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PMI Risk Management Professional Question and Answers

PMI Risk Management Professional

Last Update Mar 21, 2023
Total Questions : 273

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Questions 1

You work as the project manager for BlueWell Inc. You are monitoring the project performance. You want to make a decision to change the project plan to eliminate a risk in order to protect the project objectives. Which of the following strategies will you use to tackle the risk?

Options:

A.  

Risk mitigation

B.  

Risk avoidance

C.  

Risk acceptance

D.  

Risk transference

Discussion 0
Questions 2

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

Options:

A.  

Scope statement

B.  

Lessons learned

C.  

Risk Breakdown Structure

D.  

Technical documentation

Discussion 0
Questions 3

What risk identification technique allows participants to identify the project risks and to remain anonymous?

Options:

A.  

Influence diagrams

B.  

Assumptions analysis

C.  

Surveys

D.  

Delphi technique

Discussion 0
Questions 4

Rex is the project manager of the BDF Project. This project will last for two years and has a budget of $2,345,000. Management has instructed Rex that the project must not go over budget as funds are very tight in the organization. During the project planning Rex and the project team discover a positive risk event to save $75,000. Rex wants to make certain that this risk event happens so which risk response method is most appropriate?

Options:

A.  

Share

B.  

Mitigation

C.  

Exploit

D.  

Enhance

Discussion 0
Questions 5

Which of the following is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold?

Options:

A.  

Avoidance

B.  

Exploit

C.  

Transference

D.  

Mitigation

Discussion 0
Questions 6

Which of the following processes must be repeated after Plan Risk Responses, as well as part of the Monitor and Control Risks, to determine if the overall project risk has been satisfactorily decreased?

Options:

A.  

Risk Limitation

B.  

Perform Qualitative Risk Analysis

C.  

Identify Risk

D.  

Perform Quantitative Risk Analysis

Discussion 0
Questions 7

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

Options:

A.  

Mitigation-ready project management

B.  

Risk utility function

C.  

Risk avoidance

D.  

Risk-reward mentality

Discussion 0
Questions 8

Shawn is the project manager of the WHT Project for his company. In this project Shawn's team reports that they have found a way to complete the project work for less cost than what was originally planned. The project team presents a new software that will help to automate the project work. While the software and the associated training costs $25,000 it will save the project nearly $65,000 in total costs. Shawn agrees to the software and changes to the project management plan accordingly. What type of risk response has been used in this instance?

Options:

A.  

Avoidance

B.  

Exploiting

C.  

Accepting

D.  

Enhancing

Discussion 0
Questions 9

You are the project manager of the NKQ project for your organization. You have completed the quantitative risk analysis process for this portion of the project. What is the only output of the quantitative risk analysis process?

Options:

A.  

Probability of reaching project objectives

B.  

Risk register updates

C.  

Risk response

D.  

Risk contingency reserve

Discussion 0
Questions 10

You are the project manager of QSL project for your organization. You are working with your project team and several key stakeholders to create a diagram that shows how various elements of a system interrelate and the mechanism of causation within the system. What diagramming technique are you using as a part of the risk identification process?

Options:

A.  

Predecessor and successor diagramming

B.  

System or process flowcharts

C.  

Cause and effect diagrams

D.  

Influence diagrams

Discussion 0
Questions 11

You are the project manager for GHY Project and are working to create a risk response for a negative risk. You and the project team have identified the risk that the project may not complete on time, as required by the management, due to the creation of the user guide for the software you're creating. You have elected to hire an external writer in order to satisfy the requirements and to alleviate the risk event. What type of risk response have you elected to use in this instance?

Options:

A.  

Avoidance

B.  

Exploiting

C.  

Transference

D.  

Sharing

Discussion 0
Questions 12

Amy is the project manager for her company. In her current project the organization has a very low tolerance for risk events that will affect the project schedule. Management has asked Amy to consider the affect of all the risks on the project schedule. What approach can Amy take to create a bias against risks that will affect the schedule of the project?

Options:

A.  

She can create an overall project rating scheme to reflect the bias towards risks that affect the project schedule.

B.  

She can filter all risks based on their affect on schedule versus other project objectives.

C.  

She can have the project team pad their time estimates to alleviate delays in the project schedule.

D.  

She can shift risk-laden activities that affect the project schedule from the critical path as much as possible.

Discussion 0
Questions 13

You are the project manager of the GHG project. You are preparing for the quantitative risk analysis process. You are using organizational process assets to help you complete the quantitative risk analysis process. Which one of the following is NOT a valid reason to utilize organizational process assets as a part of the quantitative risk analysis process?

Options:

A.  

You will use organizational process assets for risk databases that may be available from industry sources.

B.  

You will use organizational process assets for studies of similar projects by risk specialists.

C.  

You will use organizational process assets to determine costs of all risks events within the current project.

D.  

You will use organizational process assets for information from prior similar projects.

