WorksheetsRMP - 8. FINAL SIMULATION TEST
Total questions: 115
Worksheet time: 2hrs 53mins
Name
Class
Date
1.
A risk manager documents the causes of a risk in the risk register but needs to ensure the risk is adequately described. Which aspect is critical for the risk manager to consider when describing the causes?
a)
Each cause has a degree of uncertainty.
b)
Each cause has a risk owner.
c)
The causes represent actual conditions.
d)
Each cause is approved by the risk owner.
2.
What are the key success factors for risk management?
a)
Recognize the Value of Risk Management and Prior Risk Identification and Qualitative Risk Analysis.
b)
Recognize the Value of Risk Management and integration with Organizational Project Management (OPM).
c)
Interrelationships between Risks in Quantitative Risk Analysis and integration with Organizational Project Management (OPM).
d)
Recognize the Value of Risk Management and Perform Iterative Qualitative Risk Analysis.
3.
Which of the following helps to determine which risks are going to have the highest impact on a project?
a)
Sensitivity analysis.
b)
Cost-benefit analysis.
c)
Root cause analysis.
d)
SWOT analysis.
4.
A project manager is discussing with the project management office the implementation of risk audits in the project. What should the purpose of a risk audit?
a)
A risk audit gives the opportunity to validate the existence of a risk management plan.
b)
A risk audit gives the opportunity to consider the effectiveness of the entire risk management process.
c)
A risk audit gives the opportunity to consider the effectiveness of the risk management response strategy.
d)
A risk audit gives the opportunity to verify the completeness of the risk register and risk report.
5.
As per the risk analysis process carried out for a project, two risks are registered. The probability risk A will occur is 40% and its monetary impact to the project is US$ 100,000. The probability B will occur is 60% and its monetary impact to the project is US$ 20,000. What is the total contingency budget that should be created?
a)
US$ 68,000.
b)
US$ 120,000.
c)
US$ 80,000
d)
US$ 52,000.
6.
At the completion of a small project, the risk manager performs a risk audit and finds that several identified risks had occurred and the impact was significantly larger than expected. While the project remained on schedule, the project budget increased by 50%. The project met all risk response milestones and no additional previously unidentified risks, occurred on the project. Based on this information, what risk management process improvement should the risk manager recommend for future similar projects?
a)
Expand the use of risk identification techniques.
b)
Increase the frequency of risk management meetings with the project manager.
c)
Revise the level of accuracy of probability and impact scores.
d)
Document the risk audit and capture it in the lessons learned database.
7.
During project execution, a project manager invites the stakeholders to a risk review meeting. During this meeting, a vendor highlights that the mitigation plan for a schedule risk has generated a new risk. What should the project manager do?
a)
Accept the new risk.
b)
Add the new risk to the risk watch list.
c)
Implement the risk mitigation plan if a new risk occurs.
d)
Plan additional responses for the new risk.
8.
After a number of risk workshops, risks have been identified and risk owners assigned. What element the risk owner should look for in risk responses to help mitigate the risk?
a)
How the responses will affect the quality of the deliverable.
b)
Probability that the response has been transferred to a third party, shifting ownership.
c)
Probability of a response triggering a secondary risk.
d)
If the risk response is tied to activity on the critical path.
9.
Towards the end of definitive design, project costs have increased to the point where it will be classified as a capital asset project. The customer has expressed they want one final total project completion date and will afford no extensions after it is establish. How should the risk manager proceed?
a)
Update the assumptions/exclusions register with the new information.
b)
Perform a quantitative analysis and update the results.
c)
Perform a qualitative analysis and update the results.
d)
Update the risk register and prepare for the Monte Carlo analysis.
10.
A project manager is nearing the completion of an automation project. One of the key stakeholders requests a meeting to discuss some new ideas that would make the project even more appealing to end-users. As a result, the stakeholder suggests that the project manager does not close the project. What should the project manager do first?
a)
Add it to the issue log as an ongoing issue.
b)
Update the project charter with the new requirement.
c)
Add a risk to the risk register.
d)
Review and validate the scope management plan.
11.
You are managing a construction project. After identifying risks, you start the qualitative risk analysis process and now you are going to prioritize them. Which of the following techniques are you going to use?
a)
Tornado diagram.
b)
Sensitive analysis.
c)
Probability and impact matrix.
d)
Scatter diagram.
12.
A risk manager on an infrastructure project gathers and analyzes performance data. The risk manager wants to identify which variables will impact the schedule and determine how these factors interact. Which data analysis tool should the risk manager use to forecast future performance?
a)
Regression analysis.
b)
What-if/scenario analysis.
c)
Sensitivity analysis.
d)
Decision tree analysis.
13.
A stakeholder is asked to approve additional funding to implement a risk response plan. However, the stakeholder is unsure of the amount that could be approved without escalation. Where should the stakeholder look to determine the amount that can be approved?
a)
Cost management plan.
b)
Management reserve.
c)
Risk register.
d)
Risk management plan.
14.
The risk manager of a major project needs to ensure the organizational process assets (OPAs) are updated as a result of risk management activities. How will the risk manager accomplish this?
a)
Communicating the status of risks regularly to stakeholders.
b)
Arranging periodic risk management process audits.
c)
Monitoring costs with intervention when necessary.
d)
Ensuring that the project sponsor is kept well-informed.
