Knowledge Area: Risk Management

Highlighted numeric after every question is the question ID linked with the answer database.

1. 975 During the identify risk process, a project manager made a long list of risks identified by
all the stakeholders using various methods. He then made sure that all risks were
understood and all triggers had been identified. Later, in the plan risk response process, he
took all the risks identified by the stakeholders and determined ways to mitigate them.
What has he done wrong?
a) The project manager should have waited until the Perform Qualitative risk analysis
process to get the stakeholders involved.
b) More people should be involved in the plan risk response process
c) The project manager should have created workarounds
d) Triggers are not identified until the Identify Risks process.

2. 988 Which part of the Risk management process uses the project scope statement as an
input?
a) Plan Risk Management Monitor and control risks
b) Perform qualitative Risk Analysis and Plan Risk Management
c) Perform Quantitative Risk Analysis and plan Risk Responses
d) Plan Risk Responses and Monitor and control project risks

3. 1036 Impact assessment is part of which Risk Management Process?

a) Identify Risks
b) Perform Qualitative Risk Analysis
c) Plan Risk Responses
d) Monitor and control project risks

4. 1255 While preparing your risk responses, you identify additional risks, what should you do?
a) Add reserves to the project to accommodate the new risks and notify management.
b) Document the risk items and calculate the expected monetary value based on
probability and impact that result from occurrences.
c) Determine the risk events and the associated costs, then add the cost to the project
budget as a reserve.
d) Add a 10% contingency to the project budget and notify the customer.
5. 989 Which of the following is the BEST way to describe the outputs of the risk identify
process?
a) A list of risks
b) A list of triggers
c) A list of the risk response owners
d) An understanding of the project risks

6. 1054 You are performing an audit of one of your project manager’s projects and notice that
she does not consider the network diagram as part of Identify risk process, what should the
project manager do in this situation?
a) Forget some activities in her risk evaluation.
b) Forget activity precedence in her risk evaluation
c) Forget some path convergence issues in her risk evaluation.
d) Forget some stakeholders in her risk evaluation

7. 1309 While holding a risk reassessment meeting the sponsor is looking at the latest list of
top risks in the project report, a new risk has been identified and it has been determined
that the risk did not rank higher than the already identified to continue through the risk
identification process. Two fallback plans have been adjusted based on the severity of
previous risk impacts. What has the project manager NOT done?
a) Provide the sponsor with the full risk of non critical tasks
b) Perform quantitative risk analysis for the new risk
c) Look at the impact of the new risk to the project as a whole
d) Look for contingency risks from the fallback plan

8. 976 If the team cannot identify a suitable response from an identified risk , which risk
response strategy would they apply?
a) Avoidance
b) Mitigation
c) Acceptance
d) Transference

9. 1033 A construction project has a work package that could result in fatalities or long term
disabilities with losses of over US$2 million. The company has had a clean record in the past
and has won several safety awards. An appropriate risk response strategy is to?
 a) Post a sign that describes the no. of injuries to date and remind everyone to be careful.
b) Insure against the risk.
c) Add classroom training on safety for the project team.
d) Not do the work package.

10. 1244 All of the following are common results of risk management EXCEPT?
a) Contract terms and conditions are created.
b) The project management plan is changed
c) The communications management plan is changed
d) The project charter is changed

11. 1084 During the executing process group of the project, a team member identifies a new
risk process. What should occur in light of this identification?
a) Include it in the risk triggers
b) Test its assumptions
c) Add it to the risk management plan.
d) Assess the risk

12. 1013 You are a project manager for the construction of major new manufacturing plant that
has never been done before. The project cost is estimated at US$30,000,000 and will make
use of 3 sellers. Once begun, the project cannot be cancelled, as there will be large
expenditure on plant and equipment. As the project manager, it would be MOST important
to carefully:-
a) Review all cost proposals from the sellers
b) Examine the budget reserves
c) Complete the project charter
d) Perform an identification of risks

13. 1005 A project manager has assembled the project team, identified 56 risks on the project,
determine what would trigger the risks, rated them on a risk rating matrix, tested their
assumptions and assessed the quality of data used. The team is continuing to move through
the risk management process, what has the project manager forgotten to do?
a) Simulation
b) Risk Mitigation
c) Overall risk ranking for the project
d) Involvement of other stakeholders
14. 1329 A project has had some problems, but now seems under control. In the last few
months almost all the reserves have been used up and most of the negative impacts of the
events that have been predicted have occurred. There are only four activities that are left
and two are on the critical path. Manager now informs the project manager that it would be
in the performing organization’s best interest to finish the projects two weeks earlier than
scheduled in order to receive an additional profit. In response, the project manager sends
out a request for proposal for some work that the team was going to do, in the hopes that
another company might be able to do the work faster. The project manager can BEST be
said to attempting to work with?
a) Reserve
b) Opportunities
c) Scope verification
d) Threats

15. 999 During a voice conference, one team member suggests that a more experienced person
be used on the project. Another talk about using a person with more training. Which of the
following BEST describes what is being done?
a) Plan risk responses
b) Resource Leveling
c) Define activities
d) Develop project team

