Risk 5 simplelearn-exam4-ans

1 . Which one of the following is NOT a critical success factor for risk identification?
Risk identification should be performed as early in the project lifecycle as possible
Risk identification should be based on agreed-upon definitions
Risks should be clearly described
Risks should be linked to project objectives
Answer: B. This is a critical success factor for qualitative analysis. The others are CSRs for risk
identification.
2 . The risk management plan contains a wealth of information that will be referenced
many times by the project team. Which of the following would be contained within the
risk management plan?
Lists of threats
Risk activity lead, and responsibilities
Lists of opportunities
EMV of top 10 risks
Answer: B. Risk activity lead, and other roles and responsibilities would be contained in the risk plan.
The other choices are contained in the risk register.
3 . During risk response planning with the project team, it is determined that there is no
reasonable response available to deal with a highly probable threat which has a high
impact if it occurs. Which of the following strategies is most appropriate for this risk?
Enhancing
Avoidance
Acceptance
Sharing
Answer: B. Avoidance is the best response for this type of threat.

4 . You have just finished a round of risk analysis with the project team, and have
identified a prioritized list of threats that pose the greatest impact to the project. Which is
the best answer for what you just finished performing?
Qualitative risk analysis
Risk management planning
Risk response planning
Quantitative risk analysis
Answer: D. One of the document updates from quantitative analysis is a list of quantified risks. It will
contain the threats and opportunities with the greatest impact to the project, which is the goal of
quantitative analysis, to determine overall project risk.
5 . You have been assigned as the project manager on a project which is already in
execution. You are concerned that the risk methodology that the team has been
following might have been utilized properly. Which of the following is the best way to
determine if the team has been using the plan in the manner intended?
Conduct variance analysis
Conduct a risk audit
Conduct a risk reassessment
Compare technical performance measurements for each month the project has been in execution
Answer: B. A risk audit will help determine if the risk process has been effective, and if it has been
followed appropriately.
6 . You are currently updating the risk register with newly identified risks from various
sources of information. Which of the following would most likely be one of these sources
of information?
Quality Management Plan
Risk Management Plan
Cost Management Plan
Schedule Management Plan
Answer: B. The risk plan is not a source of risk. It contains the project methodology for managing
risks. The other choices are inputs to the identify risks process.

7 . The project team has decided to use a specialized tool that is primarily used for
schedule, and cost analysis. It is also useful for calculating overall project risk. Which of
the following are they most likely using?
PIM
Monte Caro simulation
Cost aggregation
EMV
Answer: B. This is Monte Carlo simulation software. A is the probability and impact matrix and C is a
tool for determining the project budget. D is expected monetary value.
8 . While finalizing risk response planning, the PM decides to review a source of
information which contains the roles and responsibilities of the team for risk
management activities. What is the PM most likely reviewing?
Risk plan
Risk register
Stakeholder register
Stakeholder plan
Answer: A. The roles and responsibilities for risk activities are contained within the risk plan. Specific
risk response roles are contained in the risk register.
9 . The project team is reviewing the risks in the risk register. They find a risk that may
require more time to complete due to resource constraints. So, they calculate the time
necessary to complete this scheduled activity, and network path, with reserve analysis.
Which of the following is a likely outcome?
An assumption
A contingency budget
A project buffer
A negative schedule variance
Answer: C. A project buffer is used to protect a resource constrained critical chain within the
schedule.

10 . Your team has just completed quantitative risk analysis. What is the best thing to do
next?
Update the risk register
Plan risk responses
Control risks
Update various project documents
Answer: D. Project document updates is an expected outcome of finishing quantitative analysis. A
might have seemed like a good choice but the output is still just project document updates.
11 . While conducting a periodic risk reassessment with the team, the PM decides to
use a source of information that contains forecasting data. Which one of the following
has the team most likely used?
Risk plan
Work performance data
Work performance reports
Risk Register
Answer: D. WPR contains the forecasting data, and is an input.
12 . Which of the following is the best example of avoidance?
Purchasing insurance
Terminating the project
Purchasing an umbrella because of the weather forecast
Partnering with another company to win contacts
Answer: B. Canceling a project is an extreme form of avoidance.

13 . If you have an EMV of zero after performing quantitative analysis, which of the
following statements is most true about your project?
The sum of the threats and opportunities might be equal
There are no opportunities on this project
There are no threats on this project
There is no project risk at all
Answer: A. This is the most true statement among the choices.
14 . 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 provide the least risk to the project if implemented by the project team while
decreasing project duration?
Fast tracking the project
Crashing the project
Resource smoothing the project
Adding buffers to the critical chain
Answer: B. Crashing is a schedule compression technique that involved adding resources to the
activities and increasing costs. B increase the risk and C does nothing to decrease the duration. D
might actually increase the project duration.
15 . While preparing for risk planning with the team, there is a discussion on how to
enhance the success of the project. Which of the following would most likely NOT help?
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.

16 . Which one of the following statements is least true regarding the probability and
impact matrix?
The PIM should be used with the risk probability and impact assessment.
The PIM will help prioritize risks for further analysis.
The PIM rules allow for low scoring risks to be placed on the watch list.
The PIM should be used for opportunities and threats.
Answer: C. The risk plan rules determine what happens with low scoring risks, not the PIM.
17 . 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 will most likely help you understand this stakeholder?
Project charter
Risk plan
Risk register
Answer: D. Prior stakeholder analysis is a critical success factor during risk planning meetings and
the stakeholder register can help you determine the influence and interest of the stakeholder.
18 . While sitting at his desk, the PM receives a phone call from a risk owner who tells
him that a known threat has occurred. He says that the response was implemented but
was inadequate for the risk. Which of the following is the best response for the PM?
The PM should tell him to assess the impact of the risk
The PM should tell him to implement the fallback plan
The PM should tell him to implement a workaround
The PM should inform him to simply accept the gain
Answer: B. The only reasonable response from the choices is to implement the fallback plan, in case
the primary response does not work. A is incorrect. The impact of the risk should have been
analyzed long before now. C is what is implemented for an unknown risk. This threat was known. D
is wrong because a gain is the consequence of an opportunity, and not a threat.

19 . Interviewing stakeholders on a project might occur for several reasons. Which of
the following would NOT be an useful reason as it relates to risk?
It might promote their participation in project risk management.
The interviews can capture their ideas on potential risks.
Interviewing the stakeholders will give them a chance to approve risk related change requests.
It can provide information on stakeholder risk attitudes and tolerances.
Answer: C. Stakeholders might provide information on potential risks, risk attitudes, and tolerances.
An interview would not be appropriate to approve change requests.
20 . While inspecting a deliverable for defects with the project team, you discover that a
risk event has occurred. Several defects are discovered in one part of the product, but
none in any other area. You decide to use an Ishikawa diagram. Which of the following
is true about the Ishikawa diagram?
The Ishikawa diagram can help rank the root causes from greatest to least so that you can see where your
focus should be.
The Ishikawa diagram can help determine if the process in question is out of control.
The Ishikawa diagram can help determine the root cause from multiple effects if used properly.
The Ishikawa diagram is the wrong tool to use in this case.
Answer: C. An Ishikawa diagram, also known as root cause diagram, would be the most appropriate
tool to trace defects to their origin. Choice A is referring to a Pareto chart. B is a control chart and D
is just incorrect.
21 . While identifying risks with the project team, you have decided to review a source of
information. This source of information contains major requirements, potential influence
on the project, and contact information. Which source are you most likely reviewing?
Requirements documentation
Project charter
Risk plan
Answer: A. This information is contained in the stakeholder register. Influence on the project should
have been a hint.