15.
During a construction project, concrete is unable to be used because heavy rain affected its consistency. This possibility and its estimated costs were already identified in the risk register. How should the project manager fund the additional costs?
a)
Use the management reserve.
b)
Access the contingency reserve.
c)
Apply the budget reserve.
d)
Request reserves from the client.
16.
A risk manager reviews a Monte Carlo schedule risk analysis model before sharing the results with the project manager. The risk manager notices that activity correlations were not included in the model. What is the effect of adding the correlation to the model?
a)
Reduces the project completion duration.
b)
Increases the probability of correlated activities finishing on time.
c)
Increases the standard deviation of the model.
d)
Allows more risks to be included in the model.
17.
You have just started a project. Some of the risks that you are anticipating for this project might have surfaced in previous projects. Which of the following would you review to see how these risks and issues were handled?
a)
Lessons learned register.
b)
Policies and procedures.
c)
Lessons learned repository.
d)
Project management plan.
18.
During a meeting to develop the risk management plan, the risk manager recognizes that risks may be identified that could also impact other projects that the company is pursuing. What should the risk manager do?
a)
Address the unique characteristics of these risks on a case-by-case basis.
b)
Include an escalation process in the risk management plan.
c)
Contact the risk management of the other projects and inform them.
d)
Take note of the extensive impact of these risks in the risk register.
19.
A project's manager successfully developed the risk management plan and the risk register. Furthermore, the risk analysis and the risk response planning are finalized to deal with the high and medium priority risks. How will the risk manager and team members deal with the remaining low priority risks?
a)
Add the risks to a watch list for periodic monitoring.
b)
Update the risk management plan with the low priority risks.
c)
Create risk responses later, as time allows.
d)
Remove the risks from the risk register.
20.
During the initial planning of a project, a risk is identified for which the risk manager has defined a mitigation strategy. Later during project execution, this risk still leaves substantial residual risk. What should the risk manager do to handle this situation?
a)
Revisit this risk in the risk register and redefine the mitigation strategy.
b)
Ask the project sponsor for more budget to deal with this risk.
c)
Mark this new risk as an extremely high priority and inform all stakeholders.
d)
Activate the contingency plan to handle this risk during execution.
21.
A project manager notifies the project sponsor that the mitigation strategy for a major risk did not work. The sponsor states that the same risk response was implemented a few months ago on a similar project with the same result. How might this situation have been avoided?
a)
The project manager should have researched the lessons learned register for knowledge gained throughout similar past projects.
b)
The project manager could not have avoided this situation since it is impossible to determine in advance the effectiveness of a risk response.
c)
The project manager should have researched the lessons learned repository for knowledge gained throughout similar past project
d)
The project manager should have applied the avoidance risk response strategy because the risk had been seen before in past projects
22.
The risk manager notices that in their workshops, most of the risks identified are threats. What should the risk manager do to increase the numbers of opportunities identified?
a)
Interview more stakeholders who have a positive mindset.
b)
Use the Delphi technique involving experts who have identified opportunities in the past.
c)
Conduct a political, economic, sociological, technological, legal and environmental (PESTLE) analysis.
d)
Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis.
23.
What is risk tolerance?
a)
Willingness to accept varying degrees of risks.
b)
Ability to manage risks.
c)
Ability to mitigate risks.
d)
Willingness to develop a risk management plan
24.
You are the project manager of your organization. You are working with your project team to complete the qualitative risk analysis process. The first tool and technique you are using require that you assess the probability and what other characteristics of each identified risk in the project?
a)
Cost.
b)
Impact.
c)
Risk owner.
d)
Risk category.
25.
Stakeholder deliverable reviews will start soon and additional work is expected to resolve any issues or required Budget overruns during execution have put serious constraints on the remainder of the project's budget. What should the project manager do next?
a)
Coach stakeholders on risk identification practices.
b)
Review the consequences of potential changes.
c)
Conduct a risk reassessment and reserve analysis
d)
Request a budget relief using the management reserve.
26.
A project is in the initiation phase. The project stakeholders are invited to a meeting to share their thoughts that may impact the project in a positive or negative way. What will be the main output of this meeting?
a)
Identifying threats and opportunities.
b)
Performing a qualitative analysis.
c)
Evaluating the projects impact.
d)
Evaluating the project's probability of success.
27.
You are interviewing members of a project team to test their understanding of the assigned risk responses as risk owners. You and the project manager are working together to evaluate the risk responses to determine their effectiveness in the project. What project management technique are you performing with the project manager in this scenario?
a)
Risk audits.
b)
Risk analysis.
c)
Stakeholder analysis as the project team is a stakeholder.
d)
Risk identification with the project team.
28.
To obtain agreement on project risk response strategies by the stakeholders, the risk response strategies should be:
a)
Scheduled, budgeted, and easy for project stakeholders to understand.
b)
Iterative, scaled to the project, and addressing threats and opportunities.
c)
Appropriate project Model, Unbiased Data, and Iterative.
d)
Timely, cost effective, agreed upon, and accepted.
29.
