1. You are managing a construction project.

During your risk identification

interviews you learn that there has been a string of construction site thefts over
the past few months in the area where your will be building your project. The
team agrees that it's unlikely that people will be able to steal from your site. Even
if thieves could get around your security, it's even more unlikely that your project
will lose a significant amount of material if a theft does occur. You decide to
monitor the risk from time to time to be sure that it continues to have a low
probability and impact. Where do you record the risk so that you don't lose track
of it?

 In a trigger

 On a watchlist

 In the Probability and Impact Matrix

 In the Monte Carlo analysis report

Explanation:

Answer: B A watchlist is where you keep risks that don't have a high enough probability or impact to make
it into the risk register but still need to be monitored. By recording the risk in a watchlist, you will have a
reminder to check to be sure that circumstances haven't changed as your project goes on. That should
give you enough time to come up with a risk response strategy if circumstances change as time goes on

2. Risks with low ratings of probability and impact are included on a ____ for
future monitoring.

 Risk alarm

 Watchlist

 Observation list

 Risk register

Explanation:

Answer: B Low risks and residual risks are kept under watchlist

3. Purchasing insurance is considered an example of risk:

 Mitigation

 Transfer

 Acceptance

1
 Avoidance

Explanation:

Answer: B

4. The customer responsible for overseeing your project asks you to provide a
written cost estimate that is 30% higher than your estimate of the project's cost.
He explains that the budgeting process requires managers to estimate
pessimistically to ensure enough money is allocated for projects. What is the
BEST way to handle this?

 Add the 30% as a lump sum contingency fund to handle project risks

 Add the 30% to your cost estimate by spreading it evenly across all project tasks

 Create one cost baseline for budget allocation and a second one for the actual project plan

 Ask for information on risks that would cause your estimate to be too small

Explanation:

Answer: D

5. You and your project team are just starting the risk identification activities for a
project that is scheduled to last for 18 months. Your project team has already
identified a long list of risks that need to be analyzed. How often should you and
the project team do risk identification?

 It depends on how many risks are initially identifie

 At least once per month

 Identify risks is an iterative process.

 Several times until the project moves into execution

Explanation:

Answer: C Risk identifification should happen throughout the project

2
 6. You and the project team have created risk responses for many of the risk
events in the project.Where should you document the proposed responses and
the current status of all identified risks?

 Stakeholder management strategy

 Risk management plan

 Risk register

 Lessons learned documentation

Explanation:

Answer: C Risk register is the document in which all the risks will be entered.

7. All of the following statements are true of the project Closing processes except
for which one?

 Probability for success is greatest in the project Closing processes.

 The project manager

 The stakeholders

 Risk is greatest in the project Closing processes.

Explanation:

Answer:D. Risk is lowest during the Closing processes because you

8. You have just been appointed project manager for a new telecommunications
project. There appear to be many risks on this project, but no one has evaluated
them to assess the range of possible project outcomes. What needs to be done?

 Risk identification

 Risk quantification

 Risk response planning

 Risk monitoring and control

3
 Explanation:

Answer: A Risk identification to minimize missing out any unidentified risk

9. You are determining which risks can affect the project. Which of the following
are the inputs to the identify risks process that you will use to accomplish the
task? Each correct answer represents a complete solution. Choosethat will not
apply.

 Scope baseline

 Activity cost estimates

 Risk register

 Risk management plan

Explanation:

Answer: C Risk register is the output

10. You are working with the project team to reassess existing risk events and to
identify risk events that have not happened and whose relevancy to the project
has passed. What should you do with these events that have not happened and
would not happen now in the project?

 Add the risks to the risk register

 Add the risks to a low-prioritywatchlist

 Close the outdated risks

 Add the risk to the issues log

Explanation:

Answer: C So, the risk is coming down. Close the one which is not happening

11. During execution, a major problem occurred that was not included in the risk
response plan. What should you do FIRST?

4
 Create a workaround

 Re-evaluate the risk identification process

 Look for any unexpected effects of the problem

 Tell management

Explanation:

Answer: A Work around is the immediate solution and may not be permanent solution

12. You are reviewing the risk register for your project.The risk register provides
much information to you, the project manager and to the project team during the
risk response planning. All of the following are included in the risk register
except for which item?

 Network diagram analysis of critical path activities

 Symptoms and warning signs of risks

 List of potential risk responses

 Trends in qualitative risk analysis results

Explanation:

Answer: A Schedule management plan provides the information about network diagram

13. While executing the project, risk trigger was identified. The project manager
responds to this with contingency plan which proved to be ineffective. One of the
stakeholders is not happy with this and escalates about his dissatisfaction with
risk management team. What should project manager should do?

 Make sure stakeholders are aware that risk management team performs a high level

 Inform project sponsor, since it is his job to manage the stakeholder

 Ask to meet with the stakeholder in person to clarify the situation

 Inform PMO, that stakeholder behaviour is affecting the project team morale.

Explanation:

5
 Answer C The PM should first speak to the stakeholder and then can interact with PMO

4. You are the project manager for your organization. You are preparing for the
quantitative risk analysis. Mark, a project team member,wants to know why you
need to do quantitative risk analysis when you just completed qualitative risk
analysis.Which one of the following statements best defines what quantitative
risk analysis is?

 Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on

overall project objectives.

 Quantitative risk analysis is the planning and quantification of risk responses based on probability

and impact of each risk event.

 Quantitative risk analysis is the review of the risk events with the high probability and the highest

impact on the project objectives.

 Quantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing

and combining their probability of occurrence and impact.

Explanation:

Answer: A That is the definition of quantitative risk analysis

15. In which process do you create the Risk Breakdown Structure?

 Identify Risks

 Plan Risk Responses

 Perform Qualitative Analysis

 Pan Risk Management

Explanation:

Answer: D The RBS is part of the Risk Management Plan. It's structured very similarly to an WBS. The
RBS helps you to see how risks fit into categories so you can organize your risk analysis and response
planning.

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 16. You are the project manager for your organization. You have determined that
an activity is too dangerous to complete internally so you hire licensed contractor
to complete the work. The contractor, however, may not complete the assigned
work on time which could cause delays in subsequent scheduled activities. This
is an example of what type of risk event?

 Internal

 Secondary risk

 Pure risk

 Transference

Explanation:

Answer: B Secondary risk is nothing but risk which arrises out of primary risk

17. Which of the following inputs provides information to compare the actual
technical accomplishments during project execution to the project's planned
schedule of technical achievments?

 Work performance information

 Variance and trend analysis

 risk register

 forecasting

Explanation:

Answer A work information provides the information about the comparison

18. You have completed the qualitative risk analysis process and are about to
enter the quantitative risk analysis process when PM, the project sponsor, wants
to know what quantitative risk analysis will review. Which of the following
statements best defines what quantitative risk analysis will review?

 The quantitative risk analysis process will review risk events for their probability and impact on the

project objectives.

7
 The quantitative risk analysis seeks to determine the true cost of each identified risk event and the

probability of each risk event to determine the risk exposure.

 The quantitative risk analysis process will analyze the effect of risk events that may substantially

impact the project's competing demands.

 The quantitative risk analysis reviews the results of risk identification and prepares the project for

risk response management.

Explanation:

Answer: C Quantitative risk analysis helps in numerically assigning the impact considering the overall
project objectives

19. The _________ is the risk or danger of an action or an event, a method or a

(technical) process that still conceives these dangers even if all theoretically
possible safety measures would be applied.

 Residual risk

 Secondary risk

 Primary risk

 Pure risk

Explanation:

Answer: A residual risk is the risk which remains after the all the responses implemented

20. You have 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 Project are also known as what?

 Benefits

 Opportunities

 Ancillary constituent components

 Contingency risks

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 Explanation:

Answer: B When the risk is positive, it is an opportunity

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

 Quantitative risk analysis

 Risk audits

 Requested changes

 Qualitative risk analysis

Explanation:

Answer: C Change request will be the output of monitoring and control risk

22. You want to create a cause and- effect diagram to help discover the root
causes of the risks within the project. CIO recommends that you create an
Ishikawa diagram instead. What is an Ishikawa diagram?

 It is a graphical representation of situations showing causal influences.

 It is the same thing as a root cause diagram.

 It shows how various elements of a system interrelate.

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

Explanation:

Answer: B The other name for cause and effect diagram is Ishikawa or fishbone diagram.

23. All are inputs to communication process except

 Organization process assets

9
 Stakeholder register

 Risk Register

 Stakeholder management strategy

Explanation:

Answer C Risk register is not an input

24. As part of the variance and trend analysis tool and technique for risk
governance you are using earned value management. In this approach, you wants
to track and compare the cost and schedule variances. What is the point of this
tool and technique in regard to risk?

 You can determine a true project completion date.

 You can track the cost and schedule variances.

 You can review quality performance on baselines.

 You can forecast deviation of the project cost and schedule for completion targets.

Explanation:

Answer: D EVM provides variance, forcasting and performance measurement of the project

25. Defining _____________ will provide a structure for systematically identifying

risks to a consistent level of detail during the project planning process. The areas
defined in this process should reflect common sources of risk for the industry or
application area.

