Risk 4 simplelearn-exam3-ans

1 . Which source of information provides the roles and responsibilities as you begin to
plan risk responses?
Risk register
Risk plan
Stakeholder register
stakeholder plan
Answer: B. is the correct choice.
2 . Which Project Management Process group does the process of Control Risks fall
under?
Planning Process Group
Monitoring and Controlling Process Group
Executing Process Group
Closing Process Group
Answer: B. The Monitoring and Controlling Process Group is where the Control Risk process occurs.
3 . While conducting a risk review meeting with the project team you identify several
new risks. After proper analysis you determine that the risks will need someone to
ensure that the response strategies are carried out by the risk action owners. What is
this person known as?
The risk owner
The risk action owner
The project manager
The risk plan executor
Answer: A. The person who ensures the risk action owner implements the plan is known as the risk
owner.

4 . Which is not a purpose of the process of Control Risks?
Determines the likelihood of risk events.
Determines if project assumptions are still valid.
Determines if an assessed risk has changed or can be retired.
Determines if risk management polices and procedures are being followed.
Answer: A. Choices B, C, and D are all an intended purpose of the process of Control Risks. Choice
A is a purpose of the process of Perform Qualitative Analysis.
5 . Which of the following is the appropriate format for a risk statement?
Risk-cause-effect
Cause-risk-effect
Cause-effect-risk
Risk-effect-cause
Choice B is the correct format.
6 . Which of the following statements is true regarding risk management?
Risk management addresses only unforeseen risks.
Risk management addresses project issues that only arise during execution.
Risk management addresses the uncertainty in project estimates and assumptions.
Risk management can only be used effectively for known-controllable risks.
Answer: C. Risk management is focused on uncertainty on a project and many estimates and
assumptions turn out to be risks. A cannot be correct as an unforeseen risk is addressed with a
workaround. B is incorrect because issues are risk events that have occurred and they occur
throughout the project lifecycle. D is incorrect because risk management addresses both known-
controllable risks as well as known-uncontrollable.

7 . After proper analysis of a risk you determine that the impact is too much to bear
within your company's resources. Because of this you decide to take steps to eliminate
the threat altogether. What type of strategy have you implemented?
Risk mitigation
Risk avoidance
Acceptance
Transference
Answer: B. Risk avoidance is taking prevent the risk from ever occurring.
8. Which tool is useful for determining a company's deficiencies in their respective
market space?
SWOT
PERT
AON
EMV
A is correct, and understanding the acronyms is important in this question. A stands for strengths,
weaknesses, opportunities and threats. B stands for program evaluation and review technique. C is
a reference for activity on node and D is expected monetary value.
9 . The process of implementing risk responses plans, tracking identified risks,
monitoring residual risks, identifying new risks, and evaluating risk process
effectiveness throughout the project is conducted in which of the following?
Plan Risk Responses
Control Risks
Identify Risks
Perform Qualitative Risk Analysis
Answer: B. Choices A, C, and D provide inputs to the Control Risk Process.

10 . Your project team is currently using event oriented and project oriented analysis.
What are they most likely doing?
Controlling risks
Quantitative analysis
Qualitative analysis
Risk identification
Choice B. Event and project oriented analysis is most commonly explored with sensitivity analysis,
which is part of quantitative analysis.
11 . While trying to finalize the schedule you must choose the best estimating
techniques without increasing the risk on the project. Which of the following options
would increase the risk on the project?
Using reserve analysis to figure out how long activities should take
Using parametric estimating to figure out activity durations
Using analogous estimating to determine resource requirements
Using reserve analysis to determine activity buffers
Answer: C. You cannot use analogous estimating to determine resource requirements. This is not a
technique associated with estimating activity resources.
12 . As a project manager you understand the value of updating the lessons learned
archive at the end of the project so you can leverage the lessons learned in the future.
Which of the following updates would most useful for future quantitative analysis?
Risk trends that lead to better responses
Cost and schedule impact values that lead to better estimates in future projects
Risk categorization for the company RBS
Updated stakeholder tolerances
Answer: C. Risk categories are expected project document updates after completing qualitative
analysis. Choices A and B are document updates from quantitative analysis, and Choice D is an
update after risk planning.

13 . After analyzing a risk with the project team you, the project manager, decide to do
nothing about the risk. It is a low priority risk and the impact is minimal. What type of
strategy is this?
Passive transference
Active acceptance
Passive acceptance
Active mitigation
Answer: C. Doing nothing about a risk is known as passive acceptance.
14 . You are leading the project team through a round of risk identification, and you
stress that remembering Pareto's Law is important. Which of the following statements
most accurately supports this idea?
Identifying common root causes can result in risk responses that have a greater effect.
It is important to identify the effects as many causes are the result.
It is important to state the risk in the cause-risk-effect format so it is clearly understood by all.
Pareto's Law indicates that most effects can be traced by to a few common root causes, also known as the
70/30 rule.
Answer: A. It would be useful to know Pareto's Law to answer this question. Pareto's Law indicates
that the largest number of problems are the result of a few common causes. This is also known as
the 80/20 rule. Choice B is reversed between cause and effect. Choice C is a reference to
metalanguage and Choice D uses the wrong ratio.
15 . While conducting qualitative analysis on the project you review the next risk in the
register to calculate the PIM score. Which of the following most accurately expresses
how to derive the PIM score?
P*I
N(N-1)/2
I*P
P*I/2
Answer: A. P*I, or probability times impact is the proper way to calculate the PIM score of a risk.

16 . Academic studies, risk attitudes, published checklists and benchmarking are all
contain potential sources of risk that may be identified for your specific project. These
sources of risk are also known as what?
Enterprise environmental factors
Organizational process assets
Procurement documents
Project documents
Answer: A. These are all considered enterprise environmental factors.
17 . As the project manager on a project already in progress, you are constantly
updating appropriate documents. Which of the following contains the most likely
updates after controlling risks?
Project management plan and OPA.
Project management plan, risk register, and EEF.
Project management plan, EEF and OPA.
Project management plan, organizational process assets, qualitative risk plan and additional project documents
Answer: A. B and C contain EEF which is not a document to update, and D contains the qualitative
plan, which is not a real document.
18 . The project manager asks you to conduct a comparative analysis of the current
project data against the baselines established at the beginning of the project. What
technique has the project manager asked you to employ?
Reserve Analysis
Variance and Trend Analysis
Quantitative Analysis
Qualitative Analysis
Answer: B. Choices A, C, and D do not employ a comparative analysis of the current project data
against the baselines established at the beginning of the project.

19 . The process of Control Risks does not have which one of the following as an
output? Which one is it?
Work Performance Information
Change Requests
Risk Register
OPA updates
Answer: C. Choices A, B, and D are all outputs of process of Control Risks. Choice C is an input to
the process of Control Risks.
20 . Which one of the following inputs would be least helpful as you begin qualitative
risk analysis?
The project plan
The risk plan
The scope baseline
The risk register
Choice A is not an input to qualitative risk analysis. The other choices are.
21 . The project team is reviewing sources of potential risks for a project in the planning
phase. The are reviewing a source of information that reflects an area of risk for non-
conformance to pre-determined standards. Which source of information are they most
likely reviewing?
Cost Management Plan
Quality Management Plan
HR Management Plan
Answer: B. The non-conformance is most closely associated with quality. It is the risk of additional
time, money and resources for failing to meet the quality standards. This is reflected in the quality
plan.

22 . Which of the following statements best describes the purpose of qualitative risk
analysis?
The purpose is to assess the effect of risks against the project objectives.
The purpose is to implement risk responses while assessing variances.
The overall purpose is to prioritize risks for further analysis.
The overall purpose is to quantify risks for further analysis.
Choice C is correct. Qualitative risk analysis seeks to prioritize risks for quantitative analysis.
Choices A and D refers to quantitative risk analysis. Choice B is a reference to the process of control
risks.
23 . Which risk identification tool compares the variable for change against the opposing
variables?
Influence diagrams
FMEA
Force field analysis
Lessons learned
Choice C is a reference to force field analysis, which compares forces for change with the forces that
are against.
24 . Your team is in the middle of risk identification and are using a wide range of tools
to do so. Several are using cause an effect diagrams, while others are using flow charts
and influence diagrams. These types of tools are also referred to as which of the
following?
Quality management and control tools
Information gathering techniques
7 basic quality tools
Diagramming techniques
Answer: D. These are all examples of diagramming techniques.