22 . Your project team has just completed a round of analysis and were using data
gathering and representation techniques. Which is an expected consequence from the
team's work?
Monte Carlo simulations
Probability distributions of the schedule and budget
A tornado diagram
Decision trees to justify course of action
Answer B. Data gathering and representation techniques include interviewing and probability
distributions.
23 . While discussing risk management with the team, a team member states that he
believes that the objective of risk management is to avoid all the risks on a project.
Which of the following is the best response?
Risk management will help avoid all threats.
Risk management will help avoid all the risks on a project.
Risk management seeks to increase the probability and impact of opportunities and to reduce the probability
and impact of threats. However, all risks cannot be avoided.
Risk management will enhance some risks while mitigating others.
Answer: C. This is the objective of risk management
24 . As a project manager for a new factory product line, you always watch for emerging
risks. Each month you pull the reports showing total product output for each day, and
number of defects found in the system. Which of the following is the best explanation of
why you do this?
You are comparing the actual output from the planned output to determine the work performance data, which
might indicate the emerging of project risks.
You are comparing the technical performance measurements to determine any variances which might indicate
the emergence of new risks.
You are comparing the schedule baseline to the WPD to determine the TCPI for the schedule.
You are comparing the actual output and the planned output while reviewing risks in the register. Variances
might indicate the need for a workaround.
Answer: B. A comparison of technical performance measurements could indicate the emergence of
risk if you have a negative variance. A is incorrect because the variance is known as WPI, not WPD.
C is incorrect because TCPI is related to the budget, not the schedule. D mentions workarounds,
which are needed for unforeseen risk events

25 . While planning risk responses with the team, the PM decides to mitigate a risk.
Which of the following is the best example of this?
The PM is hiring an onsite security company for the construction site in a questionable part of town
The PM invites a peer to help interview a highly sought after candidate
The PM decides not to use a vendor with a poor performance history
The PM decides to use a vendor with an excellent performance history
Answer: A. Hiring a security company would be to reduce property loss on a construction site,
especially in a questionable part of town. B and D are similar to sharing and C is avoidance.
26 . The project team has 30 days to implement a solution or face a $50000 fine from
the local government for being out of compliance. After a quick market analysis, the
team determines that there are two vendor choices. Vendor A has a solution for $12500
with a 15% chance of not completing it on time. Vendor B has a 10% chance of not
meeting the time frame and the cost is $14000. What should the team do?
Both choices are of equal value so go with the lower failure rate
Gather more market research
Chose vendor A
Choose vendor B
Answer: D. The best way to answer this scenario is with a decision tree. The first choice could be
expressed as ($50000*0.15)+$12,500, or $20,000 for total path value. The second choice is
expressed as ($50,000*0.10)+$14,000, or $19,000.
27 . Which of the following is the best description of a problem?
While analyzing the impact, you determine that two project objectives will be negatively disrupted.
While analyzing the impact, you determine that two project objectives will be positively affected.
While analyzing a risk event's impact, you determine that two project objectives will not be negatively disrupted.
While analyzing the impact, you determine that two project objectives will be negatively disrupted.
Choice A. A problem is the impact of a threat, or negative risk, on a project's objectives after the risk
event occurs.

28 . During a project meeting, one of the team members remarks that he is confused
about the purpose of the meeting. He states that since risk analysis is over and the
project is doing well in execution, he does not understand the need to continue
discussing risks. Which of the following is the best way to respond to the team member?
The purpose of these meetings is to continuously assess the effectiveness of risk methodology on the project.
The purpose of these meetings is to continuously define agreed upon risk definitions.
The purpose of these meetings is to identify stakeholders and determine their level of risk tolerance.
The purpose of these meetings is to determine the variance and submit WPD to key stakeholders.
Answer: A. A is a benefit of the Control Risks process. B and C are related to Plan Risk
Management, and D is incorrect. Neither WPI nor WPD is useful to key stakeholders.
29 . As the project is coming to a closure, you have planned for an upcoming survey
with stakeholders to capture their perceptions about the risk management effectiveness
on this project. You remembered that some of these stakeholders have very strong
opinions on meetings and a survey seemed like a better idea. This time, you plan to use
the Delphi technique. Which of the following is the best reason to use the Delphi
technique?
The Delphi technique is a way of removing bias by gathering expert opinion in an anonymous manner.
The Delphi technique is a way of grouping similar ideas together.
The Delphi techniques allows the group to make decisions by removing the experts with strong opinions.
This technique promotes consensus among experts by using electronic voting.
Answer: A. The Delphi technique gathers expert opinion in an anonymous manner to remove group
think, bias, and to neutralize stronger personalities from overpowering others in open forum. B is
referring to affinity diagrams and C refers to group decision making techniques. D is made up.

30 . After conducting a negotiation with a vendor, for a large project, your company
enters into a fixed price contract with the vendor. It is then up to you to ensure the
vendor is in compliance with the contract throughout the project. Which of the following
would be the most likely consequence of entering into a fixed price contract with the
vendor?
The risk to the seller increases
The risk to the buyer increases
The risk to the buyer and seller is shared evenly
The risk to the buyer decreases
Answer: A. Fixed price contracts are most risky to the seller.
31 . While preparing to leave work for the weekend, the PM receives a phone call from
a remote team member. The team member informs the project manager that a known
risk event has occurred and he has implemented the response plan for the risk which is
now neutralized. Which of the following is the best explanation for what has occurred?
The team member has initiated a workaround
The team member has identified a risk
The team member has controlled a risk
The team member has analyzed the risk, determined a response and then implemented it.
Answer: C. By implementing a response to a known risk, there must have been a documented
response. This is controlling a risk. A is used for an unknown risk event. B and D must have
happened before the risk response could have been planned.
32 . While determining schedule variances with the team, a risk event occurs which you
must deal with. Your risk response involves adding more resources to the schedule to
account for the risk's impact. Which of the following is the best description of your risk
response?
You planned to smooth the schedule
You planned to fast track the schedule
You planned to compress the schedule
You planned to level the schedule
Answer: B. Adding more resources is compressing the schedule.

33 . The project team has determined that a threat has 100% probability of occurrence.
What is the best way to describe this threat?
With a 100% probability, a workaround must be established
This threat should be exploited to realize the gain
This is an avoidable risk
It is a fact, and not a threat at all
Answer: D. There is no uncertainty with 100% probability. This is a fact that must be dealt with.
34 . The processes concerned with risk planning, identification, analysis, responses,
and controlling on a project can be summarized as which of the following?
This is scope management
This is project management
This is risk management
This is qualitative analysis
Answer C is the best as this is the definition of risk management.
35 . You have just been informed that a preferred vendor will be utilized on an upcoming
project. There had been concern over the type of contract to be used and the risk
involved. Which one of the following contracts would be preferred by the vendor?
Time and materials contract
Fixed price incentive fee contract
Lump sum contract
Cost plus fixed fee contract
Answer: A. A time and material contract is a risk to the buyer because the seller may not do the work
in a reasonable time or try to control the cost of material. It is normally only used for small projects.

36 . After determining risk variances on the project, you have decided to submit change
requests for consideration and possible inclusion into the baselines. Which of the
following statements is most true about risk related change requests?
Proactive risk changes are preferred after negative variances have been determined before risk increases
Risk related changes should be proactive after technical performance measure indicates that a change is
necessary
Risk changes should only be corrective actions and normally occur after negative variances have been
determined
Risk changes might include corrective actions and proactive actions
Answer: D. Change requests might be generated to correct negative variances, or to proactively
reduce potential problems
37 . You have just finished updating the risk register with PIM scores. Which of the
following statements is most true at this point in your project?
The team performed a risk probability and impact assessment with the PIM to determine the PIM scores
The team performed a risk probability and impact assessment with the PMI to determine the PIM scores
The team performed a risk probability and impact assessment along with risk categorization to determine the
PIM scores
The team performed a risk probability and impact assessment along with a data quality assessment to
determine the PIM scores
Answer: B. The probability and impact assessment attempt to determine the likelihood of a risk
which will occur and its impaact. The PIM is necessary to determine the PIM scores from this
assessment.
38 . Which of the following statements is incorrect regarding a project manager's role for
risk management?
The project manager should encourage senior management to support risk management activities.
The project manager is responsible for authorizing funds that are utilized for unknown risk events.
The project manager will audit risk response effectiveness and capture lessons learned.
The project manager determines risk levels for the project after consulting with senior stakeholders.
Answer: B. The PM does not have access to the funds set aside for unknown risks. This is known as
the management reserve and is controlled by senior management.