16. 1080 Risk response owners can potentially have conflict with risk auditors because risk
auditors :-
a) Report to the project manager
b) Investigate the effectiveness of the risk response owner
c) Measure the effectiveness of risk thresholds
d) Report to the stakeholders

17. 993 Based on the historical data, the amount of overtime associated with the design effort
of a project is estimated at 100 Hours with 0.4 probability, 200 Hours with 0.4 probability
and 300 Hours with 0.2 probabilities. What is the expected monetary value of the amount of
overtime?
a) 100 Hours
b) 160 Hours
c) 180 Hours
 d) 260 Hours

18. 974 A project manager asked various stakeholders to determine the probability and impact
of the no. of risks. He then analyzed assumptions, he is about to move to the next step of
risk management. Based on this information, what has the project manager forgotten to do?
a) Evaluate trends in risk analysis
b) Identify triggers
c) Provide a standardized risk rating matrix
d) Create a fallback plan

19. 1067 During Project executing, a team member identifies a risk that is not in the risk
register. What should you do?
a) Get further information on how the team member identified the risk, because you
already performed a detailed analysis and did not identify this risk.
b) Disregard the risk, because risks were not identified during project planning
c) Inform the customer about the risk
d) Analyze the risk.

20. 1001 The outputs of the Plan Risk Responses process includes a risk response plan , risk
response owners assigned and?
a) Residual risks
b) Closed risks
c) Probability and impact matrix
d) Probability of achieving cost objectives

21. 986 A project manager that you have been mentoring has completed the Plan Risk Response
Process and has a risk response plan. What is the NEXT thing the project manager should
do?
a) Update the project management plan
b) Recommend corrective action
c) Update the risk identification checklist
d) Create risk response strategies

22. 966 Developing alternative activity sequences is an example of?

a) Risk transfer
 b) Risk aversion
c) Risk identification
d) Contingency planning

23. 980 A list of risks for additional study is an output of?

a) Identify risk
b) Plan risk management
c) Perform qualitative risk analysis
d) Perform quantitative risk analysis

24. 985 You have been appointed as the manager of a new, large and complex project. Because
this project is business critical, and very visible, senior management has told you to analyze
the project risks and prepare response strategies for them as soon as possible. The
organization has risk management procedures that are seldom used or followed, and has
had a history of handling risks badly. The project’s first milestone is in 2 weeks. In preparing
the risk response plan, input from which of the following is generally LEAST important?
a) Project team members
b) Project sponsor
c) Individuals responsible for risk management policies and templates
d) Key stakeholders

25. 978 Which risk management process MOST affects the project management plan?
a) Identify risks
b) Perform Qualitative Risk Analysis
c) Plan Risk Responses
d) Monitor and control risks

26. 458 Monte Carlo Analysis is used to?

a) Get an indication of the risks involved in the project
b) Estimate an activity’s length
c) Simulate the orders in which activity will occur
d) Prove to management that extra staff is needed

27. 969 What is graphically represented in the chart?

 20% 10% 20% & $1000

a) A Pareto chart
b) Probability chart
c) Fishbone diagram
d) Decision tree

28. 1070 The customer requests a change to the project that would increase the project risk.
Which of the following should you do before all the others?
a) Include the expected monetary value of the risk in the new cost estimate.
b) Talk to the customer about the impact of change
c) Analyze the impacts of the change with the team
d) Change the risk management plan.

29. 982 A project manager is quantifying risk for her project. Several of her experts are offsite,
but wish to be included. How can this be done?
a) Use Monte Carlo Analysis using internet as the tool.
b) Apply the critical path method
c) Determine options for recommended corrective action
d) Apply the Delphi Technique

30. 1047 All of the following are Risk Response Strategies EXCEPT?
a) Retain
b) Accept
c) Share
d) Avoid

31. 997 All of the following are factors in the assessment of project risk EXCEPT?
a) Risk Event
b) Risk Probability
c) Amount at stake
d) Insurance premiums
32. 991 A project team is creating a project management plan when management asks them to
identify the project risks and some forms of qualitative outputs as soon as possible. What
should the project team provide?
a) Prioritized list of project risks
b) Risk triggers
c) Contingency reserves
d) Probability of achieving the time and cost objectives

33. 981 When planning risk responses, the strategy of changing the project management plan to
eliminate the risk is known as?
a) Avoidance
b) Transference
c) Mitigation
d) Acceptance

34. 992 There is a probability of 0.1 that a given risk will occur in a project. If it occurs, it’ll result
in a loss of US$10,000. The insurance cost of this event isUS$700 , with a deductible amount
of US$250. Should a rational project manager buy this insurance?
a) Yes, since $1000> $950.
b) Yes, since $1000> $700
c) No, since the deductible amount changes the expected monetary value of the risk event
d) No, since $1250 >$1000

35. 1022 A project has the following risks: 20% probability of a 14 Day Delay in the receipt of
customer requirements. 10% probability of a 21 day delay in the procurement process, 15%
probability the integration will take 14 Days longer. What is the expected monetary value of
these events?
a) 11.9 days
b) 35.8 days
c) 49 days
d) 7 days

