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PMP Exam Questions and Answers – Risk Planning

Risk is inherent in all projects, and risks posed both threats to and opportunities for the project. Understanding the risks facing your project, better equips you to determine the appropriate strategies to deal with those risks and help you develop the response plans for the risks.

PMP Risk Planning Exam Essentials

Can define the purpose of the risk management plan
This describes how you will define, monitor, and control risks throughout the project. Its details how risk management process is will be implemented, monitored, and controlled throughout the life of the project.
It describes how you will manage risks. The risk management plan is a subsidiary of the project management plan, and it is the only output of the plan risk management process.

Can name the purpose of identify risks
The purpose of the identify risks process is to identify all risks that might impact the project and then document them and identify the characteristics.

Can define the purpose of perform qualitative risk analysis
This determines the impact the identified risks will have on the project and the probability that they will occur. It puts the risks in priority order according to their effects on the project objectives.

Can define the purpose of perform quantitative risk analysis
This the value rates the impacts of risk prioritize during the perform qualitative risk analysis process, and quantify is risk exposure for the project by assigning numeric probabilities to each risk and the impacts on project objectives.

Can define the purpose of the plan risk responses process
Plan risk responses is the process where risk response plans are developed using strategies such as avoid, transfer, mitigate, accept, exploit, share, enhance, develop contingent response strategies, and apply expert judgment.

The risk response plan describes the actions to take, should the identified risks occur. It should include all the identified risks, a description of the risks, how they will impact the project objectives, and the people assigned to manage the risk responses.

Can define the risk register and some of its primary elements
The risk register is an output of the identified risks process, and updates to the risk register occur as an output of every risk process that follows of this one.

By the end of the plan risk responses process, the risk register contains these primary elements:

  • Identified list of risks
  • Risk owners
  • Risk triggers
  • Risk strategies
  • Contingency plans
  • Contingency reserves

PMP Exam Questions and Answers – Risk Planning

  1. You are a project manager for a bottling company. Your project involves installing a new Accounting System, and you are performing the risk planning processes. You have identified several problems along with the causes of those problems. Which of the following diagrams will you use to show each problem and is causes and effects?

    A. Decision tree diagram
    B. Fishbone diagram
    C. Benchmark diagram
    D. Simulation tree diagram

2.  Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks, describe which of the following processes?

A.  Perform quantitative risk analysiS
B. Identify risks
C. Perform qualitative risk analysis
D. Plan risk management

3. Each of the following statements is true regarding the risk management plan except for which one?

A.  The risk management plan is an output of the plan risk management process
B.  The risk management plan includes a description of the responses to risks and triggers
C.  The risk management plan includes thresholds, scoring and interpretation methods, responsible parties, and budgets
D.  The risk management plan is an input to all the remaining risk management processes

4.  You are using the interviewing technique of the perform quantitative risk analysis process. You’d intends to use normal and lognormal distributions. All of the following statements are true regarding this question except which one?

A.  Interviewing techniques are used to quantify the probability and impact of the risks on project objectives
B.  Normal and lognormal distributions use mean and standard deviation to quantify risks
C.  Distributions and rustic plea displayed the impacts of risk to the project objectives
D.  Triangular distributions rely on optimistic, pessimistic, and most likely estimates to quantify risks

5.  The information gathering techniques used in the identify risks process include all of the following except _________________

A.  Root cause analysis
B.  The Delphi technique
C.  Brainstorming
D.  Checklist analysis

 

6.  Which of the following processes assesses the likelihood of risk occurrences and their consequences using the numerical rating?

A.  Perform qualitative risk analysis
B.  Identify risks
C.  Perform quantitative risk analysis
D.  Plan risk responses

7.  You are the project manager for a new training website. You need to perform the perform qualitative risk analysis process. When you have completed this process, you will produce all of the following as part of the project documents updates output except which one?

A.  Priority list of risks
B.  What’s a list of low priority risks
C.  Probability of achieving time and cost estimates
D.  Risks grouped by categories

8.  You have identified a risk event on your current project that could save $100,000 in project costs if it occurs. Which of the following is true based on this statement?

A.  This is a risk event that should be accepted because the rewards outweigh the threats to the project
B.  This risk event is an opportunity to the project and should be exploited
C.  This risk event should be mitigated to take advantage of the savings
D.  This is a risk event that should be avoided to take full advantage of the potential savings

9.  You have identified a risk event on your current project that could save $500,000 in project costs if it occurs. Your organization is considering hiring a consulting firm to help establish proper project management techniques to assure it to realizes these savings. Which of the following is true based on this statement?

A.  This is a risk event that should be accepted because the rewards outweigh the threats to the project
B.  This risk event is an opportunity to the project and should be exploited
C.  Is risk event should be mitigated to take advantage of the savings
D.  This is a risk event that should be shared to take full advantage of the potential savings

10.  Your hardware vendor or left you a voicemail saying that a snowstorm in the Midwest might prevent your equipment from arriving on time. She wanted to give you an advanced warning and lost due to return the call. Which of the following statements is true?