25 . One of your new project team members approaches you and asks when risk
identification should begin on the project. Which is the best answer to give?
Risk identification happens throughout the project lifecycle.
Risk identification can begin after a risk plan is determined.
Risk identification must happen after the project plan is baselined.
Risk identification can only begin after the sponsor approves the charter.
Answer: B. Risk identification should only happen after a clearly defined plan is developed with
stakeholder buy in.
26 . As it often happens on a project a new team member is hired and you decide to
have a conversation with the team member to set expectations about the current
project, deliverables and building rapport. You call the team member into your office and
begin discussing the current project. You then decide to ask the team member her
perceptions of what risk management is and she responds. Which of the following
would be the best response?
Risk management is about dealing with problems on the project
Risk management is most often dealing with project issues
Risk management is planning for uncertainty before bad things happen on your project
Risk management is dealing with uncertainty
Answer: D. Risk management deals with uncertainty, and it can be good or bad.
27 . Which one of the following would not lead to poor qualitative risk analysis by the
project team?
A situation where probability equals impact
Not understanding stakeholder tolerances while developing definitions
Using a probability and impact matrix from a dissimilar project within the company
Risk definitions tailored to this specific project
Choice D is correct. Risk definitions should be tailored to each project. The other choices would
result in problems.

28 . Which of the following is not a primary activity associated with the process of
Control Risks?
Choosing alternative strategies
Executing a contingency or fallback plan
Taking corrective action
Modifying the Stakeholder Management Plan
Answer: D. Choices A, B, and C are all activities associated with the process of Control Risks.
Choice D is an activity associated with Project Stakeholder Management.
29 . Risk attitudes are often used to determine the appropriate level of risk management
that an organization will commit to during a project. Risk attitudes can be thought of as
which of the following?
Expert judgment
Organizational process asset
Environmental factor
Analytical technique
Answer: C. Risk attitudes, thresholds and tolerances are all enterprise environmental factors.
30 . Which of the following statements is most true about the risk plan and the overall
project plan?
The project plan is used to plan for risk and the risk plan is used until control risks.
The project plan is used for all aspects of risk management.
The project plan is used to plan for risk and then the risk plan is used for all remaining aspects of risk
management.
The project and risk plan are used together for all aspects of risk management.
Answer: A. The project plan is the input to plan risk management, and once the risk plan is defined it
is used for the remaining planning processes. The project plan is used in control risks.

31 . You have just completed developing all of your response strategies. Which of the
following would be an unexpected project document update?
Outcomes of periodic risk reviews
Trigger conditions for risk occurrences
Agreed upon response strategies
Expected residual risk
Choice A, would not be updated at this time. Periodic risk reviews are conducted during the Control
Risks process.
32 . The project team has just delivered the most updated tornado diagram for your
review. It shows that the project is very sensitive to abrupt weather changes this late in
the year. What should you do with this information?
Determine the probability and impact of these weather changes and update the risk register.
Determine an appropriate risk response in case the weather changes.
Update the work performance reports and send to upper management.
Update the watch list
Choice B. Tornado diagrams are used in qualitative risk analysis, which is followed by plan risk
responses. Choice A refers to qualitative analysis and Choice C is related to Monitor and Control
Project Work. D is what happens to low priority risks after risk identification, which should have
happened long before now.
33 . Which of the following could be thought of as a barrier against using Monte Carlo?
Allow all specified risks to vary simultaneously
It requires highly specialized software
It is used primarily for schedule and cost analysis
Calculates quantitative estimates based on overall project risk
Choice B is often a barrier to using Monte Software. Its use normally requires very specialized
software and personnel to use it properly. The other choices are normal characteristics of Monte
Carlo.

34 . While determining which risk tools to use on your project you discover a template
that you have never seen before. While it is a risk tool, it is categorized with two
variables in contrast with one another. One is for change, and the other is against.
Which risk tool does this describe?
FMEA
AHP
Influence diagram
Answer: D. Force field analysis compares the forces for change with the forces against change
35 . After calculating a PIM score for a risk and updating the risk register you notice that
a previous high risk's information is incomplete. You can see that the PIM score is 64
with an impact of 8. What should the probability be updated as?
Probability should be 12
Probability should be 7.5
There is not enough information to calculate probability
Probability should be 8
Answer: D. A PIM score is calculated as P*I. Here we only need to divide 64 by 8 to determine the
probability is 8.
36 . Which of the following would be a false statement regarding the use of check lists
for risk identification?
Check lists provide a more detailed list of risks.
Previous experience can contribute to the check list development.
A check list can become impractical if it is exhaustive.
Regular maintenance is not a consideration.
Answer D is a false statement. Regular maintenance is required for a checklist to be accurate and
tailored to each project. The other choices are true statements.

37 . While calculating the EMV of risks on your project, with the team, you determine
that Threat 1 has a 33% chance of costing $15000. Threat 2 has a 42% chance of
costing $9000. The last threat has only a 11% probability of costing $3790. There is one
opportunity through which has a 50% chance of large gain, or $18293.80. Which of the
following statements is correct regarding your risks?
The value of the threats is equal to the opportunity.
The value of the threats is greater than the opportunity
The value of the opportunity is greater than threats.
The value of the opportunity is not equal to the threats.
Answer: A. The value of threats and opportunities is equal. (-$15000*.33)+(-$9000*.42)+(-
$3790*.11)+($18293.80*.50)=0
38 . Which of the following does not occur during a risk reassessment?
Identification of new risks
Approval of the project management plan
Reassessment of current risks
Closing of outdated risks
Answer: B. Choices A, C, and D all occur during a risk reassessment. Choice B occurs with the
process of developing a Project Management Plan.
39 . While purchasing equipment for an upcoming IT project the sales person informs
you of a price reduction on one of your items. As you had no notice of this reduction you
decide to take advantage of the situation and save 15% of your equipment budget.
What is the best way to describe this situation?
You have exploited an opportunity.
You have enhanced an opportunity.
You have accepted an opportunity.
You have transferred an opportunity.
Answer: C. Because you had no prior notice of the opportunity you took action when the cost
savings were presented. This is acceptance.

40 . The organizational process assets that may be updated include which of the
following?
Templates for the risk management plan, including the probability and impact matrix and risk register.
Risk breakdown structure
Lessons learned from the project risk management activities.
All of the above.
Answer: D. A, B, and C are all risk management process documents that should be updated as a
part of the organizational process assets archive.
41 . You are currently on your way to interview a key stakeholder on your project. This
person has in-depth knowledge of a highly technical nature, which will be invaluable
during risk identification. Which of the following would be most problematic during your
interview?
You find yourself filtering non-risks, concerns, worries and issues during the interview.
You capitalize on your existing relationship with the stakeholder in order to schedule the meeting during a very
busy day.
You arrive without predetermined questions to keep the key stakeholder at ease in an effort to build rapport
during the interview.
You ask many follow-up questions in an effort to capture as much detail as possible from the stakeholder.
Choice C would be most problematic during your interview. Interviewing someone without a list of
questions will almost always cause many known risks to be missed by the stakeholder because you
did not have questions to guide the conversation. Choices A and D are consequences of interviews
used for risk identification. B is not a problem as your rapport helped you and the project.
42 . Which of the following is considered an information gathering technique during risk
identification?
Cause and effect diagrams
Documentation reviews
Surveys and Questionnaires
Root Cause Analysis
Answer: D. Information gathering techniques contains root cause analysis, interviewing,
brainstorming and the Delphi technique. The other choices are different tools used in risk
identification.

43 . You have just finished assessing the probability and impact of all identified risks
and are updating the risk register. Which of the following would be an unexpected
document update?
PIM scores for all risks
EMV of top ten risks
Risk rankings
Risk urgencies
Choice B is correct. The expected monetary value of risks would not occur until completing
quantitative analysis. The other choices are expected updates after completing qualitative analysis.
44 . Work performance reports are a compilation of work performance information and
forecasts, and they are used in risk management. After being utilized to determine if risk
is getting better or worse the WPI is then updated on the WPR and submitted to the
necessary stakeholders. In which of the following processes is the bulk of project
information distributed to the stakeholders?
Monitor and control project work
Control communications
Manage communications
Direct and manage project work
Answer: C. The process of manage communications is where you distribute the work performance
reports to stakeholders.
45 . As the project manager on a project already in progress, what inputs should you
refer to apply the appropriate risk control techniques?
Project management plan, risk register, work performance data, and work performance information
Organization process assets, risk register, work performance data, and work performance reports
Project management plan, risk register, work performance data, and work performance reports
Project management plan, risk register, work performance information, and work performance reports
Answer: C. B is not the best choice as the organization process assets are not an input to the
process of Control Risks. A and D are not good choices since work performance information is an
output of the process of Control Risks.