36. 1077 As a result of your analysis of the risks on the project, you have decided to remove a
team member from the project team in order to decrease the overall project risk. What is
this an example of?
a) Transference
 b) Resource analysis
c) Avoidance
d) Acceptance

37. 1012 The project manager has completed the Plan Risk Responses process and has
identified risk management strategies with the team. The team’s manager has asked for the
amount of risk reserves needed for the project. What is the FIRST thing the project manager
should do?
a) Create the risk reserves
b) Prioritize the list of risks
c) Create the overall risk rating of the project
d) Determine secondary risks

38. 1023 A project has the following risks, 5% probability of an additional acceptance test
resulting in a 3 week delay, 50% probability the next software release will not be ready by
the due date resulting in an 8 week delay. 30% probability an expert resource becomes
resulting in a four week decrease in activity C. what is the expected monetary value?
a) 20.65 days
b) 29.05 days
c) 77 days
d) 84.23 days

39. 970 A project manager has just finished the risk response plan for a US$387,000 engineering
project. Which of the following should he probably do NEXT?
a) Determine the overall risk rating for the project.
b) Begin to analyze the risks that show up in project drawings
c) Add work packages to the project work breakdown structure
d) Hold a project risk reassessment

40. 1004 A project manager has been instructed to use the project charter to help identify the
risks on the project. This does not make sense to him. If you were asked to explain the
reason the project charter is used in this way, what is the BEST explanation?
a) The project charter determines the business needs of the project.
b) Reviewing what is said and not said in the project charter will help determine risks
c) The project charter is issued by the sponsor
 d) Reviewing the project charter will help determine the description of the product of the
project.

41. 1046 You are in the middle of a 2 year project to deploy new technology to field offices
across the country. A hurricane caused power outages just when the upgrade was near
completion. When the power was restored, all of the project reports and historical records
were lost with no way of retrieving them. What should have been done to prevent this
problem?
a) Purchase insurance
b) Plan for a reserve fund
c) Monitor the weather and have a contingency plan
d) Schedule the installation outside of hurricane season

42. 979 Risk tolerances are determined in order to help?

a) The team rank the project risks
b) The project manager estimate the project
c) The team schedule the project
d) Managers know how other managers act on the project.

43. 967 What is the expected monetary value of the decision displayed in the chart?

20% 10% 20% & $1000

a). $4
b). $100
c) $20
d) $200

44. 984 During the Plan Risk Management process of a major project, the project manager is
informed that her key subject matter experts are currently spread around the globe. All
experts are available via email, and planning must not be delayed. What is the BEST method
of gathering information?
 a) Brainstorming
b) Delphi Technique
c) Assumption Analysis
d) Cause and Effect Diagramming

45. 1000 Two people are in the process of estimating probabilities for each of their identified
risks. Which step of risk management is this?
a) Identify risks
b) Perform Quantitative Risk Analysis
c) Plan Risk Responses
d) Monitor and Control Risks

46. 1076 Which of the following helps determine the probability of completing the project on
any specific day?
a) Network diagram
b) Monte Carlo Analysis
c) Qualitative Risk Analysis
d) Precision testing

47. 1008 During the identification of risks on your project, you have determined that there is a
very high probability of conflict among the team during project executing over one aspect of
the final design of the project. Which of the following is an example of mitigating the impact
of risk to the project?
a) Obtain an insurance policy for the anticipated cost of the impact.
b) Provide the team with training on conflict resolution techniques
c) Outsource that part of the project to another company.
d) Eliminate that part of the project.

48. 1048 A project team is trying to decrease the risk on the project. Management has a good
relationship with the seller who has experience in the areas your company is not
experienced in. management wants all activities with a US$ 50,000 or higher risks to be
transferred to the seller. Management believes that this will remove the impact of those
higher risks from the project. Why would this not be effective?
a) Working with sellers will add more than $50,000 of the risk to the project.
b) You would have to go through the contacting process
c) The transference of the risk does not remove all impacts of the risk
 d) Management’s association with the seller is a conflict of interest for the project

49. 1002 Purchasing risk is best considered an example of?

a) Mitigation
b) Transfer
c) Acceptance
d) Avoidance

50. 1006 Your project team has identified a major project risk. After talking to the project
management office, they determine that the reserve on the project is not necessary. What
is the NEXT step?
a) List the time or cost overrun expected on the project in your project management plan
b) Develop risk transference strategies
c) Create a risk response plan that includes the risk
d) Ignore the risk until it happens

51. 1021 A project manager is unsure of how much cost reserve to add to the project. There is a
50% chance of weather delay causing an impact of US$100,000 and a 30% chance delay in
the testing centre with a US$20,000 impact. How much should the cost reserve be?
a) Less than $50,000
b) More than $120,000
c) Less than $20,000
d) More than $56,000

52. 998 A project manager is creating a risk response plan. However, every time a risk response
is suggested, another risk is identified that is caused by a response. Which of the following is
the BEST thing for the project manager to do?
a) Document the new risks and continue the Plan Risk Response Process
b) Make sure the project work is better understood
c) Spend more time making sure the risks responses are clearly defined
d) Get more people involved in the Identify Risks process since the risks have been missed.