 Assumptions

 Constraints

 The product description

 Risk categories

Explanation:

Answer: D

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 26. As a part of monitoring and controlling the project, the project manager
should update the risk register. The project manager should update the risk
register with information on risk reassessment, risk audits, and periodic risk
reviews.What other information should the project manager update the risk
register with?

 Actual costs and schedule delays of risk events.

 Actual outcomes of risk management duties by the project team.

 Actual cost of risk events.

 Actual outcomes of the project's risks and of the risk responses.

Explanation:

Answer: D Explanation: The outcome which can impact the project objectives and the risk response to
overcome

27. You are conducting a status meeting and monitoring your risk register when
you discover a risk that remains even after you implement all of your response
strategies. What kind of risk is this and what should you do about it?

 It's a secondary risk. You don't need to worry about it.

 It's a residual risk. You need to plan a response strategy for it.

 It's a residual risk. You don't need to plan a response strategy for it because you've already

implemented all of the risk responses you can plan for.

 It's a contingency reserve. You should only use it if the first risk occurs

Explanation:

Answer: C Residual risks are risks that remain even after you have planned for and implemented all of
your risk response strategies. They don't need any further analysis because you have already planned
the most complete response strategy you know in dealing with the risk that came before them.

28. In a project there are certain enterprise environmental factors that require PM
to use modeling and simulation techniques to predict the likelihood of achieving
cost and schedule objectives in the project. PM is using a technique for which the
cost estimates are chosen at random for each iteration of the analysis, such as

11
 pessimistic, most likely, and worst-case scenarios. What type of analysis is PM
using in this project?

 Quantitative analysis

 Qualitative analysis

 Risk distribution

 Monte Carlo Analysis

Explanation:

Answer: D Monte Carlo analysis helps in carrying out quantitative risk analysis

29. You are working with your project team and several key stakeholders to
create a diagram that shows causal factors for an effect to be solved.What
diagramming technique are you using as a part of the risk identification process?

 Cause and effect diagrams

 System or process flow charts

 Predecessor and successor diagramming

 Influence diagrams

Explanation:

Answer: A Cause and effect diagram used to find the causes of the defects

30. The project has a budget of $5,600,000 and is expected to last 18 months. You
have learnt that a new law may affect how the project is allowed to proceed - even
though the organization has already invested over $750,000 in the project. What
risk response is the most appropriate for this instance?

 Acceptance

 Transference

 Mitigation

 Enhance

12
 Explanation:

Answer: A The organization has already invested so much. Better option is to proceed and see what
happens which is nothing but acceptance of the risk

31. You are a project manager working on a compliance project in a banking firm.
The project is scheduled to complete six weeks from now. Your sponsor tells you
that if the project is finished sooner, the company can get some monetary
incentives offered by the government. You decide to fast track the project, which
would have what effect?

 Increase risk in the project

 Not affect the project risk

 Decrease risk in the project

 Cannot be determined

Explanation:

Answer: A Explanation: Fast-tracking is the process of rescheduling tasks to be performed in parallel that
were originally planned in series. Remember, fast-tracking always involves risk that could lead to
increased cost and rework later.

32. You are working to complete the qualitative risk analysis for your project.
During the analysis you encourage the project team to begin the grouping of
identified risks by common causes. What is the primary advantage to group risks
by common causes during qualitative risk analysis?

 It helps the project team realize the areas of the project most laden with risks.

 It saves time by collecting the related resources, such as project team members, to analyze the risk

events.

 It can lead to developing effective risk responses.

 It can lead to the creation of risk categories unique to each project.

Explanation:

Answer: C It helps in catagorization and carrying out effective risk management

13
 33. Your team has utilized all of the appropriate tools and techniques for
responding to identified project risks and has discovered that some risks have
been reduced in impact but remain a potential threat. These risks require further
monitoring and are referred to as:

 Secondary risks

 Primary risks

 Cumulative risks

 Residual risks

Explanation:

Answer: D

34. 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?

 Three

 Four

 Seven

 One

Explanation:

Answer: B Both positive and negative carries 4 responses

35. All of the following statements are true regarding risks except for which one?
Choose the least correct answer.

 Risks might be threats to the objectives of the project.

 Risks are certain events that may be threats or opportunities to the objectives of the project.

 Risks might be opportunities to the objectives of the project.

 Risks have causes and consequences.

14
 Explanation:

Answer: B. Risks are uncertain events that may be threats or opportunities to the objectives of the project.

36. Your current project has 75 internal stakeholders and 245 external
stakeholders. Many of the risks within your project will only affect the internal
stakeholders, but several of the identified risk events will affect the external
stakeholders. Management would like to know the total number of
communication channels in the project. How many communication channels exist
in this project?

 245

 51,040

 102,080

 320

Explanation:

Answer: B Use the formula n(n-1)/2= 320(319)/2=51040

37. What approach can a project manager use to improve the project's
performance during qualitative risk analysis?

 Focus on near-term risks first.

 Create a risk breakdown structure and delegate the risk analysis to the appropriate project team

members.

 Focus on high-priority risks.

 Analyze as many risks as possible regardless of who initiated the risk event.

Explanation:

Answer: C High priority risks will be first priority

15
 38. Management has asked you to perform a risk audit and report back on the
results. A project team member asks you what a risk audit is. What do you tell to
team member?

 A risk audit is a review of all the risks that have yet to occur and what their probability of happening

are.

 A risk audit is a review of the effectiveness of the risk responses in dealing with identified risks and

their root causes, as well as the effectiveness of the risk management process.

 A risk audit is a review of all the risk probability and impact for the risks, which are still present in the

project but which have not yet occurred

 A risk audit is an audit of all the risks that have occurred in the project and what their true impact on

cost and time has been.

Explanation:

Answer: B Risk audit helps in overall effective risk management

39. You and your project team have identified the project risks and now are
analyzing the probability and impact of the risks. What type of analysis of the
risks provides a quick and high-level review of each identified risk event?

 A risk probability-impact matrix

 Quantitative risk analysis

 Seven risk responses

 Qualitative risk analysis

Explanation:

Answer: D After the identification risk, one should carry out the qualitative risk analysis

40. The project team is in the process of performing qualitative risk analysis. All
of the following updates will be included within the risk register updates except:

 List of risks requiring additional analysis

16
 List of low priority risks

 Probability of achieving time objectives

 Risks grouped by categories

Explanation:

Answer C Probability of time objectives is included during plan risk response process

41. Which of the following risk responses delineates that the project plan will not
be changed to deal with the risk?

 Exploitation

 Transference

 Acceptance

 Mitigation

Explanation:

Answer: C Acceptance is the response in which no action will be taken. Based on the opportunity or
threat, the other responses will be considered.

42. A project manager is in the process of collecting, organizing, and

disseminating information on how project resources are being used to complete
project objectives. In addition, he is collating information on cost, schedule, and
level of quality. He is also going through the influence of risks on project
objectives. The project manager is in which process?

 Direct and Manage Project Execution

 Report Performance

 Earned Value Technique

 Monitor and Control Project work

Explanation:

17
 Answer: B Explanation: The project manager is in the Report Performance process as part of
communication management. It is the process of collecting and distributing performance information,
including status reports, progress measurements and forecasts.

42. A project manager is in the process of collecting, organizing, and

disseminating information on how project resources are being used to complete
project objectives. In addition, he is collating information on cost, schedule, and
level of quality. He is also going through the influence of risks on project
objectives. The project manager is in which process?

 Direct and Manage Project Execution

 Report Performance

 Earned Value Technique

 Monitor and Control Project work

Explanation:

Answer: B Explanation: The project manager is in the Report Performance process as part of
communication management. It is the process of collecting and distributing performance information,
including status reports, progress measurements and forecasts.

43. You have completed the risk analysis processes for the risk events. You and
the project team have created risk responses for most of the identified project
risks. Now, you would like to assign risk owners to the events.Which risk events
should have risk response owners?

 Only the risks with a high risk rating

 Each agreed-to and funded risk response should have a risk response owner

 Each risk that has a risk response should have a risk response owner

 Only the risk events that are considered a negative risk event with a high risk rating

Explanation:

Answer: B One the risk reponse decided, the risk owner should be identified

44. In addition to monitoring and controlling the project risks for their status and
information, the risk monitoring and controlling process accomplishes four key

18
 things for a project. Which one of the following is NOT a determination that is
made by the risk monitoring and controlling process?

 Determines if the project assumptions are still valid

 Determines if the risk management policies and procedures are being followed

 Determines if the risk contingency reserves should be modified so that it is aligned with the current

risk assessment

 Determines if the project constraints are still valid

Explanation:

Answer: D Choices A, B and C are the tools and techniques

45. 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?

 Risk audits

 Stakeholder analysis as the project team is a stakeholder

 Risk identification with the project team

 Risk analysis

Explanation:

Answer: A Risk Audits helps in evaluate the effectiveness of risk response and the overall risk
management

46. Monte Carlo analysis can help predict the impact of risks on project
deliverables. This is an element of one of the tools and techniques of which of the
following processes?

