INTEGRATION OF RISK MANAGEMENT INTO THE PORTFOLIO

MANAGEMENT PERFORMANCE DOMAINS

In order to achieve the portfolio

objectives, there are a number of risk
management practices that can be
applied across the portfolio life cycle
within all of the performance domains.
These practices typically cover the areas
shown
 INTEGRATION OF RISK
MANAGEMENT INTO THE
PORTFOLIO MANAGEMENT
PERFORMANCE DOMAINS
 PORTFOLIO STRATEGIC MANAGEMENT
 The essence of Portfolio Strategic Management is to ensure the enhancement/exploitation of
strategic opportunities and the avoidance/mitigation of threats that could potentially prevent the
organization from achieving its full potential.
 Therefore, risk management in the context of portfolio strategic management focuses on the
identification and active management of those opportunities and threats that potentially have a
substantial impact on the realization of the organizational strategy.

PORTFOLIO GOVERNANCE
 The purpose of Portfolio Governance is to ensure that the portfolio is managed in an appropriate way.
 This includes meeting the legal, regulatory, and organizational governance requirements.
 The role of risk management within portfolio governance is to use the organization’s potential to
(a) efficiently secure adequate governance and management practices
(b) (b) avoid or mitigate threats that could lead to misconduct or ineffective management of the portfolio
 PORTFOLIO CAPACITY AND CAPABILITY MANAGEMENT
 Risk management in the context of Portfolio Capacity and Capability Management focuses on the
mutual impact of the portfolio and related operations.
 In addition, risk management in the context of capacity and capability management ensures the
proper use and development of capital and assets entrusted to the portfolio manager for the
component programs and projects.

PORTFOLIO STAKEHOLDER ENGAGEMENT

 Key stakeholders at the portfolio level typically include executive leaders and managers of the
organization and their equivalents in the key partner, supplier, and customer organizations.
 Another key group of stakeholders is the component managers. From this perspective, portfolio risk
management focuses on
(a) opportunities to increase effectiveness in realizing the organization’s strategy
(b) threats that could potentially lower the ability to do so.
 PORTFOLIO VALUE MANAGEMENT
 Portfolio Value Management focuses on ensuring that the investment in portfolio components leads
to the delivery of expected value.
 Risk management, in this context, focuses on
(a) maximizing opportunities to increase value delivered
(b) responding to threats that could potentially lower the value or probability of value delivery.

PORTFOLIO RISK MANAGEMENT

 Portfolio Risk Management focuses on ensuring that risk at the portfolio and its component level is
recognized and managed effectively.
 It is achieved through risk management and risk governance practices.
 Because these practices are essential for dealing with uncertainty at the portfolio level, they are also
analyzed from the risk perspective.
 Adequate measures are then taken to ensure that the application of risk management is robust and
effective.
 INTEGRATION OF RISK MANAGEMENT INTO THE PROGRAM
MANAGEMENT PERFORMANCE DOMAINS

There are a number of risk management

practices that can be applied across the
program life cycle within all of the
performance domains in order to
achieve their objectives.These practices
typically cover the areas
 INTEGRATION OF RISK
MANAGEMENT INTO THE
PROGRAM MANAGEMENT
PERFORMANCE DOMAINS
 PROGRAM STRATEGY ALIGNMENT
 Program Strategy Alignment ensures that a program contributes to organizational strategy in the
expected way.
 Risk management efforts in this domain address new strategic opportunities and threats.
 When necessary, these efforts lead to appropriate program redefinition or changes in the relevant
program components.

PROGRAM BENEFITS MANAGEMENT

 Program Benefits Management ensures that the program benefits described in the business case and
other program governance documents are successfully realized.
 The main focus of risk management in this area is to
(a) manage opportunities that could increase these benefits
(b) deliver opportunities more efficiently
(c) manage threats that could potentially jeopardize the program’s efforts to realize its benefits.
 PROGRAM STAKEHOLDER ENGAGEMENT
 Key stakeholders from the program perspective typically include program governance board
members, the program manager, managers of program components, partners, key suppliers, and
regulators impacting or being impacted by the program benefits.
 From this perspective, program risk management focuses on opportunities for increasing
effectiveness in realizing program benefits and on minimizing threats that could potentially lower the
ability to do so.
 It is realized by effective engagement of stakeholders at the program level and ensures consistency of
stakeholder management strategies among program components.
 PROGRAM GOVERNANCE
 Program Governance uses the framework, functions, and processes by which a program is monitored,
managed, and supported in order to meet organizational strategic and operational goals.
 Program Governance also addresses program complexity in an effort to reduce it.
 These activities are backed by risk management practices, focused on the analysis of various
governance approaches from the risk perspective.
 In addition, the selection of individuals to perform key governance roles is supported by risk analysis.
 A key element of Program Governance from the risk management perspective is the risk escalation
process, which is integrated with processes within components and backed by program governance
processes and structures.

