Term
A contingency plan is different than a fallback plan in that a fallback plan:
A. Is implemented after a contingency plan
B. Is created before a contingency plan
C. Will be managed by the project manager while the contingency plan is managed by the risk owner.
D. Will require management approval, while the contingency plan does not. |
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Definition
Answer: A
You need a contingency plan to be created and take place before a fallback plan, so choice B cannot be the best choice. since all plans are managed by the project manager (although they may be implemented by others), choice C cannot be the best Choice. All plans may require management approval, so choice D is not the best choice. Thus, choice A is the best choice |
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Term
Which of the following is generally NOT an output of the Plan Risk Responses process?
A. A revised project management plan
B. Data precision ranking
C. Residual risks
Secondary risks |
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Definition
Answer B
Choice B is done during the Perform Qualitative Risk Analysis process |
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Term
Which of the following is NOT a correct statement?
A. Risks can be identified during project closure.
B. Risks should be part of project go/no-go decisions
C. Numerical evaluation of risks is the most important part of risk management
D. The project manager should attempt to have a complete scope of work before beginning risk management. |
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Definition
Answer C
Risk can be identified during all parts of the project (choice A), including closure. Imagine that a seller is hired during project closure to store project documents. New risks that were not thought of previously could come to light when that company comes to collect the documents. Many people forget that risks are as important as cost and time in making a go/no-go decision (choice B). Thought it is not always possible to achieve, the project manager should attempt to have a final scope of work (choice D). Quantitative risk analysis (choice C) may or may not be important on the project. |
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Term
You have just been asked to take over a project that is in execution from another project manager. Which of the following is the FIRST thing to do regarding risk management?
A. Identify
B. Determine if risk responses have been completed for all identified risks.
C. Review historical information for the project
D. Look for new risks based on your own experience. |
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Definition
Answer C
There are many correct answers to this question, but what is the first thing that should happen? Choice D is certainly something you could do. However, you wouldn't do it first. Historical records will tell you what risks have been previously identified and if any risks you identify are truly new. You need to look at what was done already when taking over any project. that is the role of historical records in this instance. Choices A and B should also be done, but what has already been done, as identified in the historical records, will determine how risk management should continue under your leadership. Choice C is therefore the best choice. |
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Term
The Plan Risk Management Process results in:
A. A risk register and risk management plan
B. Risk response plans
C. The assignment of risk owners
D. A risk management plan |
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Definition
Answer D
The Plan Risk Management process results in a risk management plan (choice D). The risk register, risk response plans, and assignment of the risk owners come later in the risk management process |
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Term
Which of the following BEST descries avoidance of a risk during the Plan Risk Responses process?
A. Do nothing and say, "If it happens, it happens."
B. Eliminate the threat by eliminating the cause.
C. Assign the risk to someone else
D. Reduce the probability of occurrence |
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Definition
Answer B
Avoidance does not mean ignore (choice A); rather, it means eliminate (choice B). Choice C relates to transferring the risk. Choice D relates to mitigation. |
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Term
During execution of the project, a risk has been identified that you and the team missed during the Identify Risk process. Which of the following is the BEST thing to do?
A. Look for more risks
B. Implement a workaround
C. Report the situation to management
D. Identify Risk responses for the new risk |
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Definition
Answer A
Sometimes shorter questions are not easier? Although choice D will need to be done eventually, the Perform Qualitative and Quantitative Risk Analysis processes should come before the Plan Risk Response process. Although an attempt is made to identify all risks during planning, risks will always be identified while the work is being done, if for no other reason than new information about the project will be available. Thus, there is no reason to always report only one instance of a new risk to management (choice C). You should carefully reread the question if you picked choice B as the best choice. The question says that you identified a risk, not that a risk has occurred. Therefore, a workaround is not needed. Many project managers have difficulty realizing that a problem may be an indication that something worse has happened or will happen. Many project managers do not take problems as potential indications of more problems. One missed risk MAY mean that you missed others or that there was a flaw in your risk management plan or its implementation. This makes choice A the best answer. |
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Term
Which of the following are risk response strategies for opportunities?
A. Exploit, share, mitigate
B. Enhance, transfer, avoid
C. Accept, enhance, share
D. Accept, mitigate, exploit |
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Definition
Answer C
The correct answer is choice C. Mitigate, transfer, and avoid are all response strategies for threats |
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Term
A subjective evaluation of the probability of a risk is determined during what part of risk management?
A. Identify Risks
B. Perform Qualitative Risk Analysis
C. Perform Quantitative Risk Analysis
D. Plan Risk Responses |
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Definition
Answer B
Subjective evaluations are done during the Perform Qualitative Risk Analysis process, and numerical evaluations are done during the Perform Quantitative Risk Analysis process. Thus, choice B is the best choice provided. |
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Term
Your project has 31 stakeholders, a completed project charter signed by three managers, a CPI of 1.2, a risk threshold of 55, 13 contingency plans, and a risk score of 72. The project is in the middle of project executing, and the last two project team meetings were completed on time with contributions from all the team members.
Management has expressed approval of the project management plan, has provided input to project risk identification, and has gotten involved during the Plan Risk Response process. The project manager, however, gets a call from the management team expressing deep concern about the project. Why might this be?