The risk manager conducted an updated Monte Carlo simulation for the project at the end phase. The simulation reveals a key activity is now on the critical path. What recommendation should the risk manager make to the project manager?
a)
Add more float to the key activity.
b)
Review the plans for the key activity.
c)
Increase the budget for the key activity.
d)
Add more contingency to the project.
30.
If Risk 4 happens in this project, how much will be left in the contingency reserve?
a)
233500
b)
258500
c)
243500
d)
440000
31.
When selecting strategies as an activity of Plan Risk Response, what is the overall goal?
a)
Select the strategies with the greatest overall positive influence.
b)
Select the strategies with the least overall impact to resources.
c)
Select the strategies with the greatest benefit to stakeholders.
d)
Select the strategies with the least financial impact.
32.
A project has a 60% chance of a US$100,000 profit and a 40% chance of a US$100,000 loss. What is the expected monetary value for this project?
a)
US$ 20,000 profit.
b)
US$ 20,000 loss.
c)
US$ 100,000 profit.
d)
US$ 100,000 profit.
33.
The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin. The project manager would like the risk manager to take full advantage of opportunities. Which response should the risk manager take?
a)
Exploit.
b)
Mitigate.
c)
Transfer.
d)
Accept.
34.
The project manager and the risk manager of a new project to develop an application to support autonomous driving are meeting with the sponsor and key stakeholders to discuss the project. During the meeting, it is identified that the transport authority is discussing new traffic regulations for the industry that could be in place before the project ends. How should the project manager and the risk manager handle this situation?
a)
Meet with the traffic authority staff in charge of the new regulation.
b)
Ensure the project complies with the current traffic regulations and laws.
c)
Send a letter to the traffic authority with the general project information.
d)
Perform inquiries on the website of the traffic authority weekly.
35.
An organization that spans across different countries undergoes a digital transformation project. The project manager has assigned a risk management team leader who is a risk management certified candidate in their domain. What should the risk management team leader do in the early stages of the project?
a)
Conduct a qualitative risk analysis to prioritize potential risks.
b)
Plan a sold risk response plan and secure the necessary funding.
c)
Educate stakeholders on best practices to perform risk management.
d)
Benchmark to an organization which has executed a similar project
36.
You have just replaced a project manager who was managing a city street light installation project. The project is in its execution phase. The new project manager has issues with some undiscovered risks on previous projects. What document should the new project manager reference to ensure that all possible risks are involved in risk identification?
a)
Risk register.
b)
Stakeholder register.
c)
Project charter.
d)
Probability and impact matrix.
37.
A project manager was informed that the testing of the latest component in the project's software update release was not successful. As a result, the delivery timeline for the software release will be delayed. The project manager did not previously capture this as a risk to the project. What should the project manager do next to avoid similar risks?
a)
Reassess risks with a new assumptions and constraints analysis.
b)
Review the risk response plan looking for lessons learned.
c)
Log the event in the issue log and update the project management plan.
d)
Add contingencies to other tasks to mitigate similar risks
38.
You come with a lot of project risk management experience. You particularly hold that risks should be continuously monitored properly. Which of the below will you perform as part of such monitoring?
a)
Prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
b)
Arrange for a meeting to identify risks in the project. So far, no risks have identified.
c)
Review any secondary risks which arise due to agreed risk responses.
d)
Integrate risk response activities with other project execution work
39.
The project artifact used to capture risks, strategies and ownership pattern is:
a)
Mitigation plan.
b)
Risk management plan.
c)
Risk action plan.
d)
Risk register.
40.
Your company was awarded a contract that includes a 10% bonus payment if the project is completed two months early. You consider several options to exploit this opportunity. What is the best course of action for you to increase the chances of receiving bonus?
a)
Reduce project scope.
b)
Crash the schedule.
c)
Resource leveling.
d)
Purchase insurance.
41.
Which tool can the project risk manager utilize to help identify and assess project risks?
a)
Risk audit.
b)
Risk surveys.
c)
Sensitivity analysis.
d)
Interviews.
42.
During the monthly executive review meeting, the project sponsor would like to understand how the project team has planned to manage risks that were identified in the last meeting. What should the project do?
a)
Include secondary and residual risks as part of the response.
b)
Read to the secondary and residual risks only if they occur.
c)
Transfer secondary and residual risks to the project sponsor.
d)
Utilize a Monte Carlo assessment to provide risk-related impacts.
43.
The project manager of a high-risk project is concerned about a delay in the schedule that might force the project to move its go-live date. What should the project manager do next?
a)
Capture the risk in the risk register and monitor it to prevent it from becoming an issue by taking the proper response action.
b)
Ensure that the project meets the committed timelines as this is the core objective and purpose of the project.
c)
Ask the sponsor to start a new project to support the existing project and help it meet the original timeline.
d)
Raise a change request to the change control board (CCB) to ask for funds to onboard new resources to expedite the project.
44.
A risk management professional is currently facilitating the risk planning process with the project team. To increase the breadth of considered risks, the team wants to include high-level and strategic project risks. What should the risk management professional do next?
a)
Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis.
b)
Perform a sensitivity analysis to the high-level aggregate activities.
c)
Develop a risk breakdown (RBS) identifying the potential risk categories.
d)
Perform a baseline Monte Carlo simulation to address overall threats to project objectives.
45.
