RMP_Classroom Simulation Tests

8/9/2019 RMP_Classroom Simulation Tests

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RMP Classroom Simulation Tests

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1. You are the project manager of a construction project. You have completed the riskresponse planning with your project team and ready to update the risk register to reflectthe risk response. Which of the following statements best describe the level of detail youshould include with the risk responses which has been created?

a) The level of detail is set by historical information.

b) The level of detail should correspond with the priority of the risk.

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

d) The level of detail is set for project risk governance.

2. You are the project manager and working with several subject matter experts to performthe quantitative risk analysis process. During this process you uncover several risks eventsthat were not previously identified. What should you do with these risk events?

a) The events should be entered into the risk management plan.

b) The events should be determined if they need to be accepted or responded to.c) The events should be entered into the risk register.

d) The events should continue on with quantitative risk analysis

3.

Which project management plan will define who will be available to share information onthe project risks?

a) Risk Management Plan

b) Stakeholder management strategy

c) Resource Management Plan

d) Communications Management Plan

4. You work as a project manager for a project which can use new materials instead thetraditional material. These new materials are cheaper than traditional materials, but ittakes some time to learn how to use the materials properly. You have communicated tothe project stakeholders that you will be able to save costs by using the new material,but you will need a few extra weeks to complete training to use the materials. This riskresponse of learning how to use the new materials can also be known as –

a) Team development

b) Benchmarking

c) Cost of conformance to quality

d) Cost of nonconformance to quality

5.

How many positive risk responses are available in the project risk management?

a) Four

b) Three

c) Seven

d) Acceptance is the only risk response for positive risk events.


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6. You are working on a project and try to plot the uniform distribution related to the riskidentified. During which part of the life cycle of a project this activity is carried out?

a) Late completion stages of a project

b) Project phases that deal with 'cutover' technologies

c) Early concept stage of design

d) Project planning

7. You are identifying risks and need to use an information gathering technique. Which oneof the following risk identification approaches is an information gathering technique?

a) Root cause analysis

b) Assumptions analysis

c) SWOT analysis

d) Documentation reviews

8. You are the project manager and would like to rate each risk based on its probability ofoccurrence and effect on time, cost, and scope. A project team member, has neverdone this before and thinks your approach is wrong. The team member says that ancumulative risk score should be created, not three separate risk scores. Who is correct inthis scenario?

a) Team member is correct, because the risk probability and impact considers all objectives of theproject.

b) Team member is correct; the risk probability and impact matrix is the only approach to riskassessment.

c) Project Manager is correct, because organizations can create risk scores for each objective ofthe project.

d) Team member is correct, because she is the project manager.

9. As a result of risk analysis, you feel that the project should be crashed. What happenswhen the project manager crashes a project?

a) Project risks will increase.

b) The project will take longer to complete, but risks will diminish.

c) Project costs will increase.

d) The amount of hours a resource can be used will diminish.

10. What is the output of risk identification process?

a) Risk register

b) Risk register updates

c) Risk register updates

d) Project document updates


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11. After qualitative and quantitative risk analysis, which process are you going to carry outas a Project Manager?

a) Monitor and control project risks

b) Create a risk governance approach

c) Create the project risk register

d) Plan risk responses

12. You hired Subject Matter Experts (SME) to interview stakeholders on certain identified riskswithin the project. With what specific goal in mind should the SME assess the risk event?

a) To determine the level of probability and impact for each risk event

b) To determine the bias of the risk event based on each person interviewed

c) To determine the probability and cost of the risk event

d) To determine the validity of each risk event

13. When analyzing the risk qualitatively, you are considering a lot of historical data throughthe use of organizational process records. Which of the following may not be the rightchoice to select the history data ?

a) Studies of similar projects by risk specialistsb) Risk databases that may be available from industry sourcesc) Review of vendor contracts to examine risks in past projectsd) Information on prior, similar projects

14. What will be the expected monetary value of Risk C if probability is 40% and impact is900000 USD, which is a threat?

a) -900000 USDb) 36000 USDc) 900000 USDd) -36,000 USD

15. Which project management plan will be the best guide to communicate about the riskrelated matter?

a) Risk Response Planb) Risk Management Planc) Communications Management Pland) Project Management Plan

16. For your project, the budget is $7500,000 and is expected to last for one year. You haveidentified a risk event that has a probability of .60 and has a cost impact of $450,000.When it comes to creating a risk response for this event, what is the risk exposure of theevent that must be considered for the cost of the risk response?

a) The risk exposure of the event is $270,000.


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b) The risk exposure of the event is $500,000.c) The risk exposure of the event is $350,000.d) The risk exposure of the event is $850,000.

17. Which of the following risk identification risk techniques used Unanimity under groupdecision making techniques?

a) Influence diagramsb) Assumptions analysisc) Surveysd) Delphi technique

18. You are working on following activities like Relative ranking or priority list of project risks ,Watch lists of low priority risk , Trends in Qualitative Risk Analysis results, On which processare you working on?

a) Perform Qualitative Risk Analysisb) Plan Risk Managementc) Plan Risk Responsesd) Perform Quantitative Risk Analysis

19. There are five outputs of the control risk process. Which one of the following is NOT anoutput of the process?

a) Organizational process asset updatesb) Project document updatesc) Vendor contracts

d) Change requests

20. This project has a budget at completion of $4M and you are 60 percent complete.According to the project plan, however, the project should be 75 percent complete. Inthis project you have spent $3.6M to reach this point of completion. Now by looking intothe status, we know that the project is under bad condition and there is a risk ofcompletion of project not completed on time and within the budget. The managementneed to know atleast the estimate at completion, so that they can take some decisionbased on the figure. What is estimation at completion?

a) 1650000b) 6.06

c) 663333d) -8333

21. Which of the following technique or the process provides the best picture about theuncertainties?

a) Monte Carlo Techniqueb) Qualitative risk analysis process


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c) Quantitative risk analysis processd) Delphi Technique

22.