A.  This is a trigger
B.  This is a contingency plan
C.  This is a residual risk
D.  This is a secondary risk

11.  You are constructing a probability and impact matrix for your project, which of the following statements is true?

A.  The probability and impact matrix multiplies the risk’s probability by the cost of the impact to determine and expected value of the risk event
B.  The probability and impact matrix multiplies the risk’s probability – which falls from 0.0 to 1.0 – and the risk’s impact for each potential outcome, and then adds the result of the potential outcomes together to determine a risk score
C.  The probability and impact matrix are predetermined thresholds that use the risk’s probability multiplied by the impact of the risk event to determine and overall risk score
D.  The probability and impact matrix multiplies the risk’s probability by the risk impact – which both fall from 0.0 to 1.0 – to determine the risk score

12.  Your stakeholders have asked for an analysis of the cost risk. All the following are true except for which one?

A.  Monte Carlo analysis is the preferred method to use to determine the cost risk
B.  Monte Carlo analysis is a modeling technique that computes project costs one time
C.  A traditional work breakdown structure can be used as an input variable for the cost analysis
D.  Monte Carlo usually expresses its results as probability distributions of possible costs

13.  Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest will prevent your equipment from arriving on time. You identified a risk response strategy for this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is an example of which risk response strategy?

A.  Transfer
B.  Acceptance
C.  Mitigate
D.  Avoid

14. Risk attitude is an enterprise environmental factor that you should evaluate when performing the plan risk management process. Risk attitude consist of all the following elements except for which one?

A.  Risk appetite
B.  Risk threshold
C.  Risk urgency
D.  Risk tolerance

15.  You work for a large manufacturing plant and you are working on a new project to release a new product line of toothpaste and salt. This is going to be sold into Europe which has different dimensions and cap fittings on their tubes of toothpaste.

A new machine is needed to mix the ingredients into a concentrated formula and package it into these smaller containers than your US product uses. You and your stakeholders are nervous when you discover this will be the first machine your organization has purchased from your new supplier. Which of the following statements is true given the information in this question?

A.  The question describes risk tolerance levels of the stakeholders, which should be considered when performing the plan risk management process
B.  This question describes the interviewing tool and technique used during the identify risks process
C.  This question describes risk triggers that are derived using interviewing techniques and recorded in the risk register during the perform qualitative risk analysis process
D.  This question describes a risk that requires a response strategy from the positive risk category

16.  Your project team has identified several potential risks on your current project that could have a significant impact if they occurred. The team exam and the impact of the risks by keeping all the uncertain elements at their baseline values. What type of diagram will the team use to display this information?

A.  Fishbone diagram
B.  Tornado diagram
C.  Influence diagram
D.  Process flowchart

17.  Your project team is in the process of identifying project risks on your current project. The team has the option to use all the following tools and techniques to diagram some of these present risks, except for which one?

A.  Ishikawa diagram
B.  Decision tree diagram
C.  Process flowchart
D.  Influence diagram

 

18.  All the following statements are true regarding the RBS except for which one?

A.  The RBS is contained in the risk management plan
B.  The RBS describes risk categories, which are a systematic way to identify risks and provide a foundation for understanding for everyone involved on the project
C.  The lowest level of the RBS can be used as a checklist, which is a tool and technique of the identify risks process
D.  The RBS is similar to the WBS in that the lowest levels of both are easily assigned to a responsible party or owner

19.  Your team has identified the risks on the project and determined their risk score. The team is in the middle of determining what strategy is to put in place should the risks occur. After some discussion, the team members have determined that the risk of losing their network administrator is a risk they will just deal with if it occurs. Although they think it is a probability, and the impact would be significant, they have decided to simply deal with it off to the fact. Which of the following is true regarding this question?

A.  This is a negative response strategy
B.  This is a positive response strategy
C.  This is a response strategy for either positive or negative risk known as contingency planning
D.  This is a response strategy for either positive or negative risks known as passive acceptance

20.  All the following are true regarding the perform qualitative risk analysis process except which one?

A.  Probability and impact and expert interviews I used to help correct biases that occur in the data you have gathered during this process
B.  The probability and impact matrix is used during this process to assign red, yellow, and green conditions to the risks
C.  Perform qualitative risk analysis is an easy method of determining risk probability and impact and usually takes a good deal of time to perform
D.  Risk urgency assessment is a tour and technique of this process used to determine which risks need near-term response plans

 

PMP Exam Answers – Risk Planning

1. B.
2. C
3. B
4. C
5. D
6. C
7. C
8. B
9. D
10. A
11. C
12. B
13. C
14. C
15. A
16. B
17. B
18. D
19. D
20. C

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