39 . The project team has decided to analyze the recently identified risks and to
categorize them. Which of the following is the team most likely doing?
Controlling risks
Planning risk responses
Qualitative analysis
Quantitative analysis
Answer: C. Risk categorization occurs during qualitative analysis
40 . While finalizing the risk plan with the project team, you decide to check it one more
time to ensure it has the required information for use during upcoming risk processes
and activities. Which of the following most accurately reflects the necessary project risk
plan information?
Methodology, budgeting, roles, RBS, and risk definitions
Quality metrics, budgeting, roles, RBS, and risk definitions
Methodology, budgeting, roles, risk categories, and EMV of top 10 risks
Methodology, budgeting, roles, OBS, and risk definitions
Answer: B. The PM does not have access to the funds set aside for unknown risks. This is known as
the management reserve and is controlled by senior management.
41 . Which of the following statement is true regarding commonly used project risk
terms?
A threat might result in a gain while an opportunity could result in loss
A threat can only be negative while an opportunity must be positive
An opportunity will not result in gain but a threat must result in loss
A threat will always result in a loss and an opportunity will always result in gain
Answer: B. This is the only choice that is true. A is reversed. C is incorrect as some opportunities are
realized. D is incorrect as not every opportunity results in gain.

42 . Which of the following choices is the correct process flow as it relates to risk
variances?
WPD is compared to the project plan in control risks and then the risk variance is moved to monitor and control
risks.
WPI is compared to the project plan in control risks and then the risk variance is moved to monitor and control
risks.
WPR is compared to the project plan in control risks and then the risk variance is moved to monitor and control
risks.
WPD is compared to the project plan in monitor and control risks and then the risk variance is moved to control
risks.
Answer: A. Work performance data is compared to the plan, and the variance is called work
performance information, or WPI. WPI is then compiled into a work performance report in the
process of monitor and control project work.
43 . While performing a risk reassessment during a monthly project meeting, a new risk
is discovered. Which of the following is the best course of action?
Document the risk, conduct analysis and if necessary, determine a response
Document the risk, conduct analysis, and determine a response
Conduct analysis, document the results, and if necessary, determine a response
Conduct analysis, document the results, and determine a response
Answer: A. When a new risk is identified, you must document the risk in the register. Then, conduct
the appropriate risk analysis, and if the risk exceeds your predetermined thresholds, you must plan a
response.
44 . While identifying risks on the project, the team decides to use root cause analysis,
interviewing, brainstorming, and Delphi technique. Which of the following has the team
used?
Diagramming techniques
Expert judgment
Group decision making techniques
Information gathering techniques
Answer: D. Information gathering techniques contain root cause analysis, interviewing,
brainstorming, and Delphi technique.

45 . Which of the following would NOT be an expected consequence of using the RBS?
Risk categories are presented in a hierarchical format
Threats are identified
Risk owners are identified
Opportunities are identified
Answer: C. The risk breakdown structure will not help determine risk owners or risk action owners.
All of the other choices are benefits of using the RBS.
46 . Which is the greatest inhibitor to quantitative analysis?
Subjectively used risk definitions
A prioritized list of risks
Objectively used risk definitions
Using an agreed upon approach
Answer: A. Agreed upon risk definitions should be used objectively throughout the project. The other
choices support quantitative analysis
47 . Which one of the following would NOT be a valuable resource while you control
risks throughout the project?
Audits
Inspection
Meetings
Reserve Analysis
Answer: B. Inspection is not a control risks tool, and the other choices are.
48 . Which of the following is the best statement concerning qualitative analysis?
When qualitative analysis is complete, not every risk will be quantified
When qualitative analysis is complete, every risk will have been identified and properly assessed with the PIM
When qualitative analysis is complete, every risk will be quantified
When qualitative analysis is complete, every prioritized risk will be quantified
Answer: A. Qualitative analysis determines which risks will be quantified, or which risks are too low
to be concerned with, which makes the other choices false.

49 . While determining which team members are most qualified to perform mandatory
project work, you decide that the risk is too great for any of them. Which of the following
should you do?
Transfer the work to qualified vendor
Avoid the work altogether
Mitigate the threat by assigning more resources
Crash the work with all team members
Answer: A. If the work is mandatory, and you have no qualified resources, the best solution is to
transfer the risk to a third party.
50 . Which of the following explains how risk variances are determined during the
project lifecycle?
WPD is compared to the project plan
WPD is compared to the risk plan
WPI is compared to the project plan
WPI is compared to the risk plan
Answer: A. Work performance data is compared to the project plan, which is more appropriate than
the risk plan. The project plan contains the components such as scope, cost, and schedule
baselines, which may have been impacted by project risks.
51 . The team has just began a round of qualitative analysis for an IT project. For this
analysis to be successful, what must have happened before this?
The PM plan must have been finalized
All risks must have been identified and analyzed qualitatively
The team should have a prioritized list of risks
The team must have identified contingency funds
Answer: C. A prioritized list of risks is necessary for quantitative analysis. A is incorrect as the
schedule and cost baselines might be updated, and then finalized by quantitative analysis. B is
incorrect as all risks cannot be identified by any single point in the project. D is related to plan risk
responses.

52 . The team has just finished decomposing the WBS and the scope baseline has
been set. Which of the following can the team now begin to work on?
The PM can now get the sponsor to sign off on the charter
The team can conduct qualitative risk analysis
The team can now properly collect requirements
The team can begin collecting cost and schedule variances?
Answer: B. The scope baseline is an input to perform qualitative analysis. Choices A and C should
have happened before and D is not true. It does not say that the schedule and cost baselines have
been set yet.
53 . During risk planning, it may become necessary to develop stakeholder risk profiles
and use risk scoring sheets. Which of the following would be most appropriate in this
situation?
Analytical techniques
Expert judgment
Group decision making techniques
Risk meetings
Answer: A. Analytical techniques are used to determine stakeholder risk profiles for risk appetite and
tolerances and might use risk scoring sheets to compare them.
54 . The team has decided to use EMV during risk planning. Which of the following is
the best description of EMV?
Calculating the average outcome when future events might not happen
Calculating mean outcome when future events will happen
Calculating the weighted average when future events will not happen
Calculating the simple average
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.

55 . Which of the following are NOT examples of checklists?
TECOP
SWOT
PESTLE
SPECTRUM
Answer: B. SWOT analysis is a risk identification tool. The others are prompt list examples.
56 . During risk analysis, the team decides to use Analytical Hierarchy Preference. What
is the best reason to use AHP?
To determine risk impact for the schedule and budget
To rate the project objectives against one another and determine stakeholder preferences
To assess feasibility of completing the project on time and budget
To determine the variance between the project plan and the actual work performed
Answer: B. AHP is a tool which is used to determine project preferences among stakeholders.
Prioritizing the objectives can be useful when trying to determine trade-offs throughout the project.
57 . While reviewing project risk templates, you find a prompt list. A prompt list is a
predetermined set of risk categories which is used to stimulate risk identification. Which
of the following are standard prompt lists?
SPECTRUM, TECOP and PISTLE
TECUP, PESTLE and SPECTRUM
PESTLE, TECOP and SPECTRUM
PISTLE, TECUP and SPECTRUM
Answer: C. The phrases, PESTLE, TECOP and SPECTRUM are all predetermined prompt lists.

58 . While discussing risk planning with a key stakeholder, you state that each risk will
have a standardized format that makes it clear to all stakeholders what the risk is, why
the risk may have been caused, and what the likely outcome is. What are you
describing to the stakeholder?
Risk Breakdown Structure
Risk formatting
Risk checklists
Risk metalanguage
Answer: D. Risk metalanguage uses the cause-risk-effect format so that risk statements are more
easily understood by stakeholders.
59 . As the project manager for a project which is about to begin execution, you
schedule a team meeting. In this meeting, you plan to discuss actions for the project
which will enhance gains and reduce losses. Which of the following are you most likely
referring to?
It is time to analyze risks
It is time to plan risk management
It is time to plan risk responses
It is time to collect risk variances
Answer: C. Plan risk responses process includes enhancing gains, or opportunities, and reducing
losses, or threats.
60 . As you begin to track identified risks with the project team, you compile several
sources of information to assist you. Which one of the following would NOT provide
assistance?
The plan
WPD
WPI
Risk register
Answer: C. First, you have to determine that you are in the Control Risks process. Choice C is an
output.