A. There are to many stakeholder, and the charter should be signed by only one person.
B. The cost for the project is too high as reflected in the CPI
C. The project is too risky and needs to be adjusted
D. There are not enough contingency plans to allow fallback planning. |
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Definition
Answer C
More than one person might sign a charter and there could be hundreds of stakeholders on on projects, so choice A could not be the best choice. The CPI is greater than 1, and therefore good, so choice B could not be the best choice. There is no information provided to say that there are not enough contingency plans (choice D). A risk score of 72 is higher than the allowable threshold, which indicates that the project risk has increased. When the risk score for the project is higher than the risk threshold, the project is too risky and needs to be adjusted. Therefore, choice C must be the best choice. |
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Term
A risk review includes all of following EXCEPT:
A. Changing the order of top risks
B. Adjusting to the severity of actual risks
C. Documenting the effectiveness of contingency and fallback plans.
D. Monitoring residual risks |
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Definition
Answer C
Documenting the effectiveness of contingency and fallback plans is a part of a risk audit. Remember that a risk review looks forward in time, while a risk audit looks backward at what has already occurred. |
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Term
A risk trigger is defined as:
A. An early warning sign that an identified risk is about to occur.
B. A risk that has not occurred.
C. Documentation created by a risk owner to report risks
D. A plan for what to do when a risk occurs. |
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Definition
Answer A
A risk that has not occurred (choice B) is called a risk, not a trigger. Risk triggers may be identified by a risk owner, but not created by them (choice C). A plan for what to do when a risk occurs (choice D) is called a contingency plan. The only correct choice in this case is option A. |
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Term
There is a 20 percent chance that the software being developed for the project will have more bugs than planned, causing a 20-day delay to the project and an additional cost of $20,000. There is an 10 percent chance that the additional programmers needed for the project will have more expertise than predicted, saving 20 days on the project. There is a 50 percent chance that the installation will require some building reconstruction that has not been able to be predicted, resulting in a 60-day delay in the project and cost of $9,000. As a result of this information, generally what amount of reserve would be required for the project?
A. 32 days
B. $29,00
C. 34 days
D. 36 days |
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Definition
Answer A
Since there is not a cost impact listed for all the risks, choice B could not be the best choice. This question would be calculated as (0.2 x 20 days) - (0.1 x 20 days) + (0.5 x 60 days) = 4 - 2 + 30 = 32 days. The second item listed is an opportunity and should be subtracted from the risks, making choice A the best choice |
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Term
What should you do about a residual risk on a project?
A. Plan an additional response for the risk, as it is the result of either a contingency or fallback plan
B. Nothing. This is a risk you've decided to simply accept
C. Put the risk on the watchlist
D. Implement any assigned contingency or fallback plans for the risk if the risk occurs. |
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Definition
Answer D
Residual risks are the risks that remain after the Plan Risk Responses process. Although residual risks include those you've accepted (choice B), they also include any other risks that remain on the project. Therefore, choices B and C aren't the best options. Choice A describes secondary risks, not residual risks. Choice D is the best answer. |
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Term
An identified risk has occurred, and a contingency plan has been implemented.
Which of the following is the BEST thing for the project manager to do while the risk owner implements the contingency plan?
A. Qualify the risk
B. Adjust the severity of the risk response plan
C. Create a fallback plan
D. Help the risk owner |
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Definition
Answer B
Qualitative risk analysis (choice A) and planning contingency plans (choice C) should already be done. A project manager should only need to help the risk owner if the risk owner has asked for assistance (choice D). otherwise, the risk owner should be prepared in advance to implement the contingency plan without assistance from the project manager. The project manager will be needed (on critical path activities) to make sure the plan is adequate (choice B), and if it is not adequate, to adjust it accordingly. |
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Term
What happens when a risk is closed?
A. The team can relax a bit
B. More attention is given to the watchlist
C. Some risk reserve may be returned to the company
D. Risks are never closed until the project is closed. |
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Definition
Answer C
Option C is correct. Choice A may happen, but it's not the best answer. Choice B is partially true but the focus should be more on all open risks, not just the watchlist. Choice D is just wrong. When the time has passed in which a risk may occur, it is closed |
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Term
A project manager in your company runs a Monte Carlo simulation as the only risk management effort for the project. You have been asked to mentor that project manager to improve his risk management skills. Which of the following BEST describes what you should tell him?
A. Make sure the Monte Carlo simulation includes the forecast of potential project schedule.
A. Make sure the Monte Carlo simulation includes the forecast of potential project schedule.
B. You will need to have identified specific risks in order to control the project and decrease the project time and cost.
C. You should make sure that you also determine the probability of any activity actually on the critical path.
D. You should make sure you qualify the risks after the Monte Carlo simulation is completed |
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Definition
Answer B
Many project managers make the mistake of thinking a Monte Carlo simulation represents the entire risk management effort. Choice D could not be the best choice as the Perform Qualitative Risk Analysis process occurs before the Monte Carlo simulation is done during the Perform Quantitative Risk Analysis process. Choices A and C could be outputs of Monte Carlo simulation, but they are not the most important things you would tell the project manager in this particular scenario. |
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Term
Reporting formats and tracking processes are determined as part of:
A. Make sure the Monte Carlo simulation includes the forecast of potential project schedule.
B. You will need to have identified specific risks in order to control the project and decrease the project time and cost
C. You should make sure that you also determine the probability of any activity actually on the critical patch.
D. You should make sure you qualify the risk after the Monte Carlo simulation is completed |
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Definition
Answer C
In the Monitor and Control Risks process (choice A), you use the reports and tracking processes determined during the Plan Risk Management process (choice C). Therefore, choice C is the correct answer. Roles and responsibilities (choice B) are also determined during the Plan Risk Management process. The Plan Risk Responses process (choice D) happens later in the project |
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Term
An identified risk occurs, but the project manager cannot be reached. Which of the following should be done?
A: Try to create a workaround.
B: Implement the contingency plan that was used for a similar project and be prepared to report the results to the project manager upon her return.
C: Ask management for direction.
D: Implement the contingency plan. |
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Definition
Answer D
This should not be a problem. The result of risk management efforts should be a plan for each risk identified. In this question, the problem is caused by a risk event. This means that the risk was previously identified. If identified, there should already have been a response plan if place. Therefore, the best choice is D. |
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Term
You are planning to identify risks with a group of people who are technically stakeholders for the project, but who will only be slightly impacted. These people are not experts in the work to be undertaken, but they have a lot of experience working for the company in their various departments and in their own fields of expertise. Which of the following would be be the BEST method for identifying risks with the group?