PROGRAM LIFE CYCLE MANAGEMENT

 Risk management in this area focuses on identifying and addressing program-level risks as early as
possible.
 This is achieved by fully integrating risk identification, analysis, and response planning throughout all
program and component activities.
 INTEGRATION OF RISK
MANAGEMENT INTO PROJECT
MANAGEMENT PROCESS GROUPS

A Guide to the Project Management Body of

Knowledge describes the Project Risk
Management Knowledge Area. An analysis of
the relationship between the processes in
Project Risk Management and other Knowledge
Areas is provided next. There are a number of
general risk management practices that can be
applied across the project life cycle. The
following sections summarize these practices in
a general way as they relate to the Process
Groups and Knowledge Areas
 INITIATING PROCESSES
 During project initiation, the selection of the appropriate project life cycle is one of the first decisions
supported by risk management.
 Each of the known project life cycles has an impact on all areas of project management by helping to
enhance and exploit opportunities or introducing a number of threats.
 Another important aspect of risk management during project initiation is the understanding of risks
related to key stakeholders, their interests, and potential conflicts among them and with the project.

PLANNING PROCESSES
 The selection of the overall risk management approach is one of the key planning decisions. It involves
the analysis of risks that could potentially impact the effectiveness of the risk management processes.
 The key areas of planning that also include risk management practices are:
 Integrity of the planning processes and the resulting plans
 Selection of the management approaches in all Knowledge Areas relevant to the project
 Estimation activities.
 It is typical that processes in this Process Group lead to the identification of a high number of risks
because these processes include analytical work necessary for planning. It is important to ensure that
risk identification becomes a natural part of every process in this Process Group.
 EXECUTING PROCESSES
 Executing processes are performed to complete the work defined in the project
management plan to satisfy the project requirements and achieve the objectives of the
project.
 Successful risk management depends on the flow of knowledge within the project and the
organizations involved in its execution.
 Risk management practices are most effective when supported by a culture that embraces
proactive behavior, open communication, organizational learning, and continuous
improvement.
 This means that integration with team building and management, quality management,
execution of stakeholder engagement strategies, and communication processes are
essential.
 MONITORING AND CONTROLLING PROCESSES
 Monitoring and Controlling processes track, review, and regulate the progress and
performance of the project, identify the areas in which changes to the plan are required, and
initiate the corresponding changes.
 Risk management supports efforts to ensure integrity and reliability of reporting. On the
other hand, risk identification, risk analysis, and risk monitoring processes use the
performance data and information as key inputs that help identify, analyze, and monitor
risks.

CLOSING PROCESSES
 Closing processes are performed to formally complete or close the project, phase, or contract.
 Where risk management is concerned, part of the closing practices involve securing knowledge
that may be useful in future project phases, projects, or other activities of the organization.
 The remaining known risks that could impact the realization of benefits are handed over prior
to project closure.
 Q1

You have identified a risk that may cause safety concerns for the workers completing the
task. You’ve decided to hire a subcontractor to complete this work because the risk is
too great to accept internally. Which risk response is this?

Mitigate
Transfer
Avoid
Accept
 Q2

Who is best suited to serve as risk owners?

Risk manager
Project manager
Project team members
Project sponsors
 Q3

The risk management process should be :

Updated throughout the entire project

Updated in the execution phase
Iterative through the planning phase
Iterative throughout the entire project
 Q4

Which of the following characteristics would a risk-averse person?

Not afraid to take action, or even thrill seeking

Discomfort with uncertainty, and seeks security and resolution when facing risk
Comfort with most uncertainty accepts risk as a normal feature of projects and
business
Risk taking is a price worth paying for future payoffs, seeks strategies and tactics that
have high future payoffs
 Q5

A project’s risk manager successfully developed the risk management plan and the risk
register. Furthermore, the risk analysis and the risk response planning are finalized to
deal with the high and medium priority risks. How the risk manager and team members
will deal with the remaining low priority risks?

