When should the benefits of quantitative risk analysis be weighed against the effort required to ensure that the additional insights and value justify the extra effort?

During the Plan Risk Management process

Once the overall risk project has been estimated

Once all individual risks have been scored

During the Plan Risk Management process

After risks have been identified by stakeholders

Some engineers are completing an activity that will alert the project team if there is a risk of requiring additional effort to complete the project. What should the risk manager do in case the trigger arises?

Add the alert to the risk register.

A key hardware component failed during a large software implementation project with significant organizational impact. The risk owner was on vacation and no one responded to this incident thereby causing project delays.What should have been done to prevent this situation?

The risk owner should have communicated with the project manager so that a designated stakeholder could have been assigned to accept accountability for implementing risk responses.

The risk manager should have taken the responsibility of responding to this nsk instead of relying on and waiting for the risk owner to return from vacation.

The project manager should have requested and mandated that no vacations be taken during critical implementation activities or until all implementation had been completed for the project.

The risk manager should have anticipated this situation and planned for schedule buffers in the project schedule to accommodate the likelihood of failed hardware.

The risk owner should have communicated with the project manager so that a designated stakeholder could have been assigned to accept accountability for implementing risk responses.

A team of experts is working on a complex project. Which three tools could support the risk manager in discovering the overall project risk complexity? (Choose 3)

Strengths, weaknesses, opportunities, and threats (SWOT) analysis

Responsible, accountable, consulted, informed (RAG) chart

A stakeholder is asking a project team to hire an external vendor with more expertise and capacity to accelerate a delivery plan. The team has some concerns about this request.What should the risk manager do first?

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

A company has implemented a policy requirement for employees to use complex passwords and update them regularly. A few employees are unable to make the changes, which increases the likelihood of cybercrimmals compromising their passwords.What should the risk manager do?

Reassess the inherent risk level.

Increase the inherent risk monitoring.

Reassess the inherent risk level.

Increase the residual risk monitoring.

Reassess the residual risk level.

A risk manager for a new product development project has worked diligently with stakeholders and the project team to identify and document risks. These project risks vary widely in probability and Impact.Which three actions should the risk manager take to Inform the Identification of resource requirements for individual risk responses? (Choose 3)

Calculate the expected monetary value (EMV) of each risk and use these outputs to inform and defend project reserves.

Focus attention and resources on identified risks with the highest potential to impact the project

Work with the project team to conduct a decision tree analysis for each risk or set of related risks.

Calculate the expected monetary value (EMV) of each risk and use these outputs to inform and defend project reserves.

Focus attention and resources on identified risks with the highest potential to impact the project

Use the risk breakdown structure (RBS) to calculate the total cost of mitigating all risks and ensure project reserves are adequate to cover this amount

Work with the project team to conduct a decision tree analysis for each risk or set of related risks.

Conduct a Monte Carlo simulation to understand the probabilities of various risk outcomes

A risk management team has completed a quantitative analysis, and the individual score in terms of schedule and cost has been identified. The team is consolidating inputs for contingency planning and notices that the available time and funds are not sufficient for all the risks.What should the risk manager advise the project team?

Focus on the high-impact risk for contingency planning purposes.

Accept some risks might not be materialized so no extra time and funds will be needed.

Ask the project sponsor for more time and funds if needed.

Create a change request if there are additional needs based on the risk responses.

A risk manager has been assigned to a project in a company that Is undergoing a significant cultural and organizational change. The risk manager will start planning risk management activities with stakeholders but is unsure with whom to engage.What should the risk manager do?

Leverage the project manager's project stakeholder analysis.

Send a communication inviting volunteers to join risk activities.

Assign a subset of stakeholders to work on the risk management process.

Agree with the project manager not to start risk activities.

Leverage the project manager's project stakeholder analysis.

A highly complex project is about to start. Considering that many changes and new information will arise as the work moves forward, key stakeholders are anxious about not addressing risks on time.What should the risk manager do in this situation?

Adopt a dynamic and frequent risk management process.

Use a detailed and quantitative risk assessment process.

Establish a formal and upfront risk Identification process.

Create an effective and clear risk communication process.

Adopt a dynamic and frequent risk management process.

A project manager has requested the risk manager's support in deciding whether to purchase a new component to expedite project execution. The component price is USS100.000 and there Is a 30% chance that it might not function as expected, resulting in an additional US$50,000 cost. However, if the component does work well, the project will make a profit of US$500,000 If the component Is not purchased, there is an 80% chance of failure with an impact of US$250,000What should the risk manager recommend?

Cost to expedite the execution is not worth the added risk.

Perform a Monte Carlo simulation to quantify the impacts.

Cost to expedite the execution is not worth the added risk.

The new component should be purchased.

Both options are losses to the project.

A project team has failed to complete an important project milestone on time. The team was counting on an external provider to deliver key equipment on a specific date but the provider was delayedWhat could the risk manager have done to prevent missing the milestone?

Identity and analyze project plan assumptions.

Better schedule monitoring and controlling.

Identity and analyze project plan assumptions.

Use management reserves to cover delays.

Have a detailed work breakdown structure (WBS).

During a project team meeting, a risk manager realizes that the initial assumptions on the project schedule are too optimistic. The risk manager believes that the project might not meet its deadline as initially stated.What is the reason for misunderstanding the assumptions from the beginning?

The stakeholders prepared the initial schedule assumptions based only on the results of the last project.

The sponsor had neither presented the actual results to the stakeholders nor updated the initial assumptions.

The team's compensation was reduced and they lost the motivation to comply with the project deadline.

Government regulations have changed in the last week, and now additional approval processes are required.

The stakeholders prepared the initial schedule assumptions based only on the results of the last project.

