PMP Rita Exam Prep Questions - Chapter 11 - Risk Mgmt
10. Risk tolerances are determined in order to help: A. The team rank the project risks B. The project manager estimate the project C. The team schedule the project D. Management know how other managers will act on the project
Answer A
14. Outputs of the Plan Risk Responses process include: A. Residual risks, fallback plans, and contingency reserves B. Risk triggers, contracts, and a risk list C. Secondary risks, process updates, and risk owners D. Contingency plans, project management plan updates, and change requests
Answer A
21. During the Plan Risk Management process, your team has come up with 434 risks and 16 major causes of those risks. The project is the last of a series of projects that the team has worked on together. The sponsor is very supportive, and a lot of time was invested in making sure the project work was complete and signed off by all key stakeholders. During project planning, the team cannot come up with an effective way to mitigate or insure against a risk. It is not work that can be outsourced, nor can it be deleted. What would be the BEST solution? A. Accept the risk B. Continue to investigate ways to mitigate the risk C. Look for ways to avoid the risk D. Look for ways to transfer the risk
Answer A
27. The cost performance index (CPI) of a project is 0.6 and the schedule performance index (SPI) is 0.71. The project has 625 work packages and is being completed over a four-year period. The team members are very inexperienced, and the project received little support for proper planning. Which of the following is the BEST thing to do? A. Update risk identification and analysis B. Spend more time improving the cost estimates C. Remove as many work packages as possible D. Reorganize the responsibility assignment matrix
Answer A
29. You have just been assigned as the project manager for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What needs to be done? A. Plan Risk Management B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer A
31. During project executing, a major problem occurs that was not included in the risk register. What should you do FIRST? A. Create a workaround B. Reevaluate the Identify Risks process C. Look for any unexpected effects of the problem D. Tell management
Answer A
35. Monte Carlo analysis is used to: A. Get an indication of the risk involved in the project B. Estimate an activity's length C. Simulate the order in which activities occur D. Prove to management that extra staff is needed
Answer A
36. A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide? A. Prioritized list of project risks B. Risk triggers C. Contingency reserves D. Probability of achieving the time and cost objectives
Answer A
37. A project manager is creating a risk response plan. However, every time a risk response is suggested, another risk is identified that is caused by the response. Which of the following is the BEST thing for the project manager to do? A. Document the new risks and continue the Plan Risk Responses process B. Make sure the project work is better understood C. Spend more time making sure the risk responses are clearly defined D. Get more people involved in the Identify Risks process, since risks have been missed
Answer A
4. Which of the following risk events is MOST likely to interfere with attaining a project's schedule objective? A. Delays in obtaining required approvals B. Substantial increases in the cost of purchased materials C. Contract disputes that generate claims for increased payments D. Slippage of the planned post-implementation review meeting
Answer A
40. Which of the following MUST be an agenda item at all team meetings? A. Discussion of project risks B. Status of current activities C. Identification of new activities D. Review of project problems
Answer A
12. Purchasing insurance is BEST considered an example of risk: A. Mitigation B. Transfer C. Acceptance D. Avoidance
Answer B
24. You have been appointed as the manager of a new, large, and complex project. Because this project is business-critical and very visible, senior management has told you to analyze the project's risks and prepare response strategies for them as soon as possible. The organization has risk management procedures that are seldom used or followed, and has had a history of handling risks badly. The projects first milestone is in two weeks. In preparing the risk response plan, input from which of the following is generally LEAST important? A. Project team members B. Project sponsor C. Individuals responsible for risk management policies and templates D. Key stakeholders
Answer B
26. A system development project is nearing project closing when a previously unidentified risk is discovered. This could potentially affect the project's overall ability to deliver. What should be done NEXT? A. Alert the project sponsor of potential impacts to cost, scope, or schedule B. Qualify the risk C. Mitigate this risk by developing a risk response plan D. Develop a workaround
Answer B
28. While preparing your risk responses, you identify additional risks. What should you do? A. Add reserves to the project to accommodate the new risks and notify management B. Document the risk items, and calculate the expected monetary value based on probability and impact that result from the occurrences C. Determine the risk events and the associated cost, then add the cost to the project budget as a reserve D. Add a 10 percent contingency to the project budget and notify the customer
Answer B
33. Which of the following is a chief characteristic of the Delphi technique? A. Extrapolation from historical records from previous projects B. Expert opinion C. Analytical hierarchy process D. Bottom-up approach
Answer B
34. A project has had some problems, but now seems under control. In the last few months, almost all the reserve has been used up and most of the negative impacts of events that had been predicted have occurred. There are only four activities left, and two of them are on the critical path. Management now informs the project manager that it would be in the performing organizations best interest to finish the project two weeks earlier than scheduled in order to receive an additional profit. In response, the project manager sends out a request for proposal for some work that the team was going to do, in the hopes that another company might be able to do the work faster. The project manager can BEST be said to be attempting to work with: A. Reserve B. Opportunities C. Scope verification D. Threats
Answer B
39. During the Identify Risks process, a project manager made a long list of risks identified by all the stakeholders using various methods. He then made sure that all the risks were understood and that triggers had been identified. Later, in the Plan Risk Responses process, he took all the risks identified by the stakeholders and determined ways to mitigate them. What has he done wrong? A. The project manager should have waited until the Perform Qualitative Risk Analysis process to get the stakeholders involved B. More people should be involved in the Plan Risk Responses process C. The project manager should have created workarounds D. Triggers are not identified until the Identify Risks process