 Risk Response Planning

 Quantitative Risk Analysis

19
 Risk Identification

 Qualitative Risk Analysis

Explanation:

Answer: B. Monte Carlo analysis is a modeling and simulation technique that is a tool and technique of
the Quantitative Risk Analysis process

47. You have to communicate the causes of risk events to the stakeholders.Which
risk diagramming technique you will use to communicate the causes of risk
events to project stakeholders?

 Project network diagrams

 Process flow charts

 Ishikawa diagrams

 Influence diagrams

Explanation:

Answer: C Causes of risk events will be identified through Ishikawa or fishbone diagram

48. While monitoring the project you find that an accepted risk is going to occur.
Which of the following will you use to develop for the response?

 Risk Response Plan

 Fallback Plan

 Mitigation Plan

 Risk Register

Explanation:

Answer: A Explanation: The risk response plan communicates how specific risks will be dealt with and the
action steps that are required to carry them out.

20
 49. You notice that some of your project team members are not attending your
meetings and that there has been an increase in requests for transfer from your
project. These are examples of:

 Risk events

 Risk triggers

 Primary risks

 Residual risks

Explanation:

Answer: B

50. The Identify Risk process determines the risks that affect the project and
document their characteristics. Why should the project team members be
involved in the Identify Risk process?

 They are the individuals that will need a sense of ownership and responsibility for the risk events.

 They are the individuals that will have the best responses for identified risks events within the

project.

 They are the individuals that are most affected by the risk events.

 They are the individuals that will most likely cause and respond to the risk events.

Explanation:

Answer: A Please note that involve the team members for any planning activities.

51. Janet finds risk management very difficult to manage. She asks you, a lead
project manager, at what stage in the project will risk management become
easier.What answer best resolves the difficulty of risk management practices and
the effort required?

 Risk management only becomes easier the more often it is practiced

 Risk management only becomes easier when the project is in its closing stage

21
 Risk management only becomes easier when the project moves into project execution.

 Risk management is an iterative process and never becomes easier.

Explanation:

Answer: A Practice makes man perfect. The same principle applies to risk management

52. Your project requires that you install 140 copies of design software onto your
department's computers. The vendor offers you a twenty percent discount on the
software if your company will purchase 150 or more copies of the software. You
communicate this offer with other departments in your firm to see if anyone else
would need 10 copies of the software to save your project a significant amount of
funds. What is this risk response called?

 Exploiting

 Avoidance

 Sharing

 Transference

Explanation:

Answer: C Sharing is the opportunity and is oppoiste to transfer

53. All of the following are tools and techniques for risk identification except:

 Monte Carlo simulation

 Interviewing

 SWOT analysis

 Delphi technique

Explanation:

Answer: A

22
 54. A PM has created a contingency response that the cost performance index
should be less than 0.91. The project has a budget at completion of $950,000 and
is 43 percent complete - though the project should be 50 percent complete. The
project has spent $470,897 to reach the 43 percent complete milestone. What is
the project's cost performance index?

 0.95

 0.8

 0.87

 0.91

Explanation:

Answer: C CPI=EV/AC. EV=950000*43%=408500. AC= 470897. CPI=408500/470897=0.87

55. Which of the following is NOT a tool or technique of Monitor and Control
Risks?

 Bringing in an outside party to review your risk response strategies

 Revisitng your risk register to review and reassess risks

 Using Earned Value analysis to find variances that point to potential project problems

 Gathering information about how the work is being performed

Explanation:

Answer: D When do you gather work performance information? You do it when you're reporting on the
performance of the team - that's why it's a tool and technique of the Report Performance process. But
that's not something you do during Monitor and Control Risks - Work Performance Information is an input
to that process, which means it needs to be gathered BEFORE you start monitoring and controlling your
risks. Some questions on the PMP exam will describe tools or techniques rather than using their names.
A question might say 'bringing in an outside party to review your risk response strategies' instead of 'Risk
Audit'. You're actually asked about concepts you've learned, not just about a bunch of things you've
memorized.

56. Consider the risk probability-impact matrix in the figure given below: If Risk B
happens in this project, how much will be left in the contingency reserve?

23
 $232,500

 -$334,500

 It depends on the total budget of the project.

 $148,300

Explanation:

Answer: A The total EMV comes 258500. and if B happens then the left out is $232,500

57. You would like to utilize sensitivity analysis in your project, but the
management does not understand how this will be displayed. What type of chart
is usually used with sensitivity analysis to show the relative effect of risks on the
project?

 Ishikawa chart

 Force field analysis chart

 GERT Chart

 Tornado diagram

Explanation:

Answer: D Tornado diagram is a horizontal bar chart starts with high and then descends to low which
looks like tornado

58. You have declined a proposed change request because of the risk associated
with the proposed change request. Where should the declined change request be
documented and stored?

 Change request log

 Lessons learned

 Project archives

 Project document updates

Explanation:

24
 Answer: A Explanation: The change request log should carry the outcome of change request

59. The project has a budget of $567,000 and is schedule to last for three years.
You want to examine the risk events to determine which risk events have the
most potential impact on the project. Which modeling technique can help you to
accomplish this goal?

 Expected monetary value

 Sensitivity analysis

 Quantitative risk analysis

 Modeling and simulation

Explanation:

Answer: B Sensisitivy analysis determines which is having most impact wrt risk.

60. You and the project team are assessing the risk events and creating a
probability and impact matrix for the identified risks. Which one of the following
statements best describes the requirements for the data type used in qualitative
risk analysis?

 A qualitative risk analysis requires fast and simple data to complete the analysis.

 A qualitative risk analysis requires accurate and unbiased data if it is to be credible.

 A qualitative risk analysis encourages biased data to reveal risk tolerances.

 A qualitative risk analysis required unbiased stakeholders with biased risk tolerances.

Explanation:

Answer: B Explanation: Any analysis should be accurate and unbiased and should be from the project
interest

61. You are the project manager of a project that has recently finished the final
project deliverables. The project customer has signed off on the project
deliverable and you have a few administrative closure activities to complete. In
the project, there were several large risks that could have wrecked the project but

25
 you and your project team found some creative methods to resolve the risks
without affecting the project costs or project end date. What should you do with
the risk responses identified during the project's monitoring and controlling
process?

 Include the risk response in the project risk management plan.

 Include the responses in the project management plan.

 Nothing. The risk responses are included in the project's risk register already.

 Include the risk responses in the organization's lessons learned database.

Explanation:

Answer: D Lessons learnt is one of the important organization assets

62. Your company is structured as a functional organization and you report to the
functional manager that you are ready to move onto the qualitative risk analysis
process. What will you need as inputs for the qualitative risk analysis of the
project in this scenario?

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

 You will need the risk register, risk management plan, project scope statement, and any relevant

organizational process assets.

 You will need the risk register, risk management plan, outputs of qualitative risk analysis, and any

relevant organizational process assets.

 You will need the risk register, risk management plan, permission from the functional manager,and

any relevant organizational process assets.

Explanation:

Answer: B The listed one are inputs. Please refer to PMBOK

63. In what portion of a project are risk and opportunities greatest and require
intense planning and anticipation of risk events?

26
 Closing

 Planning

 Initiating

 Executing

Explanation:

Answer: C Risk will be highest during the initial stages and should come down as the project progresses.

64. You are preparing for the risk identification process. You will need to involve
several of the project's key stakeholders to help you identify and communicate
the identified risk events. You will also need several documents to help you and
the stakeholders identify the risk events. Which one of the following is NOT a
document that will help you identify and communicate risks within the project?

 Risk register

 Activity cost estimates

 Stakeholder register

 Activity duration estimates

Explanation:

Answer: A Risk register captures all the risks and should be communicated to stakeholder

65. A project team is in the process of risk tracking and control. The risk control
action defined by the mitigation and contingency plans is being implemented in
accordance with the details of those plans. Who is responsible for implementing
these actions?

 Project Manager

 Project Team

 Risk Owner

 Risk Manager

27
 Explanation:

Answer: C Explanation: The risk owner for that particular risk is responsible for implementing the actions
defined by mitigation and contingency plan in risk management. A risk owner for a risk is identified during
the planning stage of risk management and he helps to assess the risk and produce probability and
impact information. He also develops risk mitigation and contingency plans, provides status data for
respective risk issues and assists in evaluating risk control action effectiveness. The risk owner also
documents threshold criteria of high and medium risks and supports the identification of new risks.

66. All of the following are tools and techniques for Monitor and Control Risks
except:

 Earned value analysis

 Project risk audits

 Technical performance measurements

 Exploitation

Explanation:

Answer: D

67. You are the project manager in company XYZ.You have been asked to create a
proposal for a construction project for a client.While stuyding the relevant details,
you realize that there are several requirements within the SOW and RFP provided
by the client that would eliminate XYZ from bidding on the construction project.
You propose to management to allow XYZ to create a partnership with a
competitor GFK so that together they could bid on the construction project and
qualify for the customer's requirements.What risk response are you proposing to
management?