53. 1025 During which risk management process is the determination to transfer a risk is made?
a) Identify risks
b) Perform quantitative risk analysis
 c) Plan risk responses
d) Monitor and control risks

54. 1041 You are a project manager for a major telecommunications network upgrade with NPV
of US$10, 000, 00. You are heavily dependent on a third party vendor for your project and
your contact office informs you that there is a 30% chance that the vendor will go out of
business at the end of the quarter. If that occurs , your project will incur a US$3,000,00 cost
overrun due to rework . there is also a 30% chance that a new legislation will pass that will
decrease government oversight of your team’s work. If this legislation passes, you estimate
that your project will save US$1,600,000 in time delays. Lastly, your technical lead indicates
that there is a 20% chance that a new software package will be available by the month end,
that could save US$ 1,800,000 in testing time. If available, the software will cost US$
500,000 to procure, install and train. What is the total expected monetary value of these 3
risk events?
a) $60,000
b) $1,640, 000
c) $5,900, 000
d) $160,000

55. 1018 During the Plan Risk Management process, your team has come up with 434 risks and
16 major causes of those risks. The project is a last of the series of all the projects which the
team has worked on together. The sponsor is very supportive and a lot of time was invested
in making sure the project was complete and signed off by all the project stakeholders.
During project planning, the team cannot come up with an effective way to mitigate or
insure against a risk. It is not work that can be outsourced, nor can it be deleted, what is the
BEST solution?
a) Accept the risk
b) Continue to investigate the ways to mitigate the risk
c) Look for ways to avoid the risk
d) Look for ways to transfer the risk

56. 1014. A ranking of lists and a list of risks for additional analysis are outputs of which process
of risk management?
a) Identify risks
b) Perform qualitative risk analysis
c) Perform quantitative risk analysis
d) Plan risk responses
57. 1007 One of the risks your team has discovered is a high probability that the equipment you
are developing will not perform under the pressure it needs to in the workplace. In order to
handle this risk, you have chosen to prototype the equipment. This is an example of risk?
a) Mitigation
b) Avoidance
c) Transference
d) Acceptance

58. 1328 The stakeholders identified a major project risk of more than 2 centimeters of rain
falling in any 24 hour period. With a little effort contingency plans and fallback plans were
put in place for this risk and risk response owners said they were ready to take action. One
day during the project it started to rain. The risk response owner was not even near the
project location to know it was raining so the contingency plan was not implemented. Which
of the following BEST describes why this occurred?
a) The project manager should implement the contingency plan if the risk response owner
does not.
b) The risk response owner should have been required to remain in the project location for
the length of the project and run through the implementation of the contingency plan at
least twice before it was needed.
c) The project manager should have been watching the weather to see if the risk event
might be triggered and then had the risk response owner available to fulfill his
responsibilities
d) The risk response owner only determines ideas for contingency plans, he does not
implement them , therefore there is another root cause of this problem

59. 977 During which of the risk management process would you complete risk rating matrix?
a) Identify risks
b) Perform qualitative risk analysis
c) Monitor and control risks
d) Plan risk responses

60. 1072 What is the difference between management reserves and contingency reserves?
a) Contingency reserves address known known’s, whereas management reserves
addresses known unknowns.
b) Contingency and management reserves both addresses known unknowns and could be
considered the same.
 c) Contingency reserves address known unknown’s whereas management reserves
addresses unknown unknowns.
d) Contingency reserves are managed by senior management , whereas management
reserves are managed by the project manager.

61. 1016 Which part of the risk management process receives input from risk response owners?
a) Identify risks
b) Perform qualitative risk analysis
c) Perform quantitative risk analysis
d) Plan risk responses

62. 163 You have just been assigned as a project manager for a new telecommunications
project that is entering the second phase of the project. There appears to be many risks on
the project, but no one has evaluated them to assess the range of possible project
outcomes. What needs to be done?
a) Plan risk management
b) Perform quantitative risk analysis
c) Plan risk responses
d) Monitor and control risks

63. 995 You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate
on an?
a) Quantitative basis
b) Numerical Basis
c) Qualitative basis
d) Econometric Basis

64. 71 While preparing your risk responses, you realize that you have not planned for unknown
risk events. You need to make adjustments to the project to compensate for unknown risk
events. These adjustments are based on your past project experience when unknown risk
events occurred and knocked the project off track. What should you do?
a) Include a management reserve in the budget to try to compensate for the unknown
risks and notify management to expect unknown risks to occur.
b) Document the unknown risk items and calculate the expected monetary value based on
probability and impact that may result from the occurrence.
 c) Determine the unknown risk events and the associated cost, and then add the cost to
the project budget as reserves.
d) With the stakeholders, determine the percentage of the of the known risk budget to
allocate to a management reserve budget.

65. 1081 A project manager is working on a major new product development project when a
risk occurs that does not have a risk response plan. What should the project manager do?
a) Hold a risk reassessment and plan a workaround
b) Inform management and communicate the new risk to the team
c) Communicate the planned response to the stakeholders
d) Use some of the reserves to accommodate the risks

66. 1058 The Cost Performance Index (CPI) of the project is 0.6 and the schedule performance
Index (SPI) is 0.71. The project has 625 work packages and is being completed over a 4 year
period. The team members are very inexperienced and the project received little support for
project planning. Which of the following is the BEST thing to do?
a) Update risk identification and analysis
b) Spend more time improving the cost estimates
c) Remove as many work packages as possible
d) Reorganize the responsibility assignment matrix.