When it comes to risk, which of the following type of contract carries more risk for thebuyer?

a) Cost plus percentage of costsb) Time and materialc) Cost plus incentive feed) Fixed-price, incentive fee

23. There is requirement of materials for a project. The performing organization approaches avendor who quotes about 7% less if the buyer is going for about 200 pieces. But theproject doesn't need that many numbers, but still considering the discount, theorganization place an order as the risk associated with budget of project is not so high at

the end of the day. What is the type of response the performing organization took?

a) Acceptanceb) Enhancec) Exploitingd) Sharing

24. You have identified the following risks with the characteristics as shown in the followingtable: How much capital should the project set aside for the risk contingency reserve?

a) 142000b) 41750c) 23750d) 232000

25.

After carrying out the prioritization of risks within the project, you are analyzing the risksfrom numerical value point of view. Which of the following process are you carrying out?

a) Plan Risk Managementb) Perform Quantitative Risk Analysisc) Perform Qualitative Risk Analysisd) Identify Risks

Risk Probability Impact

A 60% -10000

B 10% -85000

C 25% -75000

D 40% 45000

E 50% -17000


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26. For a project from the risk management perspective, you want to make sure that duringqualitative analysis while ranking the risk there should not be any bias. From the optionswhich is the best possible solution you pick up?

a) Group stakeholders according to positive and negative stakeholders and then completethe risk analysis

b) Determine the risk root cause rather than the person identifying the risk eventsc) Establish risk boundariesd) Establish definitions of the level of probability and impact of risk event

27. Why would the risk response planning need to update the cost and schedule baselines?

a) New or omitted work as part of a risk response can cause changes to the cost and/orschedule baseline.

b) Risk responses protect the time and investment of the project.c) Risk responses may take time and money to implement.

d) Baselines should not be updated, but refined through versions.

28. What type of risk response is crashing the project?

a) Transferenceb) Mitigationc) Exploitd) Avoid

29. Which risk response is acceptable for both positive and negative risk events?

a) Transferring

b) Acceptancec) Sharingd) Enhancing

30. Which one of the following is the only output for the qualitative risk analysis process?

a) Enterprise environmental factorsb) Project management planc) Project document updatesd) Organizational process assets

31.

How is the risk exposure calculated?

a) The risk exposure of a risk event is determined by historical information.b) The product of probability of a risk event and the impact of a risk event determines the

true risk exposure.c) The probability of a risk event plus the impact of a risk event determines the true risk

exposure.d) The probability and impact of a risk event are gauged based on research and in-depth

analysis.


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32. You are managing a project where in you identified a risk. There is a probability of 80% ofthis risk occurring and the impact is about $6Million. If you mitigate by alternatives theprobability reduces to 20% and the additional cost is going to be $2Million. Themanagement is ready to sanction this from management reserve. What is the correctanswer which is explaining this situation?

a) This is mitigation because the response reduces the probability.b) This is not a risk response, but a change request.c) This is transference because of the $260,000 cost of the solution.d) This is avoidance because the risk response caused the project plan to be change

33.

The project's success or failure will have a significant impact on your organization'sprofitability for the coming year. Management has asked you to identify the risk eventsand communicate the event's probability and impact as early as possible in the project.Management wants to avoid risk events and needs to analyze the cost- benefits of each

risk event in this project. What term is assigned to the low-level of stakeholder tolerancein this project?

a) Mitigation-ready project managementb) Risk utility functionc) Risk avoidanced) Risk-reward mentality

34. What is the best solution to avoid ambiguity about risk ranking so that all the stakeholdersare on the same page?

a) Establish the definitions of the levels of probability and impact

b) Provide iterations of risk analysis for true reflection of a risk probability and impactc) Isolate the stakeholders by project phases to determine their risk biasd) Involve all stakeholders to vote on the probability and impact of the risk events

35.

As a part of risk strategy and planning based on the enterprise environmental factors, theprobability and impact factors and scaling is established. How much detail andrepetition in approach for risks to be reassessed for probability and impact?

a) Each risk reassessment should go into the same depth as the original risk assessmentactivity.

b) The probability and impact of risk event should determine the level of reassessmentthroughout the project lifecycle.

c) The amount of detail of repetition that is appropriate depends on how the projectprogresses relative to its objectives.

d) The level of detail and reassessment should reflect the priority of the project.

36. Which of the following is not an output of control risks?

a) Project performance reportb) Change requestc) Project performance information


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d) Project management plan update

37. You are the project manager of a Project and you started the risk identification processfor the project. You need to ensure that correct stakeholders are interviewed as part ofrisk identification. What document will help you to communicate and solicit inputs of theproject stakeholders during risk identification?

a) Project charterb) Risk registerc) Requirements management pland) Stakeholder register

38. You are facilitating the identification of risk. While carrying out this activity, you want tomake sure that the stakeholders provide all the expertize and interact so that justice isdone to the risk identification. Which of the following is the best technique?

a) Delphi Techniqueb) SWOT analysis

c) Assumptions analysisd) Brainstorming

39. You are the project manager of a project and Management has asked to periodicallyreview the contingency reserve as risk events happen, pass, or are still pending. What isthe purpose of reviewing the contingency reserve?

a) It helps to evaluate if the remaining reserve is adequate for the risk exposure.b) It helps to determine how much more funds need to be invested in the project.

c) It helps to evaluate secondary and residual risks related to the risk responses and theircosts.d) It helps to determine the probability and impact of project risks.40. Which of the following documents is described in the statement below? 'It is developed

along with all processes of the risk management. It contains the results of the qualitativerisk analysis, quantitative risk analysis, and risk response planning.'

a) Risk management planb) Project charterc) Risk registerd) Quality management plan

41. You are prioritizing risks for further analysis or action by assessing and combining the risks

probability of occurrence and impact. What process you are completing?

a) Risk identificationb) Perform qualitative analysisc) Perform quantitative analysisd) Risk Breakdown Structure creation


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42. Which of the following statements is not purpose of an Issue Log?

a) It analyzes the impact that the issue is having on the project.b) It tracks the actions taken to resolve the issue.c) It tracks the outcome of the actions taken.d) It addresses the risks that could affect the project.

43. You are the program manager for your organization. Management is considering a newprogram but they are worried about the program risks that may affect the program'ssuccess. You know that there are three positive risk responses and three negative riskresponses that each risk can have. Management asks you which risk response would bemost appropriate for a large risk event if they wanted to hire a third-party to own the riskevent for the program. What risk event is most appropriate?

a) Avoidanceb) Sharing

c) Transferenced) Mitigation

44.