 Exploiting

 Teaming agreement

 Transference

 Sharing

Explanation:

28
 Answer: D Explanation: Sharing is a positive risk response often seen through partnerships and teaming
agreements to seize an opportunity.Sharing response is where two or more entities share a positive risk.
Risk sharing deals with sharing of responsibility and accountability with others to facilitate the team with
the best chance of seizing the opportunity. Teaming agreements are good example of sharing the reward
that comes from the risk of the opportunity.

68. You are the project manager on an industrial design project. You found a
pattern of defects occurring in all projects over the past few years and you think
there might be a problem in the process the company is using that is causing
it.You start using Ishikawa diagrams to come up with the root cause for this trend
over projects so that you can make recommendations for process changes to
avoid this problem in the future. What process is you doing?

 Perform Quality Planning

 Perform Quality Assurance

 Perform Quality Control

 Qualitative Risk Analysis

Explanation:

Answer :B. He is doing root-cause analysis on process problems, that's Quality Assurance. Remember,
Quality control is when you are trying to find problems in your work products through inspection.Quality
Assurance is when you are looking at the way your process affects the quality of the work you are doing.

69. You are currently working with the project stakeholders to identify risks in
your project. You understand that the qualitative risk assessment and analysis
can reflect the attitude of the project team and other stakeholders to risk.
Effective assessment of risk requires management of the risk attitudes of the
participants. What should you, the project manager, do with assessment of
identified risks in consideration of the attitude and bias of the participants
towards the project risk?

 Evaluate and document the bias towards the risk events

 Evaluate the bias through SWOT for true analysis of the risk events

 Document the bias for the risk events and communicate the bias with management

 Evaluate the bias towards the risk events and correct the assessment accordingly

Explanation:

29
 Answer: D There should not be any bias during the risk management

70. What is a risk owner?

 The person who monitors the watchlist that contains the risk.

 The person who meets with stakeholders to explain the risk.

 The person who makes a risk happen.

 The person who is responsible for the response plan for the risk.

Explanation:

Answer: D Every risk should have a risk owner listed in the register. That person is responsible for
keeping the response plan up to date and make sure the right actions are taken if the risk does occur.

71. PM, the project team, and the key project stakeholders have completed a
round of qualitative risk analysis. He needs to update the risk register with his
findings so that he can communicate the risk results to the project stakeholders
including management.PM will need to update all of the following information
except for which one?

 Prioritized list of quantified risks

 Watchlist of low-priority risks

 Trends in qualitative risk analysis

 Risks grouped by categories

Explanation:

Answer: A Explanation: Prioritization happens during the beginning of qualitative risk analysis

72. You are performing quantitative risk analysis for a project. One of the project
risks has a 40 percent probability of happening, and it will cost the project
$65,000 if the risk happens. What is the expected monetary value of this risk
event?

30
 Negative $26,000

 Negative $67,000

 Zero - the risk event has not yet occurred

 $27,000

Explanation:

Answer: A EMV= 40% * $65000=$26000 and is negative as it will cost to the project

73. While identifying risks for a new construction project, you discover that a
chemical you are using on your building cannot be applied in rainy conditions.
You also learn that your project will be ready for the chemical application around
the time when most of the rainfall happens in this part of the country. Since the
project can't be delayed until after the rainy season and you need to make sure
the building gets the chemical coating, you decide that your team will just have to
work around the rain. This is an example of which strategy?

 Mitigate

 Exploit

 Accept

 Transfer

Explanation:

Answer: C This is an example of accepting a risk. The team can't do anything about the weather, so the
project manager has accepted the fact that they could end up being delayed by it.

74. Which of the following compression techniques increases risk?

 Crashing

 Resource leveling

 Fast tracking

 Lead and lag

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 Explanation:

Answer: C. Fast tracking is a compression technique that increases risk and potentially causes rework.
Fast tracking is starting two activities previously scheduled to start one after the other at the same time.

75. Which risk analysis tool is used to model your risks on a computer to show
random probabilities?

 Computerized risk audit

 Monte Carlo analysis

 EMV analysis

 Delphi technique

Explanation:

Answer: B Monte Carlo analysis is a way of seeing what could happen to your project if probability and
impact values changed randomly.

76. 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?

 Avoidance

 Exploiting

 Transference

 Sharing

Explanation:

Answer: C Transference is used to transfer the activities which is not of self expertise

77. The project is scheduled to last for 18 months. Management asks PM how
often the project team is participating in risk reassessment in this project. What

32
 should PM tell management if he's following the best practices for risk
management?

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

 Project risk management has been concluded with the project planning.

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

 Project risk management happens at every milestone.

Explanation:

Answer: C Risk management should happen throughout the project and the best practice is to have
during status meeting.

78. As you are executing your project you are constantly checking your risk
register to be sure that you have planned responses for all of your risks. At one
team status meeting, you find that a lower priority risk has suddenly become
more likely. Where do you keep information about low priority risks?

 Triggers

 The watchlist

 Risk Management Plan

 Qualitative analysis documents

Explanation:

Answer: B Sometimes you'll find that some risks have obviously low probability and impact, so you won't
put them in your register. Instead, you can add them to a watchlist, which is just a list of risks that you
don't want to forget about, but you don't need to track as closely. You'll check your watchlist from time to
time to keep an eye on things.

79. You are using the applications of IRGC model to facilitate the understanding
and managing the rising of the overall risks that have impacts on the economy
and society.One of your team member wants to know that what is the need to use
the IRGC.What will be your reply?

 IRGC addresses questions such as the understanding of the secondary impacts of a risk.

33
 IRGC models aim at building robust, integrative inter-disciplinary governance models for emerging

and existing risks.

 IRGC addresses the development of resilience and the capacity of organizations and people to face

unavoidable risks.

 IRGC is both a concept and a tool.

Explanation:

Answer: B IRGC which is International Risk Governance Council model supports in building governance
for the risk management. Please refer to www. Irgc. Org

80. You added extra features to the project and this has introduced new risks to
the project work. The project manager elects to remove the features what you
added. The process of removing the extra features to remove the risks is called
what?

 Preventive action

 Corrective action

 Scope creep

 Defect repair

Explanation:

Answer: A Preventive action is to reduce and completely stop something negative that is happening to the
project

81. Every status meeting should have time allotted for Risk Monitoring and
Control. Which of the following sentences is not true?

 Risk identification and monitoring should occur throughout the life of the project.

 Risk audits should occur throughout the life of the project and are specifically interested in

measuring the team

 Risks should be monitored for their status and to determine whether the impact to the objectives

have changed

34
 Technical performance measurement variances may indicate that a risk is looming and should be

reviewed at status meetings.

Explanation:

Answer: B. Risk audits should be performed throughout the life of the project and are specifically
interested in looking at the implementation and effectiveness of risk strategies.

82. You and project team have agreed that if the vendor is late by more than ten
days they will cancel the order and hire another Company to fulfill the order. The
new 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?

 Internal risk management strategy

 Contingent response strategy

 External risk response

 Expert judgment

Explanation:

Answer: B Contingent response is plan B

83. Based on the information in the table below, what amount would you need to
include in your risk contingency fund?

 -$465,000

 $171,500

 -$258,500

 $258,500

Explanation:

Answer: D After EMV calculation, $258,500 is required as contingency fund

35
 84. As a project manager you decide to create an issue log which captures issue
description, owner, and the target date for issue closure. All of the following are
common examples of issues in the project except?

 Differences in Opinion

 Probable delay in the next delivery

 Pending root cause analysis

 Delay in receiving feedback from the customer

Explanation:

Answer: B Explanation: Probable delay in the next delivery represents a project risk and is not an issue
as the event is uncertain. This may or may not happen in future.

85. You are working on your project to determine and map the probability
distributions of risk within the project. You have indicated that you will use the
uniform distribution method for a portion of the project. Which part of your
project is most likely to have a uniform risk distribution?

 Late completion stages of a project

 Project phases that deal with 'cutover' technologies

 Early concept stage of design

 Project initiating

Explanation:

Answer: C During the early stages of project the risk will be higher and decreases as the project
elobarates.

86. Where can a project manager find risk-rating rules?

 Risk management plan

 Organizational process assets

 Enterprise environmental factors

 Risk probability and impact matrix

36
 Explanation:

Answer: B Explanation: Risk ratings like low, medium, high defintions can be obtained from OPA

87. Which of the following techniques examines the degree to which

organizational strengths offset threats and opportunities that may serve to
overcome weaknesses?

 SWOT Analysis

 Expert Judgment

 Delphi

 Brainstorming

Explanation:

Answer: A Strength, Weakness, opportunity and Threat analysis provides the organization assets

88. You are a project manager working on a software development project. You
have developed the risk management plan, identified risks, and determined risk
responses for the risks. One of the risks you identified occurs, and you
implement the response for that risk. Then, another risk occurs as a result of the
response you implemented. What type of risk is this called?

 Trigger risk

 Residual risk

 Secondary risk

 Mitigated risk

Explanation:

Answer: C. Secondary risks occur as a result of the implementation of a response to another risk.

89. There has been a delay in your project work that is adversely affecting the
project schedule. You decided, with your stakeholders' approval, to fast track the

37
 project work to get the project done faster. When you fast track the project which
of the following are likely to increase?