61 . Your project team is currently performing a round of risk identification on a small
project just before you begin execution. Which of the following is the best example of
what will happen next?
PIM scores will be assigned and risk responses will be developed
PIM scores will be assigned and risk definitions will be determined
Risk impact values will be determined and risk responses will be developed
Risk impact values will be determined and risks will be controlled
Answer: A. After risk identification each risk will be assessed in qualitative analysis and given a PIM
score. With a small project it is not required to conducted further analysis and risk responses can be
developed and assigned to each risk. B is incorrect as definitions should have been defined in the
risk plan. C and D skipped qualitative analysis.
62 . While conducting qualitative analysis on the project with the team, you occasionally
assign some risks to the watch list. What does this mean?
These risks are not actually risks and they are being dismissed from further consideration
These are facts and these belong to the issues log.
These are low risks and they will be monitored throughout the project.
These are high risks and they have been set aside for quantitative analysis.
Answer: C. Low risks are updated into the watch list. They are monitored to see if their probability
and/or impact changes over time.
63 . Which of the following risk triggers would most likely warrant the use of a
contingency plan?
When the BAC is greater than the EAC
When the CPI is equal to 1.1.
When CV and SV are 0.
When the BCWP is less than the BCWS.
Answer: D. The BCWS is also known as planned value, and when it is less than the BCWP, or
earned value, it means that the project is behind schedule. The other choices reflect a project that is
spending well, with no negative variances for cost and schedule.

64 . A key stakeholder calls the PM while he is working at his desk, and has a question.
The latest performance report has a tornado diagram on it but he does not know how to
interpret it. Which of the following is the best response to the stakeholder?
It is a bar chart that compares the risk between unstable, and stables variables
It is a bar chart, and when ranked from greatest to least, it shows where the project team should focus their
efforts
It is a bar chart that graphically displays data
It is a type of bar chart that can show percentages of schedule work complete
Answer: A. A tornado diagram is a bar chart, and it compares unstable project variables against
other more stable elements. B is a pareto diagram and C is just a histogram. D is the Gantt chart.
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 be helpful if found in the risk
plan while preparing to identify risks?
Risk urgency information
Revised stakeholder tolerances
Pre-determined PIM
Risk definitions
Answer: A. Risk urgency information would be updated to the risk register after qualitative risk
analysis.
66 . While conducting risk analysis with the team, you decide to use a tool to obtain a
comprehensive list of project risks. This tool should use a facilitator who will often be an
expert but not part of the team. Which tool does this most likely describe?
Brainstorming
Facilitated workshops
Focus groups
Surveys
Answer: A. This is the description of brainstorming.

67 . Contingency plans are implemented when used with which of the following?
Opportunities
Workarounds
Risk triggers
Threats
Answer: C. Contingency plans are implemented with predetermined risk triggers.
68 . Which of the following is the best explanation for quantitative risk analysis?
Determining the best course of action by numerically analyzing the total path values
Aggregating the impact of activity cost estimates
Numerically analyzing the effect of identified risks on the project objectives
Examining the risk of project elements and how they effect the objectives when other uncertainties are held at
their baseline values
Answer: C. This is the purpose of quantitative analysis. A is referring to decision trees and B is how
to determine the project budget. D is specifically related to sensitivity analysis.
69 . You and the project team have just started identifying risks on your project and you
are looking at activity cost estimates. Which of the following is NOT a reason to review
activity cost estimates?
Associated exchange rates
Probabilities of exceeding activity durations
Direct labor costs
Financing costs
Answer: B. Probabilities of exceeding activity durations are associated with activity duration
estimates. The other choices are potential risks associated with activity cost estimates.

70 . During a meeting, the project team has had a disagreement on which quantitative
risk tools to use after breaking into teams. Team A, with four team members think that
tornado diagrams should be used while team B, with three others prefer interviews.
Another group of three, which is Team C, is set upon using Monte Carlo software.
Which team will decide to use which tool?
Team B will decide since the PM is part of this team
Team A will decide
Team C
No decision can be reached
Answer: B. When there are multiple groups of people trying to make a decision, this is known as
plurality. The largest group will decide the outcome, and in this case, it is Team A.
71 . While walking past several employees, you hear one of them say that, "It is not that
hard. It is basically dealing with uncertainty during the project lifecycle by planning,
identifying, analyzing, responding, and controlling the uncertainty." In a general sense,
what are the team members most likely discussing?
The outcome of risk management
The goal of risk management
The purpose of risk management
The definition of risk management
Answer: D. Project risk management includes the processes that are concerned with conducting risk
management planning, identification, analysis, response, and monitoring and controlling on a
project.
72 . The project team has just finalized quantitative analysis, and are ready to plan risk
responses. Which of the following is a likely consequence of quantitative analysis?
Risk owner and action owner assignments
Justified contingency reserves
PIM scores
WPI to support decision making
Answer: B. Quantitative analysis is used to determine overall project risk to support decision making,
and in this case, how much might be needed in contingency reserves. A is plan risk responses, C is
qualitative analysis, and D is an output from control risks.

73 . Which of the following choices is a purpose characteristic of SWOT?
An analysis to examine which strengths offset threats, and which opportunities may overcome weaknesses
Strengths, weaknesses, opportunities, and threats
An analysis to examine which strengths offset opportunities, and which threats may overcome weaknesses
Strengths and weaknesses of organizational threats
Answer: A. This is the purpose of SWOT analysis. B is what SWOT stands for. C and D are just
incorrect.
74 . The Control Risks process is concerned with tracking identified risks, reassessing
risks, determining variances and implementing risk responses. Which of the following is
the most useful risk related document to this process?
Risk plan
PIM
WPI
Risk register
Answer: D. The risk register is the primary document that contains the risk information.
75 . While calculating the PIM score for a risk, the probability is 8 and the impact is 5.
What is the PIM score of this risk?
(40)
3
(3)
40
Answer: D. A PIM score is calculated as P*I. So, in this example, the score is 40.

76 . You are the PM for a small company and you have been assigned a small research
project. Near the end of project planning, you have decided NOT to perform quantitative
analysis. Is this a good idea?
Yes. Quantitative analysis might not be performed when the investment is not justified.
No. Quantitative analysis must always be performed.
It depends on what the sponsor has directed the PM to do.
No. The decision primarily depends on the stakeholder tolerances and the size of the project is not a factor.
Answer A. It is not a requirement to perform quantitative analysis when there is insufficient time,
budget, and data.
77 . Which of the following statements is 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.
In small projects it can be disregarded completely.
Predetermined risk definitions are not necessary after risk identification.
Answer: A. Stakeholder bias should be identified and avoided when possible in order to assess each
risk appropriately.
78 . Which of the following is NOT possibly impacted by project risks?
EEF
OPA
Risk plan
WPI
Answer: A. The project risks do not affect the enterprise environmental factors. The EEF has an
effect on the project risks.

79 . Which one of the following would be an unexpected consequence of the Control
Risks process?
Work Performance Information
Risk Register
Change requests
OPA updates
Answer: B. . Choices A, C, and D are all outputs of Control Risks process. Choice B is an output of
Identify Risks process and an input to the process of Control Risks.
80 . While leading the team through a round of risk identification, you remind them of
the 80/20 rule. This is the idea that 80% of risks are the result of 20% of root causes.
Which of the following is another name for this rule?
Pareto's Law
Heuristic's Law
Ishikawa's Law
McGregor's Law
Answer: A. 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 a made up law. Choice C is a
reference to an Ishikawa diagram, or root cause diagram. Choice D is a reference to McGregor's
Theory X and Y, a leadership theory.
81 . While trying to finalize several baselines, you must choose the best estimating
technique to determine buffers to account for cost and schedule risk on the project.
Which of the following choices would be most appropriate?
Bottom up estimating
Parametric estimating
Reserve analysis
Analogous estimating
Answer: C. Reserve analysis is the estimating technique used for determine project buffers for
schedule and cost risks.