During a risk reassessment workshop with the project team and some external stakeholders, two key external stakeholders are overemphasizing the impact of a few project risks. This has led to a conflict. How should the risk manager avoid conflicts like this in the future?
a)
Hire a skilled facilitator to help resolve conflicts that may arise.
b)
Refer to the team charter for guidance on how to resolve conflicts.
c)
Use the assumption analysis techniques to validate the assumptions.
d)
Run a sensitivity analysis to check which risks have the most impact.
46.
A project manager is trying to realize benefits from new material on an adaptive project. This is the first time the project team is using the material, so the team does not have information to identify and analyze risks. A team member informs the project manager that a local university has recently published a research journal on the same material. Where should the project manager find this information?
a)
Commercial risk databases.
b)
Organizational process assets (OPAs).
c)
Industrial studies.
d)
Enterprise environment factors (EEFs).
47.
Upon reviewing the risk analysis results, the project manager notices several risks that occur more frequently than others. What should the project manager do?
a)
Transfer ownership of those risks to the customer.
b)
Request additional management reserve for those risks.
c)
Reduce the probabilities of those risks on the risk register.
d)
Implement the risk handling strategies for those risks.
48.
You are in the execution phase of a project to build an automobile. The project team develops a new response for an existing risk that will reduce the schedule by 20 days. What document should the project manager update?
a)
Schedule management plan.
b)
Risk management plan.
c)
Risk breakdown structure (RBS).
d)
Risk register.
49.
An issue that had not been registered as a risk appeared. This issue may have a big impact on the project. What should the project manager do?
a)
Inform the sponsor that the issue is addressed.
b)
Delay the project until the issue is addressed.
c)
Hold a meeting with the project team and relevant stakeholders to agree on the best way to manage the issues.
d)
Avoid managing the issue as it was not registered as a risk for the project.
50.
You are a project manager for a project to promote public health and mitigate health risks, the national health authorities intend to take actions to limit the risks of harmful insects by using pesticides, however, it is expected that some residents will have negative health effects due to the use of the pesticides, but according to the assessment completed by the health authorities, not moving forward with this plan will have much more serious consequences on public health rather than following through with the original plan. As a project manager, how should you address this concern with the health authorities?
a)
Assess and record associated secondary risks and proceed to treat them as any other risks.
b)
Suspend the project as the secondary risk will negatively impact residents' health which is not acceptable.
c)
Consult with health experts to provide a risk trigger before using pesticides that will impact the residents.
d)
Proceed with the project as normal since a minor number of residents will be affected negatively.
51.
An agriculture government agency faces different challenges with farmers and landlords in implementing its ambitious growth strategy. The agency decided to establish an enterprise risk management unit to identify risks, analyze risks, and provide a handbook showing how to handle the surrounding uncertainty. What should the risk management expert recommend the agency do first to identify and develop the handbook?
a)
Conduct meetings, facilitated workshops, and interviews with stakeholders to identify potential risks.
b)
Hire an agriculture expert who can develop the required handbook and discuss it with the agriculture minister.
c)
Follow standard risk identification tools dedicated for agriculture and tailor them to the environment.
d)
Prepare a list of the key resources that will be used to compile a risk management plan.
52.
A project manager decides to mitigate risk on the risk register. From which of the following sources should the funds be drawn to cover the risk mitigation?
a)
Management reserve.
b)
Contingency reserve.
c)
Contingency management.
d)
Project charter.
53.
The project risk manager is in the process of identifying risks. The project sponsor has communicated that there is an influential stakeholder who has a senior management position. The other stakeholders do not feel comfortable speaking in front of this stakeholder. What should the project risk manager do next to identify risks?
a)
Consider the Delphi technique to gather all stakeholder opinions.
b)
Review the risk breakdown structure to ensure the project scope is covered.
c)
Use the brainstorming technique to remove personal bias.
d)
Use expert judgement to remove ego or emotional conflict.
54.
A risk management professional is in the process of categorizing risks when a subject matter expert (SME) suggests categorizing the risks by their impact to the project objectives. Why should the risk management professional use this approach?
a)
To help ensure the team identifies the specific causes of risks associated with project objectives.
b)
To determine where more attentive project leadership and organizational involvement is needed.
c)
To ensure that project priorities are being appropriately factored into risk response plans
d)
To segregate risks and risk severities by functional discipline and departments effectively.
55.
A project manager has finished the project charter for a project and has now moved into the planning phase. In the first planning meeting, the project manager is trying to determine the risk tolerance and risk attitudes of the project's key stakeholders. What is the first resource the project manager should reference?
a)
Enterprise environment factors (EEFs).
b)
Project charter.
c)
Requirements management plan.
d)
Benefits management plan.
56.
When processing freight invoices for a project, the project manager notices the shipping costs exceeded the budget due to increased fuel costs. The risk manager included this risk in the project's contingency allowance, when reviewing the project budget execution reports, the project manager notices unused budget remaining in other closed tasks of the project that could cover the additional shipping costs. What should the project manager do?
a)
Ask the project sponsor to cover the additional shipping costs on the company's reserves account.
b)
Process the freight invoices at higher shipping costs against the project's contingency allowance.
c)
Process the freight invoices for the budgeted amount and hope the shipping company will forgive the difference.
d)
Request a formal change order from the customer to increase the project's total budget
57.