 Costs

 Quality control concerns

 Human resource needs

 Risks

Explanation:

Answer: D Fast Tracking makes the project riskier

90. The project manager for a construction project discovers that the local city
council will vote on a zoning change that would open up a new neighborhood to
commercial building. She contacts other construction companies in the area that
would benefit from the change to ask them to attend the council meeting in order
to convince the city council to vote for the change. A 'Yes' vote will benefit all of
the companies. This is an example of which risk response strategy?

 Mitigate

 Share

 Exploit

 Enhance

Explanation:

Answer: B The project manager is asking the other companies to help her make this opportunity happen
and they can all share in the benefits of it.

91. You and the project team are working together to plan the risk responses for
the project. You feel that the team has successfully completed the risk response
planning and now you must initiate what risk process it is. Which of the following
risk processes is repeated after the plan risk responses to determine if the overall
project risk has been satisfactorily decreased?

 Qualitative risk analysis

 Quantitative risk analysis

38
 Risk identification

 Risk response implementation

Explanation:

Answer: B After the risk reponse implementation,quantitative analysis will be carried out

92. 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?

 Probability of reaching project objectives

 Risk register updates

 Risk response

 Risk contingency reserve

Explanation:

Answer: B Explanation: The output of qualitative risk analysis is risk register update with prioritization

93. Once the risks have been identified on the project, the next step is to manage
the risks. Of the following, which is not a suitable way of managing the risks?

 By using existing assets

 By contingency planning

 By investing in new resources

 By Brainstorming

Explanation:

Answer: D Explanation: Brainstorming is a tool and technique for risk identification. All of the other options
are ways of managing the risks. Existing assets may involve improvements to existing methods and
systems, changes in responsibility, etc. Contingency planning may help you in minimizing the effect, if it
happens. Investing in new resources may help in reducing or insuring you against risk.

94. You are the project manager of a large, high-profile project in your
organization. You have realized that politics within your company may affect the
true identification of risk events within the project.You decide that you'd like to
use a method to identify risk events through an anonymous process. Which one
of the following risk events will allow you to collect and distribute risk

39
 information without the stakeholders knowing what other stakeholders are
communicating about the project risk events

 Surveys

 Monte Carlo Technique

 Checklist analysis

 Delphi Technique

Explanation:

Answer: D Delphi technique is used to identify and manage risks in an anonymous way in such a political
enivornment

95. What are the strategies for dealing with positive risks?

 Avoid, mitigate, transfer, accept

 Transfer, mitigate, avoid, exploit

 Exploit, share, enhance, accept

 Mitigate, enhance, exploit, accept

Explanation:

Answer: C Positive risks are opportunities that could happen on your project. The strategies for dealing
with them are all about making sure that your project is in a position to take advantage of them or at least
share in them with other projects if possible.

96. You have been actively communicating and working with the project
stakeholders. One of the outputs of the manage stakeholder expectations
process can actually create new risk events in the project.Which output of the
manage stakeholder expectations process can create risks?

 Project document updates

 Change requests

 Organizational process assets updates

 Project management plan updates

Explanation:

Answer: B Change requests can impact other objectives in the project and can result in risk

40
 97. You are actively communicating and working with the project stakeholders.
One of the outputs of the Manage Stakeholder Expectations process can create
new risks for the project. Which output of the Manage Stakeholder Expecations
process can create risks?

 Change Requests

 Project Document Updates

 Project Management Plan Updates

 Process Assets Updates

Explanation:

Answer: A Change request in any one parameter may increases impact on other parameters of the
project and may result in uncertainity

98. Which positive risk response best describes a teaming agreement?

 Share

 Exploit

 Enhance

 Venture

Explanation:

Answer: A Share is joint ownership

99. Project Manager and the project team have identified a pure risk. Project
Manager 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?

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

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

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

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

Explanation:

41
 Answer: C Pure risk always negative and should come out of that

100. You are working with the project team members and two subject matter
experts to assess the identified risk events in the project. Which of the following
approaches is the best to assess the risk events in the project?

 Determination of the true cost of the risk event

 Probability and Impact Matrix

 Root cause analysis

 Interviews or meetings

Explanation:

Answer: D Interaction with SME's is the best option to assess the risk events

101. The project team is in the process of developing risk reponsses. While
dealing with a particular risk, the team discover that it cannot be avoided and
attempts to transfer or mitigate the risk is unsuccessful. What the team should
do?

 Continue to investigate to find ways to transfer

 Accept the risk

 Reduce the project scope so that risk can be avoided

 Continue investigating ways to reduce the impact of the risk.

Explanation:

Answer B. Accept the risk, wait and watch

102. What project management plan is most likely to direct the quantitative risk
analysis process for a project in a matrix environment?

 Risk analysis plan

 Staffing management plan

 Human resource management plan

 Risk management plan

Explanation:

42
 Answer: D Risk management plan guides the risk management

103. Your team is developing the risk management plan. Which tool and
technique of this process is used to develop risk cost elements and schedule
activities that will be included in the project budget and schedule?

 Planning meetings and analysis

 Strategies for both threats and opportunities

 Information gathering techniques

 Risk data quality assessment

Explanation:

Answer: A. Planning meetings and analysis is the only tool and technique of the Risk Management
Planning Process

104. You have created a contingency response that the schedule performance
index should be less than 0.93. The Project has a budget at completion of
$945,000 and is 45 percent complete though the project should be 49 percent
complete. The project has spent $455,897 to reach the 45 percent complete
milestone. What is the project's schedule performance index?

 -$37,800

 0.93

 0.92

 1.06

Explanation:

Answer: B CPI=EV/AC= (45% of 945000)/ 455897=425250/455897=0.93

105. You are working with the project stakeholders on the qualitative risk analysis
process in your project. You have used all the tools to the qualitative risk
analysis process in your project. Which of the following techniques is NOT used
as a tool in qualitative risk analysis process?

 Risk Urgency Assessment

 Risk Categorization

 Risk Reassessment

43
 Risk Data Quality Assessment

Explanation:

Answer: C Risk reassessment is used in quantitative risk analysis

106. You are the project manager of a Project and there's a risk that your team
has identified, which could cause the project to be late by more than a month.You
don't want this risk event to happen so you devise extra project activities.The
extra steps, however, will cost the project an additional $10,000. What type of risk
response is this approach?

 Enhancing

 Exploiting

 Mitigation

 Transference

Explanation:

Answer: C Mitigation is reducing the impact for the project deliverables

107. You are asked to identify risk events within the project. You would first like
to examine the project documents including the plans, assumptions lists, project
files, and contracts. What key thing will help you to discover risks within the
review of the project documents?

 The project documents will help the project manager to identify what risk identification approach is

best to pursue.

 Lack of consistency between the plans and the project requirements and assumptions can be the

indicators of risk in the project.

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

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

Explanation:

Answer: B The variation from the expected can result in risk in the project

108. Which of the following is NOT a tool in Identify Risks?

44
 Brainstorming

 Risk Urgency Assessment

 Delphi technique

 SWOT Analysis

Explanation:

Answer: B A Risk Urgency Assessment is a tool of Qualitative Analysis. Risk Identification is all about
finding risks. Qualitative Analysis is about ranking them based on what your team thinks their impact and
probability will be for your project. (Quantitative Analysis, on the other hand, is about getting the numbers
to back up your opinions.)

109. A project manager knows that managing the expectations of stakeholders

helps to increase the probability of project success by ensuring that stakeholders
understand the project benefits and risks. For this process, he could use all of
the following tools and techniques except?

 Issue Log

 Communication methods

 Active listening

 Writing skills

Explanation:

Answer: A Explanation: An issue log is an input to the process Manage Stakeholder Expectations. All of
the others are tools and techniques for the process.

110. Project risk is typically characterized by what three elements:

 Severity of impact, duration of impact and cost of impact

 Identification, type of risk category and probability of impact

 Risk event, risk probability and the amount at stake

 Occurrence, frequency and cost

Explanation:

Answer: C

111. All of the following are included in risk management plan except

45
 Contingency plan

 Approach to perform risk management activities

 Risk categories

 Estimated costs for risk activities

Explanation:

Answer A. Contingency plan will be done while carrying out the risk reponse process

112. ____ analysis is a statistical concept that calculates the average outcome
when the future includes scenarios that may or may not happen.

 Expert judgment

 Expected monetary value

 Sensitivity

 Modeling and simulation

Explanation:

Answer: B EMV is nothing but product of probability and impact

113. All of the following statements are true regarding risk events except which
one? Choose the least correct answer.

 Project risks are uncertain events.

 If risks occur, they can have a positive or negative effect on project objectives.

 Unknown risks are threats to the project objectives, and nothing can be done to plan for them.

 Risks that have more perceived rewards to the organization than the consequences of the risk

should be accepte

Explanation:

Answer: C. Unknown risks might be threats or opportunities to the project, and the project manager
should set aside contingency reserves to deal with them

114. You are managing a software engineering project, when two team members
come to you with a conflict. The lead developer has identified an important
project risk: you have a subcontractor that may not deliver on time. Another

46
 developer does not believe that the risk is likely to happen; however, you consult
the lessons learned from previous projects and discover that subcontractors
failed to deliver their work on two previous projects. You decide that the risk is
too big; you terminate the contract with the subcontractor, and instead hire
additional developers to build the component. Both team members agree that this
has eliminated the risk. Which of the following BEST describes this scenario?