Update the risk management plan with the low priority risks
Add the risks to a watch list for periodic monitoring
Remove the risks from the risk register
Create risk responses later, as time allows
 Q6

A project manager has two projects of equal, strategic organizational importance.

However, due to budget constraints, only one can be chosen. There are uncertainties
and risks associated with both projects. What tool or technique should the project
manager use to decide which project to choose?

Decision tree analysis

Influence diagram
Simulations
Sensitivity analysis
 Q7

During a status meeting, a functional manager complains that the server back up failed,
impacting the department. This was a known risk documented in the risk register as an
accepted risk. After reviewing the meeting minutes, it is determined that the functional
manager hadn’t participated in the risk planning phase. Which of the identification
methods should have been applied?
Quantitative analysis
Qualitative analysis
Stakeholder analysis
Sensitivity analysis
 Q8

You have been assigned as a project manager to a software project. Before creating your
product, you decided to create a prototype to ensure that it is acceptable to
stakeholders. This is an example of:

Risk Transference
Risk acceptance
Risk mitigation
Risk avoidance
 Q9

What is defined as “ an uncertain event or condition that, if it occurs, has a positive or

negative effect on one or more project objectives“ and second ,what is a “ chosen
mental disposition towards uncertainty, adopted explicitly or implicitly by individuals
and groups ?

Opportunity/Response Strategy
Risk/attitudes
Risk/Exposure
Threats/attitudes
 Q10

You have been managing a top-secret government project, which has been progressing
as planned until recently. Suddenly, one of your team members calls and informs you
that the project has encountered an unexpected major problem that was not included in
the risk register. What should be your first course of action?

Update the risk management plan

Create a fallback plan
Create a workaround
Take corrective and preventive actions
 Q11

A project lost 10 productive days due to bad weather. In order to make up for the lost
time, the project management team calls for an emergency meeting and decides to
apply fast-tracking as a schedule compression technique. This is an example of:

Work-around
Risk escalation
Risk Mitigation
Risk avoidance
 Q12

What is the communication form that helps in reducing misunderstandings and

improving teamwork?

Face to face discussion

Formal communication
Push communication
Status reports
 Q13

A risk manager creates a survey for project stakeholders to obtain their opinions on high
levels of risk. key questions in the survey address acceptable levels of cost increases and
schedule delays. What is the risk manager trying to determine?

Risk urgency
Risk threshold
Risk exposure
Risk attitude
 Q14

Which of the following are examples of data gathering tools?

Questionnaires and historical data

Work breakdown structure and historical data
Risk management plan and interviews
Work breakdown structure and interviews
 Q15

What is the best method a risk manager should use to initially define the stakeholders’
risk appetite?

Review risk management plan

What if scenario
Conduct SWOT analysis
Meeting and interviews with key stakeholders
 Q16

A project sponsor believes that the only risks to the project are financial risks and no
need for additional risk management. As a project manager, which of the following tools
and techniques could you use to identify other potential topics such as technical,
Communication, project management, and internal and external risks?

Monte Carlo analysis and Delphi technique

Review RACI chart
Decision tree analysis and Ishikawa diagram
Prompt lists and risks breakdown structure
 Q17

To obtain agreement on project risk response strategies by the stakeholders, the risk
response strategies should be :

Scheduled, budgeted, and easy for project stakeholders to understand

Appropriate Project Model, Unbiased Data, and Iterative
Timely, cost-effective, agreed upon
Iterative, scaled to the project, and addressing threats and opportunities
 Q18

A team member has identified a risk and the project manager decides to take no action.
This is an example of:

Risk Acceptance
Risk Avoidance
Risk mitigation
Risk Exploitation
 Q19

A project manager assigns a risk owner during which of the following processes?

Plan risk management

Plan risk responses
Identify risks
Control risks
 Q20

Which of the following represents levels of risk attitudes?

Technical, External, and Organizational

Risk exploit, risk avoiding, risk transferring
High, medium, and low
Risk averse, risk neutral, risk seeking
 Q21

Which of the following tools are used to identify the probability of achieving specific
cost targets?