Discussion 0
Questions 14

You are the project manager of the AMD project for your organization. In this project, you are currently performing quantitative risk analysis. The tool and technique you are using is simulation where the project model is computed many times with the input values chosen at random for each iteration. The goal is to create a probability distribution from the iterations for the project schedule. What technique will you use with this simulation?

Options:

Discussion 0
Questions 15

Fred is the project manager of the PKL project. He is working with his project team to complete the quantitative risk analysis process as a part of risk management planning. Fred understands that once the quantitative risk analysis process is complete, the process will need to be completed again in at least two other times in the project. When will the quantitative risk analysis process need to be repeated?

Options:

A.  

Quantitative risk analysis process will be completed again after the cost management planning and as a part of monitoring and controlling.

B.  

Quantitative risk analysis process will be completed again after new risks are identified and as part of monitoring and controlling.

C.  

Quantitative risk analysis process will be completed again after the risk response planning and as a part of monitoring and controlling.

D.  

Quantitative risk analysis process will be completed again after the plan risk response planning and as part of procurement.

Discussion 0
Questions 16

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

Options:

A.  

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

B.  

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

C.  

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

D.  

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

Discussion 0
Questions 17

You work as a project manager for BlueWell Inc. Your project is running late and you must respond to the risk. Which risk response can you choose that will also cause you to update the human resource management plan?

Options:

A.  

Teaming agreements

B.  

Transference

C.  

Crashing the project

D.  

Fast tracking the project

Discussion 0
Questions 18

Thomas is the project manager of the NHJ Project for his company. He has identified several positive risk events within his project and he thinks these events can save the project time and money. Positive risk events, such as these within the NHJ Project are also known as what?

Options:

A.  

Benefits

B.  

Opportunities

C.  

Ancillary constituent components

D.  

Contingency risks

Discussion 0
Questions 19

You are the project manager of the NHJ project for your company. This project has a budget at completion of $1,650,000 and you are 60 percent complete. According to the project plan, however, the project should be 65 percent complete. In this project you have spent $995,000 to reach this point of completion. There is a risk that this project may be late so you have taken some measures to recover the project schedule. Management would like to know, based on current performance, what the estimate at completion for this project will be. What is the estimate at completion?

Options:

A.  

$1,650,000

B.  

$1,666,667

C.  

$663,333

D.  

-$8,333

Discussion 0
Questions 20

You are the project manager of the NHQ Project for your company. You are discussing some of the project issues that need to be resolved in the project. You and the project stakeholders come to an agreement about the risk issues and how they will be resolved. Where should you document this information for issue resolution?

Options:

A.  

Project management plan for execution

B.  

Lessons learned documentation

C.  

Issue log

D.  

Risk response plan

Discussion 0
Questions 21

Frank is the project manager of the NHL Project for his company and he is starting the risk identification process for the project. Frank needs to ensure that the correct stakeholders are interviewed as part of risk identification. What document will help Frank to communicate and solicit inputs of the project stakeholders during risk identification?

Options:

A.  

Project charter

B.  

Risk register

C.  

Requirements management plan

D.  

Stakeholder register

Discussion 0
Questions 22

Diana is the project manager of the QPS project for her company. In this project Diana and the project team have identified a pure risk. Diana and the project team decided, along with the key stakeholders, to remove the pure risk from the project by changing the project plan altogether. What is a pure risk?

Options:

A.  

It is a risk event that is generated due to errors or omission in the project work.

B.  

It is a risk event that is created by a risk response.

C.  

It is a risk event that only has a negative side, such as loss of life or limb.

D.  

It is a risk event that cannot be avoided because of the order of the work.

Discussion 0
Questions 23

You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of your company, on several risks within the project. Nancy understands that through qualitative analysis you have identified 80 risks that have a low probability and low impact as the project is currently planned. Nancy's concern, however, is that the impact and probability of these risk events may change as conditions within the project may change. She would like to know where will you document and record these 80 risks that have low probability and low impact for future reference. What should you tell Nancy?

Options:

A.  

Risks with low probability and low impact are recorded in a watchlist for future monitoring.

B.  

All risks, regardless of their assessed impact and probability, are recorded in the risk log.

C.  

Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.

D.  

All risks are recorded in the risk management plan.

Discussion 0
Questions 24

Joan is a project management consultant and she has been hired by a firm to help them identify risk events within the project. Joan would first like to examine the project documents including the plans, assumptions lists, project files, and contracts. What key thing will help Joan to discover risks within the review of the project documents?

Options:

A.  

The project documents will help the project manager, or Joan, to identify what risk identification approach is best to pursue.

B.  

Lack of consistency between the plans and the project requirements and assumptions can be the indicators of risk in the project.

C.  

Poorly written requirements will reveal inconsistencies in the project plans and documents.

D.  

Plans that have loose definitions of terms and disconnected approaches will reveal risks.

Discussion 0
Questions 25

You are preparing to complete the quantitative risk analysis process with your project team and several subject matter experts. You gather the necessary inputs including the project's cost management plan. Why is it necessary to include the project's cost management plan in the preparation for the quantitative risk analysis process?