A: Nominal group technique
B: Expert interviews
C: Forms
D: Sticky notes |
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Definition
Answer A
Because these people are experienced, there is a high probability that a risk could be identified that the project manager or risk team have not uncovered. Choices C and D would not allow any interaction, and thus would not be the best choices. Choice B would take too much time for little return. Therefore, the BEST choice is A |
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Term
Risk governance is concerned with:
A: The roles and responsibilities of each risk owner.
B: Creating the risk response plans for each risk.
C: The impacts of a risk response plan on the other constraints of the project.
D: Ensuring consistency in risk management. practices throughout the organization. |
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Definition
Answer D
The best choice is D, because risk governance takes an organizational view of risk management to ensure it is practiced consistently. The details of each risk management activity of a single project are not primary focus of governance. |
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Term
A project manager is planning stages of her project when management agrees to allocate 75 hours of time to the project as requested by the project manager to support the project. The project manager has also learned that one of her top choices for team members has been provided and she has been given all eight of the needed resources. Management has approved $200,000 for the project instead of the $324,000 requested, and the project must be completed within eight months. Which of the following should the PM do as a result of this situation?
A: Include not having enough budget as an identified risk.
B: Cut scope of work.
C: Include a plan for the cost risk in risk response planning.
D: Look for other cost risks. |
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Definition
Answer B
The cost situation is not a risk; it is a fact. Therefore, it is handled as part of project planning rather than in risk management. |
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Term
The project manager has completed the Perform Qualitative Risk Analysis process when a stakeholder asks which activities are creating the biggest risk. When the PM determines the answer to the question, he also determines that he shold do something. Which of the following would be the BEST thing to recommend if you were asked for advice?
A: Ask the stakeholders for additional risks because it is apparent that they were not involved in the risk identification.
B: Determine which risk is the greatest risk.
C: Document non-top risks.
D: See if it is possible to eliminate the activity. |
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Definition
Answer D
The process of risk management is to decrease threats on the project. This should not only include an analysis of the largest threat but also the activities with the largest threat. Choices B and C do not address the problem of the riskiest activity. Since no evidence is provided in the question indicating the stakeholders were not involved, choice A could not be the best choice. The best response to the riskiest activity is to try to eliminate it. If that does not work, attempts should be made to decrease the activity's probability or impact rating. Therefore, choice D is the BEST choice. |
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Term
The purpose of risk metrics on a project is to:
A: Give the PM an additional means of measuring success on the project.
B: Measure the responses of individual risk owners and determine who is most effective.
C: Measure how risk tolerances and thresholds change throughout the organization during the project.
D: Create reports in the format required by management. |
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Definition
Answer A
Risk governance involves creating metrics for an organization that project managers can then use on their projects as an additional means of measuring whether their efforts and the project are successful. Therefore, choice A is the correct answer. Metrics may be used to help assess the effectiveness of risk owners and risk responses, but that is only one area in which they may be used. Therefore, choice B is not the best answer. Risk tolerances and thresholds (choice C) should have been determined in the Plan Risk Management process and shouldn't regularly change throughout a project. Metrics are measurement tool, not reporting tool, so choice D is incorrect. |
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Term
If you are a team member for a project, which of the following are you most likely to be involved with?
A: Identify Risks process, Monte Carlo simulation, statistical probability analysis
B: Plan Risk Responses process, Identify Risks process, risk owner
C: Identify Risks process, risk owner, go/no-go decision
D: Plan Risk Managementprocess, Plan Risk Response process, Perform Quantitative Risk Analysis process |
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Definition
Answer B
It is unusual for a project team member to be involved with risk management planning. A go/no-go decision is made by management from the project manager. Monte Carlo simulation is a computer simulation completed by the project manager. Therefore, neither A, C, nor D can be the best choice. |
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Term
One of the stakeholders for a project is strongly arguing that a certain risk exists on a project. The other stakeholders disagree. The stakeholder is so sure that the item identified is a risk for the project that he comes to see you in person to discuss. Which of the following should you do?
A: Add the risk to the list of risks.
B: Talk to the stakeholder to calm him, but do not add the risk.
C: Ask management to mediate.
D: Try to gain substantiation for why the risk should be added. |
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Definition
Answer D
this question requires the project manager to attempt to determine the root cause of the concern. This will require some proof or substantiation of the risk (choice D). If substantiation is not available, the project manager may still choose to add the risk. Therefore, D is a better choice than A. A is the second choice. |
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Term
Which of the following in NOT an input to risk management?
A. Kickoff meeting
B. Network diagram
C. Schedule
D. Project team |
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Definition
Answer A
A kickoff meeting occurs at the end of planning and therefore after the Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, and Plan Risk Responses processes have been done. |
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Term
In order to identify the most risks from the attendees during brainstorming, it is important to:
A. Keep a list of all risks identified.
B. Make sure you are prepared with forms for the participants to fill out.
C. Make sure that those who talk a lot are provided the time to respond.
D. Refrain from evaluating responses while risks are being identified. |
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Definition
Answer D
It is always important to keep a list of risks identified (choice A), but that will not increase the number of risks identified by the attendees. Forms (choice B) are not generally a part of brainstorming. If choice C had said, "Make sure those who do not talk...." it might be one of the best choices. Not evaluating responses is one of the key things to remember about brainstorming, making choice D the best choice. |
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Term
A risk rating is different than a risk score in that a risk rating is:
A. Used to calculate the probability of a risk
B. Used to calculate the risk score
C. Divided by the risk score.
D. Multiplied by the risk score |
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Definition
Answer B
A risk rating is used to calculate the risk score by multiplying the probability rating and the impact rating of each risk to obtain a risk score, making choice B the best choice. |
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Term
Which of the following BEST describes why a network diagram is an input to risk management?