Answer B
5. If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month of the project? A. Less than 1 percent B. 20 percent C. 60 percent D. 80 percent
Answer B
7. Risks will be identified during which risk management process(es)? A. Perform Quantitative Risk Analysis and Identify Risks B. Identify Risks and Monitor and Control Risks C. Perform Qualitative Risk Analysis and Monitor and Control Risks D. Identify Risks
Answer B
8. What should be done with risks on the watchlist? A. Document them for historical use on other projects B. Document them and revisit during project monitoring and controlling C. Document them and set them aside because they are already covered in your contingency plans D. Document them and give them to the customer
Answer B
13. You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate on a(n): A. Quantitative basis B. Numerical basis C. Qualitative basis D. Econometric basis
Answer C
16. During which risk management process is a determination to transfer a risk made? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer C
17. A project manager has just finished the risk response plan for a $387,000 engineering project. Which of the following should he probably do NEXT? A. Determine the overall risk rating of the project B. Begin to analyze the risks that show up in the project drawings C. Add work packages to the project work breakdown structure D. Hold a project risk reassessment
Answer C
18. A project manager asked various stakeholders to determine the probability and impact of a number of risks. He then analyzed assumptions. He is about to move to the next step of risk management. Based on this information, what has the project manager forgotten to do? A. Evaluate trends in risk analysis B. Identify triggers C. Provide a standardized risk rating matrix D. Create a fallback plan
Answer C
2. If a project has a 60 percent chance of a $100,000 profit and a 40 percent chance of a $100,000 loss, the expected monetary value for the project is: A. $100,000 profit B. $60,000 loss C. $20,000 profit D. $40,000 loss
Answer C
25. You were in the middle of a two-year project to deploy new technology to field offices across the country. A hurricane caused power outages just when the upgrade was near completion. When the power was restored, all of the project reports and historical data were lost with no way of retrieving them. What should have been done to prevent this problem? A. Purchase insurance B. Plan for a reserve fund C. Monitor the weather and have a contingency plan D. Schedule the installation outside of the hurricane season
Answer C
3. Assuming that the ends of a range of estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk? A. 30 days, plus or minus 5 days B. 22 - 30 days C. Optimistic = 26 days, most likely = 30 days, pessimistic = 33 days D. Mean of 28 days
Answer C
32. The customer requests a change to the project that would increase the project risk. Which of the following should you do before all the others? A. Include the expected monetary value of the risk in the new cost estimate. B. Talk to the customer about the impact of the change. C. Analyze the impacts of the change with the team. D. Change the risk management plan.
Answer C
38. A watchlist is an output of which risk management process? A. Plan Risk Responses B. Perform Quantitative Risk Analysis C. Perform Qualitative Risk Analysis D. Plan Risk Management
Answer C
6. If a risk event has a 90 percent chance of occurring, and the consequences will be $10,000, what does $9,000 represent? A. Risk value B. Present value C. Expected monetary value D. Contingency budget
Answer C
1. All of the following are factors in the assessment of project risk EXCEPT: A. Risk event B. Risk probability C. Amount at stake D. Insurance premiums
Answer D
11. All of the following are common results of risk management EXCEPT: A. Contract terms and conditions are created B. The project management plan is changed C. The communications management plan is changed D. The project charter is changed
Answer D
15. Workarounds are determined during which risk management process? A. Identify Risks B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. Monitor and Control Risks
Answer D
19. A project manager has assembled the project team, identified 56 risks on the project, determined what would trigger the risks, rated them on a risk rating matrix, tested their assumptions, and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the project manager forgotten to do? A. Simulation B. Risk mitigation C. Overall risk ranking for the project D. Involvement of other stakeholders
Answer D
20. You are a project manager for the construction of a major new manufacturing plant that has never been done before. The project cost is estimated at $30,000,000 and will make use of three sellers. Once begun, the project cannot be cancelled, as there will be a large expenditure on plant and equipment. As the project manager, it would be MOST important to carefully: A. Review all cost proposals from the sellers B. Examine the budget reserves C. Complete the project charter D. Perform an identification of risks
Answer D
22. A project manager is quantifying risk for her project. Several of her experts are offsite, but wish to be included. How can this be done? A. Use Monte Carlo analysis using the Internet as a tool B. Apply the critical path method C. Determine options for recommended corrective action D. Apply the Delphi technique
Answer D
23. An experienced project manager has just begun working for a large information technology integrator. Her manager provides her with a draft project charter and immediately asks her to provide an analysis of the risks on the project. Which of the following would BEST help in this effort? A. An article from PM Network Magazine B. Her project scope statement from the project planning process C. Her resource plan from the project planning process D. A conversation with a team member from a similar project that failed in the past
Answer D
30. During project executing, a team member identifies a risk that is not in the risk register. What should you do? A. Get further information on how the team member identified the risk, because you already performed a detailed analysis and did not identify this risk B. Disregard the risk, because risks were identified during project planning C. Inform the customer about the risk D. Analyze the risk
Answer D
9. All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Historical information B. Lessons learned C. Work breakdown structure D. Project status reports
Answer D