46 . As a risk manager for a company that resides in Florida, you are tasked with
determining the best course of action in case of a weather related evacuation. You
decide that each employee will have a travel bag by their desk. This bag will contain a
change of clothes, bottled water and food. They employees will only use these bags
when instructed to leave the company property and travel to a secondary company site.
What type of response is this?
Active acceptance
Passive acceptance
Mitigation
Transference
Answer: A. This type of strategy is known as active acceptance. The employees will use their travel
bags in a reactive manner. Mitigation is proactively doing something to reduce the probability and
impact. The other choices are not appropriate.
47 . You and your project team have began risk planning and are trying to utilize as
many organizational assets as possible. There is no sense is reinventing the wheel.
Which of the following would be useful?
Your authority level to make decisions
Current marketplace conditions
Your project director's risk threshold
The company's risk averse attitude
Believe it or not, A is the correct answer. It is the only choice that is an organizational process asset.
48 . Which one of the following techniques would not be useful for the project team
during qualitative risk analysis?
Expert judgment
Risk categorization
Data gathering and representation techniques
Risk categorization
Choice C would not be useful during qualitative risk analysis. This is a tool used during quantitative
risk analysis.

49 . Regarding the relationship between qualitative and quantitative analysis, which
statement is true?
Quantitative analysis is focused on individual risks while qualitative analysis is focused on overall project risk.
Quantitative analysis must always follow qualitative analysis.
Qualitative analysis is focused on individual risks while quantitative analysis is focused on overall project risk.
Qualitative and quantitative analysis are generally focused on the same areas of risk.
Choice C is the correct relationship between qualitative and quantitative analysis. Choice A is
reversed. Choice B is not true because you might not perform quantitative analysis on all projects.
Choice D is just incorrect.
50 . As a construction project manager you know that there is the possibility of theft with
so much equipment lying around. You also know that by hiring security guards you can
prevent most of it. What type of strategy is this?
Opportunity sharing
Active acceptance
Avoidance
Mitigation
Answer: D. Mitigation is when you proactively do something to reduce a threat. It does not mean you
can eliminate all of the threat though.
51 . Which source of information will help your project team maintain objectivity during
risk management activities?
Project charter
The risk plan
The risk metalanguage
Answer: B. The risk plan, is prepared properly, will help you remain objective throughout the project.

52 . Going outside of the company for goods and services normally increases the
liability, or risk, to the company. Which of the following would be a likely consequence of
planning to use outsourced human resources on your project?
A procurement audit
A contract negotiation
A change request
Selected sellers
Answer: C. Believe it or not, a change request is an output from the Plan Procurement Management
process, which is what the scenario describes.
53 . Your team members bring you three charts representing different data views for
consideration at the upcoming project review meeting. The charts show data that has
been analyzed in a discrete, continuous and uniform manner. These charts are
representative of which of the following?
Interrelationship digraphs
Scatter diagrams
Tornado diagrams
Probability distributions
Choice D is the answer. These are all types of probability distributions.
54 . While auditing project documents for input compliance you find an untitled source of
information. It contains data related to risk prioritization, stakeholder analysis, frequency
of risk status reports and risk statement formats. Which source of information are you
reviewing?
Risk Plan
Communications Plan
Stakeholder Plan
Risk activities schedule
Answer: A. All of this information is found within the risk plan. You may find various information that
is recorded in multiple plans because of the overlap in plan documentation and the integration of risk
into the other areas of the project.

55 . Which of the following would not be an unforeseen consequence of poor project
risk management?
Risks decrease throughout the project lifecycle.
The EAC is significantly greater than the BAC.
Stakeholder expectations are satisfied throughout the project.
The project team exploits many opportunities during the project.
Answer: B. This is a multi-concept question and may have been tricky because it was phrased as a
double-negative. The Estimate at Complete can be considered your final budget during project
closure and if it is higher than the Budget at Completion, the original budget, missing risks because
of poor risk management, leading to risk events contribute to it. The other choices are correct.
56 . In which process will you define what probability and impact mean for qualitative
risk analysis conducted during your project?
Perform Quantitative Risk Analysis
Plan Risk Management
Control Risks
Answer: C. Risk definitions are confirmed by stakeholders during Plan Risk Management.
57 . You are gathering sources of information so you can begin identifying risks on the
current project. Which of the following would not useful at this point?
Schedule Management Plan
Scope Management Plan
Choice C, the Scope Management Plan is not an input to the Identify Risks process. The Scope
Baseline, and the other choices are.

58 . After completing quantitative analysis on your project you must decide on the
appropriate response for a high impact risk. You must choose from three vendor
solutions. Vendor A offers a solutions that costs $5000 with only a 10% chance of
failure. Vendor B offers a $3000 solution with a 25% failure rate while Vendor C offers a
$4000 option with a 24.5% chance of failure. With a $25, 000 impact to the project with
no solution, what is the best option presented?
Vendor A
Vendor B
Vendors A and B have equal path values
Answer: B. The best way to answer this question is to compare all options. Vendor A has a path
value expressed as ($25,000*.10)+$5000, or $7,500. Vendor B can be shown as
($25,000*.25)+$3000, or $9,250. Vendor C is reflected as ($25,000*.245)+$4,000, or $10,125.
Vendor A is the best choice.
59 . You and the project team have just finished a round of quantitative analysis and are
looking at something unexpected. Which of the following would be unexpected?
A list of unmissable opportunities.
A quantitative risk analysis report.
A probability distribution for project budget and schedule achievement.
Work performance information
Choice D, WPI, is not an output of quantitative risk analysis. WPI is generated in the process known
as control risks.
60 . Your team has just finished an early round of risk identification on your project, and
have documented 200 risks. Where should the risks identified early be documented?
The project charter
The risk register
The risk management plan
The requirements documentation
Answer B is correct, because all identified risks are captured in the risk register. It does not matter
when they are identified.

61 . While in a meeting with a stakeholder you receive a text telling you that a risk event
has just occurred and a piece of equipment is damaged. You ask to be excused and
immediately check the risk register to find that this risk was not recorded. A risk like this
has apparently never happened before. What is the next best thing you should do?
Call a project meeting, notify the risk action owner and implement a response.
Notify the risk owner to implement the contingency response plan.
Notify the risk owner to implement the fallback plan.
Call a project meeting, develop and implement a workaround.
Answer: D. When an unforeseen risk event occurs you plan develop and implement a workaround.
62 . During a risk review meeting you discover some stakeholders are reluctant to
discuss the status of risks due to the influence of other stakeholders. What technique
can be used to determine where there is consensus on how to address identified risks?
Delphi Technique
Brainstorming
SWOT Analysis
Monte Carlo Analysis
Answer: A. The key to this question is which technique identifies consensus amongst a group, only
Choice A accomplishes this. Choice B collects all information without determining an agreement for
a specific idea. Choice C and D are not techniques used for the process of information gathering.
63 . As a risk SME, your judgment is often sought by project sponsors. Recently, a
company requested your opinion about a potentially new building project in Oklahoma.
Based on the volatile weather conditions there you advised against taking the project.
What type of risk strategy have you recommended?
Transference
Avoidance
Mitigation
Acceptance
Answer: B. By not constructing a building in Oklahoma the company can completely avoid the
weather problems.

64 . During risk planning, one of your team members suggests an interesting tool for
use. He describes it as a structured model analysis to identify which elements of a
system can fail by themselves or in a combination. Which of the following is he most
likely describing?
Ishikawa diagram
FMEA
AHP
Answer: B. Failure mode and effects analysis is the model described.
65 . While preparing the identify risks you decide to review the risk plan one final time to
see if it is well prepared. Which of the following would not reflect a well prepared risk
plan?
No descriptions for quantitative analysis tools
Revised stakeholder tolerances
Pre-determined PIM
Risk definitions
Answer: A. The risk plan should contain a list of tools for each process and instructions for use. The
other choices are characteristics of a good risk plan.
66 . Your project team has decided to use a decision to support making software using
company resources, or just buying it from a vendor. Which of the following would be
most problematic when making this decision?
The team carefully structures the decision tree
The team completely specifies of all choices
They have complete access to low quality data
They use a decision tree with functionality that has been validated
Choice C is most problematic, in this scenario, when using a decision tree. You must have access to
high quality data.

