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PMI-RMP Questions and Answers

Question # 6

A two-year project with a budget of US$2 million has completed about 60% of the work at the end of the first year. The actual cost incurred to complete the remaining 40% of work is about USS1.5 million. As a part of performing a specialized risk analysis, the calculated schedule performance index (SPI) is 1.2 and cost performance index (CPI) is 0.53.

How should the risk manager interpret such a low CPI value?

A.

The cost control processes is ineffective.

B.

The cost baseline is inaccurate.

C.

The actual reported costs are inaccurate.

D.

The cost related risks are effectively managed.

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Question # 7

A project lihat was in the execution phase for the last six months was put on hold and was eventually cancelled after numerous scope related challenges. It was decided to re-plan the scope and divide the project into multiple projects to have better insight into end objectives. As part of the project start up. the project manager is developing the risk planning for the project.

What three artifacts should the project manager consult or review during this process? (Choose three.)

A.

Project contracts

B.

Lessons learned registers from analogous projects

C.

Risk register

D.

Risk management plan

E.

Code of regulations

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Question # 8

When approving the risk contingency budget for a project, the CEO notices each team has a different approach to report risks and their impacts. The CEO decides to create a new centralized risk management function to help resolve the problem.

How does centralizing the risk management function help resolve the problem?

A.

Enhance the process of identification of different Individual project risks.

B.

Allows monitoring the impact against the overall project risk exposure.

C.

Establishes risk sources and ownership for trigger monitoring.

D.

Creates a single repository for all project risk documents.

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Question # 9

A risk management professional is in the process of categorizing risks when a subject matter expert (SME) suggests categorizing the risks by their impact to the project objectives. Why should the risk management professional use this approach?

A.

To enable the team in identifying the specific causes of risks associated with project objectives.

B.

To ensure that project priorities are being appropriately factored into risk response plans.

C.

To determine there more attentive project leadership and organizational involvement is needed.

D.

To assign risks and risk severities to functional discipline and departments effectively.

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Question # 10

A risk manager of a complex project has identified a risk and believes a deeper understanding of the source and likelihood is necessary. How should the risk manager proceed?

A.

Develop and employ an Ishikawa diagram

B.

Analyze the assumptions and constraints

C.

Perform a review of project documents

D.

Create prompt lists for expert interviews

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Question # 11

Stakeholder deliverable reviews will start soon and additional work is expected to resolve any issues or required adjustments. Budget overruns during execution have put serious constraints on the remainder of the project's budget.

What should the project manager do next?

A.

Request a budget relief using the management reserve.

B.

Conduct a risk reassessment and reserve analysis.

C.

Review the consequences of potential changes.

D.

Coach stakeholders on risk identification practices.

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Question # 12

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

A.

During the project execution phase to allow the project manager to understand the risk attitudes of stakeholders.

B.

When a client project kick-off meeting is held to introduce risk assessment process to the client.

C.

Before a formal bid response is provided to the client to gain a greater understanding of the project’s risk profile.

D.

After a project budget is set up with a purchase order to charge hours for a risk workshop.

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Question # 13

A risk manager is facilitating a risk identification workshop on a new product with technical experts. There is no consensus among the technical experts on most of the identified risks and their characteristics. The risk manager decides to resolve this difference using another technique.

Which technique should the risk manager use in this situation?

A.

Brainstorming

B.

Delphi method

C.

Focus group

D.

Checklist analysis

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Question # 14

A project manager has requested a risk manager facilitate risk identification on a project. While facilitating this effort, the project manager wants to ensure that stakeholders interact and provide their expertise so that an exhaustive list of risks is created.

Which risk identification technique should the risk manager use?

A.

Prompt lists

B.

Interviews

C.

Delphi technique

D.

Nominal group technique

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Question # 15

During the design phase the project team is exploring various architecture options. After reviewing the results of design pilot, two conflicting infrastructure pieces were identified.

What action should the project manager take?

A.

Reassess the design for the two pieces.

B.

Escalate the situation and request approval to move forward.

C.

Confirm the results through a second pilot.

D.

Update the assumptions log and assess the risk associated with it.

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Question # 16

The project manager leading a company's digital signature initiative for engineering drawings has identified threats and opportunities using a strengths, weaknesses, opportunities, and threats (SWOT) analysis.

What are two potential threats or opportunities under the SWOT analysis? (Choose two.)

A.

The management team agreeing to include more resource for the digital signature initiative.

B.

The organization's professional engineers having reservations about possible information tampering.

C.

A growing number of competitors with digital signatures.

D.

