PMP Question Series: Risk Management

(1) all of the following are factors in the assessment of project risk except:
(a) risk event (b) risk probability (c) amount at stake (d) insurance premium (x)

(2) Risks will be identified during which risk management process(es)?
identify risks and monitor and control risks

(3) risk tolerance are determined in order to help:
The team rank the project risks.

(4) you are finding it difficult to evaluate the exact cost impact of risks. you should evaluate on:
Qualitative basis

(5) outputs of the plan risk responses process include:
residual risks, secondary risks, contingency plan, fallback plan, contingency reserver

(6) workarounds are determined during which ris management process?
monitor and control risks

(7) A PM has just finished the risk response plan. which of the following should he probably do next:

Add work packages to the project work breakdown structure

(8) A PM asked various stakeholders to determine the probability and impact of a number of risks. He then analyzed assumptions. he is about to move to the next step of risk management. What the PM forgot to do?

--> provide a standardized risk rating matrix

(9) A PM has assembled the project team, identified risks, triggers of the risk, rated them on a risk rating matrix, test their assumption, and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the PM forgot to do?

-> involvement of other stakeholders

(10) A system development project is nearing project closing when a previously unidentified risk is discovered. This could potentially affect the project's overall ability to deliver. what should be done next?

--> qualify the risk
note: you do not develop a workaround since a workaround is an unplanned response to an unanticipated risk event that is occurring

(11) while preparing your risk responses, you identify additional risks. what should you do?
--> document the risk items, and calculate the expected monetary value based on probability and impact that result from the occurrences.
NOTE: when a new risk is identified, it should go through the risk management process.

(12) you have just been assigned as the PM for a new project that is entering the second phase of the project. There appear to be many risks on the project, but no one has evaluated them to assess the range of the possible outcomes. what needs to be done.

--> plan risk management

(13) during project executing, a team member identifies a risk that is not in the risk register. what should you do?
--> analyze the risk

(14) A PM is creating a risk response plan. However, everytime a risk response is suggested, another risk is identified that is caused by the response. which of the following is the best thing for the PM to do?
--> document the new risks and continue the plan risk response process

(15) your project team has identified dependencies on six related projects that are providing major deliverables to your project. which of the following processes should you be most concerned about?
a) verify scope
b) plan risk response (x)

(16) During identify risk process, a project manager made a long list of risks identified by all the stakeholders using various methods. he then made sure that all the risks were understood and that triggers had been identified. later, in the plan risk response process, he took all the risks identified by the stakeholders and determined ways to mitigate them. what has he done wrong?

a) triggers are not identified until the identify risk process
b) more people should be involved in the plan risk response process (x)

(17) lack of adequate test environment, limited testing, and likely unavailability of resource are all risks that should have been identified early in the project, and for which response strategies should have been developed

(18) There is a probability of 0.1 that a given risk will occur in a project. If it occurs, it will result in a loss of $10,000. The insurance cost for this event is $700, with a deductible of $250. should a rational PM buy this insurance?

if no insurance: 01. x 10,000 = (1000) in loss
in using insurance: 250 + 700 = 950

So it is worth to buy insurance

(19)