In the choice given which is the negative risk response?

a) Enhanceb) Exploitc) Acceptanced) Share

45. You are the project manager of a Project and identified a risk event in the project with ahigh probability of occurrence and the risk event has a high cost impact on the project.

You discusses the risk event with customer and he decides that the requirementssurrounding the risk event should be removed from the project. The removal of therequirements does affect the project scope, but it can release the project from the highrisk exposure. What risk response has been enacted in this project?

a) Mitigationb) Transferencec) Acceptanced) Avoidance

46. A risk has been identified and entered into the risk register as per the requirement. Whileanalyzing, it is noticed that this risks may occur at a very much later date but theprobability is very high. What is the best action to take at this point or during the

immediate future?

a) Corrective actionb) Risk auditc) Technical performance measurementd) Earned value management


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47. You are the project manager of a Project. In this project you decided to create acontingency response based on the performance of the project schedule. If the projectschedule variance is greater than $10,000 the contingency plan will be implemented.What is the formula for the schedule variance?

a) SV=EV/PVb) SV=PV-EVc) SV=EV/ACd) SV=EV-PV

48. Which process in the risk management addresses probability and impact parameters?

a) Perform Qualitative Risk Analysisb) Monitoring and Control Risksc) Plan Risk Responsesd) Perform Quantitative Risk Analysis

49. You are the project manager of a Project. During risk identification and the subsequentrisk analysis process you identified a risk with a high probability and high impact for theproject. You and the stakeholders agree that the project management plan should bechanged to eliminate the risk threat entirely. What risk response has been used in thisinstance?

a) This is the risk mitigation response.b) This is the avoidance risk response.c) This is the transference risk response.d) This is a scope change and not a risk response.

50.

You work as a project manager and determining which risks can affect the project.Which of the following inputs of the identify risks process is useful in identifying risks andprovides a quantitative assessment of the likely cost to complete the scheduledactivities?

a) Cost management planb) Activity cost estimatesc) Activity duration estimatesd) Risk management plan

51. You are the project manager and working with the project team to create a plan todocument the procedures to manage risks throughout the project. This document willdefine how risks will be identified and quantified. It will also define how contingency

plans will be implemented by the project team. What document is Project team creatingin this scenario?

a) Resource management planb) Project planc) Project management pland) Risk management plan


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52. You are the project manager and discussing some of the project risks and the issues thathave happened in the project. you sent the status report to customer through fax for theirreview. Based on the standard communication model, which component in this scenariois the decoder?

a) Project customerb) Telephone wirec) PMd) Project customer's fax machine

53. You are the project manager and the Management has told you that you mustimplement an agreed-upon contingency response if the cost performance index in hisproject is less than 0.90. Consider that your project has a budget at completion of$275,000. His project is 65 percent complete and he has spent $175,000 to date.However, the project scheduled to be 78 percent complete. What is the costperformance index for this project to determine if the contingency response should

happen?

a) 1.02b) 0.96c) 0.9d) 0.89

54. You work as a project manager for the COO of your company, on several risks within theproject. You understand that through qualitative analysis you have identified 80 risks thathave a low probability and low impact as the project is currently planned. Your concern,however, is that the impact and probability of these risk events may change asconditions within the project may change. You would like to know where will you

document and record these 80 risks that have low probability and low impact for futurereference. What should you do?

a) Risks with low probability and low impact are recorded in a watch list for futuremonitoring.

b) All risks, regardless of their assessed impact and probability, are recorded in the risk log.c) Risk identification is an iterative process so any changes to the low probability and low

impact risks will be reassessed throughout the project life cycle.d) All risks are recorded in the risk management plan.

55. There are four inputs to the Control Risks process. Which one of the following will NOT helpyou, the project manager, to prepare for risk monitoring and controlling?

a) Work Performance datab) Project management planc) Risk registerd) Change requests


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56. A part of a project deals with hardware. As a project manager, you have decided to hirea company to deal with all hardware related activities on the project. Which type of riskresponse is this?

a) Exploitb) Mitigationc) Transferenced) Avoidance

57.

Which of the following response is usually followed for procurement management?

a) Exploitingb) Mitigationc) Sharingd) Acceptance

58.

Which of the following is not an indicator to prioritize the risk?

a) Cost of the projectb) Risk ratingc) Warning signsd) Symptoms

59. Which of the following processes is described in the statement below? 'This is the processof numerically analyzing the effect of identified risks on overall project objectives.'

a) Identify Risksb) Perform Quantitative Risk Analysis

c) Monitor and Control Risksd) Perform Qualitative Risk Analysis

60. A project is forty percent complete and it appears that some risk events are going tohappen in the project that will have an adverse affect on the project. You create achange request regarding the risks. Is this a valid response?

a) No, change requests should not address risks, only risk response strategies should be issueb) No, change requests should not address pending risks, but only scope changes.c) Yes, change requests can be recommended for corrective actions for contingency

plans.d) Yes, change requests can ask for additional funds to pay for the risk impact.

61.

Due to the risk in the project there is a requirement of additional funding requirement andby using this funding the project manager and the team wants to change the componentof a project. What component of the change control system would review the proposedchanges' impact on the features and functions of the project's product?

a) Scope change control systemb) Cost change control systemc) Configuration management systemd) Integrated change control


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62. Your current project is a high priority and high profile project within your organization.You want to identify the project stakeholders that will have the most power in relation totheir interest on your project. This will help you plan for project risks, stakeholdermanagement and ongoing communication with the key stakeholders in your project. Inthis process of stakeholder analysis, what type of a grid or model should you createbased on these conditions?

a) Stakeholder power/interest gridb) Influence/impact gridc) Salience modeld) Stakeholder register

63.