Options:

A.  

The project's cost management plan can help you to determine what the total cost of the project is allowed to be.

B.  

The project's cost management plan provides direction on how costs may be changed due to identified risks.

C.  

The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget.

D.  

The project's cost management plan is not an input to the quantitative risk analysis process.

Discussion 0
Questions 26

Tom works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which of the following inputs of the identify risks process is useful in identifying risks, and provides a quantitative assessment of the likely cost to complete the scheduled activities?

Options:

A.  

Activity cost estimates

B.  

Cost management plan

C.  

Activity duration estimates

D.  

Risk management plan

Discussion 0
Questions 27

Lisa is the project manager of the SQL project for her company. She has completed the risk response planning with her project team and is now ready to update the risk register to reflect the risk response. Which of the following statements best describes the level of detail Lisa should include with the risk responses she has created?

Options:

A.  

The level of detail is set by historical information.

B.  

The level of detail should correspond with the priority ranking.

C.  

The level of detail must define exactly the risk response for each identified risk.

D.  

The level of detail is set of project risk governance.

Discussion 0
Questions 28

Wendy is the project manager of the FBL project for your company. She has identified several risks within her project and has created a risk contingency reserve of $45,000 total. Her project is nearly complete and many of the risks have not happened in the project. What should Wendy do with the funds in the contingency reserve?

Options:

A.  

The funds remain in the contingency reserve until all of the risks have passed.

B.  

The funds for the risks that have passed and have not happened are transferred to the project budget.

C.  

The funds for the risks that have passed and have not happened are released.

D.  

The funds remain in the contingency reserve until the project is closed.

Discussion 0
Questions 29

Mary is the project manager of the HGH Project for her company. She and her project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the order. The NBG Company can guarantee orders within three days, but the costs of their products are significantly more expensive than the current vendor. What type of a response strategy is this?

Options:

A.  

Internal risk management strategy

B.  

Contingent response strategy

C.  

External risk response

D.  

Expert judgment

Discussion 0
Questions 30

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

Options:

A.  

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

B.  

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

C.  

Establish risk boundaries

D.  

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

Discussion 0
Questions 31

Pete works as a project manager for BlueWell Inc. The Management has told him that he must implement an agreed-upon contingency response if the cost performance index in his project is less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is 65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78 percent complete. What is the cost performance index for this project to determine if the contingency response should happen?

Options:

A.  

1.02

B.  

0.96

C.  

0.90

D.  

0.89

Discussion 0
Questions 32

Fred is the project manager of a large project in his organization. Fred needs to begin planning the risk management plan with the project team and key stakeholders. Which plan risk management process tool and technique should Fred use to plan risk management?

Options:

A.  

Variance and trend analysis

B.  

Information gathering techniques

C.  

Planning meetings and analysis

D.  

Data gathering and representation techniques

Discussion 0
Questions 33

You and your project team are identifying the risks that may exist within your project. Some of the risks are small risks that won't affect your project much if they happen. What should you do with these identified risk events?

Options:

A.  

All risks must have a valid, documented risk response.

B.  

These risks can be accepted.

C.  

These risks can be added to a low priority risk watch list.

D.  

These risks can be dismissed.

Discussion 0
Questions 34

There are seven risk responses, a project manager can use to address risk events. Which one of the following is a risk response that is appropriate for positive or negative risk events depending on the scenario in the project?

Options:

A.  

Avoidance

B.  

Acceptance

C.  

Sharing

D.  

Transference

Discussion 0
Questions 35

You are the project manager of the NHQ project for your company. You are working with your project team to complete a risk audit. A recent issue that your project team responded to, and management approved, was to increase the project schedule because there was risk surrounding the installation time of a new material. Your logic was that with the expanded schedule there would be time to complete the installation without affecting downstream project activities. What type of risk response is being audited in this scenario?

Options:

A.  

Parkinson's Law

B.  

Mitigation

C.  

Avoidance

D.  

Lag Time

Discussion 0
Questions 36

You work as a project manager for TechSoft 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?

Options:

A.  

Three

B.  

Four

C.  

Seven

D.  

One

Discussion 0
Questions 37

Ben is the project manager of the CMH Project for his organization. He has identified a risk that has a low probability of happening, but the impact of the risk event could save the project and the organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs her to research the time, cost, and method to improve the probability of the positive risk event. Ben then communicates the risk event and response to management. What risk response has been used here?

Options:

A.  

Sharing

B.  

Transference

C.  

Enhance

D.  

Exploit

Discussion 0
Questions 38

Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen.

If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

Options:

A.  

$35,000

B.  

$41,700

C.  

$14,000

D.  

$6,700

Discussion 0
Questions 39

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

Options:

A.  

Transferring

B.  

Acceptance

C.  

Sharing

D.  

Enhancing

Discussion 0
Questions 40

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

Options:

A.  

Brainstorming

B.  

Qualitative analysis

C.  

Delphi Technique

D.  

Quantitative analysis

Discussion 0