A project manager is working on a critical path activity and notices a delay in product delivery due to an anticipated event. What should the project manager do first?
a)
Follow the risk response plan.
b)
Use the contingency fund.
c)
Prepare a change request.
d)
Update the risk register.
58.
You know the success of your project will be determined by how well you manage risks. You know that identifying risks upfront can help you be better prepared with risk response strategies. You discuss and consult with other project managers in the company. One manager suggests the usage of SWOT to identify risks. What would you do next as a part of this technique?
a)
Identify the organization's strengths and weaknesses
b)
Gather anonymous responses from experts and identify risks.
c)
Perform root cause analysis to identify problems, their cause and potential response.
d)
Gather team members and experts together and discuss to identify risks.
59.
A risk manager completed risk response planning for a project that is currently in the execution phase. During a periodic review of the risk register, the project manager recognizes that some key secondary risks have not been considered. Who should the project manager hold accountable for missing the risks?
a)
The discipline engineer.
b)
The audit team.
c)
The risk manager.
d)
The risk owners.
60.
The project manager is implementing a computer interface to facilitate communication between two ticketing systems for two major companies in the IT industry. During the plan risk response process, the project team agrees on the contingency plan that should mitigate the negative impact of the risk. However, during the project execution, one of the subject matter experts identifies a residual risk that wasn't taken into consideration during the risk response planning session, but could potentially affect the project schedule baseline. What should the risk manager do to handle this residual risks?
a)
Accept the risk since it is minor.
b)
Increase the management reserve.
c)
Analyze this risk and update the risk register.
d)
Reject the risk since the risk plan will take care of all the risks.
61.
Members of a project team are not taking their risk management responsibilities seriously. They do not consider risk management as primary to the project's success and do not believe that the benefits are significant. What should the risk manager do?
a)
Motivate and influence the project team with risk engagement activities like workshops.
b)
Schedule a meeting to review and develop realistic risk thresholds with the project team.
c)
Ensure that risk management responsibilities are clearly identified in the risk management plan.
d)
Ensure that the risk language used by all stakeholders is consistent with the risk management plan.
62.
A project has a significant impact on an organization. Multiple stakeholders expressed concerns regarding the overall project risk during the construction of the risk management plan, and they agreed that risk appetite is low. What should the project risk manager monitor closely?
a)
Risk breakdown structure (RBS).
b)
Risk management reports.
c)
Risk response strategies.
d)
Risk thresholds.
63.
After starting a new constructing project, a risk manager schedules an initial meeting with the project sponsor. For the meeting, the project sponsor requests a presentation of the risks that have the most influence (positive or negative) on achieving the project objectives. What should the risk manager complete before the meeting?
a)
Quantitative risk analysis.
b)
Qualitative risk analysis.
c)
Sensitivity analysis.
d)
Monte Carlo simulation.
64.
Which of the following is the best description of a workaround?
a)
An unplanned response to an identified risk.
b)
An unplanned response to an unknown risk.
c)
A planned response to an unknown risk.
d)
A secondary plan implemented due to a primary plan failure.
65.
You are a project manager building a prototype board for an embedded project. Since your organization lacks the required level of fabrication expertise, you outsource the fabrication process for board development to an external vendor. During the course of the project, the vendor informs you of a probable delay by 3 days in the final delivery of the fabricated board. This is an EXAMPLE of?
a)
Risk Trigger.
b)
Residual Risk.
c)
Secondary Risk.
d)
Risk Workaround.
66.
A risk manager faces resistance as they try to implement the project's risk strategy. Some members of the project team believe it is a waste of time and money. What should the risk manager do?
a)
Reduce the number of risk management activities.
b)
Meet with team members to address their concerns.
c)
Continue to implement the risk strategy.
d)
Raise the concerns with the project sponsor.
67.
A risk manager has been assigned to a project constructing a petrochemical laboratory. Unfamiliar with petrochemical laboratories, the risk manager is unsure of where to start objectively identifying risks. What should the risk manager do?
a)
Define chemical laboratory safety risk thresholds.
b)
Draft threat and opportunity risks that come to mind.
c)
Review published operational experience reports.
d)
Import a risk register from other industry chemical laboratories.
68.
Multiple new risks have come upon a project that were not included on the risk register. The project manager met with the team to explain that risk management is critical for the success of the project, and risk identification is key. What should the project manager do next?
a)
Review assumptions and constraints around risks.
b)
Apply an iterative approach to risk identification.
c)
Develop the risk response plans for identified risks.
d)
Determine the likelihood and impact of the risks.
69.
The project sponsor asks the project manager about the accuracy of the project data. The project manager realizes that some risks have not been updated recently. What should the project manager do first regarding those risks?
a)
Conduct a checklist analysis on each risk.
b)
Perform an assumption analysis for those risks.
c)
Review the risk register to check for the new risks.
d)
Create a risk response plan for those risks.
70.
A mega facility development project is evaluating some options to achieve the project schedule and budget. Each option's success is driven by multiple quantifiable factors. What should the project manager do to evaluate and select the best option based on costs and probabilities?
a)
Perform a FMECA fault tree analysis.
b)
Conduct an analytic hierarchy process.
c)
Perform a decision tree analysis.
d)
Conduct a sensitivity analysis.