67. 1056 Once a risk response is created, which of the following statements BEST describes the
project manager’s role regarding risks while the project work is being completed?
a) Take actions when identified risks occur
b) Look for unexpected impacts of implemented risk responses
c) Implement planned workarounds
d) Make sure the risk response owners are assigned to identify risks

68. 1035 In response to a risk, the project manager meets with the team and management to
develop a strategy. After discussions, they decide that it would be BEST to make sure the
risk definitely happens. This is an example of which risk response strategy?
a) Share
b) Exploit
c) Accept
d) Enhance
69. 1037 Allocating ownership of a risk to a third party who is best able to capture the
opportunity is an example of _____ the risk.
a) Sharing
b) Enhancing
c) Exploiting
d) Accepting

70. 1083 A project has a schedule reserve of 28 days when the customer adds scope not
previously planned for. The change has a 40% chance of delaying the project by additional
14 days. What should be done?
a) Add more resources to the project.
b) Look for ways to cut 14 days of work from another activity.
c) Add 5.6 days to schedule reserve
d) Plan to add 14 days of overtime to the project

71. 1017 Which part of the risk management process does not generally use OPA’s as an input?
a) Identify risk and perform qualitative risk analysis
b) Perform qualitative and quantitative risk analysis
c) Perform quantitative risk analysis and Plan Risk Responses
d) Plan Risk Responses and Monitor and control risks

72. 1028 During the identify risk process, a project manager identifies a risk that , no matter
what the company does , a fire could occur in the building during the testing. It would be
BEST to ____ the risk.
a) Deflect
b) Accept
c) Avoid
d) Change

73. 1029 Project team A has been hired to manage a transportation project very similar to
dozens of projects the team has managed successfully in the past. The team has determined
that the probability of achieving project objectives is 94%. What part of the risk process the
team is in?
a) Perform qualitative risk analysis
b) Plan risk responses
c) Perform quantitative risk analysis
 d) Identify risks

74. 575 While planning the project, you discover that an expert resource might be available to
work on your project. However, the resource manager will not commit to the resource being
ion your team at the present time. The BEST thing would be to estimate the activity:-
a) As if the expert resources were available.
b) As though you had an average resource doing an activity.
c) As if you had an inexperienced resource
d) Using the Delphi Technique

75. 1382 A watch list is an output of which risk management process?

a) Plan risk management
b) Perform quantitative risk analysis
c) Perform qualitative risk analysis
d) Plan risk responses

76. 1015 Probabilistic analysis of the project and probability of achieving the project cost or
time are completed during?
a) Identify risks
b) Perform Qualitative risk analysis
c) Perform Quantitative risk analysis
d) Plan risk responses

77. 1044 All of the following are results of adding to the risk register in the Plan Risk Response
process EXCEPT?
a) You are in control of the project as it progresses with few surprises.
b) By managing the plan, you are able to avoid some risks while mitigating the effects of
others.
c) The need for workarounds is minimized
d) The need for contingency reserves is minimized

78. 1031 What should be done with risks on the watch list?
a) Document them for historical use on other projects.
b) Document them and revisit them during project monitoring and controlling
 c) Document them and set them aside because they are already covered in your
contingency plans
d) Document them and give them to the customer

79. 1055 A fire has just destroyed a warehouse that was being constructed as part of a large
project you are managing. What would have been the easiest way to ensure that this force
majeure would not significantly impact the cost of your project?
a) Reduce the impact of such risk by transference
b) Reduce the probability that the event will take place
c) Accept the risk
d) Eliminate the treat by not building the warehouse

80. 1038 During project planning, a project manager is planning the upcoming project
execution team meetings. What should she include in these meetings that would have the
biggest impact on the project?
a) Review of the action item list
b) Review of upcoming identified risks
c) Assignment of activities to team members
d) Estimating costs

81. 1039 Which of the following risk events is Most likely to interfere with attaining a project’s
schedule objective?
a) Delays in obtaining required approvals
b) Substantial increases in the cost of purchased materials
c) Contract disputes that generates claims for increased payments
d) Slippage of the planned post implementation review meeting

82. 1019 Which of the following is a TRUE statement about risk rating matrix?
a) It should be changed for every project.
b) It should never be used on large project
c) It should be standardized between projects
d) It should be developed by the project manager
83. 1062 As project manager of a project, you just handled a risk event that impacted the
project cost and schedule. Because the impact is 15% of the total project cost , what is the
most appropriate action?
a) Control the cost
b) Inform the appropriate stakeholders
c) Act to bring the cost of the event within acceptable limits
d) Update the project budget
84. 1042 According to the project manager’s earned value (EV) analysis of a software
development project on June 1st , the CPI computes to 1.0 and the schedule variance SV is 0
. on June 3rd , the banks of the nearby river overflow and flood the development computer
room, shutting down all the operations for two weeks. The project has been struck by a(n)?
a) Unknown unknown risk
b) Known unknown risk
c) Known risk
d) Foreseen risk

85. 1043 A team member assigned to the project needs two days of training to satisfactorily
complete certain activities. No one else with the necessary skills is available with the project
team. What is the BEST thing to do?
a) Add two days to the schedule and inform management of the delay
b) Ask management for additional personnel because you cannot afford the extra schedule
time
c) Offer a bonus to the team member if he/she gets a training on his/her own time
d) Include training in the project management plan

86. 1074 Which of the following BEST describes a risk response owner?
a) The person who identified a risk
b) The department or company that is the source of the risk and most knowledgeable on
the risk
c) The department or company that will be most affected by risk
d) The person who will be responsible for implementing the risk response strategy.