82 . Which of the following statements is most true about risks?
Enhancing is as same as mitigation
Sharing is as same as transference
Avoidance is the opposite of passive acceptance
Mitigation is the opposite of active acceptance
Answer: D. Mitigation is proactively doing something before the threat occurs while active
acceptance is developing a plan that will be implemented after the risk event has occurred.
83 . While working with the project team during risk identification, you instruct one of the
team members to use force field analysis on the next set of risks. Which one of the
following is the best description of force field analysis?
This tool analyzes the elements of a system that cause it to fail by themselves or in combination with other
This tool determines what a project areas might be most sensitive to a risk's impact
This tool compares the "variables for change" and the "variables against change."
This tool helps determine if your process is in control
Answer: C. This is the best description of force field analysis. A is FMEA, B is sensitivity analysis
and D is a reference to a control chart.
84 . As a project manager for a large IT project, you have sought many vendor solutions
for your project but they all seem expensive. You delay purchasing equipment for as
long as you can until you have no time left. At this point, you purchase equipment from
the cheapest vendor. Which strategy have you used?
You have exploited an opportunity.
You have enhanced an opportunity.
You have accepted an opportunity.
You have transferred an opportunity.
Answer: C. Even though you tried to proactively find a cheaper solution it never presented itself.
When you have no choice but to do whatever is necessary, that is acceptance.

85 . You are a project manager for the ABC company and you are currently mid-way
through execution. You must continually be on the watch for new risks as the project
environment changes. Which of the following is the best way to do this?
Schedule daily risk reassessments
Schedule a weekly risk reassessment
Schedule bi-monthly risk reassessments
Schedule risk reassessments based on the project progress, project risk, and objectives
Answer: D. Risk reassessment activities should be conducted in a manner that is appropriate to the
project objectives and also based on how well the project progresses.
86 . During a weekly risk meeting with the team, you inform them that the agenda
includes tracking identified risks and evaluating risk process effectiveness to date.
Which of the following is most closely related to the meeting agenda?
Risk control
Risk planning
Risk analysis
Answer: A. The Control Risks process include the risk process effectiveness and risk tracking.
87 . While identifying risks, one of your new project team members approaches you and
asks where to find the RBS. Which is the best answer to give?
The RBS is in the risk register
The RBS is in the risk plan
The RBS will be completed after risk identification
The RBS is in the watch list
Answer: B. The risk breakdown structure is part of the risk plan.

88 . 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 mixed results. He states that most of the threat has been dealt with
but some of it remains. Which of the following is the best description of what has
happened?
The risk action owner did not implement the response correctly
An unknown risk event has emerged
There is residual risk
A secondary risk has occurred
Answer: C. Any risk that remains after the response has been implemented is known as residual
risk.
89 . Which of the following would be the most important input to the plan risk
management process to ensure risk methodology integration across the project?
An OPA
Project plan
Project charter
Answer: C. The project plan is the input to plan risk management, and the existing plans are taken
into consideration to make the risk management plan consistent with them.
90 . 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 least risk to the project?
CPI of 0.95
SPI of 0.99
TCPI of 0.98
Cost variance of $5000
Answer: C. A to-complete performance index of 0.98 means that you only need to get 0.98 cents
worth of value out of every remaining dollar, and this is good. A and B are problems and D means
you are under budget.

91 . Which of the following is the best description of a workaround?
An unplanned response to an identified risk.
A planned response to an unknown risk.
A secondary plan implemented due to a primary plan failure.
An unplanned response to an unknown risk.
Answer: D. An unknown risk requires an unplanned response. It is considered unplanned because it
is not in the risk register with response details and owners.
92 . While conducting a risk meeting with the project team, you direct the team to use
risk categorization as well as risk data quality assessment. Which of the following are
you likely doing?
Quantitative analysis
Risk planning
Qualitative analysis
Risk identification
Answer: C. These are tools that are used in qualitative analysis.
93 . While analyzing stakeholder tolerances just before risk planning, you decide to use
the salience model to classify stakeholders. Which of the following contains the correct
characteristics for the salience model?
Power, urgency and legitimacy
Achievement, power and affiliation
Interactive, push and pull
Interest and influence
Answer: A. The salience model is based on the power, urgency, and legitimacy. B is referring to
McClelland's Three Needs Theory. C is a reference to communication's methods, and D is the
interest and influence grid.

94 . After reviewing a low risk, the PM decides to passively accept it. Which of the
following is the best way to describe what the PM has decided to do?
The PM moves the impact of the risk to a third party.
The PM proactively does something before the risk occurs
The PM does nothing from this point forward
The PM does something reactively if necessary
Answer: C. Doing nothing about a risk is known as passive acceptance.
95 . You are reviewing the current work performance report from the team during your
weekly meeting. The current BCWP is $175,000, and the BCWS is $185,000. If your
risk trigger has an SPI of 0.95, what should you do next?
Nothing at all because the SPI indicates that the project is ahead of schedule.
Implement the contingent response strategy.
Nothing yet because the risk trigger has not been reached yet.
Implement a workaround because the risk trigger has been reached.
Answer: B. The formula for SPI, or schedule performance index is EVPV, or BCWPBCSW. Here it
is $175,000$185,000, or 0.94. The project is behind schedule and the contingent response should
be initiated.
96 . As your project team finishes up risk analysis, you begin to calculate the EMV of
the threats. Threat 1 has an impact of $15000 with a probability of 39%. Threat 2 has a
probability of 26% and an impact of $27150. Threat 3 has a probability of 11% with a
$1250 impact. What is the EMV of these 3 threats?
13,046.50
43,400.00
-13,046.50
-43,400.00
Answer: C. ($15000*0.39)+($27150*0.26)+($1250*0.11)= ($13,046.50)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.

97 . Which of the following is NOT a likely result of a well structured risk management
plan?
Team subjectivity during risk management
Team objectivity during risk management
Risk management integration into other aspects of project
Stakeholder buy-in and support
Answer: A. The risk plan which is prepared well should help you remain objective throughout the
project. .
98 . Your team is in the middle of risk identification and they are effectively using
diagramming techniques. Which of the following is NOT an example of a diagramming
technique?
Influence diagram
System flow chart
Influence diagram
Interrelationship digraph
Answer: D. Interrelationship digraphs are a quality tool, and are not a diagramming technique.
99 . The team has just completed a tornado diagram. Which of the following were they
most likely using?
EMV
EVM
Sensitivity analysis
Pareto's Law
Answer: C. Sensitivity analysis is quite often displayed in a tornado diagram.

100 . During risk planning, one of your team members suggests an interesting tool and
it is called FMEA. Which of the following is the best description of FMEA?
It determines if your process is in or out of control.
It is a structured model analysis to identify which elements of a system can fail by themselves or in a
combination.
It represents information flows within a project.
Answer: B. Failure mode and effects analysis is the model described. A is a reference to a control
chart, B is system dynamics and D is force field analysis.
It is useful for comparing the forces for change with the forces against.
101 . While on a Federal contract, the vendor has decided to promote a new sales
solution to the customer. Even though the existing contract is good for another year, the
vendor would like to secure future business by promoting the new services now. Which
of the following is the best way to describe this situation?
The vendor has exploited an opportunity.
The vendor has enhanced an opportunity.
The vendor has actively accepted an opportunity
The vendor has shared an opportunity.
Answer: B. In this example, the vendor is already on contract with the customer and now they are
offering a new solution. They are definitely exploiting the current relationship!

102 . 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 31% probability and
$2000 impact. Threat 2 has a 41% probability and a $10000 impact. Opportunity 1 has
a 50% gain of $5000. What is the EMV of the gain?
($7,800.00)
$2,500.00
($2,500.00)
$7,800.00
Answer: B. ($5000*0.5) =$2500. The opportunity is the only risk that is a gain. The others are threats
and are considered as losses.
103. Which one of the following is the best description for the risk action owner?
If the store has sold out the new phone, the customer will go home empty handed.
If the bull dozer begins to tilt over, the construction foreman will monitor the response.
If the bull dozer begins to tilt over, the operator will perform an immediate action.
When the product is ready for testing, the engineer will perform the test.
C is the answer. The person responsible for carrying out the actions to deal with a risk is the risk
action owner. A is an example of acceptance and no response plan is required. B is referring to the
risk owner, and D is just a team member.
104 . Which of the following is known as CAUSE-RISK-EFFECT format?
Risk impact statement
Risk metalanguage
Probability and impact definitions
Probability and impact matrix
Answer: B. This is metalanguage.

