trouble assigning cost and schedule
impacts to the identified risks due to a lack of high-quality
numeric data. What should you do?

Ask the sponsor for the numeric data

Adjust the numeric data and evaluate it on a quantitative basis

Close the project

Go directly to the Plan Risk Responses process

Explanation:
A qualitative risk analysis prioritizes risks by their probability and impact
enabling the team to focus on high-priority risks. You want to assign cost
and schedule impacts to risks, so you want to use quantitative risk
analysis that does not apply to all projects.
Quantitative risk analysis needs high-quality data for project risks. Since
high-quality data is not available, a qualitative risk analysis will be
sufficient.
161 / 170

161) A risk manager is working in the quantitative risk

analysis process using a tool that can support the
stakeholders in the decision-making for the project. What
is this tool?

Urgency analysis

AHP

Sensitivity analysis

Interviewing

Explanation:
Sensitivity analysis provides very important information that can support
decision-
makers.

Sensitivity analysis helps to determine which risks have the most

potential impact on the project. It helps to understand how the variations
in the project's objectives correlate
with variations in different uncertainties. Pmbok6 page#434.
162 / 170

162) A project manager has just started the risk

management process for a new construction project.
Several risks that he is anticipating for this project might
have surfaced in previous projects. Which of the following
would the project manager review to know how these risks
and issues were addressed?

Project Stakeholder plan

Lessons learned repository

Processes and procedures

Project lesson learned register

Explanation:
Lessons learned repository containing historical information regarding
activity lists used
by previous similar projects. PMBOK6 Page#403.
This information can be used to identify risks that the project manager is
anticipating for this project which occurred on previous projects, and
what risk plans were effective to handle them.
163 / 170

163) You are a project manager for the software of an

automation project. The project is near completion. A key
stakeholder is asking for a meeting to discuss some new
ideas that will make the project more attractive to end-
users. As a result, the key stakeholder suggests that you
do not close the project. What should you do first?

Review the project baseline

Add a risk to the risk register

Add a risk to the issue log.

Update the scope management plan

Explanation:
You should identify the risks that arise from the new ideas and from not
closing the project then analyze them and use appropriate responses.
164 / 170

164) James is a risk manager working in collaboration with

Maria, a project manager, and both work for a big
construction organization. Maria has a long experience in
projects more than twenty years. Maria has recommended
the implementation of a relative weighting for project
objectives that reflects the organization's priorities for time,
cost, scope, and quality for the project. Which of the
following is she talking about?

Probability and Weighting process (PWP)

Analytic Hierarchy Process (AHP)

Root-Cause Analysis(RCA)

Relative Weighting of Stakeholders (RWS)

Explanation:
Analytic hierarchy process (AHP) is a matrix method-based technique
used to support a multi criteria decision-making process. It can also be
used to identify risks. Even though there is an objective ranking where
the subjectivity is minimized, the grouping is arbitrary. The reference is
the standard for risk management in portfolios, programs, and projects
page#136.
 165 / 170

165) You are a project manager of a high-risk project. You

are concerned about a delay in the schedule that might
force the project to move its completion date (go-live
date). Within the above context, what should you do next?

Issue a change request through the(CCB) for fast track

Review and ensure that the timelines as in the core objective of the

project

Record the risk in the risk register and monitor it to prevent it from

becoming an issue by using appropriate response actions.

Escalate to the sponsor to start a new project to support the existing

project

Explanation:
The delay in the schedule is a cause for a new risk that may change the
project completion date. So, you have to record the new risk in the
register and analyze it then assign an appropriate response to prevent
the risk from becoming an issue.
166 / 170

166) One of the key stakeholders for a new hospital

project wants to know when the risk may potentially
become an issue. As a project manager, What artifact
should you submit to this key stakeholder?

Problems log.

Project Risk management plan

 Project Risk register

Project stakeholder plan

Explanation:
The risk register includes Proximity: The period of time before a risk
might have an impact on one or more objectives. A short period indicates
high proximity. The reference is the standard for Risk Management in
Portfolios, Programs, and Projects, Page# 130,
167 / 170

167) When processing shipping bills for a project, the

project manager notes that shipping costs have exceeded
the budget due to increased fuel costs. The risk specialist
included this risk in the project's contingency allowance.
When reviewing project budget reports, the project
manager notes that some tasks are closed and there is a
remaining unused budget that can cover additional
shipping costs. Within the above
situation, what should the project manager do?

Request an additional fund from the customer

Go ahead with these shipping bills and hope the shipping company will

discount the amount

Request an additional fund from the sponsor

Process the freight invoices at higher shipping costs against the

project's contingency reserve

Explanation:
Already the risk has been identified and the contingency reserve has
been added to the project contingency reserve for addressing this
identified risk. So, he should use the contingency reserve if this risk
occurs.
168 / 170

168) A project manager of a new pipeline project. The

risks have been identified and risk owners assigned.
Which of the following the risk owner should look for in risk
responses to help mitigate the risks?

Probability of transferring the risk to a third party and shifting

responsibilities

Probability of impacting the deliverable

Probability of a response triggering a secondary risk

Probability of impacting activities on the critical path

Explanation:
The risk owner monitors actions to determine their effectiveness and to
identify any secondary risks that may arise because of the
implementation of risk responses. The reference is the standard for Risk
Management in Portfolios, Programs, and Projects, Page# 38.
169 / 170

169) A risk manager for a project promotes public health

and mitigates health risks, The Ministry of Health intends
to limit the risks of harmful insects by using insecticide, but
it is expected that some people will have negative health
effects because of the use of the insecticide but according
to the assessment by the Ministry of Health, not
implementing of this plan will have much more serious
consequences on public health rather than following
through with the original plan. How should the risk
manager address this concern with the Ministry of Health?

Ask the health experts to provide a risk trigger before using insecticide

Ignore the risk since a minor number of residents will be impacted

Assess and record associated secondary risks and proceed to treat

them as any other risks

Cancel the project since the people will be impacted negatively

Explanation:
Due to the implementation of the original response using insecticide to
address the risk of harmful insects, a new risk will arise. So, the risk
manager should record and assess
the risk and then consult with health experts to get an appropriate
response or to provide

a risk trigger before using pesticides that will impact the residents.

Risk responses, when implemented, can have potential effects on the

objectives and as such, can generate additional risks. These are known as
secondary risks and are analyzed and planned for in the same way as
those risks that were initially identified. The reference is the Standard for
Risk Management in Portfolios, Programs, and Projects, Page# 37.
170 / 170

170) You are a project director of a new construction

project. You have hired a new risk manager. You meet with
the risk manager and give him the project's risk register
 and ask him for an analysis of its effectiveness. What
actions should the risk manager do next? (Select two.)

Ensure that risk origin, triggering event, and ownership are identified.

Ensure that risk classification and that probability and impact are

identified

Ensure the risk management supporting documents are distributed

Ensure that the risks are identified by Monte Carlo simulation

Ensure that the risks are gathered using brainstorming

Explanation:
Ensure that risk origin, triggering event, and ownership is identified.
And ensure that risk classification and that probability and impact are
identified. They are the best choice.

PREVIOUS NEXT

PGMP Mock 3 RMP Final Mock 2

Similar Posts
RMP Final Mock 2
By pmpsimulator June 20, 2023