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PMI Risk Management Professional Sample Questions (Q127-Q132):

NEW QUESTION # 127
Gary is the project manager of his organization. He is managing a project that is similar to a project his organization completed recently. Gary has decided that he will use the information from the past project to help him and the project team to identify the risks that may be present in the project. Management agrees that this checklist approach is ideal and will save time in the project. Which of the following statement is most accurate about the limitations of the checklist analysis approach for Gary?

A. The checklist analysis approach is fast but it is impossible to build and exhaustive checklist.
B. The checklist analysis approach only uses qualitative analysis.
C. The checklist is also known as top down risk assessment.
D. The checklist analysis approach saves time, but can cost more.

Answer: A

NEW QUESTION # 128
A key project is delayed and all contingency reserves have been used even though the project team has implemented all planned risk responses. What should the risk manager do next?

A. Review the effectiveness of the risk process.
B. Escalate the project risks to upper management.
C. Update the risk management plan.
D. Create a new project plan including the new risks.

Answer: B

NEW QUESTION # 129
Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen.

If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

A. $6,700
B. $41,700
C. $14,000
D. $35,000

Answer: A

NEW QUESTION # 130
A risk manager has identified multiple risks in an innovation project and needs to prioritize the use of resources to respond to the risks. Which analysis will help the risk manager in this situation?

A. Qualitative analysis
B. Statistical analysis
C. Impact analysis
D. Sensitivity analysis

Answer: A

Explanation:
When a risk manager needs to prioritize resources to respond to multiple identified risks, qualitative analysis is the most appropriate tool. Qualitative analysis helps in evaluating the likelihood and impact of each risk using subjective criteria, allowing the risk manager to prioritize which risks require more immediate attention or resources based on their potential impact on the project.
PMI's guidelines on risk management suggest that qualitative analysis is particularly useful in the initial stages of risk assessment, where risks are categorized and ranked based on their severity. This process helps in prioritizing risks that need immediate attention, thus optimizing the use of resources in a project.

NEW QUESTION # 131
A company is preparing a formal response to bid for an infrastructure engineering, procurement, and construction project. When should a risk register be developed to identify risks?

A. After a project budget is set up with a purchase order to charge hours for a risk workshop.
B. Before a formal bid response is provided to the client to gain a greater understanding of the project's risk profile.
C. When a client project kick-off meeting is held to introduce risk assessment process to the client.
D. During the project execution phase to allow the project manager to understand the risk attitudes of stakeholders.

Answer: B

Explanation:
A risk register should be developed before submitting a formal bid response to help the company understand the project's risk profile and account for potential risks in their proposal. This allows the company to make informed decisions about cost, schedule, and resources. (Reference: Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, Section 11.2) A risk register is a document that is used as a risk management tool to identify potential setbacks within a project. A risk register is typically created at the start of a project (before it begins), and is regularly referenced and updated throughout the life of a project through deliberate risk monitoring and control1. A risk register is an important component of any successful risk management process and helps mitigate potential project delays that could arise. A risk register is shared with project stakeholders to ensure information is stored in one accessible place2. A risk register also helps to establish a hierarchy of risks, starting with the most impactful. The goal should be to have a path to mitigating those risks, reducing the harm they cause, or eliminating them. The register should also outline what's considered an acceptable level of risk and how to set up insurance to help offset the impacts3. Therefore, a risk register should be developed before a formal bid response is provided to the client to gain a greater understanding of the project's risk profile. This will help to estimate the project costs, schedule, and scope more accurately and realistically, as well as to identify the contingency plans and reserves needed to deal with the potential risks. Developing a risk register during the project execution phase, when a client project kick-off meeting is held, or after a project budget is set up with a purchase order are all too late to effectively identify and manage the risks that could affect the project success. Reference: 2, 3, 1, 4

NEW QUESTION # 132
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