A risk manager was recently hired to assist with a mid-sized infrastructure project. The risk manager becomes aware that they have an inexperienced project team.What two items should the risk manager have their team review in order to prepare for an upcoming risk identification workshop? (Choose two.)

Monte Carlo analysis from a similar project

List of pre-approved contractors

Organization chart for city permit department

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

Explain risk handling and mitigation strategies

Exclude risk averse stakeholders from future risk discussions

Explain risk handling and mitigation strategies

Increase the impact of all risks in the risk breakdown structure (RBS)

Develop a generous probabilistic cash flow model

A risk manager documents the causes in the risk register and needs to ensure the risk is adequately described. What is critical for the risk manager to consider when describing the causes?

The causes represent actual conditions

Each cause has a degree of uncertainty

Each cause has well defined owner

The causes represent actual conditions

The causes must be validated by the risk owner

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

The uncertainty and risk are increasing.

The project schedule is lagging behind.

There is no potential for future deviation.

The risk manager conducted an updated Monte Carlo simul-ation for the project at the end of a phase. The simul-ation reveals a key activity is now on the critical path.What recommendation should the risk manager make to the project manager?

Review the plans for the key activity

Add more float to the key activity

Add more contingency to the project

Review the plans for the key activity

Increase the budget for the key activity

A project lihat was in the execution phase for the last six months was put on hold and was eventually cancelled after numerous scope related challenges. It was decided to re-plan the scope and divide the project into multiple projects to have better insight into end objectives. As part of the project start up. the project manager is developing the risk planning for the project.What three artifacts should the project manager consult or review during this process? (Choose three.)

Lessons learned registers from analogous projects

A risk manager of a major project facilitates a meeting to develop the risk management plan. What two factors does the risk manager need to consider to ensure an effective risk management plan is developed? (Choose two.)

Aligning to project constraints and priorities.

Obtaining stakeholder acceptance

Applying modern risk management techniques.

Aligning to project constraints and priorities.

Ensuring risk response strategies mitigate all risks.

Minimizing implementation costs.

Obtaining stakeholder acceptance

Upon reviewing the risk analysis results, the project manager notices several risks that occur more frequently than others. What should the project manager do?

Request additional management reserve for those risks

Reduce the probabilities of those risks on the risk register

Transfer ownership of those risks to the customer

Implement the risk handling strategies for those risks

Request additional management reserve for those risks

A budget change request was initiated by a functional manager in an organization due to a shortage in the functional manager's department budget. The functional manager asks the CEO to approve utilization of a contingency budget reserved for one of the projects in its closing phase.What should the risk manager of the related project have done to prevent this situation from happening?

Reformed the risk monitoring and closing process properly.

Created the project work plan and budget more accurately.

Educated the project team on budget change requests.

Communicated better with the organization's CEO.

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

Consider the Delphi technique to gather all stakeholder opinions.

Review the risk breakdown structure to ensure project scope is covered.

Use the brainstorming technique to remove personal bias.

Use expert judgment to remove ego or emotional conflict.

Consider the Delphi technique to gather all stakeholder opinions.

A certain risk is identified for a major project, and the risk response is planned. However, the analysis reveals a high probability for a secondary risk which will be tolerated based on the organization's risk thresholds. The secondary risk is subsequently registered. During project execution, the primary risk occurs, the planned action is taken, and the secondary risk emergesWhat two actions should the risk owner take? (Choose two.)

Implement the secondary risk response and update the project documents.

Update and communicate assessments of the secondary risk's impact.

Implement the secondary risk response and update the project documents.

Conduct meeting with all stakeholder to agree on post impact solutions.

Set the corresponding trigger conditions to the secondary risk.

Engage the project manager to authorize the secondary risk's response.

Update and communicate assessments of the secondary risk's impact.

Multiple new risks have come up on a project that were not included on the risk register. The project manager met with the team to explain that risk management is critical for the success of the project, and risk identification is key.What should the project manager do next?

Apply an iterative approach to risk identification.

Review assumptions and constraints around risks.

Develop the risk response plans for identified risks.

Determine the likelihood and impact of the risks.

Apply an iterative approach to risk identification.