67 . You are attempting to calculate the average outcome with future events that might
not happen. What are you most likely doing?
EMV
EVM
TCPI
PERT
Choice A. Expected monetary value is a statistical concept that calculates the average outcome
when the future contains scenarios that may or may not happen.
68 . Which knowledge area is the process of Control Risks an integral part of because
of risk related change requests?
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Answer: A. The Control Risks process submits change requests to the Project Integration
Management knowledge area in the Monitoring and Controlling Process Group.
69 . If you allocate contingency reserves for risks related to the schedule and budget
what would initiate the use of these reserves?
Risk trigger
Workaround
Fallback plan
PDM not equal to AON
You would need a predefine risk trigger to use these reserves so Choice A is correct.

70 . Which role does the risk response owner not periodically perform?
Conducts cost benefit analysis to evaluate change requests
Recommends corrections needed to handle any risk appropriately
Reports any unanticipated effects from the risk mitigation strategies.
Reports on the effectiveness of the risk management plan
Answer: A. Choices B, C, and D are all roles the risk response owner periodically performs. Choice
A is not an identified role of the risk response owner.
71 . You are currently conducting risk identification with the team and you have a wide
range of tools available. Which of the following would you expect to use during this
process?
EMV
FMEA
OBS review
AHP
Answer: C. Failure Mode and Effects Analysis is the only choice used during risk identification. A is
Expected Monetary Value and is used during quantitative analysis. C is the organizational
breakdown structure review which is a made up tool. Choice D is Analytical Hierarchy Process,
which is used during qualitative analysis.
72 . You have just instructed the project team to begin gathering the appropriate
sources of information so you can begin quantitative analysis on 27 risks. Which source
of information would you not expect to see?
Cost management plan
Schedule management plan
Risk management plan
Choice C is not an input to quantitative risk analysis.

73 . Your company has recently begun an aggressive campaign of pursuing federal
contracts and seeks the be the best in their field. As a consequence of this new strategy
the company begins hiring very experienced contractors. The contractors'
accomplishments will be used to promote the company's abilities in Federal
solicitations. How can this situation be best described?
The company has exploited an opportunity.
The company has enhanced an opportunity.
The company has actively accepted an opportunity
The company has shared an opportunity.
Answer: B. In this example, the company hired experienced contractors to enhance the company's
abilities, and increasing their chances of winning more Federal bids.
74 . During a risk planning meeting you realize that a senior stakeholder is controlling
most of the meeting and other participants are hesitant to speak up. Which of the
following most likely contributed to this situation?
Lack of a survey tool to remove bias
Involving too many core team members
Using the risk register to maintain equal knowledge among participants.
Lack of stakeholder analysis
Answer: D. Prior stakeholder analysis is a critical success factor during risk planning meetings.
Choice A is not a tool for plan risk management. Choice B is a strength and Choice C is not
appropriate in plan risk management.
75 . The process of Control Risks does not have which one of the following as an input?
Project Management Plan
Risk Register
Scope Baseline
Work Performance Data
Answer: C. Choices A, B, and D are all inputs of process of Control Risks. Choice C is an input to
the process of Identify Risks.

76 . Which one of the following is not an appropriate strategy for threats.
Enhance
Mitigate
Avoid
Transfer
Choice A is a risk response for opportunities
77 . You are the project manager for a new factory product line. You are currently using
the number of defects, weight variances and storage capacity to determine if risk might
be increasing on the project. Which of the following is the most likely reason?
You are performing a risk reassessment to determine any variances that might be associated with risks
You are using a technical performance measurement to determine any variances that might be associated with
risks
You are using a technical performance measurement to find continuous risk distributions
You are using a technical performance measurement to determine risk action owners
Answer: B. Technical performance measurements are indicators that risk is getting better or worse
based on the variances between project goals and actual data.
78 . Which is the key benefit of the process of control risks?
Addresses the risks by their priority, inserting resources and activities into the budget, schedule and project
management plan as needed.
Improves efficiency of the risk approach throughout the project lifecycle to continuously optimize risk responses.
Enables project managers to reduce the level of uncertainty and to focus on high priority risks.
Ensures that the degree, type, and visibility of risk management are commensurate with both the risks and the
importance of the project to the organization.
Answer: B. A is a benefit of the Plan Risk Responses process. C is a benefit of the Qualitative Risk
Analysis. D is a benefit of the Plan Risk Management process.

79 . The project team is reviewing the risks in the risk register. They find a risk that may
require more time to complete because of the danger involved to the workers. So they
calculate the time necessary to complete this scheduled activity. Which of the following
tools will most likely be used for this?
Bottom-up estimating
Decomposition
Reserve analysis
Resource leveling
Answer: C. The team is estimating activity durations and reserve analysis is the only choice that is a
tool in this process.
80 . Which of the following is the best reason to categorize identified risks?
To see which area of the project has the highest risk exposure.
To determine the risk owner.
To more easily quantify the impact of the risks.
To assign an overall PIM score to the category.
Answer A is correct. Risk categorization is a tool used in qualitative risk analysis, and it is used to
find the high risk exposure areas of the project. Choice B is a reference to plan risk responses, while
Choice C is more closely related to quantitative analysis. Choice D might sound good but you would
not assign a PIM score to an entire category of risks. They are assigned to individual risks.
81 . Which is the greatest enabler for quantitative analysis?
A prioritized list of risks
Monte Carlo simulation that has been properly completed configured.
A correct probability distribution.
EVM completed for each risk.
Choice A. A prioritized list should have been developed in qualitative analysis, and is necessary to
begin quantitative analysis. Choices B and C are quantitative analysis tools and might not even be
used for your project. D is a reference to earned value management, which is part of cost
management.

82 . While reviewing the project for risks the team discovers that there will be a resource
constrained critical path as well as a mandatory finish date. Which of the following
would the team mostly likely do to protect the critical chain?
Crash non-critical path activities
Fast track mandatory dependencies
Apply feeding buffers
Level the resources on the critical chain
Answer: C. The team would apply feeding buffers to protect the critical chain, which is the solution to
dealing with a resource constrained critical path. Choice A would not help and Choice B is not even
allowed because of hard logic. Choice D would most likely increase the project duration.
83 . Which Project Management Process Group utilizes work performance information
from the process of Control Risks?
Initiating Process Group and the Planning Process Group
Executing Process Group
Monitoring and Controlling Process Group
Closing Process Group
Answer: C. The monitoring and controlling Process Group use work performance Information from
the Control Risks process to make project decisions. All WPI is aggregated into the process of
Monitor and Control project work, which is in the monitoring and controlling process group. A is not
correct since the Initiating Process Group does receive any inputs from the Monitoring and
Controlling Process Group. B is the not the best choice since the Executing Process group provided
the work performance data to the Control Risks process. D is not correct since the work performance
information would not be used to make project decisions in the Closing Process Group.
84 . Which of the following risk triggers would most likely not warrant the use of a
contingency plan?
When the BAC is greater than the EAC
When the EAC is greater than the BAC.
When CPI is .99
When CV and SV are reflected as negative values.
Answer: A. When the budget at completion, or original budget, is greater than the EAC, or projected
budget, it means that the project has been spending less than planned. The other choices are all
reflections of bad cost variances.

85 . Which of the following is not true about project risk management?
Risk management seeks to decrease the probability of threats.
Risk management will avoid all risk on a project.
Risk management seeks to increase the probability of opportunities.
Risk management will enhance some risks while mitigating others.
Answer B is not true as you cannot avoid all risks on a project. The other choices are true.
86 . After conducting a negotiation with a vendor, for a large project, your company
enters into a time and material contract with the vendor. It is then up to you to ensure
the vendor is incompliance with the contract throughout the project. Which of the
following would be the most likely consequence of entering into a time and material
contract with the vendor?
The risk to the seller increase
The risk to the buyer increase
The risk to the buyer and seller is shared evenly
The risk to the buyer decreases
Answer: B. Time and material contract risk is greatest to the buyer and is normally only used for very
small projects.
87 . What is the BEST answer describing when risk identification is performed on a
project?
Risk identification should be performed after the scope baseline is set.
Risk identification might be performed during rolling wave planning.
Risk identification should be performed when the sponsor approves the project funding requirements.
Risk identification should be performed during execution, when risk to the project is high.
B is the best answer, and this was a tricky question. Rolling wave planning is a form of progressive
elaboration where you plan for the near term, and you can also identify risks in the near term. Choice
A cannot be the best answer as risk identification must be performed before any baseline is set.
Choice C is incorrect because the project funding requirements contain the cost baseline and
management reserves, and risk identification through analysis demand this is completed before the
funding requirements can be determined. Choice D is a good answer but risk identification must
occur throughout the project lifecycle.

