PMI-RMP Chapter 2 Test/Answers

Question 1

Which of the following refers to defining the conduct of risk management activities for a
project?

Plan risk responses

Plan risk management

Project risk management

Project risk analysis

Correct Answer: # 2

Question: Which of the following refers to defining the conduct of risk

management activities for a project?

1. Plan risk responses

2. Plan risk management
3. Project risk management
4. Project risk analysis

Justification: Plan Risk Management: The process of defining how to

conduct risk management activities for a project.

Reference:Practice Standard for Project Risk Management, Page Number:110

PMI-RMP Chapter 2 Test/Answers

Question 2

Which among the following statements about risk management plan is incorrect?

It describes how Project Risk Management will be structured and performed on

the project.
It can be informal and broadly framed.

It is exclusive of the project management plan.

It can be formal and highly detailed.

Correct Answer: # 3

Question: Which among the following statements about risk management plan is
incorrect?

1. It describes how Project Risk Management will be structured and performed on the project.
2. It can be informal and broadly framed.
3. It is exclusive of the project management plan.
4. It can be formal and highly detailed.

Justification: Risk Management Plan: Document that describes how Project Risk Management will be
structured and performed on the project. It is contained in or is a subsidiary plan of the project management
plan. It can be informal and broadly framed, or formal and highly detailed, based on the needs of the project.
Information in this plan varies by application area and project size.

Reference:Practice Standard for Project Risk Management, Page Number:111

PMI-RMP Chapter 2 Test/Answers

Question 3

The following statements are about the objectives of the Plan Risk Management process.
Which one is not true?

Develop overall risk management strategy for the project.

Ensure that stakeholder risk attitudes differ to maintain heterogeneity of opinions.

Decide how risk management processes will be executed.

Integrate Project Risk Management with all other project management activities.

Correct Answer: # 2

Question: The following statements are about the objectives of the Plan Risk
Management process. Which one is not true?

1. Develop overall risk management strategy for the project.

2. Ensure that stakeholder risk attitudes differ to maintain heterogeneity of opinions.
3. Decide how risk management processes will be executed.
4. Integrate Project Risk Management with all other project management activities.

Justification: The objectives of the Plan Risk Management process are to: o Develop overall risk
management strategy for the project o Decide how risk management processes will be executed o Integrate
Project Risk Management with all other project management activities

Reference:Practice Standard for Project Risk Management, Page Number:19

PMI-RMP Chapter 2 Test/Answers

Question 4

What does effective risk management require?

Creation of risk management plan

Identification of process-related criteria

Identification of management-related criteria

Assigning roles and responsibilities

Correct Answer: # 1

Question: What does effective risk management require?

1. Creation of risk management plan

2. Identification of process-related criteria
3. Identification of management-related criteria
4. Assigning roles and responsibilities

Justification: Effective risk management requires creation of a risk management plan.

Reference:Practice Standard for Project Risk Management, Page Number:19
PMI-RMP Chapter 2 Test/Answers

Question 5

What are the two categories of success criteria for risk management?

Process-related criteria and Management-related criteria

Project-related criteria and Planning-related criteria

Project-related criteria and Process-related criteria

Planning-related criteria and Management-related criteria

Correct Answer: # 3

Question: What are the two categories of success criteria for risk management?

1. Process-related criteria and Management-related criteria

2. Project-related criteria and Planning-related criteria
3. Project-related criteria and Process-related criteria
4. Planning-related criteria and Management-related criteria

Justification: There are two categories of success criteria for risk management: those for success of
the project in general, and those for success of Project Risk Management. • Project-related Criteria: The risk
management plan should present the objectives for the project-related criteria (like cost, time, and scope) to
ensure consistency and agreement among stakeholders. This ascertains the success of Project Risk
Management. • Process-related Criteria: The measures for success in the Project Risk Management
process depend on factors like the inherent level of uncertainty of the project.

Reference: Practice Standard for Project Risk Management, Page Number:20

PMI-RMP Chapter 2 Test/Answers

Question 6

Which of the following about stakeholders' risk attitudes is incorrect?