An elimination of manual steps associated with recording wet signatures

E.

The growing adoption of mobile communications in the industry.

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Question # 17

During a risk identification session, the risk manager notices that subject matter experts (SMEs) are reluctant to participate because some risks could expose the poor maturity of processes in other business units. Which risk analysis technique should the risk manager use?

A.

Strengths, weakness, opportunities, and threats (SWOT) analysis

B.

Delphi technique

C.

Decision tree analysis

D.

Probability impact matrix

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Question # 18

What is an example of legal and regulatory requirements and/or constraints when assessing a project environment for threats and opportunities?

A.

Organizational communication requirements

B.

Organizational standard policies, processes, and procedures

C.

Formal knowledge sharing and information sharing procedures

D.

Confidentiality of project information

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Question # 19

The project risk manager on a large firm fixed priced (FFP) contract has an up-to-date risk register with accurate and detailed information. What should the project risk manager do next?

A.

Recommend the removal of risks to the project manager to reduce project risk exposure.

B.

Advise the client that the project has exhausted contingency.

C.

Quantify the risk exposure that exceeds project contingency.

D.

Generate reports to assess and communicate the project risk level.

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Question # 20

A project is In the initiation phase. The project stakeholders are Invited to a meeting to share their thoughts that may impact the project In a positive or negative way.

What will be the main output of this meeting?

A.

Evaluating the project's probability of success

B.

Identifying threats and opportunities

C.

Evaluating the project's impact

D.

Performing a qualitative analysis

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Question # 21

The risk manager notices that in their workshops, most of the risks identified are threats. What should the risk manager do to increase the number of opportunities identified?

A.

Use the Delphi technique involving experts who have identified opportunities in the past

B.

Interview more stakeholders who have a positive mindset

C.

Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis

D.

Conduct a political, economic, sociological, technological, legal, and environmental (PESTLE) analysis

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Question # 22

An organization that spans across different countries undergoes a digital transformation project. The project manager has assigned a risk management team leader who is a risk management certified candidate in their domain.

What should the risk management team leader do in the early stages of the project?

A.

Conduct qualitative risk analysis to prioritize potential risks.

B.

Plan a solid risk response plan and secure the necessary funding.

C.

Educate stakeholders on best practices to perform risk management.

D.

Benchmark to an organization which has executed a similar project,

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Question # 23

A project has a S0S4 chance of a US$100 000 profit and a 40% chance of a US$100,000 loss. What is the expected monetary value for this project?

A.

US$20.000 loss

B.

US$20,000 profit

C.

US$40,000 loss

D.

US$100,000 profit

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Question # 24

A risk manager of a major project facilitates a meeting to develop the risk management plan. What two factors does the risk manager need to consider to ensure an effective risk management plan is developed? (Choose two.)

A.

Applying modern risk management techniques.

B.

Aligning to project constraints and priorities.

C.

Ensuring risk response strategies mitigate all risks.

D.

Minimizing implementation costs.

E.

Obtaining stakeholder acceptance

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Question # 25

A new risk manager has been assigned to a delayed strategic project. The risk manager presented a new plan to get the project back on track using lessons learned and applying risk response strategies. Senior management wants to remove contingency reserves because they want to finish the project earlier.

What should the risk manager do in this scenario?

A.

Review project schedule estimates.

B.

Change the response strategies.

C.

Reduce the contingency reserves.

D.

Conduct a risk planning workshop.

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Question # 26

.

A project manager is identifying risks on a project and decides to use a risk checklist to gather historical data accumulated from similar projects. With several different historical project files to choose from, which two pieces of information should the project manager include in their risk checklist? (Choose two.)

A.

Budget variance data from previously completed projects.

B.

Project scope and cost management plans from previous projects.

C.

Lessons learned from similar completed projects.

D.

Previous project risks that may be relevant to this project.

E.

Stakeholder analysis metrics from projects with similar risk profiles.

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Question # 27

A project manager is developing the risk register and works with the team to analyze risks and determine their probability and impact. There is valuable historical data available that may be used to simulate the overall risk outcome.

Which type of analysis should the project manager use in this instance?

A.

Check list analysis

B.

Cause and effect

C.

Specialized meeting

D.

Quantitative analysis

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Question # 28

A complex project that had hundreds of risks is almost done. The project manager is closing the risks as part of the closing process. One team member mentions that there are important documents to be updated.

Which document will need to be updated?

A.

Lessons learned

B.

Contingency register

C.

Risk register

D.

Issue log

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Question # 29

The risk manager of a major project needs to ensure the organizational process assets (OPAsj are updated as a result of risk management activities. How will the risk manager accomplish this?