87. 1003 The risks identified for the projects must be analyzed to be able to rely on them during
the rest of the risk management process. It would be MOST important to complete which of
the following?
a) Trigger data analysis
b) Data quality assessment
c) A risk rating matrix
 d) Analysis of the trends in qualitative risk analysis

88. 1061 Executing the risk response plan in order to react to risk events throughout the
projects is called?
a) Contingency planning
b) Monitoring and control
c) Mitigation
d) Life cycle costing

89. 1030 If a risk has 20% chance of happening in a given month , and the project is expected to
last 5 months , what is the probability that this risk event will occur during the fourth month
of the project?
a) Less than 1 %
b) 20%
c) 60%
d) 80%

90. 1053 During project executing, an accepted risk occurs and is handled, however the project
manager notes that the impact was greater than was anticipated. The BEST thing to do
would be to?
a) Notify the sponsor
b) Create a workaround
c) Perform additional risk response planning
d) Revisit the quantitative risk analysis process

91. 971 You have assumed responsibility of a complex, business critical project involving new
technology and approaches. All of the project stakeholders have emphasized to you that this
is a high risk effort, and that you are responsible for effectively identifying and addressing
the project’s risks. There are a no. of risk management tools and approaches you have been
encouraged to use, but there is no agreement from the stakeholders as to which is the
superior approach. The organization sponsoring the project has recommended risk
management methodologies and templates, but did not consistently or efficiently use them.
In addressing risk management planning for this project, what is the MOST important
consideration you should keep in mind?
a) Ensure risks have been identified and mitigation strategies have been developed for the
most important ones
 b) Complete at least a moderately thorough examination of available risk management
tools and methodologies to select the best ones for the project
c) Create a high quality risk management plan and risk response plan
d) Tailor the level, type and visibility of risk management to match the risks associated with
the project and the project’s importance.

92. 1009 During the Plan Risk Response process, the team is discussing ways to deal with a risk.
They have come up with the following options, a) outsource the work, b) provide more
training to the team members, c) ignore the risk and d) do the risky activity sooner in the
project. Which of the following is a risk response strategy that was forgotten in the above
situation?
a) Remove the activity causing the risk from the project.
b) Purchase insurance to cover the anticipated cost
c) Assign the activity to a more experienced person to handle
d) Prototype the product

93. 1079 During the monitor and control risk process, the risk response owner should be?
a) Identifying which risks she wants to monitor.
b) Controlling the identification of response strategies
c) Informing the project manager of any midcourse correction needed
d) Updating stakeholders of new strategies for mitigating risks

94. 1243 Risks will be identified during which risk management processes?
a) Perform quantitative risk analysis and identify risks
b) Identify risks and monitor and control risks
c) Perform qualitative risk analysis and monitor and control risks
d) Identify risks

95. 1274 A project manager’s project has just been dropped to a low priority on the list of his
department’s prioritized projects. it would be BEST for the project manager to?
a) Let the customer know that the project schedule need to slip
b) Use some of the management reserve to accommodate the change
c) Start cutting work packages
d) Gain more resources
96. 1032 What is the purpose of decision tree?
a) It demonstrates the path of events in a project
b) It calculates the probability of an outcome
c) It determines what events may take place
d) It takes into accounts future events for today’s choices.

97. 1057 You have just been assigned as a project manager for a sizeable engineering project,
and you want to quickly review the project’s procedures for managing risks. Which would be
the MOST helpful I finding this information?
a) A risk identification plan
b) A risk management plan
c) Environmental process assets
d) A risk impact matrix

98. 173 During project executing, a major problem occurs that was not included in the risk
register, what should you do FIRST?
a) Create a workaround
b) Reevaluate the identify risks process
c) Look for any unexpected effects of the problem
d) Tell management

99. 1085 Workarounds are determined during which risk management process?
a) Identify risks
b) Perform quantitative risk analysis
c) Plan risk responses
d) Monitor and control risks

100. 1040 You are in charge of a project developing a complex product that does not
resemble anything your organization has done previously. You are using a resource to
develop this product who is in high demand elsewhere in your organization. The project’s
timeframe is very aggressive. In order to meet the schedule, only a limited amount of
testing is done, once the testing is completed, the resource is released. The product works
fine when being tested, but in production, it performs poorly, this results in substantial
amount of rework and extra costs to re-acquire the resource on an overtime basis. Which of
the following BEST describes why this project had problems?
a) Poor quality management
 b) Poor reporting
c) Poor risk identification
d) Poor resource management