Contingent response strategies

Monte Carlo analysis
Sensitivity analysis
Decision tree analysis
 Q22

If the contingency reserves are depleted before the project is completed. What
recommendations could be implemented to prevent this from recurring?

Implement a reserve analysis process

Increase the contingency reserve
Use the Monte Carlo simulation
Increase the cost and schedule baseline
 Q23

Which of the following represents the main goals of the Risk audit?

Document what went well and not so well with the risk management process, and
recommend action to improve
Document and assess the newly identified risks and take the required actions
Assess the risks that have occurred and take the required actions
Examine the effectiveness of project team members and take the required actions
 Q24

If the project manager wants to review the risk response effectiveness from past
projects, from which of the following will find these?

Lessons learned and Enterprise environmental factors

Lessons learned and Probability and Impact matrix
Lessons learned and Risk audit
Lessons learned and Issue log
 Q25

What is the primary difference between a risk audit and a risk reassessment?

A risk reassessment is conducted at the completion of a major phase; audits are conducted
after the project is complete
Risk reassessments are regularly scheduled; risk audits are performed as defined in the
project's risk management plan
Project stakeholders conduct risk audits; management conducts reassessments
There is no difference; they are virtually the same
 Q26

You are managing a shopping center construction project. Which of the following
provide the outcomes to update the project risk documents as a result of the control risk
process

Risk reserve and risk seeker

Risk reassessments and risk audits
Risk reserve analysis and risk attitude
Risk response strategies and stakeholder analysis
 Q27

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

Affinity diagram
Decision tree analysis
Work breakdown structure
Risk breakdown structure
 Q28

A risk management professional is currently facilitating the risk planning process with
the project team. To increase the breadth of considered risks, the team wants to include
high-level and strategic project risks. What should the risk management professional do
next?

Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis

Perform a sensitivity analysis to the higher-level aggregate activities
Develop a risk breakdown structure (RBS) identifying the potential risk categories
Perform a baseline Monte Carlo simulation to address overall threats to project objectives
 Q29

The risk manager notices that in their workshops, most of the risks identified are
threats. What should the risk manager do to increase the number of opportunities
identified?

Conduct a political, economic, sociological, technological, legal, and environmental

(PESTLE) analysis
Interview more stakeholders who have a positive mindset
Use the Delphi technique involving experts who have identified opportunities in the past
Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis
 Q30

Which among the following refers to a structured description of a risk which separates
cause, effect, and risk?

Risk Breakdown Structure

Risk Meta-language
Risk Model
Risk Category
 Q31

After starting a new pipeline project, a risk manager schedules an initial meeting with
the project sponsor. For the meeting, the project sponsor requests a presentation of the
risks that have the most influence (positive or negative) on achieving the project
objectives. What should the risk manager complete before the meeting?

Monte Carlo simulation

Quantitative risk analysis
Sensitivity analysis
Qualitative risk analysis
 Q32

A project manager has finished the project charter for a project and has now moved into
the planning phase. In the first planning meeting, the project manager is trying to
determine the risk tolerance and risk attitudes of the project's key stakeholders. What is
the first resource the project manager should reference?

Requirements management plan

Enterprise environmental factors (EEFs)
Project charter
Benefits management plan
 Q33

A project team is working on a risk response strategy by evaluating every risk and
coming up with suitable response strategies. However, one particular risk with a
negative impact cannot be avoided or mitigated. Furthermore, there is no way to
transfer risk by outsourcing or buying insurance. What is the best the team can do about
the risk?

Treat it as a secondary risk and update it in the Risk Register

Accept the risk
Share the risk by allocating ownership to a third party
Revisit the Risk Response Strategy
 Q34

A risk manager administered a pre-workshop risk survey in preparation for the

upcoming workshop. The workshop invitees participated in the survey and submitted
many risks encompassing all project phases and risk areas. The risk manager sorts risks
by similarities and categories for the workshop. What should the risk manager do next
to visually organize the risks?

Assign probability and impact

Perform a SWOT analysis
Develop an affinity diagram
Perform the analytical hierarchy process
 Q35

A project manager has requested a risk manager facilitate risk identification on a

project. While facilitating this effort, the project manager wants to ensure that
stakeholders interact and provide their expertise so that an exhaustive list of risks is
created. Which risk identification technique should the risk manager use?