A. It shows dependencies
B. It is created by the team and therefore has team input.
C. It shows where paths converge.
D. It shows what needs to be done to complete the project. |
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Definition
Answer C
Choices A and B are true, but not answers to the question - they do not explain why they are inputs to risk management. A work breakdown structure shows what needs to be done, while a network diagram shows when it needs to be done, so choice D could not be the best choice. Any place where multiple paths in a network diagram converge into an activity makes that activity riskier, making choice C the best answer |
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Term
The project manger has implemented the plan for identifying risks but does not feel confident that all the possible risks have been identified. Which of the following would be BEST risk identification technique to add?
A. Nominal group technique
B. Brainstorming with the stakeholders
C. Expert interviews
D. Affinity diagram |
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Definition
Answer D
Nominal group technique (choice A) and expert interviews (choice C) are slow, and do not have a reasonable chance of uncovering something new when risk identification has been planned and then implemented. Brainstorming with the stakeholders (choice B) may seem like a great idea, but if you selected this one, you missed something, as the stakeholders have most likely already been involved. Affinity diagramming (choice D) sorts risks in a way that helps new risks become more visible, and therefore would be the best choice. |
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Term
What is done during the Plan Risk Responses process?
A. Figure out what to do about all the risks
B. Figure out what to do about each top risk
C. Figure out which risks are really facts.
D. Perform a Monte Carlo simulation |
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Definition
Answer B
Choice Bi is the best answer. Choice A is wrong, as we do not plan responses for risks on the watchlist. Choices C and D would have been done before this step. |
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Term
Which of the following BEST describes the focus of the Delphi technique?
A. Reorganization of the identified risks into categories
B. Gaining a group's opinion
C. Looking at records from past projects to identify risks
D. Gaining expert opinion |
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Definition
Answer D
Choice A relates to affinity diagramming. Choice B relates to Nominal group technique. Choice C relates to historical records. |
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Term
When completion your project, 20 risks have occurred and 18 contingency plans have been implemented. Two stakeholders have identified four new risks, and qualitative risk analysis and risk response planning have been completed for these risks. One employee was hired by the company and subsequently identified as a stakeholder for the project and has participated in an expert interview to identify his risks.
If this is all the project manager has done to control risk, which of the following did the project manager forget?
A. She should have qualified risks during the expert interview.
B. Quantitative risk analysis should have been done for the four new risks identified.
C. A risk review meeting should have been held.
D. Two more contingency plans should have been implemented. |
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Definition
Answer C
Choice A is not necessarily the best choice, because qualitative risk analysis could have been done as part of an expert interview either while identifying risks or as a separate session. Quantitative risk analysis (choice B) is not required for every project and may be skipped. Since each contingency plan could address more than one risk, it would be allowable to have 18 plans for 20 risks (choice D). Risk reviews (choice C) are critical to the project, which makes this the best choice. |
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Term
A risk action owner:
A. Will implement response plans if a risk occurs.
B. Will ensure risk responses are effective.
C. Is responsible for investigating the best actions to take in responding to the risks he or she owns.
D. Evaluates the level of risk activity on a project and determines if the actions taken affect other planned responses. |
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Definition
Answer A
On projects in which the risks can have severe consequences, there may be both risk owners and risk action owners. the risk action owners are responsible for implementing the response plans if their risk occurs (choice A), while the risk owners would ensure the risk responses are effective (choice B). Choice C is incorrect because potential risk response actions are investigated during risk response planning and are not necessarily the responsibility of the risk action owner. The risk action owner is responsible for his or her assigned risk; this person is not responsible for evaluating the effects of that response on other risks, so choice D is incorrect. |
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Term
Early in the Perform Qualitative Risk Analysis process, a risk receives a low data quality assessment rating. What should the project manager do?
A. Do not include the risk in the Perform Qualitative Risk Analysis process.
B. Improve the understanding of the risk
C. Hold a brainstorming session
D. Test the assumptions |
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Definition
Answer B
Choice D is another step in the Perform Qualitative Risk Analysis process, and does not solve the problem. Choice C may not be the best way to improve the data quality assessment rating. Just because a risk has a low rating does not mean its probability or impact will be low; it means that there is not yet enough of an understanding or enough information about the risk to qualify it. Therefore, choice A could not be the best choice. Choice B is the BEST choice. |
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Term
An identified risk occurs. What should the project manger do FIRST?
A. Understand the legal implications of his actions.
B. Nothing. The trigger has also occurred, and the risk owner should be taking action.
C. See if the severity of the planned response to the risk should be adjusted.
D. Implement fallback plans |
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Definition
Answer C
Fallback plans (choice D) are only needed if the contingency plan does not work. Legal implications (choice A) are always important, but that understanding would have been gained in the Plan Risk Responses process, not when the risk occurs. If the project response is well planned, choice B could be an option. However, without further information about the identified risk, its severity, and the specific response planned, the BEST choice would be C. |
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Term
You are planning a new project that is understood to have very little risk. The project will have a duration of five months, is being completed for your own company, and is low priority for the company. Based on this data, which of the following is the BEST thing to do?
