PMI RMP - Risk Identification

During initial project planning, a project manager was informed that a team member had been exclusively allocated to the project. Halfway through the project, the team member was assigned to another project.

What should the project manager do?

1. A.

• Discuss the impacts on project delivery with the functional manager and develop an appropriate course of action

• Document this as a risk in the risk register and implement the appropriate response strategy for the risk.

• Ensure that all team members are cross-trained on all project tasks to decrease the impact on the project outcome.

• Escalate this issue to the project sponsor and request that they secure the return of the team member.

Answer explanation

A. Discuss the impacts on project delivery with the functional manager and develop an appropriate course of action.

The impact of resource reallocation/reassignment should first be discussed with the functional manager. The project manager should meet with the functional manager to discuss the reasoning behind reassigning the team member to another project, the impacts associated with the change, and potential solutions. There is no way of knowing why the team member was transferred or how to proceed. It is possible that the functional manager mistakenly thought that the team member was no longer necessary, or it could be a response to a larger issue. Without a meeting to discuss this, there is no clear way to address the issue.
The other options are incorrect because they are not the most immediate or effective actions.
Adding this issue to the risk register is not an appropriate action at this point and does not resolve the issue. This is an issue at this time and was not known nor identified as a risk, so a response plan would not exist.
It may not be possible or necessary to ensure that all team members are cross-trained to work on all project tasks. This also does not help to address the current issue.
Escalating the issue to the project sponsor may not be necessary, so the project manager should first gain a better understanding of the issue before taking action. The sponsor may not be able to move the team member between teams and it may not be appropriate to do so.

Project stakeholders have contributed to the risk identification process led by the risk manager. As the risk management process continues, they become less involved and start focusing on the project activities to ensure there is no schedule slippage. 

What should the risk manager do?

• Identify the stakeholders who remained engaged and continue the risk management process with this smaller group.

• Discuss the matter with the project team and inform them that they may conduct identification without the stakeholders.

• Notify stakeholders that risk management is a systematic process that should be applied throughout the project.

• Record this matter in project records specifying the stakeholders involved and report the issue to the project sponsor.

Answer explanation

C. Notify stakeholders that risk management is a systematic process that should be applied throughout the project.

Proactively identifying risks throughout the project can help avoid or minimize the impacts of threats and trigger or maximize the impacts of opportunities. Telling stakeholders that risk management is a systematic process that should be applied throughout the project will help ensure that all stakeholders understand the importance of risk management and their role in the process. It is important to communicate this message clearly and consistently throughout the project to maintain stakeholder engagement and support for risk management activities.

The other options are incorrect.

Ignoring the stakeholders who are disengaged is not proactive and does not address the issue. 

While it is important to discuss this with the project team, continuing without the input of stakeholders is not advisable and can result in incomplete risk identification and does not address the importance of stakeholder involvement.

Recording project information is vital in general, but this does not address the core issue.

In an AI project to develop a machine learning algorithm for natural language processing, the project team is evaluating the project management information system (PMIS) process and data.

What approach should the risk manager prioritize to evaluate the PMIS process and data?

• Conduct a thorough audit of the PMIS process and data to identify areas for improvement and ensure alignment with objectives.

• Implement a project management software solution with advanced analytics capabilities to analyze the PMIS process and data.

• Engage in regular project review meetings with key stakeholders to discuss the effectiveness of the PMIS process and data.

• Appoint a dedicated data analyst to perform statistical analysis covering all processes and data components of the PMIS.

Answer explanation

A. Conduct a thorough audit of the PMIS process and data to identify areas for improvement and ensure alignment with objectives.

Conducting a thorough audit of the PMIS will help to identify any gaps or weaknesses in the PMIS process and data, and provide insights that can be leveraged to generate recommendations for improvement. It is important to ensure that the PMIS analysis is comprehensive, documented, and dynamic and provides direction and integrates information from individual project/program management systems. 

The other options are incorrect.

Implementing a software solution may be helpful but would not be comprehensive enough for this purpose. 

Regular status meetings are important, but they do not address this scenario. 

A data analysis may be helpful but may be unnecessary and resources may be unavailable. It is advisable to engage an analyst if issues or areas for improvement are identified.

A project team is preparing for a routine project that is repeated annually. The team would like to identify potential risks and areas for improvement and establish a basis for measuring performance. 

What should the project team do to begin this process?

• Request that the project sponsor review the historical data and prepare a report.

• Perform benchmarking by comparing the project to similar previous projects.

• 1. Initiate the project planning process as planned because the project is routine.

• 1. Integrate sophisticated reporting software to support cross-functional collaboration.

Answer explanation

B. Perform benchmarking by comparing the project to similar previous projects.

The team should perform benchmarking by comparing the project to similar previous projects. This will help identify potential areas for improvement and establish a basis for measuring performance. By comparing the project to similar previous projects, the team can identify best practices and areas where improvements can be made. This will help ensure that the project is completed more efficiently and effectively.

The other options are incorrect.

The team should be involved in reviewing historical data and other documentation at the start of a project.

It is not advisable to initiate the project without analysis, even if it is routine. There is often room for improvement as new tools and resources may have become available and the project environment may have changed over time. 

A software system may help with collaboration but does not directly provide insights on areas for improvement or a basis for measuring performance. There is also no proof that there is any issue with collaboration or that the organization does not already have systems in place for this. 

What identification technique is used to help reduce the ambiguity of a risk statement?