 Transference

 Mitigation

 Avoidance

 Acceptance

Explanation:

Answer: C The best thing that you can do with a risk is avoid it. Sometimes avoiding one risk can lead to
another. It's possible that there was a reason that you went with

115. Mike is a project manager for an IT technology implementation project. He is

using an ishikawa diagram to figure out what could cause potential risks on his
project. Which process is he doing?

 Identify Risks

 Qualitative Analysis

 Quality Control

 Plan Risk Responses

Explanation:

Answer: A Don't assume that every time you see a fishbone diagram the question is talking about Quality
Control. Diagramming Techniques (including Ishikawa diagrams and Flowcharts) are a tool of the identify
Risks process. You use them to find the root cause of defects in Quality Management processes but they
can also be useful in finding the risks that can lead to trouble in Risk Management.

116. You hired a contractor to complete a portion of his project work. The
contract used was a cost-plus contract. If you were to perform a risk audit, who
would carry the risk in this scenario?

 You would because you are the project manager.

 Contractor would because of the contract type.

 You would because of the contract type.

47
 Contractor would because he is the hired contractor.

Explanation:

Answer: C The buyer carries the risk in case of cost reimbursible type of contract

117. Your team has identified a risk with some of the chemicals you are using on
your highway construction project. It is really difficult to mix them just right and,
based on past projects, you've figured out that there's a high probability that
about 14% of the chemical supply will be lost in mixing problems. You decide to
buy an extra 15% of the chemicals up front so that you will be prepared for those
losses and your project won't be delayed. Which response strategy are you
using?

 Avoid

 Accept

 Mitigate

 Transfer

Explanation:

Answer: C By buying the extra chemical stock, you are mitigating the risk.

118. A project manager discovers that a project problem has occurred. The
problem was never discussed during risk planning activities or added to the risk
register, and it will now cost the project money. What is the BEST response?

 Don't take any action, just accept that there's a problem that the team did not plan for

 Stop all project activity and approach senior management for advice

 Add the risk to the risk register and gather information about its probability and impact

 Use the management reserve to cover the costs of the problem

Explanation:

Answer: D This is a tough situation for any project manager. You've got a problem that's happened, and
you didn't plan for it. Now it's going to cost you money. What do you do? Well, you can't just accept it and
move on - that's only something you do with risks that have no other option. You have options with a
problem that happens during your project. And you can't just go to the boss, because you're the project
manager and it's your job to figure out what to do. There's no use in doing risk planning, because you
already know the probability (100%) and impact (the cost of fixing the problem). So what do you do?
That's where your reserve comes in. There are two kinds of reserves: a contingency reserve and a

48
 management reserve. The contingency reserve is what you use for 'known unknowns' - you use it to pay
for risks that you've planned for. But this situation isn't like that. That's why you tap into the management
reserve. That's the money in the budget you set aside for 'unknown unknowns' - problems that you didn't
plan for but which came up anyway.

119. A project manager uses a facilitator to gather opinions from experts

anonymously. What tool or technique of Identify Risks process is being
performed?

 Brainstorming

 Delphi Technique

 Interviews

 SWOT Analysis

Explanation:

Answer: B The Delphi technique is a way to get opinions and ideas from experts. This is a technique that
uses a facilitator who uses questionnaires to ask experts about important project risks. They take those
answers and circulate them - but each expert is kept anonymous so they can give honest feedback.

120. There are five inputs to the quantitative risk analysis process. Which one of
the following is NOT an input to the perform quantitative risk analysis process?

 Risk register

 Risk management plan

 Cost management plan

 Enterprise environmental factors

Explanation:

Answer: D Enterprise environmental factor is the input for identify risk and response

121. You are the project manager for a new project using a technology that has
recently been released.There is relatively little information available about this
technology. Initial testing of the technology looks promising, but there's still
uncertainty as to its longevity and reliability. You wants to consider the
technology factors a risk for your project. Where should you document the risks
associated with this technology so that you can track the risk status and
responses?

 Risk register

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 Risk low-level watch list

 Project scope statement

 Project charter

Explanation:

Answer: A Risk register capture all the risks irrespective of its nature

122. You are working with the project stakeholders to analyze and prioritize their
requirements for the project. One of the project requirements is to achieve a high-
level of customer satisfaction for the project deliverable.What is the danger in
this project requirement?

 Achieving customer satisfaction is an assumption and should be documented in the project scope.

 Achieving customer satisfaction is a subjective requirement and entails a high level of risk of being

successfully accomplished

 Achieving customer satisfaction is a risk as the project manager cannot control how satisfied the

customer will be with the project deliverables.

 Achieving customer satisfaction should always map to the quality requirements for the project.

Explanation:

Answer: B Customer satisifaction differs so is subjective

123. 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?

 Risk Limitation

 Perform Qualitative Risk Analysis

 Identify Risk

 Perform Quantitative Risk Analysis

Explanation:

Answer: D Quantitative risk anslysis to see if the overall risk management is fine or not after the
implementation of risk reponse

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 124. Which of the following is NOT a tool or technique of Perform Qualitative Risk
Analysis?

 Risk urgency assessment

 Expected monetary value analysis

 Probability and impact matrix

 Risk categorization

Explanation:

Answer: B Qualitative Risk Analysis is all about figuring out prioritizing each risk, and figuring out its
probability and impact. It's an important part of risk planning. But it's not about coming up with specific
numbers! That's what Quantitative Risk Analysis is for - and EMV analysis is part of Quantitative (not
Qualitative) analysis, because it's where you assign numeric values to risks.

125. You are preparing to identify stakeholders so that you can communicate
project requirements, status, and risks. You have elected to use a salience model
as part of your stakeholder identification process. Which of the following
activities best describes a salience model?

 Influence/impact grid, grouping the stakeholders based on their active involvement ('influence') in the

project and their ability to affect changes to the project's planning or execution ('impact').

 Grouping the stakeholders based on their level of authority ('power') and their active involvement

('influence') in the project.

 Grouping the stakeholders based on their level of authority ('power') and their level or concern

('interest') regarding the project outcomes.

 Describing classes of stakeholders based on their power (ability to impose their will), urgency (need

for immediate attention), and legitimacy (their involvement is appropriate).

Explanation:

Answer: D Stakeholder analysis helps in identifying stakeholder's interest, impact, expectation, power

126. You are working with the project team on the Perform Qualitative Risk
Analysis process. You are having the project team to review the project scope
statement as an input to the qualitative risk analysis process. Why?

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 The project scope statement must be understood to see the project requirements and the inherent

risks of the project.

 The project scope statement will reveal the type of project as either a recurrent or first-of-its- kind

project.

 The project scope identifies the risks associated with project constraints.

 The project scope statement must be reviewed to understand the quality requirements and the risks

associated with the demand for quality.

Explanation:

Answer: B Scope statement is about scope description, assumption, constraints, acceptance criteria, etc..

127. A Project manager is in the planning stage. In the first planning meeting, the
project manager has begun the initial process of finding the risk tolerance levels
and attitudes of the stakeholders. Which of the following provides good platform
for the project manager to start this step?

 Organizational process asset

 Project scope statement

 Project Charter

 Enterprise environmental factor

Explanation:

Answer D Enterprise environmental factors provides the risk tolerance levels

128. The Project Risk Management knowledge area focuses on which of the
following processes? Each correct answer represents a complete
solution.Choose that will not apply

 Quantitative Risk Analysis

 Risk Monitoring and Control

 Potential Risk Monitoring

 Risk Management Planning

Explanation:

52
 Answer: C Except for C rest of them are processes of risk management

129. Two team members are arguing over who was responsible for distributing
the risk status. Where they should look to clarify the responsibility

 Communication management plan

 Procurment Management plan

 Risk register

 Risk Management plan

Explanation:

Answer A Communication management plan provides the stakeholder responsibility

130. You are the project manager for your organization and you are working with
Thomas, a project team member. You and Thomas have been working on a
specific risk response for a probable risk event in the project.Thomas is
empowered with a risk response and will control all aspects of the identified risk
response in which a particular risk event will happen within the project.What title,
in regard to risk, is bestowed on Thomas?

 Risk expeditor

 Risk owner

 Risk team leader

 Risk coordinator

Explanation:

Answer: B Risk owner is the one who monitors and ensures that risk response being implemented.

131. You are working with your project team to examine the project from four
different defined perspectives to increase the breadth of identified risks by
including internally generated risks.What risk identification approach are you
using in this example?

 Root cause analysis

 SWOT analysis

 Influence diagramming techniques

 Assumptions analysis

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 Explanation:

Answer: B Strength, weakness, opportinity and threat of the project and organization which helps in
identification of risks

132. While preparing your risk responses, you realize that you have not planned
for unknown risk events. You need to make adjustments to the project to
compensate for unknown risk events. These adjustments are based on your past
project experience when unknown risk events occurred and knocked the project
off track. What should you do?