A. Omit the Perform Quantitative Risk Analysis process
B. Spend only one day on risk management
C. Start the Plan Risk Responses process with only the most vocal stakeholders.
D. Spend the same amount of time as previous projects on the Perform Qualitative Risks Analysis process, as there could be risks that have not been identified. |
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Definition
Answer A
If this project was completed in a consulting environment, the best choice might be different, since detailed costing of the risks might be helpful. However, in this case, the project is for the project manager's own company and the overall risk is known. Remember that the project management process (particularly stakeholder involvement, the work breakdown structure, the network diagram, and finalizing the schedule) will provide the project manger and others with a good overall understanding of the risk of the project. Since the amount of time spent on any aspect of risk management should be adjusted to the needs of the project, choice D could not be the best choice. Based on the situation described, there is no reason to ignore some stakeholders (choice C) or to limit the efforts to only one day (choice B). Some projects may involve stakeholders in other locations or other countries, and therefore require more than one day simply for communication to take place, not just for effort. Since the project is low priority, the BEST choice would be to omit the work needed to quantify risks (choice A) |
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Term
In the Identify Risks process, all the risks had a high data quality assessment rating and assumptions tested. The probability and impact of each risk has now been identified qualitatively. What did the project manager miss?
A. Probability and impact scales should have been determined.
B. Stakeholders should have been involved in the risk response planning.
C. A risk status report should have been created.
D. A Monte Carlo simulation should have been done. |
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Definition
Answer A
Choices B, C, and D are done later in the risk management process. Choice B is done in the Plan Risk Responses process. Choice C is done in the Monitor and Control Risk process. Choice D is done in the Perform Quantitative Risk Analysis process. Only choice A would have been done before the probability and impact of each risk is identified |
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Term
A project is determined to have the highest risk rating of any project within the company. The project has 35 risks and 14 stakeholders and was determined to be one of the most important projects for the company. The Identify Risks process went smoothly, and in the Plan Risk Responses process, contingency plans were created for most of the risks. What should the project manager do?
A. Create contingency plans for the remaining risks.
B. Eliminate some of the root causes of risks
C. Make sure risk identification is, in fact, complete
D. Consider the project to be less important to the company because of its risk rating. |
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Definition
Answer B
The response to a risk may be acceptance, not the creation of contingency plans, so choice A could not be the best choice. There is no reason to suspect that risk identification is not complete (choice C). Choice D is not the best choice, as the risk rating should not affect the importance of a project. Because this project has the highest risk rating and contingency plans were found for most risks, the only thing left to do is change the project. Only choice B changes the project and is therefore the best choice. |
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Term
Risks can be identified during which part of the project management process?
A. Project planning
B. Project initiating
C. Project executing
D. All parts of the project management process |
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Definition
Answer A
Risks can be identified at any time in the project management process. Therefore, the best choice is D |
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Term
A very high-priority is a main reason to make sure which of the following is done?
A. Risks are quantified.
B. Risks are identified
C. Risks Responses are planned for top risks.
D. Risks are identified by key stakeholders. |
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Definition
Answer A
Choices B, C, and D should be done for low-priority as well as high-priority projects, so they could not be the best answers. One of the criteria for determining if the Perform Quantitative Risk Analysis process should be done is the priority of the project. Therefore, choice A is the best choice |
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Term
During an expert interview, two of the risk team members explain why they are there, compliment the interviewee, ask an open-ended question, and the proceed to ask their previously prepared questions. Which of the following have they done wrong?
A. They should have complimented first, and then explained why they are there.
B. They should not have used previously prepared question and then go on to ask the open-ended question.
C. It would have been better to ask one previously prepared question and then go on to ask the open-ended question.
D. They should have ask more questions to clarify the response(s) to the open-ended question before asking their prepared questions. |
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Definition
Answer D
Since no meeting should begin without a stated purpose, choice A could not be the best choice. Previously prepared questions help make the interviewer look prepared (choice B), but the second part of the choice is wrong; they do not diminish the flow of ideas - they increase it. Since previously prepared questions come after open-ended questions in order to get the interviewee's individual thought, choice C could not be the best choice. Choice D represents a common error of those doing expert interviews. We tend to want to jump to our questions when what the interviewee has to say is the real purpose, and may be a more valuable outcome of the interview. Choice D is therefore the best choice. |
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Term
Updates to the risk register after the Plan Risk Responses process include:
A. Contingency and fallback plans for each risk, triggers, finalized risk owners.
B. Triggers, outcomes of risk audits, secondary risks
C. Finalized risk owners, secondary risk, amount of contingency time and cost reserves needed
D. Contracts, secondary risks, risks probability and impact ratings |
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Definition
Answer A
Only choice A is completely correct. Outcomes of risk audits (included in choice B) are added to the risk register after the Monitor and Control Risks process. Amount of contingency time and cost reserves (included in choice C) are added to the risk register after the Perform Quantitative Risk Analysis process. Risk probability and impact ratings (part of choice D) are determined in the Perform Qualitative Risk Analysis process, and are added to the risk register at the end of that process |
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Term
Through there are many ways risk owners can be used in risk management, they are BEST used during which parts of the risk management process?
A. Identify Risks and Plan Risk Responses
B. Perform Qualitative Risk Analysis and Identify Risks
C. Monitor and Control Risks and Perform Quantitative Risk Analysis
D. Plan Risk Responses and Monitor and Control Risks. |
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Definition
Answer D
At the very least, risk owners are used in the Plan Risk Responses and Monitor and Control Risks processes, making choice D the best choice. They are not always used (or named) in the Identify Risks process (choices A or B) and might only be used for some projects in the Perform Quantitative Risk Analysis process (choice C). |
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Term
You have a 20 percent chance that there will be a $20,000 price increase in piece of equipment before you can place an order. This would cause a two-week delay in the project, to gain approval for the increase in cost. You also have a 5 percent chance that you will need to pay $200,000 for an insurance policy on the delivery of materials because the seller may not be able to provide insurance for the shipment. If they cannot cover the insurance for the shipmen, the seller has told you that they will give you a $10,000 price decrease. What is the expected monetary value of these risks?