Influences the level of risk that is considered acceptable in a project

Influenced by their inherent tolerance for uncertainty

Influences the guidelines and rules for escalating risk-related information to

management and other stakeholders
Influences the reliability of a source of risk

Correct Answer: # 4

Question: Which of the following about stakeholders

1. Influences the level of risk that is considered acceptable in a project

2. Influenced by their inherent tolerance for uncertainty
3. Influences the guidelines and rules for escalating risk-related information to management and other
stakeholders
4. Influences the reliability of a source of risk

Justification: The risk attitudes of both the organization and the stakeholders, including their tolerance
for uncertainty and the importance to them of achieving or missing specific project objectives, need to be
analyzed for setting thresholds and providing weighting factors in the application of Project Risk
Management processes because these attitudes influence the level of risk considered acceptable in a
project. Communication between the project manager and stakeholders is required to identify changes in
stakeholder risk attitudes and, wherever required, escalate risk-related information to management and
other stakeholders.

Reference: Practice Standard for Project Risk Management,Page Number:20

PMI-RMP Chapter 2 Test/Answers

Question 7

Which of the following documents the intensity of effort and the frequency with which the
various Project Risk Management processes should be applied?

Risk register

Risk management plan

Risk response plan

Project performance metrics

Correct Answer: # 2

Question: Which of the following documents the intensity of effort and the frequency with
which the various Project Risk Management processes should be applied?

1. Risk register
2. Risk management plan
3. Risk response plan
4. Project performance metrics

Justification: The risk management plan should indicate the intensity of effort and the frequency with
which the various Project Risk Management processes should be applied.

Reference:Practice Standard for Project Risk Management, Page Number:20

PMI-RMP Chapter 2 Test/Answers

Question 8

What are the two levels at which risk-related communication occurs?

a) Within the project team b) Within the project stakeholders

a) Within the risk management team b) Within the project stakeholders

a) Within the risk management team b) Between the project team and the other project
stakeholders
a) Within the project team b) Between the project team and the other project
stakeholders

Correct Answer: # 4

Question: What are the two levels at which risk-related communication occurs?

1. a) Within the project team b) Within the project stakeholders

2. a) Within the risk management team b) Within the project stakeholders
3. a) Within the risk management team b) Between the project team and the other project stakeholders
4. a) Within the project team b) Between the project team and the other project stakeholders

Justification: Risk-related communication happens at two levels: (a) within the project team, and (b)
between the project team and the other project stakeholders.

Reference:Practice Standard for Project Risk Management, Page Number:21

PMI-RMP Chapter 2 Test/Answers

Question 9

Which of the following is not a criterion for a valid risk management plan?

Acceptance by stakeholders

Non-alignment with the internal and external constraints on the project

Balance between cost/effort and benefit

Completeness with respect to the needs of the Project Risk Management process

Correct Answer: # 2

Question: Which of the following is not a criterion for a valid risk management plan?

1. Acceptance by stakeholders
2. Non-alignment with the internal and external constraints on the project
3. Balance between cost/effort and benefit
4. Completeness with respect to the needs of the Project Risk Management process

Justification: Criteria for valid risk management plan:

• Acceptance by stakeholders
• Alignment with internal and external constraints on project
• Balance between cost/effort and benefit
• Fulfill requirements of Project Risk Management process.

Reference:Practice Standard for Project Risk Management, Page Number:21

PMI-RMP Chapter 2 Test/Answers

Question 10

Which among the following best defines Risk Breakdown Structure?

A structured description of a risk which separates cause, risk, and effect.

A tool that is a hierarchically organized depiction of the identified project risks arranged
by risk category.
A representation of the project including data about project elements and risks that can
be analyzed by quantitative methods.
A high-level approach to address an individual risk or overall project risk, broken down
into a set of risk actions.

Correct Answer: # 2

Question: Which among the following best defines Risk Breakdown Structure?

1. A structured description of a risk which separates cause, risk, and effect.

2. A tool that is a hierarchically organized depiction of the identified project risks arranged by risk
category.
3. A representation of the project including data about project elements and risks that can be analyzed by
quantitative methods.
4. A high-level approach to address an individual risk or overall project risk, broken down into a set of risk
actions.

Justification: Risk Breakdown structure: [Tool] A hierarchically organized depiction of the identified
project risks arranged by risk category and subcategory that identifies the various areas and causes of
potential risks. It is often tailored to specific project types.

Reference:Practice Standard for Project Risk Management, Page Number:111

PMI-RMP Chapter 2 Test/Answers

Question 11

Which is not a critical success factor for the Plan Risk Management process?

Provide a template of the risk register

Identify and address barriers to successful Project Risk Management

Involve project stakeholders in Project Risk Management

Comply with the organization’s objectives, policies, and practices

Correct Answer: # 1

Question: Which is not a critical success factor for the Plan Risk Management process?