You are monitoring the project performance. You want to make a decision to changethe project plan to eliminate a risk in order to protect the project objectives. Which of thefollowing strategies will you use to tackle the risk?

a) Risk mitigation

b) Risk avoidancec) Risk acceptanced) Risk transference

64. You are working with CIO to discuss a discount the vendor has offered on the projectbased on the amount of materials that has been ordered. After review of the offer, youagree that while the project may qualify for the discounted materials, the savings isnominal and the project team would not necessarily pursue the savings. You documentthis positive risk response in the risk register. What risk response is this?

a) Enhanceb) Transferencec) Shared) Acceptance

65. What is the use of including cost management plan to carry quantitative risk analysisprocess?

a) The project's cost management plan can help you to determine what the total cost ofthe project is allowed to be.

b) The project's cost management plan provides direction on how costs may be changeddue to identified risks.

c) The project's cost management plan provides control that may help determine the

structure for quantitative analysis of the budget.d) The project's cost management plan is not an input to the quantitative risk analysis

process.66.

You and your project team are identifying the risks that may exist within your project.Some of the risks are small risks that won't affect your project much if they happen. Whatshould you do with these identified risk events?

a) All risks must have a valid, documented risk response.b) These risks can be accepted


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c) These risks can be added to a low priority risk watch list.d) These risks can be dismissed

67.

You are the project manager of a new project in your organization. You and the projectteam have identified the project risks, completed risk analysis, and are planning the mostappropriate risk. Which of the following tools is most effective to choose the mostappropriate risk response?

a) Cause-and-effect diagramsb) Project network diagramsc) Delphi Techniqued) Decision tree analysis

68.

You are working with your project team to define contingency plans for the risks withinyour project. One of your project team members, ask what a contingency plan is. Whichof the following statements best defines what a contingency response is?

a) Some responses are designed for use only if certain events occur.

b) Some responses have a cost and a time factor to consider for each risk event.c) Some responses must counteract pending risk events.d) Quantified risks should always have contingency responses.

69. You are dealing with high profile and high risk project when it comes to stakeholderengagement management. Who is ultimately responsible to meet the stakeholderexpectations in this case?

a) Project risk assessment officerb) Project management office

c) Project sponsord) Project manager

70. During which part of the risk management process, the risk categorization should bedone?

a) Create work breakdown structure processb) Perform qualitative risk analysisc) Risk identification processd) Define scope process


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71. In the table given below, if Risk D happens in this project, how much will be left in thecontingency reserve?


A 42% -100000

B 9% -850000

C 16% -750000

D 30% -50000

a) 253500b) 238500c) 268500

d) -23850072. The output of quantitative risk analysis is project document updates. During this activitywhich of the following updates will not happen?

a) Trends in quantitative risk analysisb) Risk probability-impact matrixc) Prioritized list of quantified risksd) Probabilistic analysis of the project

73.

A PM and the project team have identified a significant risk in the project during thequalitative risk analysis process. Sponsor is familiar with the technology that the risk isaffecting and proposes a solution to the risk event. PM tells Sponsor that he has noted hisresponse, but the risk really needs to pass through the quantitative risk analysis process

before creating responses. Sponsor disagrees and ensures PM that his response is mostappropriate for the identified risk. Who is correct in this scenario?

a) Sponsor is correct. Sponsor is familiar with the technology and the risk event so hisresponse should be implemented

b) Sponsor is correct. Not all risk events have to pass the quantitative risk analysis process todevelop effective risk responses.

c) PM is correct. All risks of significant probability and impact should pass the quantitativerisk analysis process before risk responses are create

d) PM is correct. Because the project manager can determine the correct procedures forrisk analysis and risk responses. In addition, she has noted the risk response that Sponsorrecommends.

74. Which is a special type of bar chart used in sensitivity analysis for comparing the relativeimportance of the variables?

a) Fishboneb) Influencec) Tornadod) Cause and effect


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75. You as the project manager need a method to create a quick and simple approach torisk identification to communicate the project risk with the stakeholders. Which one of thefollowing approaches to risk identification should you choose to provide a quick andsimple listing of the project risks?

a) Delphi Techniqueb) Checklist analysisc) Assumptions analysisd) Brainstorming

76. You are the project manager of a project and the team reports that they have found away to complete the project work for less cost than what was originally planned. Theproject team presents a new software that will help to automate the project work. Whilethe software and the associated training costs $25,000 it will save the project nearly$65,000 in total costs. You agree to the software and changes to the projectmanagement plan accordingly. What type of risk response has been used in this

instance?

a) Avoidanceb) Exploitingc) Acceptingd) Enhancing

77. You are the project manager and identified several risks within the project and created arisk contingency reserve of $45,000 total. Your project is nearly complete and many ofthe risks have not happened in the project. What should you do with the funds in thecontingency reserve?

a) The funds remain in the contingency reserve until all of the risks have passéb) The funds for the risks that have passed and have not happened are transferred to theproject budget.

c) The funds for the risks that have passed and have not happened are released) The funds remain in the contingency reserve until the project is close

78.

A project team member in your project is adding changes to the software interface forthe software that your project is creating. Because of this, new risks have entered into theproject. You decide that these additions should be removed from the project even if ittakes extra time and money to remove the features. What are these risk laden featurescalled?

a) Gold plating

b) Scope creepc) Negative risksd) Corrective actions


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79. You have identified a risk event that your organization could manage internally orexternally. If you manage the event internally it will cost your project $600,000 and anadditional $10,000 per month the solution is in use. A vendor can manage the risk eventfor you. The vendor will charge $550,000 and $11,000 per month that the solution is in use.How many months will you need to use the solution to pay for the internal solution incomparison to the vendor's solution?

a) Approximately 11 monthsb) Approximately 15 monthsc) Approximately 13 monthsd) Approximately 8 months

80. You are in the Identify Risks process. You have to create the risk register. Which of thefollowing are included in the risk register?

a) List of mitigation techniques

b) List of key stakeholdersc) List of identified risks and List of potential responses

d) List of potential responses

81. This project has a budget of $350,000. You are working with project team and subjectmatter experts to begin the risk response planning process. When the project managerbegins the plan risk response process, which two inputs do you need?

a) Risk register and the risk response planb) Risk register and power to assign risk responsesc) Risk register and the risk management pland) Risk register and the results of risk analysis

82.