71.
The project manager has initiated the project and the team's roles and responsibilities have been assigned. In preparation for the development of the project management plan, the project manager reviews lessons learned from projects and discovers that the same team has been missing delivery dates. What should the project manager do to ensure timely delivery?
a)
Include this in the risk register.
b)
Escalate the issue to the functional manager.
c)
Ask the team leader to assign other resources.
d)
Update the issue log.
72.
During a risk review meeting for project nearing completion, a new risk has been identified. This risk may affect the project's schedule. What should the project manager do first?
a)
Mitigate the risk.
b)
Alert the project sponsor of the potential impact.
c)
Implement the response plan.
d)
Analyze the risk.
73.
The project manager has completed four projects all with similar scope. The project has recently been assigned to start on a new project and believes some risks may occur again on this project. What should the project manager do?
a)
Discuss and evaluate the identified risks with the project team.
b)
Inform the sponsor that these risks should be added according to experience.
c)
Add the risks to the risk register and determine a contingency.
d)
Implement the risk response strategies into the risk plan.
74.
Who is best suited to serve as risk owners?
a)
Risk manager.
b)
Project manager.
c)
Project team members.
d)
Project sponsors.
75.
A key stakeholder wants to understand when the risk may potentially become an issue. What artifact should the project manager share with the stakeholder?
a)
Issue log.
b)
Risk management plan.
c)
Project management plan.
d)
Risk register.
76.
Which of the following documents is described in the statement below? "It is developed along with all processes of risk management. It contains the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning."
a)
Risk response plan.
b)
Project charter.
c)
Risk register.
d)
Risk management plan.
77.
Which of the following diagrams displays sensitivity analysis data?
a)
Fishbone.
b)
Cause and effect.
c)
Influence.
d)
Tornado.
78.
A risk manager documents the causes of a risk in the risk register but needs to ensure the risk is adequately described. Which aspect is critical for the risk manager to consider when describing the causes?
a)
The causes represent hypothetical scenarios.
b)
Each cause has a degree of uncertainty.
c)
The causes represent actual conditions.
d)
Each cause is documented clearly and concisely.
79.
A project manager is developing the risk register and works with the team to analyze risks and determine 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 the project manager use in this instance?
a)
Cause and effect.
b)
Checklist analysis.
c)
Specialized meeting.
d)
Quantitative analysis.
80.
A project manager has determined that they cannot outsource work nor eliminate the scope. They also discover that they cannot buy insurance or mitigate the risk. What should the project manager do?
a)
Accept the risk.
b)
Ignore the risk.
c)
Avoid the risk.
d)
Transfer the risk.
81.
A two-year project with a budget of US$ 2 million has completed about 60% of the work at the end of the first year. The actual cost incurred to complete the remaining 40% of work is about US$ 1.5 million. As a part of performing a specialized risk analysis, the calculated schedule performance index (SPI) is 1.2 and cost performance index (CPI) is 0.53. How should the risk manager interpret such a low CPI value?
a)
There is a problem with the cost baseline.
b)
The cost-related risks are not effectively managed.
c)
The cost control processes are not effective.
d)
The actual reported costs are not accurate.
82.
During a project review meeting, stakeholders are making decisions on how to respond to known and new risks encountered during project execution. Which artifact should the stakeholders review?
a)
Risk-adjusted backlog.
b)
Assumption log.
c)
Change log.
d)
Issue log.
83.
A quality defect on project deliverables appears. In which category are these included?
a)
External risk.
b)
Technical risk.
c)
Commercial risk.
d)
Management risk.
84.
A project manager running a high-risk rating project was just informed that one of the key project resources has decided to leave the organization. The project manager previously identified this as a risk and had created a transition plan to enable another resource to carry out the same duties. The project manager was informed that by transitioning the responsibilities to the new resource, new risks to the completion dates of other project-related tasks appear. What should the project manager do next regarding the new risks?
a)
Escalate the new risks immediately to the project stakeholders to ensure proper risk communication is in place.
b)
Address the secondary risks as per the risk management plan.
c)
Apply a risk acceptance strategy to the new risks as there is no risk response plan.
d)
Update the risk management plan with the new probability/impact and change the response
85.
A risk manager of a complex project has identified a risk and believes a deeper understanding of the source and likelihood is necessary. How should the risk manager proceed?
a)
Develop and employ an Ishikawa diagram.
b)
Perform a review of project documents.
c)
Create prompt lists for expert interviews.
d)
Analyze the assumptions and constraints.
86.
A project manager is working with his project team to prioritize the identified risks within the project. He and the team are prioritizing risks for further analysis or action be assessing and combining the risks probability of occurrence and impact. What process is the project manager completing?
a)
Perform qualitative analysis.
b)
Risk identification.
c)
Risk breakdown structure creation.
d)
Perform quantitative analysis.
87.
You have been assigned as a project manager to a software project. You and the project team have established the relative priorities of individual project risks that have been identified earlier in the project. Now you start to perform further analysis and quantifies overall project risk exposure. In which process are you currently involved?
a)
Plan risk response.
b)
Perform Quantitative Risk Analysis.
c)
Decision tree analysis.
d)
Perform Qualitative Risk Analysis.