 Apply a general contingency to try to compensate

 Document the unknown risk items and calculate the expected monetary value based on probability

and impact that result from the occurrence

 Determine the unknown risk events and the associated cost, then add the cost to the project budget

as reserves

 Add a 10% contingency

Explanation:

Answer: A The past experience or the historical data helps in contingency planning

133. You are the project manager of a construction project. You have completed
the risk response planning with your project team and ready to update the risk
register to reflect the risk response.Which of the following statements best
describes the level of detail you should include with the risk responses which has
been created?

 The level of detail is set by historical information.

 The level of detail should correspond with the priority of the risk.

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

 The level of detail is set of project risk governance.

Explanation:

Answer: B Explanation: As per the organisation risk culture you can apply the risk response and
accordingly you can prioritse and update the risk register

134. Which of the following components ensures that risks are examined for all
new proposed change requests in the change control system?

54
 Risk monitoring and control

 Scope change control

 Integrated change control

 Configuration management

Explanation:

Answer: C Change Control Board addresses all the changes through integrated change control process

135. You are the project manager for your company and a new change request
has been approved for your project. This change request, however, has
introduced several new risks to the project. You have communicated these risk
events and the project stakeholders understand the possible effects these risks
could have on your project. You elect to create a mitigation response for the
identified risk events. Where will you record the mitigation response?

 Risk register

 Risk log

 Risk management plan

 Project management plan

Explanation:

Answer: A Explanation: The risk register should update with risk reponse

136. Using the following information and a normal distribution curve, what is the
probability that the project will be completed in 64 days? Optimistic time is 48
days. Pessimistic time is 72 days. Most likely time is 60 days

 16%

 84%

 50%

 100%

Explanation:

Answer: B

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 137. 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?

 Teaming agreements

 Transference

 Crashing the project

 Fast tracking the project

Explanation:

Answer: C Crashing adds to resources which in turn leads to updation of HR plan

138. The risk transference is referred to the transfer of risks to a third party,
usually for a fee, it creates a contractual relationship for the third party to manage
the risk on behalf of the performing organization.Which one of the following is
NOT an example of the transference risk response?

 Use of insurance

 Warranties

 Life cycle costing

 Performance bonds

Explanation:

Answer: C Explanation:: Life cycle costing is not a contractual

139. You are working with project team to plan the risk responses for his project.
A project team member, does not understand the process that you are using to
plan the risk responses. Which approach is the preferred method to address
project risks and the risk responses?

 Risks in the project should be addressed by their probability for creating risk responses.

 Risks in the project should be addressed by the organization's risk tolerance for creating risk

responses.

 Risks in the project should be addressed by their impact for creating risk responses.

 Risks in the project should be addressed by their priority for creating risk responses.

56
 Explanation:

Answer: D The risk addressing happes based on the priority

140. Your project has several risks that may cause serious financial impact
should they happen. You have studied the risk events and made some potential
risk responses for the risk events but management wants you to do more. They'd
like you to create some type of a chart that identified the risk probability and
impact with a financial amount for each risk event. What is the likely outcome of
creating this type of chart?

 Risk response

 Quantitative analysis

 Contingency reserve

 Risk response plan

Explanation:

Answer: C Contingency reserve will be considered after the analysis.

141. You have completed the risk response planning with your project team. You
now need to update the WBS.Why would the project manager need to update the
WBS after the risk response planning process? Choose the best answer.

 Because of work that was omitted during the WBS creation

 Because of new work generated by the risk responses

 Because of risk responses that are now activities

 Because of risks associated with work packages

Explanation:

Answer: B After the risk response new work package might be generated and should be included as part
of WBS and later into network diagram

142. The PM asked you to help him complete some probability distributions for
his project.What portion of the project will you most likely use for probability
distributions?

 Bias towards risk in new resources

 Risk probability and impact matrixes

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 Risk identification

 Uncertainty in values such as duration of schedule activities

Explanation:

Answer: D Probability distrubution proivdes the uncertainities in values like cost, time

143. You are working with your project team to begin identifying risks for the
project. As part of your preparation for identifying the risks within the project you
will need many inputs for the process.Which one of the following is NOT an input
to the risk identification process?

 Quality management plan

 Cost management plan

 Stakeholder register

 Procurement management plan

Explanation:

Answer: D Explanation: Procurement management plan is not an input for identify risk process

144. You are the project manager of a new project that uses newly released
technology and there's relatively little information about the technology. Though
the initial testing looks promising, there's still uncertainty regarding the relability
of the technology. You need to document this aspect of technology risk. Which of
the following documents would she use to document the risk, so that she can
track and respond to the risk?

 Project Charter

 Project Scope Statement

 Risk Management Plan

 Risk Register

Explanation:

Answer: D Risk register documents description, category, response, probability, impact, etc

145. PM, the project team, and several key stakeholders have completed risk
identification and are ready to move into qualitative risk analysis. A project team

58
 member, does not understand why they need to complete qualitative risk
analysis. Which one of the following is the best explanation for completing
qualitative risk analysis?

 It is a cost-effective means of establishing probability and impact for the project risks.

 Qualitative risk analysis helps segment the project risks, create a risk breakdown structure, and

create fast and accurate risk responses.

 All risks must pass through quantitative risk analysis before qualitative risk analysis.

 It is a rapid and cost-effective means of establishing priorities for the plan risk responses and lays

the foundation for quantitative analysis.

Explanation:

Answer: D Qualitative risk analysis helps in providing ranking after arriving at probability and impact

146. You are the project manager of a large construction project. Part of the
project involves the electrical cabling work in the building your project is
creating. You and the project team determine the cabling work is too dangerous
so you hire an experienced electrician to perform the work for the project. This is
an example of what type of risk response?

 Acceptance

 Mitigation

 Transference

 Avoidance

Explanation:

Answer: C Transfer is the negative risk reponse used for shifting the activities in which the project team
members do not have expertise

147. You are managing a software engineering project, when two team members
come to you with a conflict. The lead developer has identified an important
project risk: you have a subcontractor that may not deliver on time. Another
developer doesn't believe that the risk is likely to happen; however, you consult
the lessons learned from previous projects and discover that subcontractors
failed to deliver their work on two previous projects. The lead developer suggests
that you have two team members take three weeks to research the component
being built by the subcontractor, and come up some initial work that you can fall
back on in case that subcontractor does not deliver. You decide to follow the lead

59
 developer's advice over the objections of the other team member. Which of the
following BEST describes this scenario?

 Transferrence

 Mitigation

 Avoidance

 Acceptance

Explanation:

Answer: B Risk mitigation means taking some sort of action that will cause a risk, if it materializes, to do
as little damage to your project as possible. Having team members spend time doing work to prepare for
the risk is a good example of risk mitigation.

148. Sensitivity analysis is a technique for systematically changing parameters in

a model to determine the effects of such changes and is useful for computer
modelers for a range of purposes.Which of the following purposes does the
sensitivity analysis include? Each correct answer represents a complete solution.
Choose the one that will not apply.

 Increased understanding or quantification of the system

 Estimating the average outcome

 Model development

 Decision making or the development of recommendations for decision makers

Explanation:

Answer: B Average outcome is not a good technique. All remaining choices are good for sensitivity
analysis

149. You and the project team are recreating a probability and impact matrix
using RAG rating. There is some confusion and disagreement among the project
team as to how a certain risk is important and priority for attention should be
managed.Where we can determine the priority of a risk given its probability and
impact?

 Risk management plan

 Project sponsor

 Risk response plan

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 Look-up table

Explanation:

Answer: D Look up table provides the weightage based on Probability and Impact

150. Risk related contractual decisions is used when created in which of the
following plans?

 Risk Register

 Procurment management plan

 Risk Management Plan

 Stakeholder register

Explanation:

Answer B Contract which is the input for procurment management plan

151. You are working with the project stakeholders to begin the qualitative risk
analysis process.You will need all of the following as inputs to the qualitative risk
analysis process except for which one?

 Stakeholder register

 Project scope statement

 Risk management plan

 Risk register

Explanation:

Answer: A Stakeholder register is the output of identify stakeholder process.

152. A project team with a CPI of 0.78 is looking for options to reduce cost. Which
of the following should be the best option to choose?

 Reduce a test cycle, in the System Testing phase

 Reduce scope by cutting down non- essential features

 Add more resources to expedite the schedule

 Revisit estimates and eliminate risks; re- estimate

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 Explanation:

Answer: D Explanation: Option (c) wouldn't reduce cost. Option (a) and (b) would always have a negative
effect as they compromise on quality or scope. Of all the available option's (d) is the one with the
minimum negative effect.

153. You and the project team have created risk responses for many of the risk
events in the project. A teaming agreement is an example of what risk response?

 Transference

 Acceptance

 Mitigation

 Sharing

Explanation:

Answer: D As we know join venure for example is sharing the risk and considered an opportunity for all
the parties

154. You are about to complete the quantitative risk analysis process for your
project. You can use three available tools and techniques to complete this
process.Which one of the following is NOT a tool or technique that is appropriate
for the quantitative risk analysis process?