1. Provide a template of the risk register

2. Identify and address barriers to successful Project Risk Management
3. Involve project stakeholders in Project Risk Management
4. Comply with the organization’s objectives, policies, and practices

Justification: The three critical success factors for the Plan Risk Management process are: • Identify
and address barriers to successful Project Risk Management • Involve project stakeholders in Project Risk
Management • Comply with the organization’s objectives, policies, and practices

Reference:Practice Standard for Project Risk Management, Page Number:21,22

PMI-RMP Chapter 2 Test/Answers

Question 12

Fill in the blanks. ______ ______ are recommended to build a common understanding of the
project's risk approach between project stakeholders and to gain agreement on the
techniques to be used for managing risk.

Project descriptions

Risk management guidelines

Planning sessions

Communications plans

Correct Answer: # 3

Question: Fill in the blanks. ______ ______ are recommended to build a common
understanding of the project

1. Project descriptions
2. Risk management guidelines
3. Planning sessions
4. Communications plans

Justification: Planning sessions are recommended to build a common understanding of the project’s
risk approach between project stakeholders and to gain agreement on the techniques to be used for
managing risk.

Reference:Practice Standard for Project Risk Management, Page Number:22

PMI-RMP Chapter 2 Test/Answers

Question 13

What is the primary purpose of work products like risk status reports, risk breakdown
structures or risk register?

Record experience and existing best practice

Assign roles and responsibilities

Involve project stakeholders in Project Risk Management

Describe the purposes and objectives of the processes involved in risk management

Correct Answer: # 1

Question: What is the primary purpose of work products like risk status reports, risk
breakdown structures or risk register?

1. Record experience and existing best practice

2. Assign roles and responsibilities
3. Involve project stakeholders in Project Risk Management
4. Describe the purposes and objectives of the processes involved in risk management

Justification: In order to benefit from experience and existing best practice, risk management planning
should take into account relevant existing templates for work products like risk status reports, risk
breakdown structures or risk register.

Reference:Practice Standard for Project Risk Management, Page Number:23

PMI-RMP Chapter 2 Test/Answers

Question 14

Choose the INCORRECT statement about Risk Management Plan.

Adapted in subsequent stages as the needs of the project and its stakeholders become
clearer or change.
Specifies the project’s risk management roles and responsibilities.

Establishes type and level of risk detail to be addressed and provides a template of risk
register.
Inspection by senior management is required; the plan communicates between the
project manager and stakeholders to identify changes in stakeholder risk attitudes.

Correct Answer: # 4

Question: Choose the INCORRECT statement about Risk Management Plan.

1. Adapted in subsequent stages as the needs of the project and its stakeholders become clearer or
change.
2. Specifies the project’s risk management roles and responsibilities.
3. Establishes type and level of risk detail to be addressed and provides a template of risk register.
4. Inspection by senior management is required; the plan communicates between the project manager
and stakeholders to identify changes in stakeholder risk attitudes.

Justification: Communication between the project manager and stakeholders is required to identify
changes in stakeholder risk attitudes.

Reference: Section 4.1, page 20, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 15

Which of the following is NOT a Criteria for valid risk management plan?

Stakeholder acceptance

Balance between Cost versus Benefit

Project Manager and Stakeholder agreement outside project scope

Alignment with internal and external constraints on project

Correct Answer: # 3

Question: Which of the following is NOT a Criteria for valid risk management plan?

1. Stakeholder acceptance
2. Balance between Cost versus Benefit
3. Project Manager and Stakeholder agreement outside project scope
4. Alignment with internal and external constraints on project

Justification: Criteria for valid risk management plan includes: Acceptance by stakeholders; Alignment
with internal and external constraints on project; Balance between cost/effort and benefit; and Fulfil
requirements of Project Risk Management process.

Reference: Section 4.1, page 19, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 16

3. Which of the following options is CORRECT about Critical Success Factors for the Plan
Risk Management Process?

The activities of the risk management plan should be built into an overall project map
and not into a broken down structure.
Chances of failure of the risk management activities decrease with availability of
organizational process assets
Activities of the risk management plan should never be part of the corresponding
schedule, budget, and work-assignment documents.
The inexperience of an organization in risk management planning may be dispelled by
following a proprietary or pre-existing approach without making any changes to it.

Correct Answer: # 2

Question: 3. Which of the following options is CORRECT about Critical Success Factors
for the Plan Risk Management Process?