105 . Which of the following statements is true concerning risks?
All opportunities are risks and all threats are negative
All threats are risks and all opportunities result in a positive outcome
All threats and opportunities become issues
All risks must be dealt with
Answer: A. All opportunities are in fact risks and all threats are considered negative. This is a true
statement. B is incorrect because all opportunities do not happen. C is incorrect because all risks do
not happen to become issues, and D is not true. Some risks are just accepted.
106 . While preparing for risk planning, you begin to assess which enterprise
environmental factors are a source of risk to the project. Would the PMIS be a source of
risk during the project?
Yes, because it is how you manage and distribute information during the project.
No, the PMIS is an OPA.
The PMIS is not a source of risk during the project.
Yes, the PMIS is how the scope is decomposed into work packages.
Answer: A. Your project management information system is how you track project information and
distribute to stakeholders. If it is not available, it is a significant constraint, or risk to your project.
Choice B is false. The PMIS is considered as an EEF. Choice C is incorrect and Choice D refers to
the WBS, which is not relevant here.
107 . While planning for schedule and cost related risks, the PM decides to set pre-
determined thresholds that will indicate the occurrence of a risk event. What are the
predetermined thresholds most likely called?
Risk trigger
Risk issues
Risk contingencies
Risk responses
Answer: A. Risk triggers are predetermined thresholds or conditions that indicates that a risk event
has occurred.

108 . Which of the following statement is the best example of an assumption?
Your belief that the external employees should be used on your project.
Your belief that the internal employees should be used on your project.
Your belief that thrtest equipment availability for your project turns out to be false.
Your belief that the test equipment is available for your project.
Answer: C. An assumption is a belief that you hold to be true, without proof. It is a source of risk and
choice C is the option with the risk to the project. A, B, and D are just beliefs without impact.
109 . The team has just began a round of quantitative analysis and is using the risk plan
as a reference. Which of the following is the best reason?
To determine risk action owners based on the risk area of the project
To reference which tools and methodology will be used
To update risk characteristics in the plan as they are identified
To update assumptions in the plan as new information is found
Answer: B. The risk plan contains a range of information, and some of it is how to conduct risk
management during the project. A and C are the risk register and D is the assumptions log.
110 . You have called for 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 most risk to the project?
An BAC greater than the EAC.
A CPI of 1.01.
A TCPI of 0.94.
A SPI of 0.94
Answer: D. A schedule performance index of 0.94 means that the project is behind schedule. The
other variances are in good shape.

111 . As a PM for a company in Florida, you have recently waited until the last moment
to evacuate the area due to an impending hurricane impact. You wanted to ensure
every team member was safe and now you are waiting in a long line to get gas and
hopefully, some snacks for the road. Which of the following is the best description of this
response?
Mitigation
Passive acceptance
Active acceptance
Avoidance
Answer: B. Performing any proactive actions or having a reactive response of any kind is known as
passive acceptance.
112 . Which of the following would NOT be an expected problem if the project team
controls risks improperly?
Threats increase
Opportunities are not leveraged
Some risk responses are not implemented
Uncertainty declines throughout execution
Answer: D. If risks are controlled properly, the uncertainties on the project will decline. The other
choices are expected problems if the process of control risks is not fully understood by the project
team.
113 . Which of the following would be detailed 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 the risk meetings may be published within the risk plan. The other
choices should be captured in the risk register.

114 . While discussing an upcoming meeting agenda with a peer, you remark that it is
time to assess which risks may affect the project and determine their characteristics.
What are you most likely referring to?
Risk identification
Risk control
Risk analysis
Answer: B. Risk identification is determining which risks may affect the project and documenting
their characteristics.
115 . During a risk review meeting, Susan has volunteered to be a risk owner. What
does this mean?
Susan will ensure that the risk response is carried out.
Susan will carry out the risk response
Susan will ensure that the risk activities are properly documented.
Susan will report risk status to key stakeholders.
A is correct, as the person who ensures that a response is carried out and is called the risk owner. B
is the risk action owner. C and D are normal project activities.
116 . Which of the following is true about the Control Risks process?
It is part of the planning process group.
It is part of a knowledge area that has an initiating process.
It is primarily concerned with determining the variance.
It is part of a knowledge area that has an executing process.
Answer: B. Control risks belong to the Monitoring and Controlling process group. A major function of
processes in this group is to determine the variance between what was planned and what has been
done.

117 . After reviewing the updates to several project documents, the program manager
calculates a ten percent addition to account for unknown risk events. Which of the
following supports this?
EVM of threats
EMV of opportunities
Choice: A. Quantitative analysis determines the uncertainty of the project with various confidence
levels. Stakeholders use this information to determine contingency reserves for unknown risk events.
118 . Enterprise environmental factors are often used to determine the appropriate level
of risk management that an organization will commit to during a project. Which of the
following is an EEF?
Lessons learned
Risk templates
Risk tolerances
Risk categories
Answer: C. Risk tolerances are considered as an enterprise environmental factor. The other choices
are organizational process assets.
119 . The project team is reviewing sources of potential risks for a project in the
planning phase. The are reviewing the cost, and quality management plans to spot
potential sources of risk. Which of the following might be a source of quality risk that is
related to cost?
The cost of conformance
The cost of non-conformance
The cost of inspections
The cost of quality training
Answer: B. The cost of non-conformance is most closely associated with quality failures. It is the risk
of additional time, money, and resources for failing to meet the quality standards. This is reflected in
the quality plan during planning a potential source of risk.

20 . If a project team is concerned with the ability to detect a risk, and respond with
reasonable time, which of the following are they concerned about?
Risk urgency
Risk categorization
Risk probability
Risk impact
Answer: A. Risk urgency is concerned with the ability to detect the risk, the time required to respond
as well as warning signs.
121 . Your team has just finished an early round of risk identification on your project,
and have documented 200 risks in the risk register. Which of the following choices
should NOT have been documented at this time?
A list of threats
The risk breakdown structure
A list of opportunities
Potential responses
Answer: B. The RBS is documented within the risk plan.
122 . Going outside of the company for goods and services involves entering into a
contract with a third party, and this cannot be accomplished without submitting a change
request and following it through the proper steps. This change request will normally
generate more attention from senior management. Which one of the following is the
best explanation for this?
Going outside of the company for good and services will always result in increased risk to the company so it
must be approved by senior management.
Going outside of the company for good and services is not allowed.
Going outside of the company for good or services might increase the risk to the company.
Going outside of the company for good and services will always result in reduced risk to the buyer so it must be
accepted by senior management.
Answer: C. A company's liability, or risk, can increase depending on the type of contract entered into
with a third party.

123 . While using the PIM to determine the quality of risks, there are generally three
ways to assess the risk. Which of the following is the best reflection of this assessment?
Very low, medium, or very high
low, medium, or high
Low, medium, or catastrophic
Mitigate, avoid, transfer
Answer: B. The qualitative analysis performed on risks generally ranks them as being a low, medium
or high risk.
124 . While in a weekly risk meeting with the team, the PM wants to know how much
contingency funding has been spent on risks and how much is remaining. He is
concerned that they may not be enough left to complete the project. What is the PM
most likely doing?
Reserve analysis
Risk reassessment
Risk audit
Variance analysis
Answer: A. Reserve analysis compares what has been spent on risks and what remains to deal with
possible future events. D is a good choice, but not a tool in the control risks process.
125 . There are many types of project documents created during the project lifecycle.
Many of them contain information concerning project related risks. Which of the
following would most likely NOT be one of them?
Resource Breakdown Structure
Source selection criteria
Project charter
Risk register
Answer: A. The Resource Breakdown Structure displays the necessary activity resources by
category and type. It does not display risk information. Choice B can contain risk assigned to the
seller. Choice C can contain high level risks, and Choice D is a primary risk document.