Prompt lists
Nominal group technique
Interviews
Delphi technique
 Q36

During a meeting to develop the risk management plan, the risk manager recognizes
that risks may be identified that could also impact other projects that the company is
pursuing. What should the risk manager do?

Address the unique characteristics of these risks on a case-by-case basis

Contact the risk managers of the other projects and inform them
Include an escalation process in the risk management plan
Take note of the extensive impact of these risks in the risk register
 Q37

A list of risks was Identified that could occur during the design phase. Now, the team
finished the design phase, and those risks did not materialize. What should the project
manager do next?

Remove the risk from the list as they are no longer applicable
Reevaluate those risks' severity, and update the risk register
Close the risks and update their status in the risk register
Use their contingency with other risks that are still open
 Q38

A risk manager of a complex project has identified a risk and believes a deeper
understanding of the source and likelihood is necessary. How should the risk manager
proceed?

Create prompt lists for expert interviews

Perform a review of project documents
Analyze the assumptions and constraints
Develop and employ an Ishikawa diagram
 Q39

The risk manager notices that in their workshops, most of the risks identified are
threats. What should the risk manager do to increase the number of opportunities
identified?

Conduct a political, economic, sociological, technological, legal, and environmental

(PESTLE) analysis
Interview more stakeholders who have a positive mindset
Use the Delphi technique involving experts who have identified opportunities in the past
Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis
 Q40

A risk manager completed risk response planning for a project that is currently in the
execution phase. During a periodic review of the risk register, the project manager
recognizes that some key secondary risks have not been considered. Who should the
project manager hold accountable for missing the risks?

The audit team

The risk owners
The risk manager
The discipline engineers
 Q41

A risk manager faces resistance as they try to implement the project's risk strategy.
Some members of the project team believe it is a waste of time and money. What
should the risk manager do?

Raise the concerns with the project sponsor

Continue to implement the risk strategy
Met with team members to address their concerns
Reduce the number of risk management activities
 Q42

When selecting strategies as an activity of Plan Risk Response, what is the overall goal?

Select the strategies with the greatest benefit to stakeholders

Select the strategies with the least financial impact
Select the strategies with the least overall impact to resources
Select the strategies with the greatest overall positive influence
 Q43

You would like a method that would allow participants to anonymously identify risk
events. What risk identification method could you use?

Root cause analysis

Isolated pilot groups
Delphi technique
SWOT analysis
 Q44

The project risk manager is in the process of identifying risks. The project sponsor has
communicated that there is an influential/ stakeholder who has a senior management
position. The other stakeholders do not feel comfortable speaking in front of this
stakeholder. What should the project risk manager do next to identify risks?

Use the brainstorming technique to remove personal bias

Use expert judgment to remove ego or emotional conflict
Consider the Delphi technique to gather all stakeholder opinions
Review the risk breakdown structure to ensure the project scope is covered
 Q45

Project stakeholders can often be risk-averse with little to no knowledge of the risk
process. How should a risk manager increase stakeholder risk appetite?

Exclude risk-averse stakeholders from future risk discussions

Increase the impact of all risks in the risk breakdown structure (RBS)
Develop a generous probabilistic cash flow model
Explain risk handling and mitigation strategies
 Q46

The project director and project manager have met with the board and determined that
the project has depleted the entire contingency reserve and has started eroding the
profit margin. The project manager would like the risk manager to take full advantage of
opportunities. Which response should the risk manager take?

Transfer
Exploit
Accept
Mitigate
 Q47

A project manager has determined that an activity is too complex to complete internally,
so they hire a licensed contractor to complete the work. What is the project manager
performing in this situation?

Risk avoidance
Risk mitigation
Risk transfer
Risk acceptance
 Q48

You are the project manager for your organization. You have determined that an activity
is too dangerous to complete internally so you hire a licensed contractor to complete the
work. The contractor, however, may not complete the assigned work on time which
could cause delays in subsequent work beginning. This is an example of what type of
risk event?
Trigger conditions
Fallback plans
Transference
Secondary risk
 Q49

A project manager is educating the project team on risk management regarding the role
of threats and opportunities. The team decides to log the opportunities in the current
project's risk register to try to maximize their chances of occurrence. What should the
project team do next?