88 . You are closing a project and would like to OPA to use on a future project. Which of
the following updates would not be helpful?
An updated RBS
Risk plan template
Risk registers
PMIS used
Answer: D. The PMIS is actually considered an enterprise environmental factor.
89 . Your project team has just finalized a source of information that contains key
deliverables, escalation rules, report templates and your project metalanguage format.
Which source of should contain these types of information?
The WBS
The requirements documentation
The risk plan
The communication's plan
Answer C is correct, and the word metalanguage should have given it away.
90 . While reviewing documents at your desk you receive a phone call from a risk
owner. He informs you that a risk event has occurred and the response was
implemented with satisfactory results. He also says that as a consequence of the
response plan a new risk has developed. He wants to know what he should do about
this new situation. What has happened?
The plan was ineffective
The need for a workaround
There is residual risk
A secondary risk
Answer: D. A secondary risk is one that arises from the implementation of the response.

91 . While preparing for qualitative analysis you review what you hope to accomplish
while doing it. Which of the following would not be accomplished during qualitative
analysis?
Reassessing risks
Assessing PIM scores
Determining risk quality
Prioritizing risks
Answer: A. Risk reassessment occurs in the process of control risks. The other choices occur while
performing qualitative analysis.
92 . While preparing for risk planning you begin to assess which enterprise
environmental factors are going to enhance or constrain your project. Which of the
following would be the biggest constraint to your project during execution?
Lack of IMS functionality
Lack of PMIS functionality
Fluctuating risk tolerances
Unstable marketplace conditions
Answer: B. Your project management information system is how you track project information and
distribute to stakeholders. If it is not available it is a much bigger constraint, or risk, to your project.
Choice A is information management systems and there are normally many different types within a
company. Choice C and D should be expected and can be dealt with.
93 . You are the project manager for complex project that is behind schedule. Which
demonstrates the expected outcome from a risk audit?
Documents the effectiveness of risk responses in dealing with un-identified risks, or the effectiveness of the risk
management process
Documents the efficiency of risk responses in dealing with identified risks, as well as risk related product
defects.
Documents the effectiveness of risk responses in dealing with un-identified risks, as well as the effectiveness of
the risk management process
Documents the effectiveness of risk responses in dealing with identified risks and their root causes, as well as
the effectiveness of the risk management process
Answer: D. A and C are not good choices since the risk audit does not deal with unknown risks. B is
not a good choice since risk audits do not focus on the product defects at all. Inspection would focus
on product defects.

94 . Risk urgency should not be considered on which of the following?
Risk EMV
The time required to respond
Warning signs
The ability to detect the risk
Choice A is correct as the expected monetary value of the risk is not a factor in risk urgency
assessment. The other choices are considered.
95 . After completing the risk plan you brief your supervisor about the contents within.
You then explain how the risk plan will be used for the rest of the risk management
processes, and highlight that for one it is not used. Which one is it?
Identify Risks
Plan Risk Responses
Control Risks
Answer: C. The risk plan is not the input to control risks. The project plan is.
96 . Which of the work performance data is not possibly impacted by risks?
Deliverable status
Schedule progress
Survey results on communication effectiveness
Costs Incurred
Answer: C. Choices A, B, and D are all examples of work performance data that can be impacted by
risks.

97 . You have just been informed that a preferred vendor will not be utilized on an
upcoming project. Apparently there was a heated discussion between the vendor and
the finance team over the type of contract to be used. Which one of the following
contracts was most likely suggested by the finance team and not accepted by the
vendor?
Time and material
Fixed price incentive fee
Fixed price
Fixed price with economic price adjustment
Answer: C. The fixed price contract provided the most risk to the seller or vendor.
98 . Which one of the following would not be an appropriate response strategy for an
opportunity?
Chasing a dollar bill while on the jogging path
Asking a friend with a truck to help you get a new TV home
Placing a higher bid on construction equipment while at an auction
Passing up a gas station because you believe you can make it to your favorite one
Choice D is the best answer because it more closely resembles a passive strategy being used for
the threat of running out of gas. Choice A is passive acceptance for an opportunity, choice B is the
share strategy and choice C is the enhance strategy.
99 . You are currently evaluating information with the project team to see how accurate
is , as well as the integrity and reliability of the information. Which tool are you most
likely using with the project team?
Root cause analysis
Historical documentation review
Probability and impact assessment
Risk data quality assessment
Choice D is what the question describes.

100 . The project team has just completed a round of risk identification and are
preparing to perform qualitative risk analysis. Which of the following types of information
would not be useful?
Identified risks
Potential responses
Risk urgency information
Root causes of risks
Answer: C. Risk urgency is determined in qualitative analysis. The other choices can be within the
risk register as your complete risk identification.
101 . Your program manager calls you into his office to inform you that your project
must be completed 30 days earlier than originally scheduled. You then call for a team
meeting to discuss ways to decrease the project duration. Which one of the following
choices provides the most risk to the project in implemented by the project team?
Fast tracking the project
Crashing the project
Resource smoothing the project
Adding buffers to the critical chain
Answer: A. Fast tracking is a schedule compression technique and the consequence is greater risk.
This occurs because you begin performing activities in parallel. B increase the cost and C does
nothing to decrease the duration. D might actually increase the project duration.
102 . Of the following stakeholders, which one would have the least useful opinion
during risk identification?
Key competitor
Key supplier
Sponsor
Customer
Answer: A. Your key competitor would not be a stakeholder whose opinion you would be interested
in on your project.

103 . While determining which vendors might be selected for project work you decide
they must be licensed, bonded and insured. Which of the following describes your
reason for doing this?
You decided to transfer the impact of any substandard work to the vendor.
You decided to proactively reduce the chance of poor work by the vendor.
You decided to share the work opportunity with only the most qualified vendors.
You have decided to avoid poor workmanship altogether.
Answer: A. You are transferring the impact of any vendor associated work back to the vendor.
104 . Sensitivity analysis is most often reflected in what manner?
Decision trees
Scatter diagrams
Tornado diagram
Interrelationship digraph
Choice C. Sensitivity analysis is quite often displayed in a tornado diagram.
105 . Which of the following statements is not true about qualitative risk analysis?
Attention to be paid to stakeholders' bias
If done properly it should be slow and methodical with all stakeholders participating.
If done properly it should be rapid and cost effective.
Predetermined definitions should help process efficiency.
B is the correct choice. Qualitative analysis should be rapid and cost effective, not slow and
methodical. The other choices are characteristics of qualitative analysis.

106 . As your project team finishes up risk analysis you begin to calculate the EMV of
the threats. Threat 1 has an impact of $5000 with a probability of 29%. Threat 2 has a
probability of 36% and an impact of $2750. Threat 3 has a 21% probability with a $1250
impact. What is the EMV of these 3 threats?
2,702.50
-2,702.50
9,000.00
-9,000.00
Answer: B. ($5000*.29)+($2750*.36)+($1250*.21)= ($2702.50)These are threats, so they are shown
as a loss. A is the positive value. C and D are the positive and negative values of the impacts,
without probabilities.
107 . You and the project team have just started identifying risks on your project. You
are looking at a source of information containing the scheduled activities and the likely
cost to complete them. Which source of information are you most likely reviewing with
the team?
Activity duration estimates
Activity cost estimates
PERT
PDM
Answer B is correct as this describes activity cost estimates. A is a reference to time allowances for
activities. C is PERT, or 3 point estimates and D is the Precedence Diagramming Method

108 . You have been assigned as the project manager on a project already in execution.
What are appropriate techniques to determine the validity of the risk registry prior to
conducting a project review meeting?
Risk reassessment, risk audits, contingent response strategies, technical performance measurement, and
reserve analysis
Risk reassessment, risk audits, variance and trend analysis, technical performance measurement, and reserve
analysis
Risk reassessment, risk audits, variance and trend analysis, quantitative risk analysis, and reserve analysis
Risk reassessment, risk audits, variance and trend analysis, technical performance measurement, and expert
judgment
Answer: B. These techniques are all part of the Control Risks process. A is not the best choice as
contingent response strategies is a tool in plan risk responses. C is not a good choice because
quantitative risk analysis is used to evaluate identified risks. D is not a good choice as expert
judgment is not appropriate to determine the validity of the risk registry.
109 . Quantitative risk analysis leverages interviewing to draw on subject matter
expertise. Which of the following processes also uses interviews for the benefit of the
project?
Perform integrated change control
Collect requirements
Perform quality assurance
Conduct procurements.
Collect requirements, Choice B, also uses interviews as a process tool. The others do not.
110 . Which of the following is the best definition of risk management?
The processes concerned with establishing the standards by which risk will be managed on your project.
The process concerned with risk planning, identification, analysis, responses and controlling on a project.
The processes concerned with risk planning, identification, analysis, responses and controlling on a project.
The processes concerned with qualitative and quantitative analysis of project risks.
Answer C is the best as this is the definition of risk management. A refers to risk planning, B uses
the word "process" instead of processes, and D if referring to risk analysis.