126 . While using a project document to determine the priority of risks, you calculate the
score as P*I. Which of the following does this apply to?
The PIM score
The total number of communications channels required
The to-complete performance index
The EMV of this risks
Answer: A. P*I, or probability times impact is the proper way to calculate the PIM score of a risk.
127 . While performing qualitative analysis, the team may gather new information about
risks which can be used to more accurately assess the risk characteristics. Which of the
following is the most likely consequence of this new information.
Threats will become issues
Opportunities will become gains
The assumptions log will be updated
Stakeholders will have more issues for the team to deal with
Answer: C. The assumptions log will be updated as new information supports or refutes previously
made assumptions. The other choices cannot be supported yet.
128 . You have just completed developing all of your response strategies. Which of the
following would be a project document update?
Assigned risk owners
PIM scores
Risk variances
Change requests
Answer: A. Assigning risk owners, and action owners to implement responses is an expected update
from the process of Plan Risk Responses

129 . The project team has just finished using assumptions analysis and SWOT
analysis. After updating several documents, which of the following will your team most
likely do next?
Analyze and choose necessary courses of action
Determine the quantitative impact of project risks
Assess the probability and impact of all risks
Determine agreed upon risk definitions
Answer: C. The use of assumptions and SWOT analysis means your team has been identifying
risks. They will not determine risk scores in qualitative analysis, based on probability and impact. A
is plan risk responses, B is quantitative analysis and D is plan risk management.
130 . You are currently conducting risk identification with the team and you have a wide
range of tools available. Which of the following would you NOT use during this process?
FMEA
AHP
SWOT
Delphi
Answer: B. Analytical hierarchy process is a tool used in qualitative analysis.
131 . Which of the following statements is NOT true regarding risk management?
Risk management addresses known risks.
Risk management addresses project issues that 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: D. This is incorrect as risk management addresses both known-controllable as well as
known-uncontrollable risks.

132 . While developing risk responses with the team, you decide to update a project
document with risk owners and risk action owners responsibilities. Which document are
you most likely updating?
Risk plan
Risk register
Issue log
Answer: C. The risk register contains the risk owner's and action owner's responsibilities for risk
responses. The risk plan contains risk management roles throughout the project.
133 . Your project director has called for a team meeting and all personnel must attend.
During this meeting, he informs everyone that there can be no overtime for the next
quarter due to budget constraints. Which of the following is the best description of this
situation?
You have a risk trigger to deal with.
You have a project constraint
You made an incorrect assumption
This is a new risk and must be analyzed.
B is the answer. A constraint is a limitation that effects the project. A and C are incorrect, and D is a
fact.
134 . Which of the following situations would result in an increase in project risk ?
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 increase the project risk. A scope gap is when there
is a legitimate requirement that was missed while defining the scope.

135 . While deciding on risk definitions with the project team, there is a disagreement on
which word is most clear when describing the consequence of a risk event if it occurs.
Which choice is most closely related to consequence?
Probability
Impact
Likelihood
Benefit
Answer: B. The term impact will apply to both threats and opportunities. Choice D only applies to
opportunities.
136 . While identifying risks with the project team you, have decided to review
enterprise environmental factors. Which of the following is the best choice to describe
what you might review?
Risk attitudes, academic studies, and published checklists
Company risk templates, risk attitudes, and company databases
Academic studies, benchmarking, and lessons learned
Project files, process controls, and risk attitudes
Answer: A. These are all considered enterprise environmental factors. B contains company risk
templates, C contains lessons learned, and D contains project files. All are examples of
organizational process assets.
137 . 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. A flawed risk plan would NOT result
in which of the following?
Established timing for risk activities
Vague risk definitions
Generic risk templates
Stakeholder disagreements about roles and responsibilities
Answer: A. A well structured, agreed-upon plan would contain timing for risk activities. The other
choices would be consequences of a poorly prepared risk plan.

138 . While reviewing a source of information for potential project risks, you check the
control accounts, work packages, constraints, and project boundaries. Which of the
following are you most likely reviewing?
WBS dictionary
Scope statement
Scope baseline
WBS
Answer: C. You are reviewing the scope baseline as it is the only choice which is an input to risk
identification.
139 . While determining which risk tools to use on your project, you decide to use force
field analysis. Which of the following is the best description of force field analysis?
It is used to compare a company's strengths and weaknesses against the opportunities and threats.
It is used to determine which variable change the project sensitivity.
It is used to rank project objectives against one another to prioritize them.
It is used to compare the forces for change with the forces against.
Answer: D. Force field analysis compares the forces for change with the forces against change. A is
SWOT analysis, B is sensitivity analysis and C is analytical hierarchy process (AHP).
140 . The project team is performing a risk data quality assessment. Which one of the
following are they most likely concerned with?
The integrity and the accuracy of data collected with the Delphi technique
The availability, integrity and, the key stakeholder's desire to accept the risk data results
The accuracy, availability, and the team's ability to agree on the risk data
The accuracy, quality and, integrity of the risk data
Answer: D. Data quality assessment is concerned with accuracy, quality, integrity and reliability of
the risk data. Poor data is of little value on a project.

141 . While reviewing the risk register, the PM notices that there are quite a few
acceptance strategies that will be used during the project. Which of the following is the
best description for this?
Acceptance strategies are primarily for threats that cannot be avoided
Acceptance strategies can be applied to threats and opportunities
Acceptance strategies are great for opportunities that might not be achievable
Acceptance strategies are primarily for threats that cannot be mitigated
Answer: B. Acceptance strategies are the only response that applies to threats and opportunities.
142 . The team has just completed quantitative risk analysis and are leaving the
meeting. What should the team do next?
Set a meeting to plan risk responses
Discuss how to control the risks
Inform the sponsor
Update project documents
Answer: D. The team should always update project documents after every meeting.
143 . While gathering sources of information for an upcoming qualitative risk analysis
meeting, one of the team members says that he will grab the project plan on the way.
What should your response be?
We don't need the entire plan. Just get the risk plan
Great idea and thanks for the reminder.
Thanks and while your at it get the risk register.
Thanks but I will get it. I'm the PM and responsible for control of the plan.
Answer: A. The project plan is not an input to qualitative analysis. The risk plan is.

144 . Which of the following is the best way to determine areas of the project with the
highest concentrations of risk?
Risk categorization
Cause and effect diagrams
Pareto's Law
Root cause analysis
Answer: A. Risk categorization is a tool which is used to determine where concentrations of risk
might be in the project.
145 . While reviewing the project for risks, the team discovers that they will need to
apply buffers to the schedule to account for risks. Which of the following buffers be used
for?
Activities that have been crashed
Activities that have been fast tracked
A resource constrained critical chain
Activities that have been resource leveled
Answer: C. The team would apply buffers to protect the critical chain, which is the solution to dealing
with a resource constrained critical path.
146 . You have just delivered a project report to the sponsor. In this report, you have
recommended courses of action supported by numerical analysis. What have you most
likely completed?
You have finalized the project plan
You have developed the project budget
Answer: D. Quantitative analysis numerically analyzes risks on the project objectives, and the results
are used to make decisions.

147 . Which one of the following processes benefits the least by using the risk
management plan?
Control Risks
Plan Risk Responses
Plan Risk Management
Perform Qualitative Risk Analysis
Answer: C. The risk plan is the output from plan risk management, and not the input.
148 . Which of the following would be a true statement regarding the use of check lists
for risk identification?
Check lists provide a more generalized list of risks.
Previous experience will not contribute to the check list development.
An exhaustive check list can be practical.
Regular maintenance is a consideration.
Answer D is a true statement. Regular maintenance is required for a checklist to be accurate and
tailored to each project. The other choices are false statements.
149 . As a CEO of a services company you are constantly looking out for new business.
Recently, a new contract proposal has caught your eye and you would love to win the
contract. Unfortunately, your company is not quite qualified to do the work. Which of the
following is the most appropriate response if you do NOT intend to actively pursue the
solicitation?
Sharing the opportunity with a more qualified company
Enhancing the opportunity by hiring more experienced personnel
Exploiting the opportunity by responding to the solicitation
Accepting the opportunity
Answer: D. If the CEO decides not to respond, he is accepting the opportunity, which includes
passive acceptance.

150 . While identifying risks, it is important to understand the differences between risks
and issues. Which of the following is the best statement to explain the difference?
All issues were risks but not every risk will become an opportunity
All risks were issues but not every risk will become an issue
All issues were threats but not every threat will become a risk
All threats are risks but not every risk will become an issue
Answer: D. If the CEO decides not to respond, he is accepting the opportunity, which includes
passive acceptance.
151 . During a risk meeting, the team looks at the current risks to see if they are still
valid. They also close outdated risks while looking for new risks. What is the team most
likely doing?
Risk plan development
Risk audit
Risk identification
A risk reassessment
Answer: D. All of these activities are components of a risk reassessment.
152 . Noise is one of several components that contributes the exchange of information
between multiple parties by using the basic communications model. Noise can also be a
source of risk during the project. Which of the following is the best explanation for this?
Noise interferes with the transmission or receipt of the message, which can result in misinformation about
project risk to stakeholders.
Noise contributes to message encoding and if it is done incorrectly, the message may not make sense.
Noise contributes to message decoding and if it is done incorrectly the message might not be transmitted at all.
Noise confusion might result in a formal written message being sent in an informal manner.
Answer: A. Noise, or filters, interfere with the message transmission or receipt. The other choices
are not true at all.