101. 1020 A project is facing the following risks, 20% chance a part is not available. Creating
an additional fee of US$30,000. 10% chance the team requires an additional training for a
cost of US$12,000. 25% chance the second planned quality test costing US$8000 is
unnecessary. What is the expected monetary value of these risks?
a) $50,000
b) $5,200
c) $42,000
d) $7,200

102. 1024 Which of the following BEST describes when the team and stakeholders identify
risks?
a) During the verify scope process
b) After the project charter is received and before the WBS is created
c) Whenever there is a change to the project
d) Before the project charter is created

103. 987 The probabilistic analysis of the project is an input to which part of the risk
management process?
a) Identify risks
b) Perform qualitative risk analysis
c) Perform quantitative risk analysis
d) Plan risk responses

104. 1064 The project manager gets a report from the risk response owner that the risk did
not occur. The project manager should then?
a) Update the risk response plan in the risk register
b) Update the network diagram
c) Decrease some project reserves
d) Change all future risk response strategies
105. 968 You have a US$100,000,000 project that has 34 team members in 4 different
countries. At the completion of the project planning, you have identified 6 risks, 225 work
packages, 13 stakeholders and 7 phases to the project life cycle. What part of the project
management plan needs to be revisited?
a) The identify risk process
b) The staffing management plan
c) The network diagram
d) The communication management plan
106. 996 All of the following are ALWAYS inputs to the risk management process EXCEPT?
a) Historical Information
b) Lessons learned
c) WBS
d) Project status reports

107. 1051 A system development project is nearing project closing when a previously
unidentified risk is discovered. This could potentially affect the project’s overall ability to
deliver. What should be done NEXT?
a) Alert the project sponsor of potential impacts to costs, scope or schedule.
b) Qualify the risk
c) Mitigate the risk by developing a risk response plan
d) Develop a workaround

108. 1071 During the project, a team member tells you that a major risk identified by the
team has occurred. However, it is not as serious as previously thought. What is the FIRST
thing you should do?
a) Increase the quality standard
b) Present this finding to the project team and ask them to verify the team member’s
finding
c) Investigate changing the contingency plan
d) Notify management

109. 1027 If the risk event has 90% chance of occurring, and the consequences will be
US$10,000. What does US$9000 represent?
a) Risk value
b) Present value
c) Expected monetary value
d) Contingency budget
110. 1065 All of the following statements about workarounds are correct EXCEPT?
a) They are unplanned response to risks
b) They are responses only to risks that were identified in project planning
c) They make use of the project management plan
d) They may result in project change request

111. 1303 You are finishing the prototype that was planned as a risk mitigation strategy
when you found out that the Benefit Cost Ratio (BCR) has been improved and the project
Cost Performance Index (CPI) is 1.03. The standard deviation of the project time estimate
has decreased and you discover that the prototype, already almost finished can fulfill the
needs of other project requirements as well. What should you do FIRST?
a) Look for ways to help get the prototype accepted faster and then cut cost
b) Review the benefits of the project with the customer and determine if the prototype
will improve the benefits
c) Compress the project to get it completed faster using the prototype
d) Look for the risk impacts of fulfilling other requirements with the prototype.

112. 1049 Which of the following is NOT a possible outcome of risk management?
a) The project will suffer no damages
b) The project will use the risk reserve
c) The project will recover costs from the insurance companies
d) The project will experience a cost or schedule overrun

113. 1500 What is the DELPHI technique normally sued for?

a) Identifying risks
b) Decomposition of requirements into work packages
c) Verifying scope
d) Requirements gathering

114. 1069 The project manager has worked closely with the team to come up with the
contingency plans. Which of the following BEST describes the contingency plans?
a) Planned responses to risk events
b) Planned risk control procedures
c) Planned workarounds
d) Planned responses based on probability analysis
115. 1026 If a project has 60% chance of US$100,000 profit and a 40% chance of US$100,000
loss, the expected monetary value of the project is?
a) $100,000 profit
b) $60,000 loss
c) $20,000 profit
d) $40,000 loss

116. 200 Your project team has identified dependencies on 6 related projects that are
providing major deliverables to your project. Some of these projects has a very similar scope
and may overlap with your deliverables, in light of this, which of the following processes
would you be most concerned about?
a) Control scope
b) Verify scope
c) Plan risk responses
d) Plan communications

117. 1059 Assuming that the ends of a range of estimates are +-3 sigma from the mean,
which of the following range estimates involves the least risk?
a) 30 days + / - 5 days
b) 22 – 30 days
c) Optimistic = 26 days, most likely =30 days , pessimistic =33 days
d) Mean of 28 days

118. 973 A project manager completed the work package estimating process and then
performed a Monte Carlo Analysis to determine the amount of risk reserve needed on the
project. Why is this incorrect?
a) The risks per work package have not been identified
b) The critical path was not calculated
c) The network diagram was not used
d) The schedule was not developed

119. 1285 Which of the following BEST describes when additional risk responses are
documented?
a) When you are in the Plan Risk Management process
b) When an unknown risk occurs
 c) When the impact of a known risk event is more than expected
d) When a risk due to happen multiple times on a project does not occur the first time it is
expected