• Driver, risk, outcome

• Exploit, risk, accept

• Probability, risk, impact

• Cause, risk, effect

Answer explanation

D. Cause, risk, effect

For identifying risks, a risk register is created. It is used to document the results of risk analysis and risk response planning. The risk statement is part of this and identifies risks in as much detail as possible. The structure for describing risk is an event may occur causing impact, or if cause exists, an event may occur leading to effect. The other areas of drivers, outcomes, exploits, acceptance, probability, and impact are part of the risk analysis and responses which comes after the identification of risks

A stakeholder is assigned as the risk owner for an identified risk. The stakeholder is unfamiliar with risk management and the role of a risk owner. The risk manager meets with the stakeholder to coach and mentor them on risk management. 

How should the risk manager describe the role of a risk owner?

• Risk owners are responsible and accountable for managing risks.

• Risk owners are responsible for creating a detailed description of a risk.

• Risk owners are responsible for managing the risk management plan.

• 1. Risk owners are responsible for the identification of new risks.

Answer explanation

A. Risk owners are responsible and accountable for managing risks.

The risk manager should describe the role of a risk owner as being responsible and accountable for managing risks. This includes identifying, assessing, and prioritizing risks, developing and implementing risk response plans, and monitoring and controlling risks throughout the project or program lifecycle. 

The other options are less accurate and comprehensive.

All project stakeholders and the project team should participate in identifying and describing risks, not solely the risk owner. 

A risk owner is not independently responsible and accountable for the entire risk management plan. 

PESTLE, TECOP, and SPECTRUM are three examples of prompt lists that can be used during risk management activities. Prompt lists are used to do which of the following?

• Facilitate risk identification

• Evaluate risks simultaneously

• Identify the impact of risks

• 1. Achieve the relative weighting

Answer explanation

A.  Facilitate risk identification

Prompt lists such as PESTLE, TECOP, and SPECTRUM are used to facilitate risk identification during risk management activities. They provide a predetermined list of risk categories that might give rise to individual project risks, and that could also act as sources of overall project risk. The prompt list can be used as a framework to aid the project team in idea generation when using risk identification techniques. The risk categories at the lowest level of the risk breakdown structure can be used as a prompt list for individual project risks.

The other options are incorrect.

Prompt lists assist in identifying risks, but they do not evaluate them or specifically identify the impact of those risks.

Prompt lists are not used to achieve relative weighting of risks.

A risk manager has suggested that the project team copy the risk triggers and thresholds from a past project. What must the risk manager be sure is clearly understood by the team prior to commencing this exercise?  

• The copied risk thresholds and triggers must be documented and should not be changed or altered. 

• The copied risk triggers and thresholds should be relevant and applicable to the current project.

• The copied risk triggers and thresholds should be comprehensive and duplicated completely.

• The copied risk thresholds and triggers can serve as inputs to be updated at project closure.

Answer explanation

B.  The copied risk triggers and thresholds should be relevant and applicable to the current project.

The team should understand that the copied risk triggers and thresholds should be relevant and applicable to the current project. It is important to ensure that the copied risk triggers and thresholds are still applicable and suitable to the current project and that they align with the organization's risk management strategy and governance.

The other options are incorrect.

The copied risk triggers and thresholds are a good starting point as long as they are relevant to the new project. These inputs should be reviewed and tailored to fit the current project. There may be information that is not relevant to the new project, this information should not be copied as it is not applicable. Waiting until project closure is not effective risk management.

In addition to the risk management plan, what are the main outputs of the risk identification process?

• Lessons learned, risk report, and risk register

• Risk report, risk register, and updated document updates

• Risk management plan, risk register, and risk responses

• Risk report, issue log, and a probability and impact matrix

Answer explanation

B. Risk report, risk register, and updated project documentation

The main outputs of the risk identification process are the risk report, risk register, and updated project documentation. The risk report summarizes information on individual project risks and the level of overall project risk The risk register is a repository in which outputs of risk management processes are recorded. Project document updates may include updates to the project scope, schedule, budget, and other project plans and documents to reflect the identified risks. These outputs are important for effective risk management and should be regularly reviewed and updated throughout the project lifecycle.

The other options are incorrect because they contain options that occur after risks are identified.

A probability and impact matrix would be conducted while analyzing risks, not while identifying them.  

Risk responses are not determined when identifying risks.

Lessons learned record knowledge gained during a project.

A risk manager works with the project team, senior management team, subject matter experts, and other stakeholders to identify the project risks. Which of the following can be used to identify risks based on project objectives by category?

• Affinity diagram

• Risk breakdown structure (RBS)

• Decision tree method

• Work breakdown structure (WBS)

Answer explanation

B. Risk breakdown structure

The risk breakdown structure (RBS) is a tool/method from the risk management plan that can be used to identify a risk based on project objectives by category. The RBS is a hierarchical framework of potential sources of risk, and it helps to identify risks by breaking down the project into smaller components and identifying risks associated with each component. By categorizing risks based on project objectives, the RBS helps to ensure that all potential risks are identified and that they are aligned with the project's objectives.

The other options are incorrect.

Affinity diagrams, decision trees, and work breakdown structures are not specifically related to identifying risks based on project objectives by category.

Affinity diagrams help to unify large amounts of data by finding relationships between concepts but do not typically help to categorize information based on objectives.

A decision tree model is a diagramming and calculation method for evaluating the implications of a chain of multiple options in the presence of uncertainty.

A work breakdown structure is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.