111 . As you begin developing responses for risks that need them you notice additional
information in the risk register, which you believe should not be there. Which of the
following should not have been documented in the risk register?
Risks requiring responses in the long-term
Risk owners
Issues assigned for team member analysis
Trends in qualitative analysis
Choice C is information that should not be in the risk register. Issues can be considered risk events
that have occurred, or facts, and this information should be documented in the issue log.
112 . While planning for responses you determine that Susan is the most qualified for
carrying out the actions to deal with a risk. Susan can be best described as what?
Risk response owner
Risk owner
Risk action owner
Risk buffer owner
C is the answer. The person responsible for carrying out the actions to deal with a risk is the risk
action owner.
113 . The process of Control Risks does not have which one of the following as a tool
and technique?
Rick Categorization
Risk Reassessment
Reserve Analysis
Meetings
Answer: A. Choices B, C, and D are all tools and techniques of process of Control Risks. Choice A is
a tool and technique to the process of Perform Qualitative Analysis.

114 . While determining schedule variances with the team a risk event occurs that you
must deal with. After analyzing the risk you determine that you must compress the
schedule to account for the risk's impact. Which of the following is the best example of
what you might do next?
You will begin adjusting the finish to finish relationships and change them all to start to start relationships.
You will fast track all mandatory dependencies to complete the project earlier.
You will switch all leads with lags on the critical chain.
You will request more resources for the critical chain.
Answer: D. Adding more resources is crashing the schedule. Choice A might not reduce the
schedule duration, nor will C. Choice B cannot be done at all.
115 . You are currently engaged in qualitative risk analysis and are assigning PIM
scores to all risks. Many of them have insignificant scores and you do not believe they
will require further analysis. What should you do with these risks?
Perform quantitative analysis on them to see if they can be completely dismissed.
Assign a risk action owner to periodically review them.
Place them in the watch list and periodically review them.
Make a note of them in the issue log to discuss during the next review meeting.
Answer C is the correct choice. Risks with low probabilities and impacts are placed in a watch list
and periodically reviewed to see if they require further analysis.
116 . Which factor does not affect the amount of time during a meeting that is devoted
to project risk management?
The risks that have been identified.
The priority of the identified risks.
The difficulty of the responses to the identified risks.
The type of risk matrix used.
Answer: D. Choices A, B, and C will all have an affect on the amount of time that is required during a
meeting. Choice D is a tool and as such does not impact the time required to properly address
project risks.

117 . While deciding on risk definitions with the project team this is a disagreement on
which word is most clear when describing the impact. Which choice is most closely
related to impact?
Probability
Likelihood
Consequence
Benefit
Answer: C. The term consequence will apply to both threats and opportunities. Choices A and B are
incorrect and choice D only applies to an opportunity.
118 . If you decided to use brainstorming with the team, for risk identification, which one
of the following would help not facilitate?
Only using the most experienced risk experts
The team's commitment to honesty
An experienced facilitator
Using the RBS as a guide
Choice A is correct. Proper brainstorming requires the attendance of as many stakeholders as
possible.
119 . Which of the following is the best description for the mitigate response strategy?
Hiring contractors who are licensed and bonded
Purchasing bulk material after the price drops below normal market value
Deciding not to work in a state where there is a union
Buying non-skid work boots for your employees
Choice D is the best answer because it proactively doing something to reduce the probability of
employee accidents. Choice A is transference, choice B is active acceptance and choice C is
avoidance.

120 . While collecting requirements from stakeholders you attempt to determine what
needs they have for the project. Which of the following situations would result in an
increase in project risk during requirements collection?
Not using a prototype for this project
Enforcing rigid scope control
Scope creep during execution
The discovery of a scope gap in execution.
Answer: D. The discovery of a scope gap would be the riskiest of the choices. A scope gap is when
there is a legitimate requirement that was missed while defining the scope.
121 . You are the project manager for the ABC company and you are calculating the
expected monetary value of your remaining risks. Threat 1 has a 37% probability and
$2000 impact. Threat 2 has a 21% probability and a $10000 impact. Threat 3 has a
15% probability and a $4000 impact. Opportunity 1 has a 50% gain of $5000.
Opportunity 2 has a 23% probability with a $1200 gain. Opportunity 3 has a 65% gain of
$7000. What is the EMV of these remaining risks?
($3,886.00)
$3,886.00
($3,440.00)
$3,440.00
Answer: B. (-$2000*.37)+(-$10000*.21)+(-$4000*.15)+($5000*.5)+($1200*.23)+($7000*.65)=$3886,
which is a gain.
122 . Which of the following statements is correct regarding risks?
Some risks are positive or negative but all threats are risks.
Some risks are negative or positive but all threats are opportunities.
Some risks are positive or negative but all opportunities are threats.
Some risk can be positive or negative but all risks are issues.
Answer: A. This answer is confusing but correct. Risks are positive or negative and all threats are in
fact risks. Choice B and C are reversed, and Choice C is wrong. Issues are negative risk events
after they have occurred.

123 . Your project team has just completed a round of interviews and are now preparing
probability distributions based on stakeholder information. These tools could also be
considered which of the following?
Quantitative risk analysis and modeling techniques
Data gathering and representation techniques
Group decision making techniques
Information gathering techniques
Answer B. Interviews and probability distributions are tools that fall within the larger technique known
as data gathering and representation techniques.
124 . While updating the checklist template you intend to use on your project you decide
to verify it against one other source of information. Which of the following is most often
used to assist in checklist development?
WBS
OBS
RBS
EMV
Answer: C. The risk breakdown structure is most often used to develop risk checklists.
125 . During risk planning you determine definitions for low, medium and high risks that
you will use throughout the project to assess their risk category. You decided that a low
risk has a PIM score of between 0-20, a medium risk was between 21-49 and a high
risk was anything beyond 49. If a risk has a probability of 5 and an impact of 7, what is
the category of this risk?
The PIM score is 35.
The risk category is medium.
The risk category is low.
The risk category is high.
Answer: B. The calculation is P*I, or 35. Based on the scenario the risk category is medium. Choice
A is the PIM score which is not what was asked for, while the other choices are just wrong.

126 . While deciding on risk definitions with the project team this is a disagreement on
which word is most clear when describing a problem. Which choice is the best
description for a problem?
The effect arising from the occurrence of a risk
A negative effect arising from the occurrence of a threat
The positive effect arising from the occurrence of a threat
The negative effect arising from the occurrence of an opportunity
Answer: B. A problem is a negative effect arising from a threat, or negative risk. Choice A might
apply to threats or opportunities and is not correct. Choice C and D are reversed and just wrong.
127 . Which of the following would not be unexpected information within the risk
management plan?
EMV of top 10 risks
Risk action owners
High-level risks captured from the project charter.
The agenda for the risk status meetings
Answer: D. The agenda for risk meetings may be published within the risk plan. The other choices
should be captured in the risk register.
128 . Of the following choices which must have happened to properly perform
qualitative risk analysis?
The quality metrics must have been agreed upon by the customer.
The process of create WBS must have been finalized.
The project SOW must have been advertised.
The work performance reports must have been created and reviewed to identify risks.
Choice B is correct because the scope baseline is an input to qualitative risk analysis, and it is an
output of Create WBS.