A. $13,500
B. $220,000
C. $14,000
D. $210,000 |
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Definition
Answer A
In this case, the real cost of the insurance is $190,000. Therefore, that number should be used in the calculation. (0.05 x $190,000) plus (0.20 x $20,000) = $13,500. Probability x Impact = Expected monetary value. The expected monetary values of each risk are added together. |
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Term
When can risks be closed?
A. When the risk team lowers the impact value
B. When the time in which the identified risks can logically occur passes.
C. When the team needs to focus on new risks
D. They can never be closed |
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Definition
Answer B
Option B is correct. Choice A is wrong because the risk would not be closed just because the impact value was lowered; in may move to the watchlist, however. Choice C is not correct since the team needs to watch all the open risks. When the time passes in which a risk might occur, the risk can be closed, so choice D is incorrect |
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Term
A stakeholder tells the project manager that there is a risk that some funding might be removed from the project. Which of the following is the BEST thing for the project manger to do?
A. Try to obtain additional funding
B. Obtain additional information so that the risk can be defined.
C. Have the stakeholder provide proof that the risk exists.
D. Hold a brainstorming session with the team to deal with the risk |
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Definition
Answer B
Many people make the mistake of forgetting to properly name risks. In this case, a risk of losing funds is not defined enough for the project manager to determine the appropriate action. That is why choice B is the best choice. Holding a brainstorming session (choice D) would not solve the problem. Choice C is not productive until the real risk is identified. Perhaps it really is, "Management is planning to cut the funding for this project, causing the need to crash or fast track the project." Or perhaps the real risk is, "The X activity cost estimate will not be enough to cover the cost of the equipment, resulting in a cost overrun that cannot be recouped by other activities." Choice A implies that the project manager asks for more funding without getting additional information or satisfying him-or herself that the stakeholder is correct. Therefore, it cannot be the best choice |
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Term
You have been identifying the risks when a stakeholder informs you of a major risk that you had not previously identified. The stakeholder knows little about the risk other than that it exists. He cannot help you understand the risk or qualify it. Which of the following would be the BEST thing to do?
A. Hold a brainstorming session with the team
B. Ask management if they know anything about the risk
C. Ask the next expert you interview.
D. Include the risk and your need to understand more about it in a special message to all the stakeholders. |
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Definition
Answer D
Through all the choices are correct, there is only one BEST choice. Look for the choice that best solves the problem, not just addresses it. Choice D does that, because it quickly reaches the most people who are most likely to know the answer to the question. |
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Term
Stakeholder tolerances and thresholds should be identified during:
A. Perform Quantitative Analysis
B. Plan Risk Management
C. Identify Risks
D. Plan Risk Responses |
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Definition
Answer B
Stakeholder tolerances and thresholds should be identified during the Plan Risk Management process (choice B). These factors will help in determining the severity of risks to the company and the appropriate responses. They should be identified before any of the other risk management processes begin. |
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Term
While the project manger was planning the project, he completed the Plan Risk Response process and determined the reserve. However, when a senior manager looked at the reserve, she deleted it from the project management plan and called it a pad. What should the project manager do?
A. Delete the reserve, and try to make up the time or cost while managing the project.
B. Find a way to hide the reserve in the estimate for some activities, and make sure the team does not know that this has been done.
C. Explain that the reserve is needed in the same way that activities are needed, and support this statement with detailed analysis and justification.
D. Get the team together to determine a strategy for managing the project without the reserve. |
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Definition
Answer C
There are two common errors listed as choices in this question. Many project managers do everything with the team, and rely on meetings for everything (choice D). This is a key trait of an inexperienced and ineffective project manager. The second common error is to have the attitude of "yes boss," as illustrated in choice A. A project manager is not a pushover; he or she is required to push back instead. In this instance, the project manager can substitute the need for the reserve. The reserve is not a pad; if is for specific events. just like project activities are for specific work.
Removing reserve (choice A) or hiding it (choice B) are considered unethical, as that would provide a false sense of the real cost of the project. When you use risk management, it is up to you to inform management that you are making a change in how projects are planned, what that change is, and why it is important. Then, once Project plans are developed, stick by your decisions. Since one of the top things management complains about regarding project managers is that they do NOT push back, you might receive a more favorable response than you expect. Go for it for the benefit of the project, and the company? |
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Term
A project manger has had a lot of experience with system design, but little experience managing system design projects. She is working on a new project that is a medium-priority project for the department and has to complete the project in a relatively short period of time, making sure the accounting and finance departments' daily work is interrupted as little as possible. the Monte Carlo simulation has shown only a 60 percent chance of completing the project within the time allowed. Because the project manger is new to project management, you have been asked to advise her. Which of the following is the BEST choice to recommend?
A. Make sure the requirements are finalized before you begin design.
B. See if you can get the project to be a higher priority.
C. Fast track the project.
D. Ask the accounting department when would be the most convenient time to interrupt their work |
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Definition
Answer C
Here again is an example of a question with more than on "correct" choice, but only one BEST choice under theses circumstances. Think, "Where is there a problem?" Nothing says that interrupting the department is a problem, or that it was not taken care of in planning the project. Therefore, choice D could not be the best choice. Many projects have medium priority (choice B), and there is not indication that a higher priority here will really solve the problem. There is no indication that the requirements were not finalized on this project (choice A), leaving only choice C as the BEST choice.
The problem here is the 60 percent probability. It is wise for project with medium and high levels of importance to have the confidence that they can meet the required time and cost constraints. The only solution to this problem listed is choice C. Fast tracking puts more activities in the network diagram in parallel (concurrent) and therefore will shorten the length of the project (while adding risk). When that change is made, the Monte Carlo simulation would be rerun to determine if further project adjustments are needed to improve the probability of completion within the the allowed timeframe |
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Term
Data quality assessment and determining probability are parts of which part of risk management?