Which of the following inputs provide a good estimate with respect to schedule so thatthe risk factors or the tolerance of the schedule completion can be considered?

a) Activity duration estimatesb) Schedule management planc) Risk management pland) Activity cost estimates

83. While executing the project, the customer says that he wants the delivery ahead of theschedule. To meet this demand as a project manager you decide to crash using internalresources. What is the risk response you are using?

a) Enhancingb) Opportunisticc) Positived) Exploiting


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84. You have completed a round of quantitative risk analysis. You now need to update therisk register with your findings so that you can communicate the risk results to the projectstakeholders including -management. You will need to update all of the followinginformation except for which one?

a) Probabilistic analysis of the projectb) Probability of achieving cost and time objectivesc) Risk distributions within the project scheduled) Trends in quantitative risk analysis

85. You are working on a software development project which requires highly skilledtechnical resource and you don't have such expertise within the organization. So youdecide to outsource it. Which of the following risk response are you using to come out ofthe risk?

a) Acceptance

b) Avoidancec) Mitigation

d) Transference

86. Which of the following comes under both opportunity and threat risk response?

a) Acceptanceb) Sharingc) Transferenced) Mitigation

87. You communicate project status to your stakeholders, you are going to create a

stakeholder register. All of the following information should be included in thestakeholder register except for which one?

a) Assessment information of the stakeholders' major requirements, expectations, andpotential influence

b) Stakeholder classification of their role in the projectc) Identification information for each stakeholderd) Stakeholder management strategy

88. A project manager is executing one year project with a budget of $1000,000. At the endof six months, the project has completed about 75% of the work. The actual cost incurredto complete this 75% is about 800,000. The senior management needs to know theschedule performance index and cost performance index. What is the report considering

the risk associated with the project?

a) The CPI is -$200,000 (which is risk) and the SPI is $750,000.b) The CPI is 1.5 and the SPI is zero (which is risk)c) The CPI is 0.9375 (which is risk) and the SPI is 1.5d) The CPI is 1.5 and the SPI is 0.9375(Which is risk)


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89. You are currently performing quantitative risk analysis. The tool and technique you areusing is simulation where the project model is computed many times with the inputvalues chosen at random for each iteration. The goal is to create a probability distributionfrom the iterations for the project schedule. What technique will you use with thissimulation?

a) Pareto modelingb) Expected Monetary Valuec) Analogous modelingd) Monte Carlo Technique

90. You are the project manager and you will use the information from the past project tohelp yourself and the project team to identify the risks that may be present in the project.Management agrees that this checklist approach is ideal and will save time in theproject. Which of the following statement is most accurate about the limitations of thechecklist analysis approach?

a) The checklist analysis approach is fast but it is impossible to build and exhaustive

checklist.b) The checklist analysis approach saves time, but can cost more.c) The checklist analysis approach only uses qualitative analysis.d) The checklist is also known as top down risk assessment.

91. You have completed the risk identification process for the initial phases of your project.As you begin to document the risk events in the risk register what additional informationcan you associate with the identified risk events?

a) Risk potential responses

b) Risk schedulec) Risk ownerd) Risk cost

92. You are collecting the risk related information from different stakeholder unanimously.Which of the techniques you are using?

a) Delphib) Expert judgmentc) SWOT analysisd) Brainstorming

93. You have identified a risk that has a low probability of happening, but the impact of the

risk event could save the project and the organization with a significant amount ofcapital. You assign an expert to the risk event and instruct her to research the time, cost,and method to improve the probability of the positive risk event. Expert thencommunicates the risk event and response to management. What risk response hasbeen used here?

a) Sharingb) Transferencec) Enhance


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d) Exploit

94. You are working on a project which involves heating of the materials. If the materialoverheats, there is a chance of the materials becoming scrap and resulting in wastage.This results in the risk of increasing the budget. To avoid this, you decide to design anautomation tool which will alert people if it touches a certain degree. With reference tothe problem statement what are we referring to alert as?

a) Risk responseb) Risk eventc) Risk triggerd) Risk identification

95.

A team member does not understand why you need to complete qualitative risksanalysis. You explain that qualitative risks analysis helps you determine which risks needadditional analysis. There are also some other benefits that qualitative risks analysis can

do for the project. Which one of the following is NOT an accomplishment of thequalitative risk analysis process?

a) Corresponding impact on project objectivesb) Time frame for a risk responsec) Prioritization of identified risk events based on probability and impactd) Cost of the risk impact if the risk event occurs

96. When does the Identify Risks process take place in a project?

a) At the Planning stage.b) Throughout the project life-cycle.

c) At the Initiating stage.d) At the Executing stage.

97. You are the project manager and working in Japan which is prone to earthquake. Aspart of the project plan you and the project team acknowledge the possibility ofearthquake and the damage that could have on the project's deliverables, the scheduleof the project, and the overall cost of the project. You and the project stakeholdersacknowledge the risk of the earthquake, go on planning the project as if the risk is notlikely to happen. What type of risk response is you are using?

a) Active acceptanceb) Passive acceptancec) Avoidance

d) Mitigation

98.

You are the project manager of a large project that will last four years. In this project, youwould like to model the risk based on its distribution, impact and other factors. There arethree modeling techniques that a project manager can use to include both event-oriented and project-oriented analysis. Which modeling technique does NOT provideevent-oriented and project-oriented analysis for identified risks?

a) Sensitivity analysis


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b) Jo-Hari Windowc) Expected monetary valued) Modeling and simulation

99.

This project has a budget of $500,000 and is expected to last 18 months. In this project,you have identified several risk events and created risk response plans. In what projectmanagement process group will you implement risk response plans?

a) Executingb) Planningc) Monitoring and Controllingd) In any process group where the risk event resides

100. Fill in the blank with an appropriate phrase. --------is the study of how thevariation (uncertainty) in the output of a mathematical model can be apportioned,qualitatively or quantitatively, to different sources of variation in the input of a model.

a) Sensitivity analysisb) System or process flowchartsc) Cause and effect diagramsd) Influence diagrams

101.

You are working on a tool which helps in identifying bottlenecks andredundancies for a set of activities which may help in finding risks along withstakeholders. Which tool helps in identifying the risks?

a) Predecessor and successor diagrammingb) System or process flowcharts

c) Cause and effect diagramsd) Influence diagrams

102.