1. The activities of the risk management plan should be built into an overall project map and not into a
broken down structure.
2. Chances of failure of the risk management activities decrease with availability of organizational
process assets
3. Activities of the risk management plan should never be part of the corresponding schedule, budget,
and work-assignment documents.
4. The inexperience of an organization in risk management planning may be dispelled by following a
proprietary or pre-existing approach without making any changes to it.

Justification: Chances of success of the risk management activities increase with availability of
organizational process assets.

Reference: Section 4.2.1, page 21, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 17

Which of the following is INCORRECT about the factor "Involve Project Stakeholders in
Project Risk Management"?

Stakeholders should be solely authorized to define parameters of risk tolerance.

Project Managers should ensure involvement of stakeholders to build on their skills.

Project Managers should address and resolve disagreements between stakeholders in

the areas of risk tolerance.
Project Manager should stakeholders’ understanding of, and commitment to, the Project
Risk Management process.

Selected Choice: #
Correct Answer: # 1

Question: Which of the following is INCORRECT about the factor "Involve Project
Stakeholders in Project Risk Management"?

1. Stakeholders should be solely authorized to define parameters of risk tolerance.

2. Project Managers should ensure involvement of stakeholders to build on their skills.
3. Project Managers should address and resolve disagreements between stakeholders in the areas of
risk tolerance.
4. Project Manager should stakeholders’ understanding of, and commitment to, the Project Risk
Management process.

Justification: Involve Project Stakeholders in Project Risk Management cover the following points: •
Project Managers should ensure involvement of stakeholders to build on their skills and to ensure their
understanding of, and commitment to, the Project Risk Management process. • Address and resolve
disagreements between stakeholders in the areas of risk tolerance and evaluation measures.

Reference: Section 4.2.2, page 21, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 18

Planning sessions contribute to a consultative team approach and should include…

The project manager and selected team members.

The project manager, members of the organization responsible for risk, and subject
matter experts/facilitators.
The project manager, selected team members, and subject matter experts/facilitators.

D. The project manager, selected team members, other stakeholders, members of the
organization responsible forrisk, and subject matter experts/facilitators.

Correct Answer: # 4

Question: Planning sessions contribute to a consultative team approach and should

include…

1. The project manager and selected team members.

2. The project manager, members of the organization responsible for risk, and subject matter
experts/facilitators.
3. The project manager, selected team members, and subject matter experts/facilitators.
4. D. The project manager, selected team members, other stakeholders, members of the organization
responsible for risk, and subject matter experts/facilitators.

Justification: Planning sessions are recommended in order to build a common understanding of the
project’s risk approach betweenproject stakeholders and to gain agreement on the techniques to be used for
managing risk. Elaboration of the risk management plan often serves to develop an effective means for the
team to work together since a similar consultative team approach will be used in subsequent stages of
the risk management process. The participants should include: the project manager, selected project team
members and other stakeholders, members of the broader organization having responsibility for risk, and
other subject matter experts or facilitators, as needed.

Reference: Section 4.3.1, page 22, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 19

Which of the following is NOT a Key area of Focus for the Plan Risk Management Process?

Team Strength

People

Business

Tools

Correct Answer: # 1

Question: Which of the following is NOT a Key area of Focus for the Plan Risk
Management Process?

1. Team Strength
2. People
3. Business
4. Tools

Justification: People -Attitudes, Roles, responsibilities, authority Communications. Tools - Toolbox,

Parameters, Definitions. Business - Constraints, Amount of detail and effort.

Table 4.1 Key areas of Focus for the Plan Risk Management Process

Reference: Section 4.4, page 23, Practice Standard for Project Risk Management.
PMI-RMP Chapter 2 Test/Answers

Question 20

A Risk Breakdown structure is…

A tool used for hierarchical risk depiction.

A tool that shows stepwise instructions to mitigate risk.

Used to calculate the effort required by management to mitigate the risk.

A management methodology to study risks in the overall project.

Correct Answer: # 1

Question: A Risk Breakdown structure is…

1. A tool used for hierarchical risk depiction.

2. A tool that shows stepwise instructions to mitigate risk.
3. Used to calculate the effort required by management to mitigate the risk.
4. A management methodology to study risks in the overall project.

Justification: Justification: Risk Breakdown structure is a tool that is a hierarchically organized

depiction of the identified project risks arranged by risk category and subcategory that identifies the various
areas and causes of potential risks. It is often tailored to specific project types.

Reference: page 111, Practice Standard for Project Risk Management.