A project is in progress when the product team requests a change to the scope. The learn indicates that this is a minimal change and should not create any problems. What should the risk manager do next?

Escalate the issue to management.

Update the work breakdown structure (WBS).

Add a new risk to the risk register.

The risk manager needs to achieve consensus during the risk planning phase of a construction project that is crucial to an organization's growth. What should the risk manager do to begin the process of identifying risks?

Review the project charter to understand the risk management requirements.

Refer to the management plan to develop a risk management plan.

Refer to the business case to satisfy stakeholder requirements.

Review the project documents to identify stakeholders.

Review the project charter to understand the risk management requirements.

A project is delayed and the risk manager is working on a new plan for the remaining work Based on previous results the project team is having frequent issues with quality due to lack of experience in the technology used, requiring additional testing effort and rework.How should the risk manager and team respond to this type of risk in the future?

Avoid the risk by eliminating rework waste.

Transfer the risk with contractual clauses.

Accept the risk with contingency reserves.

Mitigate the risk with management reserves.

A project team identified and analyzed known risks at the beginning of a project What should the risk manager do next in relation to the accepted passive risks?

Document accepted passive risks and acknowledgment of shareholders, management and team acceptance of the risks.

Ask the project team to define a response plan for all accepted passive risks.

Develop a shortened response plan with documented qualitative and quantitative assessments of the accepted passive risks.

Define a response plan for accepted passive risks with a high probability of occurrence.

Document accepted passive risks and acknowledgment of shareholders, management and team acceptance of the risks.

A risk manager has recently been assigned to a project. Their first task was setting up a risk identification session with project team members and subject matter experts (SMEs) After much debate over 100 risks were identified.What should the risk manager do next?

Perform a qualitative probability assessment to determine the likelihood of the risks occurring and then refine the list of risks.

Inform the project sponsor that the project might not be feasible given the significant number of risks involved.

Perform a qualitative probability assessment to determine the likelihood of the risks occurring and then refine the list of risks.

Review the list with the project manager and jointly define which risks should be excluded.

Assign owners to each risk and request that risk responses be defined prior to the project start.

Many customers using the global positioning system (GPS) of several automobile companies are complaining about errors due to a recent update. This update included a major technological change to mitigate emerging risks with software deployment Upon investigation, the risk manager realized that this issue was identified as a high-risk item during risk analysis which required secondary risk identification that was never completed.What was missed in the risk management process that led to this incident?

The new technology's impact on existing controls.

The risk management strategy quality assurance.

The identification of the business driver.

A risk manager is assigned to a mobile network deployment project with a strict contractually agreed-on schedule. One of the key risks identified has materialized. There is insufficient staffing because critical resources are dedicated to strategic projects in the organization. The risk manager expected the resource manager to notice this, but the resource manager thought the project experts would be alerting the team during the project.What should the risk manager do to prevent this from happening again1?

Assign owners who will be fully accountable to managing the risks.

Document the risks and response actions in a clear manner.

Communicate with the project manager on the topic.

Assign owners who will be fully accountable to managing the risks.

Define the response plans and take the lead in implementing them.

A project team has completed initial planning for a project and found that the stakeholders' expected duration and scope cannot be met. What should the risk manager do first to address this concern?

Identify the risks associated with these project constraints.

Add contingency reserves to cover identified issues.

Request additional funds to complete the project as expected.

Use crashing techniques to create a better project plan.

Identify the risks associated with these project constraints.

A risk manager is preparing the risk strategy for a strategic project which involves stakeholders based in multiple locations. What should the risk manager do at this stage?

Define the risk processes and tools to be adopted.

Update the risk register to include this stakeholder-related risk.

Define the risk processes and tools to be adopted.

Refine the risk assumptions and criteria to be used.

Update the risk communications plan to include all stakeholders.

During the last sprint in a software development project there were differences between the project team and project sponsor in terms of the risk appetite to perform some activities. How should the risk manager help to resolve this conflict?

Align project thresholds to organizational culture and appetite

Select the lowest risk appetite to avoid any negative effect on the project.

Align to the project sponsor's risk strategy because they are the main stakeholder.

Select the risk appetite that better aligns to the activities in discussion.

During project execution tor a software development program a risk manager notices the results vary from the stated expectations in the planning phase. The project team states that there was unrealistic planning.What should the risk manager do next to understand the differences between planning and execution?

Review the assumptions to understand any change.

Move forward with the lessons learned from the sprint.

Review the assumptions to understand any change.

Prepare a management of change (MOC) to adjust the project cost and duration.

Engage with the team to present the actual results to the sponsor.

While conducting project planning, a risk manager determines that several stakeholders have differing opinions on what might negatively impact the achievement of project objectives in previous projects these opinions have often influenced project resource allocations resulting in project execution challenges.Which initial course of action should be taken to ensure there is a common understanding of the project's risk landscape among all stakeholders?

Conduct stakeholder interviews, add all identified risks to the risk register, and provide a copy to the project team.

Gather data from organizational process assets (OPAs) and external sources to conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis.

Escalate the stakeholders' differing opinions to the program sponsor and allow them to prioritize risks.

Consult with an expert to identify risks that other organizations have faced on similar programs and provide a summary to all stakeholders.

Conduct stakeholder interviews, add all identified risks to the risk register, and provide a copy to the project team.

PMI PMI-RMP Practice Test 6 - Free Online Exam Prep & Questions

A project is in the execution phase and involves large volumes of supplies. The project is the last phase of a 10-year initiative. The project sponsor asks the project manager to provide the performance report for the whole initiative.

Which analysis should the risk manager do to provide the project manager with the performance report?

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PMI PMI-RMP Practice Test 6

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