You are the project manager for a project that will last six months and has abudget of $580,000. In this project a high-risk has been identified with the new materialsthe project will be using. You would like to assign one person, X, to be responsible tomonitor this risk. You assign X the authority to respond to the risk event if it appears in therisk events that is likely to happen. In addition, you hire a consultant to work with X on thisarea of the project. In this instance, who is the risk response owner?

a) You, because he is the project managerb) X, because she has the authority to respond to the risk event

c) X and the consultant are the risk ownersd) The consultant working with X, because this is transference


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103. A project is running and you are the project manager. There are 76 stakeholdersin the project and you need to determine what is the possible number of communicationchannels which can be helpful in identification of risk considering the project managercommunication management overhead. What is the number?

a) 156b) 2850c) 78d) 6084

104. You are working for a project and there is a change request from one of thestakeholders. If you implement this change request, it calls for increase in the budget andtimeline. So which process are you going to follow to make it happen?

a) Configuration management systemb) Scope change control system

c) Integrated change controld) Change log

105.

You are working with project team to complete the quantitative risk analysisprocess as a part of risk management planning. You understand that once thequantitative risk analysis process is complete, the process needs to be completed againin at least two other times in the project. When will the quantitative risk analysis processneed to be repeated?

a) Quantitative risk analysis process will be completed again after the cost managementplanning and as a part of monitoring and controlling.

b) Quantitative risk analysis process will be completed again after new risks are identified

and as part of monitoring and controlling.c) Quantitative risk analysis process will be completed again after the risk response planningand as a part of monitoring and controlling.

d) Quantitative risk analysis process will be completed again after the plan risk responseplanning and as part of procurement.

106.

You are working in a chemical industry where no safety measures are taken. Sothere is a risk associated with the organization and the project which they undertake.Which type of risk is this?

a) Pure riskb) Residual riskc) Secondary risk

d) Primary risk

107. Which risk response allows you to reduce the impact of negative risk?

a) Avoidanceb) Exploitc) Transferenced) Mitigation


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108. You have established quarterly risk management meetings. Which of thefollowing is not a component of a risk management meeting?

a) Assessing the overall status of risks in the projectb) Review of risk responsesc) Assessment or riskd) The availability of the individual

109. If risk Y happens how much you will be left with?


X 25% -$10,000

Y 40% -$2,000

Z 10% -$20,000

a) -5300b) 5300c) -800d) 3300

110. You are about to start the qualitative risk analysis process for the project and youneed to determine the roles and responsibilities for conducting risk management. Wherecan you find this information?

a) Enterprise environmental factorsb) Risk register

c) Risk management pland) Staffing management plan

111. While conducting qualitative risk analysis for the identified risks, you are able torank the risk in terms of high, medium and low to rank them. Which are the other projectobjectives you need to consider while doing this?

a) Risks may be listed by the additional analysis and responseb) Risk may be listed by the responses in the near-termc) Risks may be listed by priority separately for schedule, cost, and performanced) Risks may be listed by categories

112. Which of the following processes involves choosing the alternative strategies,executing a contingency or fallback plan, taking corrective action and modifying theproject management plan?

a) Control riskb) Configuration Managementc) Integrated Change controld) Scope Change control


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113. The project manager introduced testing as one of the key measures to avoid anydefects which may come from customer usage. Which of the following response isconsidered?

a) Mitigationb) Enhancec) Transferenced) Avoidance114. You are executing a budgeted project and in between the project, the

organization informs all the project managers saying that there is no scope for increasingthe budget as there is a tight situation from economy perspective. You are able to find anopportunity from which you are able to save about $10000. What is the response herewhich is most suited?

a) Shareb) Mitigation

c) Exploitd) Enhance

115.

What is the best technique you follow when the risk are of very low priority innature?

a) These risks should be acceptedb) These risks should be placed on a watch list for future monitoring.c) These risks should be identified, but dismissedd) These risks should be placed in the risk register.

116. You identified a project risk that could injure project team members. You don't

want to accept any risk where someone could become injured on this project so youhire a professional vendor to complete this portion of the project work. This workaroundto the risk event is known as what type of risk response?

a) Acceptanceb) Transferencec) Mitigationd) Avoidance

117. As a project manager of a large project in his organization, PM needs to beginplanning the risk management plan with the project team and key stakeholders. Whichplan risk management process tool and technique should PM use to plan riskmanagement?

a) Variance and trend analysisb) Information gathering techniquesc) Planning meetings and analysisd) Data gathering and representation techniques


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118. After conducting the risk response process, you updated assumption log andchanged requests as part of project document updates. Which of the other parameter,will you update from this action?

a) Scope statementb) Lessons learnedc) Risk Breakdown Structured) Technical documentation

119.

What is the meaning of residual risk?

a) It is a risk that can not be addressed by a risk response.b) It is a risk that will remain no matter what type of risk response is offeredc) It is a risk that remains because no risk response is taken.d) It is a risk that remains after planned risk responses are taken.

120.

You are working with two subject matter experts and his project team tocomplete the risk assessment technique. There are approximately 47 risks that have alow probability and a low impact on the project. Which of the following answers bestdescribes what you should do with these risk events?

a) The low probability and low impact risks should be added to a watch list for futuremonitoring.

b) Because they are low probability and low impact, the risks can be dismissedc) The low probability and low impact risks should be added to the risk register.d) Because they are low probability and low impact, Stephen should accept the risks.

121. You are considering schedule management plan as an input when you are

conducting the analysis from the quantitative perspective. Why should this subsidiaryplan be considered?

a) PM will schedule when the identified risks are likely to happen and affect the projectschedule.

b) PM will utilize the schedule controls and the nature of the schedule for the quantitativeanalysis of the schedule.

c) PM will use the schedule management plan to schedule the risk identification meetingsthroughout the remaining project.

d) PM will utilize the schedule controls to determine how risks may be allowed to changethe project schedule.

122. The team identified a risk which can impact the project in terms of the delivery.

What should be the best action by the project manager or the team in this case?

a) Add the identified risk to a quality control management control chart.b) Add the identified risk to the issues log.c) Add the identified risk to the risk register.d) Add the identified risk to the low-level risk watch list.