129 . After performing quantitative analysis on a risk to determine the impact with the
project team you determine that you have two choices to deal with the risk. You must
decide if you should purchase a new piece of equipment that costs $50,000 with a 15%
chance of failure within 2 years. The other choice is to buy a refurbished piece of
equipment that will cost $25,000 and has a 20% chance of failure in the first year.
Failure of either choice will result in a schedule delay worth $100,000 per day. Which
choice is most appropriate?
Both choices are of equal value so always buy the new equipment
Both choices are of not of equal value so always buy the new equipment because of the warranty
Buy the new equipment
Buy the used equipment
Vendor C
Answer: D. The best way to answer this scenario is with a decision tree. The first choice could be
expressed as ($100,000*.15)+$50,000, or $65,000 for total path value. The second choice is
expressed as ($100,000*.20)+$25,000, or $45,000. Buying the used piece of equipment presents
the cheapest path value. The length of time for failure is not considered a variable here.
130 . While reviewing project risk templates you find a strange source of information
which makes no sense. It only has headings on it and the rest of the page is blank. At
the tops of three pages are the words, PESTLE, TECOP, and SPECTRUM. Which of
the following is the best description of what you have found?
You have found a checklist
You have found a prompt list
You have found the OBS
You have found the risk breakdown system
Answer: B. A prompt list is a set of risk categories which can stimulate risk identification. They
should be predetermined in risk planning. The phrases, PESTLE, TECOP and SPECTRUM and all
predetermined prompt lists.

131 . During a risk review meeting you ask for a volunteer to ensure that a risk
response, for a newly identified risk, is properly executed. What are you asking for?
A risk owner
An action owner
A risk coordinator
A risk expeditor
A is correct, as the person who ensures a response is carried out is called the risk owner. The risk
response owner performs the response actions. C and D are made up terms.
132 . You are reviewing the current work performance report from a vendor as part of
your weekly meeting. You have a contingency plan with a predetermined risk trigger for
the CV of -$2500. The current ACWP is $175,000, and the BCWS is $170,000. What
should you do first?
Find the CV is equal to -$5000 and initiate the contingency plan.
Find the EV and calculate the cost variance.
Find the CV is less than the risk trigger and do nothing at all.
Divide the ACWP by the BCWS to determine the trigger has been reached. Initiate the contingency plan.
Answer: B. The formula for CV is BCWPACWP. You need to find the budgeted cost of work
performed, sometimes called the earned value, and calculate the cost variance. It is not presented in
the scenario.
133 . During project planning you believed that you would have access to a piece of test
equipment that has historically been available. When you attempt to coordinate with the
equipment owner you find out that it is out for repair. Without this test equipment you
must now attempt to find another from a vendor. What primarily led to this situation?
A low-level risk being ignored
An assumption
Improper risk planning
Lack of coordination
B is the answer. An assumption is something you believe to be true without proof. Had coordination
been conducted it would have been proven otherwise and many projects have assumptions during
planning.

134 . After calculating the PIM scores for all identified risks you prepare the project team
for quantitative analysis. Which of the following tools did you most likely use during this
round of analysis?
Interviewing
Decision trees
Risk urgency assessment
Assumptions analysis
Answer: C. This question may have tricked you. You first had to determine which process you are in,
which is qualitative analysis. They you had to determine which of the choices is used there. Only
choice C is a tool used in this process.
135 . Which one of the following would be most useful to compare different project
objectives against one another in order to determine a stakeholder preference?
WBS review
AHP
PDM
Risk EVM
Choice B is correct. This describes the analytical hierarchy process.
136 . Which of the following is the best description for the process of plan risk
responses?
Action taken to assess overall project risk.
Actions taken to assess individual risk probability and impact.
Actions taken to enhance opportunities and reduces threats to project objectives.
Actions taken to define agreed upon risk terms.
C is the correct choice. Answer A is more closely related to quantitative analysis while answer B
refers to qualitative analysis. Choice D is part of plan risk management.

137 . While reviewing project documents you come across an odd source of information
related to project risk. It contains risk information related to how a vendor will mitigate
within their response to a project solicitation. It also contains information related to the
warranty, technical approach, understanding of the need and any references. What
source of information is this?
Project statement of work
Source selection criteria
Procurement statement of work
A contract
Answer: B. This information is contained within the source selection criteria. The word "references"
should have give you a clue.
138 . You are currently updating a project document with newly identified but still high-
level risk information. It is still early in project and you expect to update this document
periodically as new risks are discovered. Which document are you most likely updating?
The RBS register
The risk breakdown structure
The risk register
Answer: D. It does not matter if the risk is high-level or detailed. All known risks are placed in the risk
register. Choice A is not a real document. Choice B is your risk plan, which outlines how you will
conduct risk management activities during your project. Choice C is the RBS, which are your project
categories of risk.

139 . You are reviewing the current work performance report from the team during your
weekly meeting. You have a contingency plan with a predetermined risk trigger for the
SPI of .95. The current BCWP is $175,000, and the BCWS is $170,000. What should
you do first?
Look for ways to crash the schedule and get it under control.
Determine the root cause of this negative index.
Nothing at all because the SPI indicates the project is ahead of schedule.
Contact the sponsor and tell him the project is behind schedule but you are working on it.
Answer: B. The formula for SPI, or schedule performance index is EVPV, or BCWPBCSW. Here it
is $175,000$170,000, or 1.029. The project is ahead of schedule
140 . While sitting at your desk your supervisor calls you and informs you that you must
use only company employees on the upcoming project. When you ask for an
explanation he informs you that it was a senior management decision and it was made
to reduce the company's liability. What does this mean as it relates to project risk?
There is now a risk associated with using contract employees on your project.
You previously made in incorrect assumption.
You now have a constraint to deal with.
You should capture this problem in the issue log.
This type of situation is considered a constraint, so Choice C is correct. There is no uncertainty so
Choice A is incorrect. There is nothing to support an assumption in the scenario and issues are risk
events that have occurred, and the project has not started yet so Choices B and D is incorrect.
141 . Which of the following produces an output that is an input for the process of
Control Risks?
Plan Risk Management
Plan Risk Responses
Identify Risks
Answer: D. The Identify Risk process produces the risk register. A, B, and C provide updates to
project documents but nothing specifically for Control Risks process

142 . You are currently reviewing the most recent work performance report and it
contains several variances and forecasts. Which of the following variances would
contribute the greatest risk to the project?
CPI of 1.10
SPI of 1.10
TCPI of 1.10
Cost variance of $5000
Answer: C. A to-complete performance index of 1.10 means that you would need to get $1.10 worth
of value out of every remaining dollar to finish the project on the original budget, and it is considered
quite bad. The other choices show the project is under budget for choices A and D, and ahead of
schedule, choice B.
143 . While analyzing risks on your project you determine that something is wrong with
your risk plan, but you are not quite sure what it is. Which of the following would indicate
a flawed risk plan?
Consensus among stakeholders
Existing company guidelines for risk management
Predetermined risk templates
Stakeholder analysis completed before risk identification
Answer: D. Stakeholder analysis must be completed before risk planning to incorporate their
attitudes and tolerances into the risk plan.
144 . A project team members calls your office with a problem. He is looking at a source
of information and does not know how to interpret it and it does not have a title. He
describes it as a special kind of bar chart. Which of the following is most likely causing
his confusion?
Tornado diagram
Interrelationship digraph
Affinity diagram
Ishikawa chart
Answer A is the only one that is a bar chart. The other choices are project documents used primarily
in quality, and are not bar charts.

145 . While reviewing the risk plan with a key stakeholder you are shocked to discover
you have forgotten the name of a risk tool. The format is structured in a cause-risk-
effect manner but you cannot remember what it is called. Which of the following have
you forgotten?
Risk breakdown structure
Risk met language
Risk checklists
FMEA
Answer: B. Risk metalanguage uses the cause-risk-effect format so that risk statements are more
easily understood.
146 . You decide to interview key stakeholders to capture their ideas about possible
risks on the project, as well as to understand their risk perceptions and attitudes. Where
did the key document containing the stakeholder information most likely come from?
Planning process group
Initiating process group
Answer: C. The stakeholder register is an output from the identify stakeholder process, which is in
the initiating process group.
147 . The basic communication's model contains several components that contribute
the exchange of information between multiple parties. Which of the following normally
provides the greatest source of risk the project communications?
Decoder
Encoder
Noise
Response
Answer: C. Noise, or filters, interfere with the message transmission or receipt.