A. Identify Risks
B. Perform Qualitative Risk Analysis
C. Perform Quantitative Risk Analysis
D. Plan Risk Responses |
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Definition
Answer B
Though probability can also be determined (numerically) in the Perform Quantitative Risk Analysis process, the only part of risk management where both activities are done is the Perform Qualitative Risk Analysis process |
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Term
Which of the following is NOT true about a Monte Carlo simulation result of a 70 percent probability of completing the project on time?
A. The number is not a problem for medium-priority projects.
B. The project could be crashed
C. The probability of completing the project within the cost constraints should be known
D. The project could be fast tracked and Monte Carlo simulation redone |
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Definition
Answer A
For most medium - to high - importance projects, a Monte Carlo simulation result of 70 percent is not good enough. For less important projects, the extra effort, adjustments to the project, and analysis required to improve the result may not be worthwhile, making choice A the only statement that is not true. Either fast tracking or crashing could improve the Monte Carlo result for this project; therefore, choices B and D are true statements. There is a good chance that reducing the time of the project may impact the cost so it would be wise to know the cost probability, making choice C also a true statement. |
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Term
During the end of planning, the project manger has a meeting with management to go over the list of major risks identified. Management notices one of the risks and says that it would not be politically correct to include that risk in a list that will be seen by the department who may cause the risk. They ask the project manager to remove it from the list. What is the BEST thing for the project manager to do?
A. Remove it from the list, and make sure such a problem does not happen again.
B. Determine why the risk was identified in the first place.
C. Tell the manger that they cannot remove the risk since it is a project risk
D. Ask the manager for ideas about what can be done to eliminate the risk before the project gets started. |
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Definition
Answer D
This could be a common occurrence with risk management, but it is not a bad one. Such risk should be worked, out with management. They should not be ignored (choice A); they should be dealt with. Only choice D deals with the problem and solves it. Choice C does not solve the problem. Choice B would not need to be done, as the project manager should already know the answer and such activities do not deal with or solve the problem |
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Term
A project team is performing risk management and is discussing answers to the question, "How will we know in advance that the risk is about to occur?" The project team must be involved in which of the following?
A. Determining risk triggers
B. Looking at secondary risks
C. Creating workarounds.
D. Determining the quantification of risk |
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Definition
Answer A
A risk trigger can be determined by asking the question provided. Therefore, choice A must be the best answer |
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Term
Which of the following is and example of a risks?
A. Team members are located across the country in ten different cities.
B. The customer is known for requesting additional scope in the middle of every project.
C. The results of our planning efforts indicate that we will not meet the deadline imposed by management
D. We do not have adequate resources to complete the project. |
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Definition
Answer B
Choices A, C, and D are facts, not risks, and should be dealt with in other parts of the project planning. |
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Term
The project team has finally begun the executing phase when a risk occurs. The risk owner is well aware of the risk threshold for the project, and the contingency plan is understood. This particular risk posed a problem during planning because the risk team could not identify a fallback plan. However, the data quality assessment went well for the risk, the project charter is clear, and the project management plan was approved. In this case, what is the BEST thing for the project manager to do?
A. Nothing
B. Let management know the impacts of the risk on the project if the contingency plan fails.
C. Join the risk owner in completing the contingency plan
D. Crash or fast track the project. |
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Definition
Answer A
A project manager always seems to thing he or she has to do something, but in this case, the "something to do" has already been done during planning. It is not always possible to come up with a contingency or fallback plan. In such cases, the risk is simply accepted. The risk owner knows what to do. the potential impact should have been assessed during risk response planning and communicated to management as part of the contingency reserve discussion (choice B). If the contingency plan did not include the project manager's involvement in implementing the plan for this risk, then the project manager would be getting in the way if he or she tried to help (choice C). Crashing and fast tracking would already have been done (choice D). As compared to Question 37, more detail is provided, so choice A is the best choice. |
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Term
Deciding how to approach risk management is a key factor of which part of the risk management process?
A. Plan Risk Management
B. Perform Qualitative Risk Analysis
C. Plan Risk Responses
D. Perform Quantitative Risk Analysis |
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Definition
Answer A
This question is dealing with the whole risk management process. Therefore, choices B, C, and D could not be the best answers. It is during the Plan Risk Management process that a decision is made on how to approach risk management. |
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Term
When completing your project, 20 risks have occurred and 18 contingency plans have been implemented. Two stakeholders have identified four new risks, and qualitative risk analysis and risk response planning have been completed for these risks. One employee was hired by the company and subsequently identified as a stakeholder for the project. She has participated in an expert interview to identify her risks.
Which of the following would be the BEST thing to do next?
A. Identify probabilities for all the risks
B. Hold a risk review
C. Complete lessons learned
D. Identify risk triggers |
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Definition
Answer B
Choices A and D should have already been done, even for the additional risks identified. Though many people collect lessons learned (choice C) during the project instead of just at the end, this is not the most important thing to do in this situation. Lessons learned are only required to be completed during project closure. A risk review (choice B) revisits all risk and risk response plans. With so many changes to risk on this project, such a review may uncover changes to the risk response plans that are needed to better control the project. Therefore, it wold be best to hold a risk review. |
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Term
A risk owner is BEST defined as:
A. Someone from management
B. The person who determines the qualification for the risk
C. A project stakeholder
D. The person who is responsible for responding to the risk |
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Definition
Answer C
I keep trying to make these questions easy, but then I find tricks to really test your knowledge and they become hard! Should I be sorry? A risk owner may be involved with determining risk responses (choice D) or qualification (choice B), but not always. A risk owner could also be someone from management (choice A) but not always. This makes C the best choice |
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Term
The risk rating for the project is determined during which process?