A.

Ensuring that the project sponsor is kept well-informed

B.

Arranging periodic risk: management process audits

C.

Communicating the status of risks regularly to stakeholders

D.

Monitoring costs with intervention when necessary

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Question # 30

A risk manager is confident that they have identified and quantified the risks and opportunities for a project. When presenting their work to management, on what areas should the risk manager focus? (Choose two.)

A.

Risks that are tied to the success of the organization

B.

Risks as they apply to the organization's overall risk management philosophy and strategic ambition

C.

Huge opportunities that possibly bring an additional 30% return for 10 projects in the next year

D.

Risks related to cost that will impact the major projects that are currently in the execution phase

E.

Risk mitigation actions that will require work from stakeholders

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Question # 31

A project manager has been assigned to a project that is just starting. The organization has a very low risk appetite towards this project due to constraints on budget and schedule. The project stakeholders are very engaged on the project and want to ensure that there is clear visibility on the project risks and progress.

How should the project manager handle stakeholder expectations?

A.

Add buffers to the schedule to accommodate risk.

B.

Ensure the risk register includes all identified risks.

C.

Discuss the risk response strategies with the stakeholders.

D.

Develop a communication plan to share updates on risks.

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Question # 32

The project manager has completed four projects all with similar scope. The project manager has recently been assigned to start on a new project and believes some risks may occur again on this project.

What should the project manager do?

A.

Implement the risk response strategies into the risk plan.

B.

Inform the sponsor that these risks should be added according to experience.

C.

Add the risks to the risk register and determine a contingency.

D.

Discuss and evaluate the identified risks with the project team.

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Question # 33

An organization faces immense competition in the market and decides to accelerate a key project. What is the first action for the project risk manager to take?

A.

Update the risk register

B.

Meet with the project's stakeholders

C.

Revise the risk management plan

D.

Ensure sufficient resources are available

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Question # 34

A project manager has just been assigned to a new project. The project manager has been tasked by the project sponsor to ensure the project risks are closely managed. The project manager starts with developing the risk management plan.

What is the expected outcome of developing the risk management plan?

A.

Being able to monitor and control risks throughout the project.

B.

Defining how risk management will be executed throughout the project.

C.

Documenting the communication strategy for risks throughout the project.

D.

Having the ability to identify risks throughout the project.

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Question # 35

When processing freight invoices for a project, the project manager notices the shipping costs exceeded the budget due to increased fuel costs. The risk manager included this risk in the project's contingency allowance. When reviewing the project budget execution reports, the project manager notices unused budget remaining in other closed tasks of the project that could cover the additional shipping costs.

What should the project manager do?

A.

Process the freight invoices at higher shipping costs against the project's contingency allowance.

B.

Request a formal change order from the customer to increase the project's total budget.

C.

Process the freight invoices for the budgeted amount and hope the shipping company will forgive the difference.

D.

Ask the project sponsor to cover the additional shipping costs on the company's reserves account.

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Question # 36

A risk manager administered a pre-workshop risk survey in preparation for the upcoming workshop. The workshop invitees participated in the survey and submitted many risks encompassing all project phases and risk areas. The risk manager sorts risks by similarities and categories for the workshop.

What should the risk manager do next to visually organize the risks?

A.

Develop an affinity diagram

B.

Perform the analytical hierarchy process

C.

Perform a SWOT analysis

D.

Assign probability and impact

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Question # 37

A project manager was informed that the testing of the latest component in the project's software update release was not successful. As a result, 1he delivery timelines for the software release wifi be delayed, The project manager did not previously capture this as a risk to the project.

What should the project manager do next to avoid similar risks?

A.

Add contingencies to other tasks to mitigate similar risks.

B.

Reassess risks with a new assumptions and constraints analysis.

C.

Review the risk response plan looking for lessons learned.

D.

Log the event in the issue log and update the project management plan.

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Question # 38

A risk manager documents the causes in the risk register and needs to ensure the risk is adequately described. What is critical for the risk manager to consider when describing the causes?

A.

Each cause has a degree of uncertainty

B.

Each cause has well defined owner

C.

The causes represent actual conditions

D.

The causes must be validated by the risk owner

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Question # 39

Upon reviewing the risk analysis results, the project manager notices several risks that occur more frequently than others. What should the project manager do?

A.

Reduce the probabilities of those risks on the risk register

B.

Transfer ownership of those risks to the customer

C.

Implement the risk handling strategies for those risks

D.

Request additional management reserve for those risks

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