148 . Which one of the following would be an expected outcome after completing
quantitative analysis?
Risk register updates
PIM updates
Charter updates
Project document updates
Answer D is the only choice that is an output from quantitative analysis.
149 . Your team has decided to use Monte Carlo software utilizing the project cost
estimates to determine the probability of completing the project at the stakeholder
recommended budget. Where are the Monte Carlo tools documented?
Cost management plan
Risk management plan
Risk tools plan
Stakeholder management plan
Choice B. All instructions for risk tool use are documented in the risk management plan.
150 . While analyzing stakeholder tolerances just before risk planning you decide to use
a tool that classifies stakeholders based on their legitimacy, power and urgency. Which
type of stakeholder model is this?
Stakeholder model
Salience model
PUL model
Influence and impact model
Answer: B. The salience model is based on the power, urgency and legitimacy variables.

151 . The terms PESTLE, TECOP and SPECTRUM are all examples of which of the
following?
Diagramming techniques
Prompt lists
Cause and effect diagrams
Quality management and control tools
Answer: B. These are examples of prompt lists, which are risk categories used to stimulate risk
identification.
152 . You supervisor calls you into her office and ask you to explain something. She
had been reviewing risk definitions in the risk plan and does not understand what a
contingency plan is for? How would you explain this to her?
The contingency plan is used to respond to a known risk event.
A contingency plan is used when predetermined risk triggers show that the risk event is about to happen, or
already has.
The contingency plan is used to respond to an unknown risk event.
The contingency plan is used for undetermined risks that happen during execution.
Answer: B. A contingency plan is used when a predetermined risk trigger indicates the risk event is
about to occur, or already has.
153 . While reviewing project documents to see which need updates you find one
without a title. It contains two axes for probability and impact, and three color codes
areas for high, medium and low. Which project document are you most likely looking at?
Probability and impact assessment
Probability and impact matrix
The force field matrix
Answer: B. what has been described is the probability and impact matrix.

154 . What source of risk would not exist within the Scope Baseline?
Work packages that have not been logically decomposed.
Control accounts being considered for use below a parent level deliverable.
Activities listed below the work packages that are inherently dangerous to team members.
The sum of child deliverables that are equal to 110% of the parent.
Answer C is not a source of risk within the Scope Baseline. It references activities below the work
packages, which are contained in the Schedule Baseline. The other choices are correct.
155 . While inspecting a deliverable for defects with the project team you discover
several in one part of the product, but none in any other area. You decide to use a
quality tool in an effort to determine the source causing the defects. Which of the
following tools would be the most helpful in determining the sources of the defects?
Pareto chart
Interrelationship diagraph
Effect and cause diagram
Ishikawa diagram
Answer: D. An Ishikawa diagram, also known as root cause diagram would be most
appropriate. Choice A might be how you display the information after you determine the
root cause. B would not be helpful and C is a made up tool.
156 . You have called a weekly team meeting to discuss current project variances. After
calculating the information for the work performance report you submit it to your
manager. Which of the following variances contain the least risk to the project?
An EAC greater than the BAC.
A CPI of .94.
A TCPI of .94.
A SPI of .94
Answer: C. A to-complete performance index of .94 means that your spending to date must have
been quite good. Now, you only need to get about 94 cents worth of value out of every remaining
dollar. The other choices are not good at all.

157 . While finalizing the project budget the team determines the EMV of several risks
and then aggregates their costs into the projected baseline. The program manager then
calculates a ten percent addition to account for unknown risk events. What is the
combination of the cost baseline and management reserves referred to as?
Project funding requirements
The basis of estimates
The budget
Funding limit reconciliation
Choice: A. When you take the cost baseline, which contains money for known risk events, and add
the management reserve, it becomes the project funding requirements.
158 . As the project manager, you develop a series of contingency plans to address
risks and they are implemented as needed. Variances are always determined as a
result. What process does this affect and what purpose does it serve?
Perform Integrated Change Control - realign the performance of the project work with the cost management
plan
Direct and Manage Project Work - realign the performance of the project work with the project management
plan
Perform Integrated Change Control - realign the performance of the project work with the project management
plan
Direct and Manage Project Work - realign the performance of the project work with the cost management plan
Answer: C. Contingency plans are established with risk triggers, and when implemented, they are
used to realign the performance with the plan. Performance realignment is implemented after an
approved change request comes from the perform integrated change control.
159 . Which one of the following would not be an example of risk avoidance?
Extending the schedule
Purchasing bulk insurance for company assets to be used for multiple projects
Reducing scope
Terminating the project
Choice B is not an example of avoidance. This is known as the transference strategy.

160 . Which of the following strategies can be used for both threats and opportunities?
Active mitigation
Passive acceptance
Passive avoidance
Active enhancement
Answer B is the correct choice. The other choices are not real strategies.
161 . Which one of the following statements is most true regarding the probability and
impact matrix?
The PIM should be used to evaluate opportunities after the cost baseline is set.
Threats should be evaluated before the project plan is complete and opportunities after.
The PIM rules allow for low probability opportunities to be dismissed as unachievable.
The PIM should be used for opportunities and threats.
Choice D is most true. The PIM should be used for threats and opportunities. The other choices are
not true.
162 . Which of the following is the best description of risk identification?
The process of determining which risks may affect the product and documenting their characteristics.
The process of determining which risks may affect the project and documenting their characteristics.
The process of determining which risks may affect the project objectives and documenting their characteristics.
The process of determining which risks will affect the project and documenting their characteristics.
Answer: B. A refers to the product, not project. C refers to the project objectives and this is more
closely related to the process known as Perform Quantitative Risk Analysis. D uses the phrase "will
affect." When it is a certainty, it is a fact, and not a risk.

163 . Which one of the following is the benefit of quantitative risk analysis?
To objectively manage risk throughout the product lifecycle
To objectively manage risk throughout the project lifecycle
To enhance opportunities while reducing threats
To support decision making with numerical results
Choice D is the benefit of quantitative analysis. The other choices are related to the overall benefit of
risk management.
164 . While reviewing high impact risks with the project team you receive a call from the
customer. He informs you that a risk event has just occurred on a job site and asks you
to deal with the impact. While analyzing the impact you determine that two project
objectives will be negatively disrupted. This situation can be considered which of the
following?
A risk
A problem
A workaround
A secondary risk
Choice B. The impact of a threat, or negative risk, on a project's objectives is known as a problem,
after the risk event occurs.
165 . Which one of the following is used for both qualitative and quantitative analysis?
Expert judgment
Risk data quality assessment
Interviews
Project document updates
Choice A. The scenario asks which one is "used" for both. This implies a tool and expert judgment is
one they both use. Choice B is used in qualitative analysis and Choice C is used for quantitative
analysis. Choice D is wrong because this is an output for both processes, and not a tool.

166 . Which of the following sources of information would be most useful in determining
the risk action owners' roles during risk planning?
Project Charter
Project Plan
Risk Management Plan
Answer: B. The stakeholder register is used as an input to Plan Risk Management to determine roles
and responsibilities.
167 . Contingency plans can also be thought of as which of the following?
Workaround
Facts
Fallback plans
Issues assigned for team member analysis
Answer: C. Contingency plans are also called fallback plans.
168 . Which of the following would be an unexpected consequence of proper risk
management?
The overall project plan is integrated with risk management activities.
Risk management processes are carried out throughout the lifecycle of the product.
Risk management is conducted as a discreet methodology during your project.
Risk information should be distributed to stakeholders along with other relevant variances such as cost,
schedule and scope.
Answer C is correct as risk is not conducted as a discreet methodology during your project. It is
integrated with the other project plans, processes and documents. The other choices are true.

169 . Which of the following would be an unexpected outcome from an initial risk
meeting?
The project funding requirements
Risk contingency reserve rules
Risk templates tailored for this project
Risk roles and assignments
Answer: A. The project funding requirements contain any management reserve funds set aside for
unknown risk events. It would be impossible to determine this from an initial risk meeting. The other
choices are correct.
170 . Your project team is currently performing a round of risk identification just before
you begin execution. Which of the following must have happened before now?
The scope statement was decomposed into the work packages
You closed procurements
You set the cost baseline
You set the schedule baseline
Answer: A. The scope baseline is an input to the identify risk process.

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