Update the project management plan to ensure the results of the opportunities are
captured
Log the threats in the risk register to try to maximize the probability of occurrence
Log the threats in the risk register to try to minimize the probability of occurrence
Conduct strengths, weaknesses, opportunities, and threats (SWOT) analysis
 Q50

Members of a project team are not taking their risk management responsibilities
seriously. They do not consider risk management as primary to the project's success and
do not believe that the benefits are significant. What should the risk manager do?

Ensure that risk management responsibilities are clearly identified in the risk management
plan
Schedule a meeting to review and develop realistic risk thresholds with the project team
Motivate and in influence the project team with risk engagement activities like workshops
Ensure that the risk language used by all stakeholders is consistent with the risk
management plan
 Q51

The project manager is reviewing the lessons lamed from a previous similar project. The
previous project was delayed due to the delay in the delivery of a gas turbine generator
(GTG). Construction of the previous project had to be shut down unexpectedly to wait
for the late delivery of the GTG. What should the project manager do first?

Communicate with the client to provide the previous shutdown plan

Interview the other project manager to learn more details
Include the risk in the register and communicate with the stakeholders
Review and update the project schedule
 Q52

A project manager has just been assigned to a new project. The project manager has been
tasked by the project sponsor to ensure the project risks are closely managed. The project
manager starts with developing the risk management plan. What is the expected outcome
of developing the risk management plan?
Being able to monitor and control risks throughout the project
Defining how risk management Will be executed throughout the project
Having the ability to identify risks throughout the project
Documenting the communication strategy for risks throughout the project
 Q53

Risk identification is performed in which manner?

Quantitative
Iterative
Mandatory
Incremental
 Q54

The project team has correctly identified, assessed, and planned responses for a
project's risks. The risk manager is required to prepare a quarterly report on the
performance of managing the risks. What are two options the risk manager should
consult for the analysis? (Choose two.)

Proximity dates for open risks

Risks due to the number of claims submitted to the client
Risks that have materialized and the overall risk profile
Number of schedule baseline changes approved
Backlog of change orders to be submitted to client
 Q55

A project manager wants to work on understanding the project risks. The project
manager works with the integrated project team to develop the risk handling strategies
for the Identified risks. How should the project manager work with these risk-handling
strategies?

Review and revise the strategies periodically

Ensure the strategies are approved by the stakeholders
Implement the strategies after completing the risk analysis
Implement the strategies immediately
 Q56

A risk manager notices that a risk owner is facing challenges implementing their
response strategy and the costs are significantly exceeding expectations. What is the
first thing the risk manager should do?

Analyze the situation and meet with the risk owner

Conduct a cost-benefit analysis
Chang the risk response strategy
Highlight this situation to the project manager
 Q57

A project has a significant impact on an organization. Multiple stakeholders expressed

concerns regarding the overall project risk during the construction of the risk
management plan, and they agreed that the risk appetite is low. What should the
project risk manager monitor closely?

Risk thresholds
Risk response strategies
Risk breakdown structure (RBS)
Risk management reports
 Q58

The risk manager is facilitating risk planning activities with the team. The team is
documenting all the checkpoints along the way that might indicate delays on critical
deliverables. What is this an example of?

Risk responses
Risk registers
Risk triggers
Risk categories
 Q59

The risk manager notices that in their workshops, most of the risks identified are
threats. What should the risk manager do to increase the number of opportunities
identified?

Conduct a political, economic, sociological, technological, legal, and environmental

(PESTLE) analysis
Interview more stakeholders who have a positive mindset
Use the Delphi technique involving experts who have identified opportunities in the past
Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis
 Q60

What is the best method a risk manager should use to initially define the stakeholders’
risk appetite?

Review risk management plan

What if scenario
Conduct SWOT analysis
Meeting and interviews with key stakeholders
 Q61

During the initial planning of a project, a risk is identified for which the risk manager has
defined a mitigation strategy. Later during project execution, this risk still leaves
substantial residual risk. What should the risk manager do to handle this situation?

Activate the contingency plan to handle this risk during execution

Ask the project sponsor for more budget to deal with this risk
Mark this new risk as an extremely high priority and inform all stakeholders
Revisit this risk in the risk register and redefine the mitigation strategy
 Q62

A project manager is working on a high-priority and high-profile project. The project team had identified
three opportunities, and after analysis, risk responses were recorded. Although risk responses were
adequate for the identified opportunities, two of those opportunities were not acted upon. During the
risk audit, the project manager found out that several of the planned risk responses were not
implemented. What should the project manager have done to avoid this?