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128. You are the project manager of a project which has a project budget of$567,000.One of your stakeholders, has introduced a scope change request that willlikely have an impact on the project costs and schedule. Stakeholder assures you thathe will pay for the extra time and costs associated with the risk event. You tellstakeholder that the change request may affect more areas of the project than just timeand cost and that you are worried about the additional risks the change request willbring. What project management component is responsible for evaluating a changerequest and its impact on all of the project management knowledge areas?

a) Project change control systemb) Integrated change controlc) Risk analysisd) Configuration management

129.

You are the project manager and in the current project the organization has avery low tolerance for risk events that will affect the project schedule. Management has

asked you to consider the affect of all the risks on the project schedule. What approachcan you take to create a bias against risks that will affect the schedule of the project?

a) Create an overall project rating scheme to reflect the bias towards risks that affect theproject schedule.

b) Filter all risks based on their affect on schedule versus other project objectives.c) Have the project team pad their time estimates to alleviate delays in the project

schedule.d) Shift risk-laden activities that affect the project schedule from the critical path as much

as possible.

130. You are the project manager and in your project there are several work

packages that deal with electrical wiring. Rather than managing the risk internally youhave decided to hire a vendor to complete all work packages that deal with electricalwiring. By removing the risk internally to a licensed electrician you feel more comfortablewith project team being safe. What type of risk response has Adrian used in thisexample?

a) Avoidanceb) Mitigationc) Acceptanced) Transference

131.

You are the project manager of a Project. One of the risks your project team hasidentified is too dangerous for the project team to manage internally so you hire a

vendor to complete this portion of the project and to manage the identified risk. What riskresponse have you used in this instance?

a) Transferenceb) Avoidancec) Contractuald) Mitigation


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132. In spite of taking the action of implementing mitigation risk response, the riskoccurred. What should be the next course of action?

a) Mitigation management planb) Mitigation planc) Fallback pland) Risk response plan

133. As a project manager for the risk management you have identified many riskmanagement meetings while engaging the stakeholders during the course of theproject. How does this help? Pick up the best choice.

a) The iterative meetings allow the project manager and the risk identification participantsto identify newly discovered risk events throughout the project.

b) The iterative meetings allow all stakeholders to participate in the risk identificationprocesses throughout the project phases.

c) The iterative meetings allow the project manager to discuss the risk events which havepassed the project and which did not happen.

d) The iterative meetings allow the project manager to communicate pending risks eventsduring project execution.

134. You are the project manager for a construction project. The project includes aactivity that involves very high financial risks. You decide to insure processes so that anymishap can be compensated. Which type of strategies have you used to deal with therisks involved with that particular work?

a) Mitigateb) Avoid

c) Acceptd) Transfer

135. You are the project manager of a software development project. In the earlystages of planning, you and the stakeholders operated with the belief that the softwarethey were developing would work with their organization's current computer operatingsystem. Now that the project team has started developing the software it has becomeapparent that the software will not work with nearly half of the organization's computeroperating systems. The incorrect belief you had in the software compatibility is anexample of what in project management?

a) Issueb) Assumption

c) Riskd) Constraint


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136. You are the project manager handling a Project. Management wants to knowhow often your risk identification process will occur during the project. Considering thatyour project is scheduled to last one year and involves five distinct phases, how oftenshould risk identification take place?

a) Monthlyb) Once per project life cycle phasec) Quarterlyd) Vary depending on the situations within the project

137. You began the quantitative risk analysis process. Which of the following inputs willbe needed for the quantitative risk analysis process in your project? Each correct answerrepresents a complete quantitative risk analysis process in the project.

a) Risk management planb) Project scope statement

c) Risk registerd) Cost management plan

138.

You look for new risks and erase the obsolete risks. Which process will help in thisactivity?

a) Risk planningb) Risk identificationc) Control risksd) Risk analysis

139. You are engaging the stakeholders so that they can suggest which are the inputs

required to carry out quantitative risk analysis. Which are the input for quantitative riskanalysis?

a) You will need the risk register, risk management plan, permission from the functionalmanager, and any relevant organizational process assets.

b) You will need the risk register, risk management plan, cost management plan, schedulemanagement plan, enterprise environmental factors and any relevant organizationalprocess assets.

c) You will need the risk register, risk management plan, outputs of qualitative risk analysis,and any relevant organizational process assets.

d) Quantitative risk analysis does not happen through the project manager in a functionalstructure.

140.

The stakeholders are having ambiguity about the difference between causes andrisk events. You are managing them and engaging them by explaining the difference.According to you, which of the following is NOT an example of a cause for a project risk?

a) Limited team members to complete the project workb) Quality assurance programs within the companyc) Work permit requirementsd) Schedule constraints on the project


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141. In a given project EV=1076000 and PV is 1345000. What is the schedule variancefor this project?

a) -217500b) 20 percentc) -174000d) -269000

142. You are working on a project and in between the project you encounter asituation which calls for transition of premises to another new building. Even though thisnew building creates a good environment, you are worried about the risk of inefficiencyof the workers during the transition and will not go for it. What is this example for?

a) Parkinson's Lawb) Mitigationc) Avoidance

d) Lag Time

143. You are working with the project stakeholders on the project requirements andanalyzing how risks may affect their project. One of the stakeholders is confused aboutwhat constitutes risks in the project. Which of the following is the correct option thatanswers stakeholder confusion?

a) It is an uncertain event that can affect the project costs.b) It is an uncertain event or condition within the project execution.c) It is an uncertain event that can affect at least one project objective.d) It is an unknown event that can affect the project scope.

144.

You work as a project manager and Management has asked you to work with thekey project stakeholder to analyze the risk events you have identified in the project. Theywould like you to analyze the project risks with a goal of improving the project'sperformance as a whole. What approach can you use to achieve the goal of improvingthe project's performance through risk analysis with your project stakeholders?

a) Focus on the high-priority risks through qualitative risk analysisb) Involve the stakeholders for risk identification only in the phases where the project directly

affects themc) Involve subject matter experts in the risk analysis activitiesd) Use qualitative risk analysis to quickly assess the probability and impact of risk events

145. A high-profile, high-priority project within your organization is being created.

Management wants you to pay special attention to the project risks and do all that youcan to ensure that all of the risks are identified early in the project. Management has toensure that this project succeeds. Management's risk aversion in this project isassociated with what term?

a) Quantitative risk analysisb) Risk consciencec) Risk mitigationd) Utility function


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146. You are the project manager for a project and encountered a risk which is veryhigh in rating and is having expected monetary value of X. After analysis, you come toknow that by investing some money and time, you should be able to reduce theexpected monetary value compared to the figure of X and also the overall impact. Thissolution was discussed with all the stakeholders by negotiating and getting agreementfrom them. After discussion the stakeholders agreed for adding more resources so thatyou can work on the solution. What is the risk response that has been taken here?

a) Avoidanceb) Acceptancec) Exploitd) Mitigation

147.