153 . Which of the following will any risk variances likely be used for?
Risk variances will be used to reduce risk.
The risk variances will be compiled into WPD and used to support future decisions.
The risk variances will be compiled into WPI and used to support future decisions.
The risk variances will be compiled into PERT and used to support future decisions.
Answer: C. Any variance discovered in a controlling process is work performance information, and
used to support decision-making to realign the performance with the plan.
154 . Which of the following could be an expected consequence of sound project risk
management?
Risks increase throughout the project lifecycle.
The BAC is significantly greater than the EAC.
Stakeholder expectations are not satisfied throughout the project.
The project team misses many opportunities during the project.
Answer: B. The Estimate at Complete can be considered your final budget during project closure
and if it is lower than the Budget at Completion, the original budget, sound risk management
methodology would have contributed to it. More risks would have been identified and planned
appropriately for. The other choices are incorrect.
155 . The project team is gathering sources of information to support quantitative risk
analysis. One source of information contains the methodology for determining TCPI.
Which of the following is this source of information?
Cost management plan
Schedule management plan
Quality Management Plan
Risk management plan
Answer: A. To complete performance index is an EVM calculation to determine how well spending
should be to hit cost targets, and these rules are in the cost plan.

156 . You and your project team have began risk planning and are trying to understand
what authority level you have to take risk related decisions. Which of the following is the
best description of your authority level on the project?
It is an OPA
It is an EEF
It is SWOT
It is an EMV
A is the correct answer. Your risk related authority level is an organizational process asset because
it is contained within your specific company.
157 . You have called for a team meeting and have instructed the team to gather
various sources of information. They include activity cost estimates and durations, as
well as the HR plan and quality plan. What are you most likely preparing the team for?
Risk identification
Answer: C. This combination of sources are inputs for risk identification.
158 . Your project team has just finalized the risk plan. Which of the following would be
found within the risk plan?
EMV of risks, escalation rules, report templates, and the project metalanguage format
Key deliverables, escalation rules, threats list, and the project metalanguage format
Key deliverables, escalation rules, report templates, and the project metalanguage format
Key deliverables, opportunities list, report templates, and the project metalanguage format
Answer: C. These are outlined in the risk plan. The other choices contain at least one element found
within the risk register.

159 . While conducting a periodic risk reassessment with the team, the PM decides to
compare the data speed of a server during the last week, to the data speed that was
collected one month ago. Which of the following is the most likely reason for this?
The data speed comparisons can be used as a technical performance measurement to determine if risk events
are affecting the server.
The data speed comparisons can be used to determine if there are sufficient remaining funds for project risks.
The data speed comparisons can be used to determine if the risk plan is being followed.
The data speed comparisons can be leveraged to see if new risks are emerging.
Answer: A. The data speed is a technical performance measurement, and any deviations can help
forecast project success.
160 . Your project team has just finalized a risk meeting where they determined the
urgency of the identified risks. What should the team do in the next risk meeting?
Plan appropriate responses
Conduct risk identification
Prepare for quantitative analysis
Conduct qualitative analysis
Answer: C. Risk urgency is determined in qualitative analysis, which is followed by quantitative
analysis.
161 . The tools that will be used for risk management must be outlined as part of the
risk plan. Which of the following, within the risk plan, is most closely related to the
process that assess individual risks?
Roles and responsibilities
Reporting formats
Probability and impact definitions
Stakeholder tolerances
Answer: C. Qualitative analysis is the process concerned with assessing individual risks; probability
and impact definitions are required for this process.

162 . You are the project manager for a complex project, and you direct the project
team to assess the effectiveness of implementing risk response plans, as well as how
objective the team has been while using the risk plan. Which of the following is the best
explanation of what you are doing?
You are attempting to determine the work performance information
You are conducting a risk reassessment
You are conducting a risk review
You are conducting a risk audit
Answer: D. A risk audit assesses the effectiveness of the risk plan, as well as the implementation of
risk responses.
163 . Which of the following would be the correct sequence of events?
The risk owner implements the response and reports to the risk action owner. The risk action owner informs the
project manager who reports to the stakeholders.
The risk action owner implements the response and reports to the risk owner. The risk owner informs the
The risk action owner and risk owner implements the response together and then inform the project manager
who reports to the stakeholders.
The risk action owner initiates the response and it is completed by the risk owner. The risk owner informs the
Answer: B. The risk action owner is the person who has ownership of the immediate response. This
person reports to the risk owner, who in turn reports the outcome of the response to the project
manager. The PM reports the project status to the stakeholders.
164 . Your supervisor calls you into her office and asks you to explain something. She
has been reviewing risk definitions in the risk plan and does not understand how you will
know when to initiate the contingency plans. How would you explain this to her?
The contingency plans will be implemented when predetermined risk triggers occur.
The contingency plans will be implemented when unknown risks occur.
The contingency plans will be implemented when opportunities are shared.
The contingency plans will be implemented when predetermined risk triggers fail.
Answer: A. A contingency plan is used when a predetermined risk trigger indicates thatthe risk event
is about to occur, or has already occured.

165 . Which one of the following is an expected consequence from the process of
control risks.
Work performance data will be generated
Change requests will be approved or rejected
Risk activity costs will be estimated
Risk activity durations will be determined
Answer: B. One of the outputs from the Control Risks process is change requests, which must then
be sent to the Perform Integrated Change Control process and evaluated. A occurs in Direct and
Manage Project Work, while C occurs in Estimate Costs. D is related to the process of Estimate
Activity Durations.
166 . The project team has interviewed several experts and have gotten their estimates
for risk impacts. Because they have multiple estimates, the team decides to use a beta
distribution to determine the result. Which of the following represents the beta
distribution?
P+R+0/3
P+4R+0/6
P-0/6
P-0/3
Choice B. This is the formula for the beta distribution of PERT. A is the simple average and C is the
formula for PERT standard deviation. D is made up.
167 . Your current project is to install 1000 feet of fiber optic cable. Every 100 feet will
cost $5000 and take two days to install. You have just finished day 6 and have
completed 300 feet. For this project, you have a contingency plan with a predetermined
risk trigger for the CV of -$1000. If your CPI is currently 1, what should you do in relation
to the risk trigger?
You should do nothing at all. The CPI reflects that the project spending is perfect; So, the cost variance is 0.
Find the actual costs and compute the cost variance.
Determine that the risk trigger has been reached and initiate the contingency plan.
Divide the ACWP by the BCWS to determine that the trigger has been reached. Initiate the contingency plan.
Answer: A. The formula for CV is EVAC but you do not have the AC in the scenario. The cost
performance index is present and shows that the project spending is perfect, which means that the
cost variance must be 0.

168 . As a risk SME, your judgment is often sought by project sponsors. Recently, an
executive requested your opinion about a proposed new building project in Florida. After
reviewing the project proposal you recommend using only wind resistant construction
material. What type of risk strategy have you recommended?
Transference
Avoidance
Mitigation
Acceptance
Answer: C. By using wind resistant construction material you are attempting to mitigate the hurricane
force winds that might damage the building.
169 . Which one of the following is the best description of the PIM?
It is a project document containing two axes, probability and impact, which is used to assess the characteristics
of project threats.
of project risks.
of project issues.
of project opportunities.
Answer: B. The PIM is use for project risks, which are threats and opportunities.
170 . Your team members have just prepared several probability distributions which will
be used to brief key stakeholders later in the day. Which of the following is the best
description of what the stakeholders might see?
A chart showing a positive linear correlation among the variables
A bar chart that compares the risk between unstable, and stables variables
A diagram with project risk concentrations ranked from highest to lowest
A chart reflecting a uniform distribution of values
Answer: D. Probability distributions display data in a continuous, discreet, or uniform manner. A is a
scatter diagram, B is a tornado diagram and C is a Pareto chart.

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