Towards the end of definitive design, project costs have increased to the point where it will be classified as a capital asset project. The customer has expressed they want one final total project completion date and will afford no extensions after it is established.How should the risk manager proceed?

Update the risk register and prepare for the Monte Carlo analysis.

Perform a qualitative risk analysis and update the results.

Update the assumptions/exclusions register with the new information.

Update the risk register and prepare for the Monte Carlo analysis.

Perform a quantitative risk analysis and update the results.

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

Review and update the project schedule.

Include the risk in the register and communicate with the stakeholders.

Communicate with the client to provide the previous shutdown plan.

Review and update the project schedule.

Interview the other project manager to learn more details.

The project manager and the risk manager of a new project to develop an application to support autonomous driving are meeting with the sponsor and key stakeholders to discuss the project. During the meeting, it is identified that the transport authority is discussing new traffic regulations for the industry that could be in place before the project ends.How should the project manager and the risk manager handle this situation?

Meet with the traffic authority staff in charge of the new regulation.

Ensure the project complies with the current traffic regulations and laws.

Send a letter to the traffic authority with the general project information.

Perform inquiries on the website of the traffic authority weekly.

Meet with the traffic authority staff in charge of the new regulation.

The project manager has completed four projects all with similar scope. The project manager has recently been assigned to start on a new project and believes some risks may occur again on this project.What should the project manager do?

Discuss and evaluate the identified risks with the project team.

Implement the risk response strategies into the risk plan.

Inform the sponsor that these risks should be added according to experience.

Add the risks to the risk register and determine a contingency.

Discuss and evaluate the identified risks with the project team.

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

Mark this new risk as an extremely high priority and inform all stakeholders.

Revisit this risk in the risk register and redefine the mitigation strategy.

Activate the contingency plan to handle this risk during execution.

Mark this new risk as an extremely high priority and inform all stakeholders.

Ask the project sponsor for more budget to deal with this risk.

An organization that spans across different countries undergoes a digital transformation project. The project manager has assigned a risk management team leader who is a risk management certified candidate in their domain.What should the risk management team leader do in the early stages of the project?

Educate stakeholders on best practices to perform risk management.

Conduct qualitative risk analysis to prioritize potential risks.

Plan a solid risk response plan and secure the necessary funding.

Educate stakeholders on best practices to perform risk management.

Benchmark to an organization which has executed a similar project,

A project manager is assigned to a new project and is told they need to develop the project's risk register. When should the project manager identify the project risks?

Ensure project team members proactively identify risks throughout the project to plan for possible response strategies

Identify risks only at the project's midpoint for the stakeholders to review them

Ensure project team members proactively identify risks throughout the project to plan for possible response strategies

Identify risks at the beginning of the project because the risk posture will not change

Delegate risk identification to each team member and have them record the risks on separate risk registers for their areas

A new risk manager is assigned to an ongoing project, what should the new risk manager do first to assess the project environment?

Review the policies and practices that are outlined in the risk management plan.

Review potential next steps with the project team.

Review the scope of work to determine the prescribed project methodology.

Review the policies and practices that are outlined in the risk management plan.

Review the contract and determine the resources and project funding.

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

Meet with team members to address their concerns.

Continue to implement the risk strategy

Meet with team members to address their concerns.

Reduce the number of risk management activities.

Raise the concerns with the project sponsor,

A project is evaluating a new software to streamline the current purchase order process. The current process is labor-intensive and involves printing, ink signatures, scanning, and emailing. Several team members gathered cycle time data to gauge the current process and evaluate the new process.What should the risk manager do next with the data set?

Perform a risk data quality assessment

Perform a probability and impact assessment

Perform Monte Carlo simulations

Perform a risk data quality assessment

What is an example of legal and regulatory requirements and/or constraints when assessing a project environment for threats and opportunities?

Confidentiality of project information

Organizational communication requirements

Organizational standard policies, processes, and procedures

Formal knowledge sharing and information sharing procedures

Confidentiality of project information

The project sponsor asks the project manager about the accuracy of the project data. The project manager realizes that some risks have not been updated recently.What should the project manager do regarding those risks?