Which one of the following statements is the most accurate about when projectrisk happens?

a) Project risk can happen at any moment.

b) Project risk happens throughout the project execution.c) Project risk is always in the future.d) Project risk is uncertain, so no one can predict when the event will happen.

148. Which of the following risk response comes under both opportunity and threat forrisk?

a) Avoidanceb) Acceptancec) Sharing

d) Transference149.

You are the project manager and discussing some of the project issues that needto be resolved in the project. You and the project stakeholders come to an agreementabout the risk issues and how they will be resolved. Where should you document thisinformation for issue resolution?

a) Project management plan for executionb) Lessons learned documentationc) Issue logd) Risk response plan

150.

You are the project manager for a project. In your organization you must followcertain enterprise environmental factors that establish the rules for risk management .

One of the policies your project must adhere to requires periodic rapid analysis of riskswithin the project. These rapid, cost-effective session must be documented andperformed monthly. What type of analysis are you required to perform according to yourenterprise environmental factors?

a) Brainstormingb) Qualitative analysisc) Delphi Techniqued) Quantitative analysis


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156. You are the project manager of a large construction project. You are evaluatingthe strengths, weaknesses, opportunities and threats involved in a project by engagingdifferent stakeholders. In which of the following processes are you on?

a) Define Scopeb) Plan Risk Responsesc) Plan Risk Managementd) Identify Risks

157.

In one of the projects, the contingency reserve will be applied if the costperformance index falls below 0.95. And this was agreed with all the stakeholders.Budget of the project is $500, 000 and is one year project. At the end of 6 months theproject is done with about 40% and actual cost spent is $350,000. What is costperformance index?

a) 0.9b) 0.8

c) 250000d) 150000

158. You are working as a project manager and is determining how to conduct the riskmanagement activities for a project. According to the PMBOK, there are six inputs to theplan risk management process. Which one of the following is NOT an input to thisprocess?

a) Project scope statementb) Risk management plan

c) Schedule management pland) Cost management plan

159. Which of the following are parts of SWOT Analysis?

a) Opportunitiesb) Optimismc) Weaknessesd) Threats160. You are the project manager for a new project using a technology that has

recently been released and there's relatively little information about the technology.Initial testing of the technology makes the use of it look promising, but there's stilluncertainty about the longevity and reliability of the technology. You want to consider

the technology factor a risk for her project. Where should you document the risksassociated with this technology so that you can track the risk status and responses?

a) Project scope statementb) Risk registerc) Project charterd) Risk low-level watch list


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161. Sensitivity analysis is a technique for systematically changing parameters in amodel to determine the effects of such changes and is useful for computer modelers fora range of purposes. Which of the following purposes the sensitivity analysis doesn'tinclude?

a) Estimating the average outcomeb) Model developmentc) Decision making or the development of recommendations for decision makersd) Increased understanding or quantification of the system

162. You are the project manager of a project. In this project a vendor has offered youa sizeable discount on all hardware if his order total for the project is more than $125,000.Right now, you are likely to spend $118,000 with vendor. If you spend $7,000 his costsavings for the project will be $12,500, but he cannot purchase hardware if he cannotimplement the hardware immediately due to organizational policies. You consult withteam, other project managers in the organization, and ask if they need any hardware for

their projects. Team needs hardware and they agree to purchase the hardware throughyour relationship with the vendor. What positive risk response has happened in thisinstance?

a) Sharingb) Exploitingc) Transferenced) Enhancing

163. You are working as a project manager and studying the documentation ofplanning of a project. The documentation states that there are twenty-eight stakeholdersinvolved with the project. What will be the number of communication channels for the

project?

a) 378b) 300c) 28d) 250

164.

You are the project manager for your organization. You are working with yourproject team to complete the qualitative risk analysis process. The first tool andtechnique you are using requires information that you assess the probability. What isother characteristic of each identified risk in the project?

a) Impact

b) Risk ownerc) Costd) Risk category


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165. Which of the following domain represent the activities like measuring risk,evaluating risk response against established metrics and communicating risk responseperformance to stakeholders and project team?

a) Risk Monitoring and Reportingb) Risk Strategy and Planningc) Stakeholder Engagementd) Risk Process Facilitation

166.

Which of the following area looks at the complex web of actors, rules,conventions, processes, and mechanisms concerned with how relevant risk informationis collected, analyzed and communicated, and how management decisions are taken?

a) Risk Communicationb) IRGCc) Risk Response Planning

d) Risk Governance

167. You are the project manager of a project. In this project you have created acontingency response that the cost performance index should be less than 0.8. Theproject has a budget at completion of $100,000 and is 45 percent complete. The projecthas spent $55,000 to reach the 45 percent complete milestone. What is the project's costperformance index?

a) 1.22b) -10000c) 10000d) 0.82

168.

If the risk happens with a probability of 60 percent and cost of the impact of$60,000 , what will be the expected monetary value of this risk event?

a) Negative $36,000b) Zero - the risk event has not yet occurredc) Negative $10,000d) Negative $54,000

169. You are the project manager for a project. You and your project team areworking through the quantitative analysis for certain risk events within her project.According to the enterprise environmental factors the project manager is to performsensitivity analysis on any risk with an impact greater than $5,000 in the project. What is

the sensitivity analysis?

a) It determines which risk events have the most potential impact on the project.b) It uses round of anonymous surveys to predict which events are most likely to happen.c) It uses rounds of anonymous surveys to predict probability and impact.d) It determines possible combinations of risk events to predict overall project success,

failure, or probability of achieving project objectives.


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170. In the case of negative risk response or the threat, how many risk responses arethere?

a) Fourb) Onec) Threed) Seven

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