88.
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?
a)
These risks can be dismissed.
b)
All risks must have a valid, documented risk response.
c)
These risks can be added to a low priority risk watch list.
d)
These risks can be accepted.
89.
A heavy industrial design firm has over US$ 3 billion in current contract value. As a result of quantitative risk analysis of geographically separated project, opportunities have been identified and assessed as high priorities for the project. What is the most effective method to capture these opportunities?
a)
Integrate them into the RBS.
b)
Schedule a project team meeting.
c)
Establish a contingency reserve.
d)
Formally notify the project manager.
90.
After analyzing risk with the project team you, the project manager, decide to establish a contingency reserve to handle the threat if it occurs. What type of strategy is this?
a)
Active mitigation.
b)
Passive acceptance.
c)
Active acceptance.
d)
Passive transference.
91.
A complex project that had hundreds of risks is almost done. The project manager is closing the risks as part of the closing process. One team member mentions that there are important documents to be updated. Which document will need to be updated?
a)
Contingency register.
b)
Lessons learned.
c)
Issue log.
d)
Risk register.
92.
Three months into a program, multiple workstreams are showing issues. At this point, the program manager requires that a risk impact assessment be conducted. What will help calculate the impact?
a)
Risk identification.
b)
Risk treatment.
c)
Risk analysis.
d)
Risk evaluation.
93.
An opportunity is outside the scope of the project is discovered by the project team. The project manager decided to update the risk register and escalate the opportunity to a higher level. What should the project manager do next with this opportunity?
a)
Establish a contingency reserve to handle this opportunity.
b)
Further monitoring the opportunity.
c)
Share this opportunity with another project.
d)
No more action is required.
94.
The project's customer has stated the project must be completed by a date indicated as the P90 date established on the Monte Carlo analysis. What should the project manager do to ensure the P90 date is met?
a)
Perform a qualitative risk analysis for the project.
b)
Hire more resources and crash the schedule.
c)
Update the assumptions/exclusions register.
d)
Mitigate risks identified on the sensitivity analysis.
95.
While 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 team member do immediately?
a)
Draft an emergency fallback plan since the critical path is in jeopardy.
b)
Recommend the project be placed on hold for a day to avoid the risk.
c)
Document the risk in the risk register.
d)
Generate a risk report using qualitative analysis of the identified risk to alert the team of the schedule impact.
96.
During the planning phase of a project, the project manager learns that the sponsor has eliminated some important deliverables in other projects over the past three years, producing a negative cost variance. What should the project manager do next?
a)
Define the scope baseline correctly.
b)
Document the lesson learned,
c)
Document the issue in the issue log.
d)
Include the risk in the risk register.
97.
Which of the following is the most accurate definition of project risk?
a)
It is an uncertain event or condition within the project execution.
b)
It is an uncertain event that can affect the project costs.
c)
It is an uncertain event that can affect at least one project objective.
d)
It is an unknown event that can affect the project scope.
98.
The project team recorded a risk in the risk register indicating that weather-related delays may impact equipment delivery during project execution. When it is time to request the equipment shipment, there is bad weather, but the client wants the equipment delivered anyway. What should the project manager do?
a)
Proceed with the planned risk response to move the equipment.
b)
Request the shipment of the equipment to satisfy the client.
c)
Wait until weather improves before sending the equipment.
d)
Ask the project sponsor to approve shipping the equipment
99.
Several key stakeholders approach the project manager with concerns. The stakeholders have received feedback from local businesses that have reported a reduction in customers because of construction activities at the worksite, and they plan to submit a claim to the municipality to fine the project manager's company. How should the project manager address this concern?
a)
Adjust construction work hours to after business hours.
b)
Discuss the concern with the local business owners.
c)
Update the key risks and perform a quantitative risk analysis.
d)
Evaluate the risk with the team and update the issue log
100.
You are planning risk management activities for a small project you are leading. The project team is having trouble assigning cost and schedule impacts to the identified risks due to a lack of high-quality numeric data. What is your best course of action?
a)
Make up numeric data and evaluate on a quantitative basis.
b)
Request the numeric data from the project sponsor
c)
Proceed directly to the Plan Risk Responses process.
d)
Release the project team and terminate the project.
101.
A project manager has identified a risk event that has a probability of 0.70 and has a cost impact of $350,000. When it comes to creating 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?
a)
The risk exposure of the event is $350,000.
b)
The risk exposure of the event is $245,000
c)
The risk exposure of the event is $850,000.
d)
The risk exposure of the event is $500,000.
102.
You are a project manager assigned to a new airport construction project. To manage risk effectively in your project, the value of risk management processes and understanding should be among key stakeholders. The coaching and training should be provided to which of the following groups to create this understanding?
a)
Management and customer.
b)
Management and external shareholders.
c)
Project team members and customers.
d)
Project team members and management.
103.
A large land-based infrastructure project has begun. The project makes assumptions about the site conditions and has economic, technical and environmental constraints. What should the project manager do next to determine the risk impact of assumptions and constraints?
a)
Add the assumption and constraints in the project charter.
b)
Add the assumptions and constraints to the assumption log.
c)
Add the risk impact of the assumptions in the risk register.
d)
Add all assumptions and constraints to the risk register.