A. Plan Risk Management
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Plan Risk Responses |
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Definition
Answer C
In order to rate risks, one must have begun to collect information on them. Therefore, choices A and B could not be the best choices. The risks need to be rated before you know which ones to plan responses for (choice D). Therefore, choice C is the best option |
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Term
Management is BEST involved in which of the following parts of risk management?
A. Approving the risk management plan
B. Helping to determine risks
C. Planning responses to risks
D. Approving the list of risks and qualification plan |
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Definition
Answer A
Management may not need to approve the list of risks or qualification plan (choice D). they would be involved in planning responses (choice C) and helping to determine risks (choice B), but the risk management plan is part of the project management plan. Since management approves the project management plan, the best choice is A |
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Term
Which of the following is NOT correct?
A. Opportunities are used to balance risks when calculating expected monetary value.
B. Risk owners could help determine risk responses
C. Risk audits are performed to identify additional risks
D. Contingency plans are planned responses. |
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Definition
Answer C
The main purposes of a risk audit are to determine if risk owners are assigned to each risk and to determine if they are effective. |
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Term
Which of the following things done (or not done) by a project manager would increase risk to the project?
A. Not performing conflict resolution
B. Using a work authorization system
C. Not being involved in the procurement process
D. Being involved in contract negotiations |
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Definition
Answer C
Choice C is correct. Option A is not necessarily the correct choice, as the project manager does not always need to be involved in resolving conflicts. Choices B and D are not correct, as they can help reduce risk. |
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Term
During the project planning, the risk team identified several risks. Some of these risks would only be a problem during the detail design phase. Once that phase was complete, the risk would no longer be relevant. At this point in the project, the team has completed the detail design phase and those risks did not occur. What is the outcome of this?
A. The risk team should reevaluate the risks
B. Some risk reserve may be returned to the company, and the risks can be closed.
C. the risks can be closed, and the reserve can be used for a team celebration.
D. Some risk reserve may be returned to the company, but the risks remains open. |
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Definition
Answer B
Choice B is correct. Choice A is something that should be done in any case. Choice C would be an unethical use of the funds. Choice D is incorrect, as the time in which the risk might occur has passed, so the risk is closed |
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Term
If during planning the team finds ways to eliminate potential problems so they cannot occur, what are they doing?
A. Changing the scope
B. Padding the estimates
C. Risk response planning
D. Gold Platting |
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Definition
Answer C
Choice C is correct. The team is eliminating risk. This does not change the scope (choice A), and it is not adding things the customer did not ask for (choice D). Padding is not allowed (choice B) |
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Term
What can you do about risks that cannot be eliminated?
A. Create workarounds and fallback plans.
B. Create contingency plans and fallback plans
C. Create a contingency plan
D. Perform a Monte Carlo simulation |
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Definition
Answer B
Choice B is correct. Choice A includes workarounds, which are unplanned responses. Choice C is only half the answer. Choice D is done as part of quantitative risk analysis |
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Term
In the execution of the third phase of the new product design project, the vendor that the team had wanted to work with because of their experience in the field is not available. What should they do?
A. They should let the project manger and the sponsor know that the project will be delayed until the vendor is available.
B. They should call a meeting with the project manager and the functional mangers to decide how to handle the situation.
C. They should start checking around to see if there are any other vendors who do the same work.
D. They should contact their second- and third-choice vendors, as described in the plan |
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Definition
Answer D
Choice D is correct. We assume the team did risk response planning and that there is already a plan in place. All the other choices imply risk response planning wasn't done. |
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Term
While in the execution phase of the project, a new risk is identified that will seriously jeopardize the success of the project. What should be done?
A. Determine a response strategy
B. Advise the sponsor and the customer immediately
C. Evaluate the risk for probability and impact and determine a response strategy.
D. Contact the stakeholders to get their advice on how to respond to the risk |
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Definition
Answer C
Choice C is correct. You can't do options A or D until you evaluate the risk. And you don't have enough information to advise the customer or sponsor (choice B) until you evaluate the risk |
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Term
Which of the following is an example of the avoidance risk response strategy.
A. The team member does not know how to do the work, so training is scheduled.
B. The team member keeps adding extra features to the product.
C. The team member causes a lot of problems so is removed from the project.
D. The team member is so over-allocated that he cannot do the work assigned. |
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Definition
Answer C
Choice C is correct. Choice A is a contingency response. Choice B is gold plating and should not be done. Choice D is a risk, not a response. |
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Term
What does the response strategy of transferring the risk accomplish?
A. It makes another party responsible for the risk
B. Nothing, since it is still your project
C. It avoids any possibility of residual risk
D. It makes it impossible to calculate the cost impact of the risk |
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Definition
Answer A
Choice a is the only correct answer. Transferring a risk makes another party responsible for the risk |
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Term
During the execution phase, there are an inordinate number of change requests received. What should the project manager do about that?
A. The project manager can do nothing except process the change through integrated change control
B. Prevent all changes by having a solid requirements before starting execution
C. Put a limit on the number of changes any one person or group is allowed to submit
D. Find out where the changes are coming from and what could be done to eliminate the root cause. |
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Definition
Answer D
Choice D is correct. Choice A is not proactive. Choice B is a good idea, but you cannot stop ALL changes, and it's too late at this point in the project. Choice C is unethical. |
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Term
Which of the following are risk response strategies for threats?
A. Exploit, share, mitigate
B. Accept, transfer, avoid
C. Accept, mitigate, share
D. Accept, mitigate, exploit |
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Definition
Answer B
The correct answer is choice B. Exploit and share are response strategies for opportunities |
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Term
If and organization doesn't have consistency within risk management practices and tends to have widely varying results as to the effectiveness of risk management, they need:
A. Lessons learned
B. A project management office
C. Risk governance
D. To practice proper risk management |
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Definition
Answer C
Although all of these answers could be correct to some degree, the best answer is risk governance, choice C |
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