Provided regular training to the risk owners for plan implementation

Determined risk triggers and Threshold in the risk response plan
Updated the project schedule, adding risk owner implementation tasks
Increased communications to influence stakeholder risk responses
 Q63

A project manager is developing the risk register and works with the team to analyze
risks and determine their probability and impact. There is valuable historical data
available that may be used to simulate the overall risk outcome. Which type of analysis
should the project manager use in this instance?

Cause and effect

Quantitative analysis
Checklist analysis
Specialized meeting
 Q64

A risk manager is managing risks of a mission-critical application. A subject matter

expert (SME) asks the risk manager to treat even single risk identified as an extremely
high priority. What should the risk manager do?

Perform a sensitivity analysis and determine the correct priority of every identified risk
Agree with the SME, treat every risk with equal priority, and inform all stakeholders
Mark every identified risk as an extremely high priority and any future risks as a lower
priority
Ask the project sponsor if every risk in the risk register can have the same priority
 Q65

A risk manager is managing risks in a project. During the initial stages of project
execution, a new risk is identified, there is a very small chance that this risk will occur
and even if it occurs, the impact would be low. What should the risk manager do with
this risk?

Ignore this risk as it is not critical

Seek guidance from subject matter experts (SMEs)
inform the stakeholders about this risk
Add the risk on the watch list
 Q66

A project manager is working on a complex construction project. During the risk

identification process, hundreds of risks were identified. The team seems to be confused
regarding on which risks to focus. The project manager advises the team to go ahead
and start assessing the likelihood and impact of each risk. What process is this part of?

Monitor and Control Risk

Plan Risk Management
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
 Q67

What is the probability and impact of the

indicated risk in the above risk matrix?

60 % Probability and Moderate impact

60 % Probability and 40% impact
High Probability and high impact
Low Probability and Moderate impact
 Q68

The project manager performed a variance analysis on the project during the execution
phase. The variances were shown as increasing. What does this result imply?

The project is over budget

The uncertainty and risk are increasing
There is no potential for future deviation
The project is behind schedule
 Q69

An agriculture government agency faces different challenges with farmers and landlords
in implementing its ambitious growth strategy. The agency decided to establish an
enterprise risk management unit to identify risks, analyze risks, and provide a handbook
showing how to handle the surrounding uncertainty. What should the risk management
expert recommend the agency do first to identify risks and develop the handbook?
Prepare a list of the key resources that will be used to compile a risk management plan
Follow standard risk identification tools dedicated for agriculture and tailor them to the
environment
Hire an agriculture expert who can develop the required handbook and discuss it with the
agriculture minister
Conduct meetings, facilitated workshops, and interviews with stakeholders to identify
potential risks
 Q70

A home solar panel project has many internal and external stakeholders including
households, businesses, community groups, electric utility companies, local government
officials, landlords, and investors. What should the project manager do when engaging
stakeholders?

Include all stakeholders in the project's governance

Consider stakeholder's positions and opinions regarding the project's output
Ignore any risks beyond stakeholders’ tolerance
Communicate response strategies to all stakeholders
 Q71

What should be used to determine how often a project's risk register should be updated
or reviewed in a given year when the project is in an industry with a very high business
rhythm?

The Risk management plan

The risk triggers
The Program management plan
The Risk prioritization criteria
BY: MOHAMED GHANEM,PMP,RMP,P3O
PROFFISIONALS COACH
 ‫انضم لجروبنا علي الفيس بوك من اللينك ده‬
https://www.facebook.com/groups/644647852756920
‫وتابع صفحتنا علي الفيس من هنا‬
https://www.facebook.com/EASY-PMP-102459931635284
‫ولمشاهدة قناتنا علي اليوتيوب من هنا‬
https://www.youtube.com/channel/UCeAAs4s_K_FN-DsRb5qbP-Q

BY: MOHAMED GHANEM,PMP,RMP,P3O

+201111921056 /EASY PMP PROFFISIONALS COACH
 ‫بالتوفيق والنجاح في‬
‫بالنجاح والتوفيق في‬ ‫االمتحان‬
‫الحياة العملية‬ ‫) ‪) Above Target‬‬
‫ان شاء هللا‬

‫‪BY: MOHAMED GHANEM,PMP,RMP,P3O‬‬

‫‪PROFFISIONALS COACH‬‬