104.
You have been assigned as a project manager to a software project. Before creating your product, you decided to create a prototype to ensure that it is acceptable to stakeholders. This is an example of:
a)
Risk mitigation.
b)
Risk transference.
c)
Risk avoidance.
d)
Risk acceptance.
105.
A project manager working with a risk averse financial firm has just started a new project. The project sponsor is extremely concerned that the project may run over budget and is looking to the project manager for confirmation that this won't happen. In order to alleviate the sponsor's concerns, what should the project manager do?
a)
Run a Monte Carlo simulation.
b)
Create the probability and impact matrix.
c)
Use historical data analysis.
d)
Perform a strengths, weaknesses, opportunities and threats (SWOT) analysis.
106.
A budge change request was initiated by a functional manager in an organization due to a shortage in the functional manager's department budget. The functional manager asks the CEO to approve utilization of a contingency budget reserved for one of the projects in its closing phase. What should the risk manager of the related project have done to prevent this situation from happening?
a)
Created the project work plan and budget more accurately.
b)
Educated the project team on budget change requests.
c)
Communicated better with the organization's CEO.
d)
Performed the risk monitoring and closing process properly.
107.
The project manager is reviewing the lessons learned from a previous similar project. The previous project was delayed due to the delay in the delivery of a gas turbine generator (GTG). Construction of the previous project had to be shut down unexpectedly to wait for the late delivery of the GTG. What should the project manager do first?
a)
Include the risk in the register and communicate with the stakeholders.
b)
Interview the other project manager to learn more details.
c)
Review and update the project schedule.
d)
Communicate with the client to provide the previous shutdown plan.
108.
The project manager asks the risk manager to determine the initial risk assessment for a six-month initiative that is about to kick-off. Which two artifacts will help the risk manager conduct the related analysis? (Choose two).
a)
Monte Carlo analysis.
b)
Work breakdown structure (WBS).
c)
Project organization chart.
d)
Configuration management plant
e)
Brainstorming.
109.
What are three examples of risk thresholds? (Choose three).
a)
A project has defined the project level risk rating matrix based on the likelihood of occurrence and possible consequences of schedule and cost.
b)
A business unit agreed that top project risks with more than US$ 100 million impacts would be escalated.
c)
An organization seeks to establish a consistent method for evaluating and responding to risk across the enterprise.
d)
A construction company walks away from a joint venture project proposal due to a 30% chance of loss.
e)
A risk with a less than one-month schedule delay will be communicated through the areas of concern section in the project status report instead of the risk register.
110.
A project manager is identifying risks on a project and decides to use a risk checklist to gather historical data accumulated from similar projects. With several different historical project files to choose from, which two pieces of information should the project manager include in their risk checklist? (Choose two).
a)
Lessons learned from similar completed projects.
b)
Stakeholder analysis metrics from projects with similar risk profiles.
c)
Budget variance data from previously completed projects.
d)
Previous project risks that may be relevant to this project
e)
Project scope and cost management plans from previous projects
111.
When conducting a risk identification exercise, what two actions should the risk manager take? (Choose two).
a)
Ensure that all the relevant stakeholders participate.
b)
Request a contingency reserve from management.
c)
Update the risk register during the team meeting.
d)
Ensure participants review relevant documents before attending the meeting.
e)
Arrange a team meeting, review the project's scope, and discuss dependency mapping.
112.
A newly hired CEO is having difficulty approving the risk contingency budget. The CEO notices each project has a different approach to report risks and their impacts. The CEO decides to create a new centralized risk management functions to help resolve the problem. What are three functions that will resolve the problem? (Choose three).
a)
Monitors the impact against the overall project risk exposure.
b)
Allows the process of identification of different individual project risks.
c)
Establishes risk sources and ownership for trigger monitoring.
d)
Improves the gathering analyzing and providing of performance data.
e)
Provides a standard procedure to identify and communicate risks.
113.
A risk manager is confident that they have identified and quantified the risks and opportunities for a project. When presenting their work to management, on what areas should the risk manager focus? (Choose two).
a)
Risk mitigation actions that will require work from stakeholders.
b)
Huge opportunities that possibly bring an additional 30% return for 10 projects in the next year
c)
Risks that are tied to the success of the organization.
d)
Risks related to cost that will impact the major projects that are currently in the execution phase.
e)
Risks as they apply to the organization's overall risk management philosophy and strategic ambition.
114.
The project team has correctly identified, assessed and planned responses for a project's risks. The risk manager is required to prepare a quarterly report on the performance of managing the risks. What are two options the risk manager should consult for the analysis? (Choose two).
a)
Backlog of change orders to be submitted to client.
b)
Proximity dates for open risks.
c)
Number of schedule baseline changes approved.
d)
Risks due to the number of claims submitted to the client.
e)
Risks that have materialized and overall risk profile.
115.
A risk manager was recently hired to assist with a mid-sized infrastructure project. The risk manager becomes aware that they have an inexperienced project team. What two items should the risk manager have their team review in order to prepare for an upcoming risk identification workshop? (Choose two).
a)
Organization chart for city permit department.
b)
Scope of work and requirements.
c)
Risk management plan.
d)
Monte Carlo analysis from a similar project
e)
List of pre-approved contractors.
100 %
