PMI PMI-RMP Practice Test - Questions Answers, Page 12

The overall goal of selecting strategies during the Plan Risk Response activity is to choose those strategies that have the greatest overall positive influence on the project, considering factors such as cost, schedule, and resources.

According to the PMI Risk Management Professional (PMI-RMP) Examination Content Outline1, one of the tasks in the domain ofRisk Responseis to select risk response strategies based on the risk appetite and tolerance of the organization and stakeholders1. The overall goal of selecting risk response strategies is to select the strategies with the greatest overall positive influence on the project objectives, such as scope, schedule, cost, quality, etc.The risk response strategies should aim to enhance the opportunities and reduce the threats to the project, while considering the cost-benefit analysis, the feasibility, and the alignment with the project goals and stakeholder expectations2.The risk response strategies should not be selected based on the least overall impact to resources, because that may not be the most effective or efficient way to address the risks, and it may ignore the potential benefits of some strategies that may require more resources but also deliver more value3. The risk response strategies should not be selected based on the least financial impact, because that may not be the most relevant or comprehensive criterion to evaluate the risks, and it may overlook other aspects of the project, such as quality, customer satisfaction, reputation, etc.that may also be affected by the risks4.The risk response strategies should not be selected based on the greatest benefit to stakeholders, because that may not be the most realistic or achievable goal, and it may create conflicts or trade-offs among different stakeholder groups that may have different or competing interests, needs, and expectations5.Reference:1: PMI Risk Management Professional (PMI-RMP) Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4403: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4414: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4425: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 518.

According to the PMBOK Guide1, risk identification is the process of determining which risks may affect the project and documenting their characteristics. It involves the use of various techniques to gather information from different sources and perspectives, such as stakeholders, experts, historical data, assumptions, and environmental factors. Some of the common techniques for risk identification are meetings, facilitated workshops, interviews, brainstorming, checklists, questionnaires, SWOT analysis, and root cause analysis. These techniques help to elicit the knowledge and opinions of the participants, and to generate a comprehensive list of potential risks that can be further analyzed and prioritized. In this case, the risk management expert should recommend the agency to conduct meetings, facilitated workshops, and interviews with stakeholders to identify potential risks and develop the handbook. This will help to understand the context and objectives of the agency, the expectations and concerns of the farmers and landlords, the challenges and opportunities in the agriculture sector, and the possible sources and impacts of uncertainty. The risk management expert can then use the information gathered from these techniques to create a risk register and a risk management plan, which can form the basis of the handbook.This is part of the Identify Risks process in the PMBOK Guide1.Reference:1: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition

Engaging stakeholders through meetings, workshops, and interviews is crucial for risk identification, as it allows the agency to gather diverse perspectives and insights on potential risks. This approach is more effective than relying solely on standard tools or hiring an expert.

Centralizing the risk management function enables the organization to have a consistent approach to reporting risks and their impacts. This allows for better monitoring of the impact against the overall project risk exposure, which helps in making informed decisions and allocating resources effectively.

According to the PMI-RMP Exam Content Outline1, one of the tasks in the domain of risk governance is to ''establish and maintain a centralized risk management function to support the project and organizational objectives''. A centralized risk management function can help resolve the problem of inconsistent risk reporting by providing a common framework, methodology, and standards for risk management across the organization. One of the benefits of centralizing the risk management function is that it allows monitoring the impact of individual project risks against the overall project risk exposure, as well as the organizational risk appetite and tolerance. This can help the CEO and other senior management to make informed decisions and allocate resources accordingly. Therefore, the best answer is B.

The risk matrix heat map is a graphical tool that displays the probability and impact of risks in a project. The horizontal axis represents the probability of occurrence, and the vertical axis represents the impact rating. The colors indicate the level of risk exposure, from green (low) to red (high). The risk in question is located in the upper right quadrant of the matrix, which means it has a high impact rating. The probability of occurrence can be estimated by looking at the scale on the horizontal axis. The risk is slightly to the left of the 50% mark, which means it has a probability of occurrence of about 40%. Therefore, the correct statement that describes the risk is B. The risk has a probability of 40% of occurrence and a high impact rating.Reference:PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 104-105.