 Expert judgment

 Data gathering and representation techniques

 Organizational process assets

 Quantitative risk analysis and modeling techniques

Explanation:

Answer: C Organizational process assets will be used as input

155. A project manager working on a construction project identifies a risk of a

heavy storm in the coming months which might affect the construction activity.
However, he doesn't have any reliable information on the weather forecast or the
severity of the storm. In this case, what is the best project manager can do?

 Capture the Risk in the Risk Register

 Ignore the Risk as nothing can be done to avoid it

62
 Actively accept the risk and allocate time and cost reserve in contingency fund

 Proceed with Risk Response Strategy to counter the Risk

Explanation:

Answer: C Explanation: In this situation the project manager has no information on the timing, anticipated
frequency, or impact of the expected rough weather. Option (d) will not give any valuable information. The
best option is (c) to accept the risk, but plan a contingency reserve in terms of cost and time in case the
risk occurs. Option (a) and (b) are passive approach and are not recommended for a good project
manager who should be always proactive in his approach towards risk management.

156. You are working with management on defining a contingency reserve for
your project. Currently the project is scheduled to last 18 months and it has a
cost budget of $2.5 million.What two areas of the project can the contingency
reserve address in regard to risk management?

 Quality and costs

 Cost and resource management

 Risk and project planning

 Costs and schedule

Explanation:

Answer: D Contingency reserve will take care of cost and time

157. All of the following statements are true regarding Ishikawa diagrams in the
Risk Identification process except which one?

 Ishikawa diagrams are also called cause-and-effect diagrams.

 Ishikawa diagrams are also called fishbone diagrams.

 Ishikawa diagrams are a tool and technique of this process.

 Ishikawa diagrams show the steps needed to identify the risk.

Explanation:

Answer: D. Cause-and-effect diagrams

158. Over lunch with another project manager, you discuss ways to identify risks
on your project. The next day the other project manager sends you risk

63
 identification software created by her company with a copyright date of 1998.
What should you do?

 Find out if using an old format would be acceptable

 Obtain approval from your legal department

 Share some of your templates with her to improve her company's abilities

 Send the software back

Explanation:

Answer: D It's the code of ethics where you need to maintain integrtity and confidentiality

159. You are managing a software project. You are partway through the project,
and your team has just delivered a preliminary version of part of the software.
You are holding a weekly status meeting, when one of the team members points
out that an important stakeholder is running into a problem with one of the
features of the current software. The team member feels that there is a risk that
the stakeholder will ask for a change in that feature, even though that change
would be out of scope of the current release - and if the stakeholder requests that
change, there is a high probability that the change control board would approve
the change. What is the BEST action to take next?

 Mitigate the risk by asking a team member to get familiar with the feature of the software that might

be changed

 Schedule a meeting with the stakeholder to discuss the risk

 Add the risk to the risk register and gather information about its probability and impact

 Add the risk to the issue log and revisit it when there is more information

Explanation:

Answer: C Your risk register is one of the most important project management tools that you have - that's
why you review it and go over your risks at every meeting. Any time you come across a new risk, the first
thing you should do is document it in the risk register. It's really easy to lose track of risks, especially
when you're running a big project. By adding every risk to the register, you make sure that you don't
forget about any of them. So once you've identified the risk, what's the next step? You analyze the impact
and probability of the risk! That's what the Qualitative Risk Analysis process is for. You shouldn't take any
other action until you've analyzed the risk. The reason is that it might turn out that the risk is very unlikely,
and there might be another risk with a higher probability and larger impact that deserves your attention.

160. You are working with his project team to plan the risk responses for a
Project.You would like the project team to work together on establishing risk
thresholds in the project. What is the purpose of a risk threshold?
64
 It helps to identify those risks for which specific responses are needed

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

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

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

Explanation:

Answer: A Every organization defines the risk threshold so that it can take appropriate action based on
the trigger points

161. The project manager has just found an unidentified risk which requires
workaround. The project manager is working for weal matrix organization. Who
approves this workaround

 Functional Manager

 Customer

 Project Manager

 Sponsor

Explanation:

Answer A. In the weak matrix the FM is having highest authority

162. You are the project manager of your organization. Your organization will
receive a bonus if the project finishes by December 20. Management has
communicated this bonus to you and your project team and has asked you to
evaluate the project to see if it is possible to realize the reward. The bonus
offered to your organization is $750,000. You have examined the project and
believe that you can crash the project for an additional $275,000 and reach the
December 20 date. Management is thrilled with your assessment and they
approve the crash fee. What risk response is this?

 Crashing can be a type of the enhancing risk response.

 Crashing can be considered transference because of the $275,000 is actually paid from the bonus,

which is paid by the project customer.

 Crashing can be a type of the exploit risk response.

 Crashing is the addition of labor, not a risk response.

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 Explanation:

Answer: A It's motivation for the team and which results in enhancing the opportunity

163. You identified a supplier who can create stained glass windows for 1,000
window units in a construction project. The supplier is an artist who works by
himself, but creates windows for several companies throughout the United
States. Management reviews the proposal to use this supplier and while they
agree that the supplier is talented, they do not think the artist can fulfill the 1,000
window units in time for the project's deadline. Management asked you to find a
supplier who can fulfill the completion of the windows by the needed date in the
schedule. What risk response has management asked you to implement?

 Mitigation

 Acceptance

 Avoidance

 Transference

Explanation:

Answer: A Mitigation is used to reduce the impact on the project schedule

164. You are the project manager working with your project team and other key
stakeholders to identify the risks within the project. You are currently aiming to
create a comprehensive list of project risks. For that you are using a facilitator to
help generate ideas about project risks.What risk identification method is project
manager likely using?

 Brainstorming

 Delphi Techniques

 Checklist analysis

 Expert judgment

Explanation:

Answer: A Brainstorming is the most commonly used technique to identify the risk

165. Your organization has established certain rules in the enterprise

environmental factors which affect the approach that you can take in managing
his project. One of the rules you need to consider the risk attitude of the

66
 stakeholders participating in risk analysis. Why must risk attitude be considered
as a part of risk analysis?

 Risk attitude can affect the measurement of probability and impact.

 Risk attitude can establish a stakeholder's influence over project decisions.

 Risk attitude identifies stakeholders that are hygiene seekers or motivation seekers.

 Risk attitude establishes stakeholders as positive or negative stakeholders.

Explanation:

Answer: A Risk appetite explains risk attitiude which in turns provides probability and impact. The atttitide
can be organization and/or the individual

166. Communication management plan contains all of the following except

 Risk reporting formats

 Escalation process of issues

 Communication related terms

 Frequency of communication

Explanation:

Answer A. Risk reporting format is included as part of risk management plan

167. There has been a delay in your project work that is adversely affecting the
project schedule. You decide, with your stakeholders' approval, to fast track the
project work to get the project done faster. When you fast track the project, what
is likely to increase?

 Risks

 Costs

 Quality control concerns

 Human resource needs

Explanation:

Answer: A As we know from time management , fast track increases the risk and crashing adds to cost

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 168. You are about to perform qualitative risk analysis on the identified risks
within your project.Which one of the following will NOT help you to perform this
project management activity?

 Project scope statement

 Risk management plan

 Risk register

 Stakeholder register

Explanation:

Answer: D Stakeholder register is the output of identify stakeholder process

169. You are managing a software engineering project, when two team members
come to you with a conflict. The lead developer has identified an important
project risk: you have a subcontractor that may not deliver on time. The team
estimates that there is a 40% chance that the subcontractor will fail to deliver. If
that happens, it will cost an additional $15,250 to pay your engineers to rewrite
the work, and the delay will cost the company $20,000 in lost business. Another
team member points out an opportunity to save money an another area to offset
the risk: if an existing component can be adapted, it will save the project $4,500 in
engineering costs. There is a 65% probability that the team can take advantage of
that opportunity. What is the expected monetary value (EMV) of these two things?

 -$14,100

 $6,100

 -$11,175

 $39, 750

Explanation:

Answer: C To calculate the expected monetary value (EMV) of a set of risks and opportunities, multiply
each probability by its total cost and add them together. In this question, the cost of the risk is -$15,250 +
-$20,000 = -$35,250, so its EMV is 40% x -$35,250 = -$14,100. The value of the opportunity is $4,500
and its probability is 65%, so its EMV is 65% x $4,500 = $2,925. So the total EMV for the two is -$14,100
+ $2,925 = -$11,175.Don't forget that the cost of a risk is negative, and the cost of an opportunity is
positive.

170. You are a project manager in a financial firm with multinational dealings. You
feel the financial meltdown in one of the client's countries could affect your
project adversely and you want to hedge your risks. Although the probability of

68
 occurrence of the event is low, you are advised to play it safe. In terms of risk
attitude, your organization could best be described as?

 Risk Seeker

 Risk Averse

 Risk Neutral

 Risk Mitigator

Explanation:

Answer: B Explanation: Someone who doesn't want to take risks is called risk averse and the project
manager seems to be part of such an organization. Option (c) risk neutral describes a person/or an
organization which is indifferent to the risk and option (a) risk seeker suggests an aptitude to take risks
with an opportunity for higher returns. Option (d) risk mitigation is a risk response strategy and is an
invalid choice.

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