120. 1063 During the implementation of a contingency plan , a team member notices that
the plan worked only marginally. There were 3 similar contingency plans developed for
other risks that have not yet happened. He should recommend which of the following?
a) A workaround
b) A project change request
c) A new risk rating matrix
d) A risk responsibility chart review

121. 972 Determining cost and schedule reserves, identifying risks requiring most attention
and determining the overall project risk exposure are all part of processes of Perform
Qualitative Risk Analysis, Perform Quantitative Risk Analysis, and:-
a) Plan risk responses
b) Monitor and control risks
c) Identify risks
d) Plan risk management

122. 1011 A project manager analyzed a US $200,000 project that involves 30 team members
ad has 3 customers. Why is there a need for analysis of secondary risks on this project?
a) It provides a vehicle for efficient stakeholder involvement
b) It provides a way to effectively decrease the amount of contracting on the project
c) It helps create a prioritized list of risks
d) It helps determine which new risks have been created as a result of risk response
strategies chosen

123. 1052 Which of the following MUST be an agenda item at all team meetings?
a) Discussion of project risks
b) Status of current activities
c) Identification of new activities
d) Review of project problems
124. 1078 Residual risks are risks that remain after the Plan Risk Response process.
Secondary risks are?
a) Planning risks that are no longer a factor during project executing
b) Discovered during Identify risk process
c) New risks created by the risk response strategies selected
d) Lower priority risks not requiring mitigation efforts

125. 1075 A project manager has completed a Plan Risk Response process. She was planning
to go on to the Monitor and control risk process when she found out from another project
manager that she forgot to do something important in this step. Which of the following did
she forget?
a) She has not created an overall risk ranking for the project
b) She has not analyzed secondary risks
c) She has not created workarounds
d) She has not created a prioritized list of quantifies risks

126. 983 An experienced project manager has just begun working for a large information
technology integrator. Her manager provides her with a draft project charter and
immediately asks her to provide an analysis of the risks on the project. Which of the
following would BEST help in this effort?
a) An article from PM Network Magazine
b) Her project scope statement from project planning process
c) Her resource plan from project planning process
d) A conversation with a team member from a similar project that failed in the past

127. 1034 After identifying a risk to your project, you determine that there is a high
probability of the risk occurring with a low consequence. What mitigation strategy is best to
adopt?
a) Eliminate the consequences of the risk.
b) Avoid the risk
c) Add the risk to the watch list
d) Insure against the risk

128. 1066 Which of the following is the MOST likely cause of poor risk management ?
a) Inadequate risk response planning
b) Poor risk monitoring and control
 c) Lack of prioritized list of risks
d) Lack of detail in the project management

129. 300 Which of the following is the chief characteristic of Delphi technique?
a) Extrapolation from historical records from previous projects
b) Expert opinion
c) Analytical hierarchy process
d) Bottom up approach

130. 1068 All of the following are common outputs of risk management EXCEPT?
a) Contract terms and conditions
b) Risk response plans
c) Schedule reserves
d) An approved project management plan

131. 1388 All of the following are outputs of the Perform Quality Risk Analysis process
EXCEPT?
a) Root causes of risk
b) Probabilities and impact
c) Risk categorization
d) Risk urgency

132. 1010 You have finished the Plan Risk Response process and are left with residual risks.
What should you do with them?
a) Document them in the risk register and revisit them during project executing
b) Deal with them as they arise during project executing
c) Include them as part of their contingency plans
d) Perform a sensitivity analysis on them

133. 990 A project manager has just completed subjectively evaluating risks on the project.
Which of the following is the MOST important output of this process?
a) Decrease in the risk ranking for the project.
b) A determination of which risks to process further and which to simply document
c) Probabilistic analysis of the project and identification of the risk triggers
d) Probability of achieving cost objectives
134. 1387 Which of the following BEST describes an opportunity on a project?
a) Team members will learn more about spy satellites and will be able to use that
information on future projects.
b) The requirements might need updating later.
c) The quality requirements are hard to achieve
d) Additional engineering may be needed in order to get the satellite to meet the
customer‘s requirements.

135. 1414 How does risk affect a project?

a) It is an uncertain event that if it occurs has a positive or a negative effect on at least one
project objective.
b) It is a certain event that will have a negative effect on the project.
c) It can cause a change in the no. of resources for the project, but not the cost.
d) It can cause a change in the project schedule, but not the project scope.

136. 1073 You are a project manager of US$3,000,000 product development project, your
project is well into the executing process group and remains on time, on budget and within
specification. This morning, a project team member alerts you to a newspaper article
detailing unusually high defect rates in materials that your team has been using to develop
your product prototype. You had no reason to suspect quality issues in these materials
before now. What should you do first in response to this concern?
a) Stop work on the prototype
b) Quantify the risk
c) Develop a risk mitigation plan
d) Determine a workaround

137. 1245 Outputs of the Plan Risk Responses process include?

a) Residual risks, fallback plans and contingency reserves.
b) Risk Triggers, contracts and a risk list
c) Secondary risks, process updates and risk owners
d) Contingency plans, project management plan updates and change requests.