According to the PMI Risk Management Professional (PMI-RMP) Examination Content Outline1, one of the tasks in the domain ofRisk Responseis to execute the approved risk response plan in accordance with project guidelines and procedures1.A risk response plan is a component of the project management plan that describes the agreed-upon and funded actions to address the project risks, both positive and negative2. In this scenario, the risk manager should execute the approved risk response plan to deal with the new risk that appears when requesting fuel from another supplier, which will cause delays with several other projects.The risk response plan should have been developed and approved during the risk response planning process, which involves selecting and prioritizing the appropriate risk strategies and actions for each risk3.The risk response plan should also be aligned with the project guidelines and procedures, which are the rules and directions that define the project's scope, schedule, cost, quality, and other aspects4.The risk manager should not escalate the problem to the project sponsors, because that is not a risk response strategy, but rather a way to seek higher-level authority or support for a risk that is outside the project's scope or influence5.The risk manager should not negotiate with the supplier to resolve the problem, because that is not a risk response strategy, but rather a procurement management technique that involves reaching a mutually acceptable agreement with the supplier on the terms and conditions of the contract6.The risk manager should not assign a team member to update the issue log, because that is not a risk response strategy, but rather a risk monitoring and reporting technique that involves tracking and documenting the issues that have occurred or are currently affecting the project7.Reference:1: PMI Risk Management Professional (PMI-RMP) Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4143: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4404: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 385: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4376: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4717: What Is an Issue Log?Templates & Tips7.

The project manager should escalate this initiative to project decision makers and sponsors, as they have the authority to approve changes in budget and scope. They can evaluate the potential benefits and associated with the new technology and make an informed decision on whether to proceed.

According to the PMBOK Guide1, an opportunity is a risk that would have a positive effect on one or more project objectives if it occurs. Opportunities are uncertain events or conditions that can enhance or facilitate the achievement of project goals, such as cost savings, schedule acceleration, quality improvement, or scope expansion. A project manager should take advantage of opportunities by implementing risk responses that seek to maximize their probability and/or positive impact. In this case, the project manager wants to introduce a new technology to improve the project's performance, which is an opportunity for the project. The project manager should take advantage of this opportunity by planning and executing appropriate risk responses, such as exploiting, enhancing, sharing, or accepting the opportunity.This is part of the Plan Risk Responses and Implement Risk Responses processes in the PMBOK Guide1.Reference:1: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition.

According to the PMI-RMP Exam Content Outline1, one of the domains of the PMI-RMP certification is risk monitoring and reporting. This domain includes tasks such as ''monitor and report on risk metrics and trends'', ''monitor the status of risk response activities and update risk register and risk report accordingly'', and ''monitor and control project contingency and management reserves''. These tasks imply that the risk manager should regularly check and report on the status of risks identified according to their prioritization (B), monitor the status and oversee execution of the risk response plan for each identified risk , and ensure management reserves are sufficient to cover the mitigation plans for all identified risks (D). These actions will help the risk manager to ensure the risk management plan remains effective during the project timeframe. Therefore, the best answers are B, C, and D.

Residual risks are the risks that remain after the risk response plan has been implemented. They are the risks that are accepted by the project team and stakeholders as part of the project. Residual risks may have low probability or impact, but they still need to be monitored and controlled throughout the project. The first thing that the risk manager should do when a risk owner identifies and reports some residual risks is to analyze, document, and communicate them to the relevant stakeholders. The risk manager should assess the probability and impact of the residual risks, and determine if they require any further response or contingency plan. The risk manager should also update the risk register and the risk report with the information about the residual risks, and share them with the stakeholders who need to be aware of them. This will help the project team and stakeholders to be prepared for any potential occurrence of the residual risks, and to take appropriate actions if needed.Reference:PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 94-95, 101.

According to the PMI Risk Management Professional (PMI-RMP) Examination Content Outline1, one of the tasks in the domain ofRisk Responseis to recommend risk response strategies based on the risk appetite and tolerance of the organization and stakeholders1.One of the strategies for negative risks or threats isrisk acceptance, which involves acknowledging the existence of a threat and making a conscious decision to accept it without taking any action2. In this scenario, the risk manager should recommend risk acceptance for the risk items that would be detrimental to project success, but the associated triggers cannot be managed by the organization and are unlikely to occur.Risk acceptance is appropriate when the risk exposure is low, the cost of other responses is high, or the risk response is outside the scope or influence of the project3.The risk manager should not recommend risk mitigation, which involves reducing the probability and/or impact of a threat2.The risk manager should not recommend risk enhancement, which is a strategy for positive risks or opportunities, not negative risks or threats2.The risk manager should not recommend risk exploitation, which is also a strategy for positive risks or opportunities, not negative risks or threats2.Reference:1: PMI Risk Management Professional (PMI-RMP) Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 4363: A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Sixth Edition, page 437.