Review the risk register to check for the new risks

Review the assumptions analysts

Conduct a checklist analysis on each risk

Create a risk response plan for those risks

Review the risk register to check for the new risks

A two-year project with a budget of US$2 million has completed about 60% of the work at the end of the first year. The actual cost incurred to complete the remaining 40% of work is about USS1.5 million. As a part of performing a specialized risk analysis, the calculated schedule performance index (SPI) is 1.2 and cost performance index (CPI) is 0.53.How should the risk manager interpret such a low CPI value?

The cost baseline is inaccurate.

The cost control processes is ineffective.

The cost baseline is inaccurate.

The actual reported costs are inaccurate.

The cost related risks are effectively managed.

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

Put the risk on the watch list.

Seek guidance from subject matter experts (SMEs).

Ignore this risk as it is not critical.

Inform the stakeholders about this risk.

A project manager identified a risk of communication issues with the client which may impact the project schedule. A member of (he sales team advises that this client prefers face-to- face conversations.What should the project manager do to avoid this risk?

Meet the client and plan tor critical milestone meetings.

Record this risk and the clients preference in the risk register.

Ask the sales person to lead the communication with the client

Call the client and advise that online communication is easier and faster.

Meet the client and plan tor critical milestone meetings.

A risk management professional is in the process of categorizing risks when a subject matter expert (SME) suggests categorizing the risks by their impact to the project objectives. Why should the risk management professional use this approach?

To determine there more attentive project leadership and organizational involvement is needed.

To enable the team in identifying the specific causes of risks associated with project objectives.

To ensure that project priorities are being appropriately factored into risk response plans.

To determine there more attentive project leadership and organizational involvement is needed.

To assign risks and risk severities to functional discipline and departments effectively.

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

Motivate and influence the project team with risk engagement activities like workshops.

Schedule a meeting to review and develop realistic risk thresholds with the project team.

Motivate and influence the project team with risk engagement activities like workshops.

Ensure that risk management responsibilities are clearly identified in the risk management plan.

Ensure that the risk language used by all stakeholders is consistent with the risk management plan.

After a number of risk workshops, risks have been identified. Which is the first element the risk owner should look for in the response plan to help mitigate the risks?

Verify due dates for the actions have been identified

Probability of a response triggering a secondary risk

How the response will affect the quality of the components

If the risk response is tied to an activity on the critical path

Verify due dates for the actions have been identified

A project manager has just been assigned to a new project. The project manager has been tasked by the project sponsor to ensure the project risks are closely managed. The project manager starts with developing the risk management plan.What is the expected outcome of developing the risk management plan?

Defining how risk management will be executed throughout the project.

Being able to monitor and control risks throughout the project.

Defining how risk management will be executed throughout the project.

Documenting the communication strategy for risks throughout the project.

Having the ability to identify risks throughout the project.

A project's design has been completed and approved on time. The construction subcontractor should be mobilizing to start construction but does not have the necessary materials in place, causing a delaying in the project. The risk register only contains risks for the design phase of the project.What should the project manager have done differently?

Performed risk identification exercises for the full lifecycle of the project

Executed the Monte Carlo sensitivity analysis prior to mobilization

Added generic construction risks to the risk register before construction began

Reviewed the assumptions/exclusions register in the project charter

Performed risk identification exercises for the full lifecycle of the project

Several key stakeholders approach the project manager with concerns. The stakeholders have received feedback from local businesses that have reported a reduction in customers because of construction activities at the worksite, and they plan to submit a claim to the municipality to fine the project manager's company.How should the project manager address this concern?

Evaluate the risk with the team and update the issueing

Discuss the concern with the local business owners.

Update the key risks and perform a quantitative risk analysis.

Adjust construction work hours to after business hours.

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

Close the risks and update their status in the risk register.

Use their contingency with other risks that are still open.

Remove the risk from the list as they are no longer applicable.

Reevaluate those risks' severity, and update the risk register.

PMI PMI-RMP Practice Test 2 - Free Online Exam Prep & Questions

Question 1 / 40

A project manager is developing the risk register and works with the team to analyze risks and determine their probability and impact. There is valuable historical data available that may be used to simulate the overall risk outcome.

Which type of analysis should the project manager use in this instance?

Check list analysis

Cause and effect

Specialized meeting

Quantitative analysis

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