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Exam Code: PMI-RMP
Exam Name: PMI (PMI Risk Management Professional)
One year free update, No help, Full refund!
Total Q&A: 273 Questions and Answers
Last Update: 2013-11-09

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NO.1 You work as a project manager for BlueWell Inc. Your project is using a new material to construct a large
warehouse in your city. This new material is cheaper than traditional building materials, but it takes some
time to learn how to use the material properly. You have communicated to the project stakeholders that
you will be able to save costs by using the new material, but you will need a few extra weeks to complete
training to use the materials. This risk response of learning how to use the new materials can also be
known as what term?
A. Team development
B. Benchmarking
C. Cost of conformance to quality
D. Cost-benefits analysis
Answer: C

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NO.2 You are project manager for ABD project. You, with your team, are working on the following activities:
Probabilistic analysis of a project.
Probability of achieving cost and time objectives.
Trends in Qualitative Risk Analysis results.
On which of the following processes are you working on?
A. Plan Risk Management
B. Perform Quantitative Risk Analysis
C. Perform Qualitative Risk Analysis
D. Identify Risks
Answer: B

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NO.3 You are the project manager of the GHE Project. You have identified the following risks with the
characteristics as shown in the following figure: How much capital should the project set aside for the risk
contingency reserve?
A. $142,000
B. $41,750
C. $23,750
D. $232,000
Answer: C

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NO.4 John works as a project manager for ABD project. He and his team, are working on the following
activities:
Relative ranking or priority list of project risks
Watchlists of low priority risk
Trends in Qualitative Risk Analysis results
On which of the following processes is John working on?
A. Perform Qualitative Risk Analysis
B. Plan Risk Management
C. Plan Risk Responses
D. Perform Quantitative Risk Analysis
Answer: A

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NO.5 You are working with Anna on your project to determine and map the probability distributions of risk
within the project. You have indicated that you will use the uniform distribution method for a portion of the
project. Which part of your project is most likely to have a uniform risk distribution?
A. Late completion stages of a project
B. Project phases that deal with "cutover" technologies
C. Early concept stage of design
D. Project initiating
Answer: C

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NO.6 Lisa is the project manager of the SQL project for her company. She has completed the risk response
planning with her project team and is now ready to update the risk register to reflect the risk response.
Which of the following statements best describes the level of detail Lisa should include with the risk
responses she has created?
A. The level of detail is set by historical information.
B. The level of detail should correspond with the priority ranking.
C. The level of detail must define exactly the risk response for each identified risk.
D. The level of detail is set of project risk governance.
Answer: B

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NO.7 You work as the project manager for Bluewell Inc. Your project has several risks that will affect several
stakeholder requirements. Which project management plan will define who will be available to share
information on the project risks?
A. Risk Management Plan
B. Stakeholder management strategy
C. Resource Management Plan
D. Communications Management Plan
Answer: D

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NO.8 You are the project manager of the KJH Project and are working with your project team to plan the risk
responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within
the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of
$350,000. When it comes to creating a risk response for this event what is the risk exposure of the event
that must be considered for the cost of the risk response?
A. The risk exposure of the event is $245,000.
B. The risk exposure of the event is $500,000.
C. The risk exposure of the event is $350,000.
D. The risk exposure of the event is $850,000.
Answer: A

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NO.9 Jane is the project manager of the GBB project for her company. In the current project a vendor has
offered the project a ten percent discount based if they will order 100 units for the project. It is possible
that the GBB Project may need the 100 units, but the cost of the units is not a top priority for the project.
Jane documents the offer and tells the vendor that they will keep the offer in mind and continue with the
project as planned. What risk response has been given in this project?
A. Acceptance
B. Enhance
C. Exploiting
D. Sharing
Answer: A

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NO.10 Jenny is the project manager for the NBT projects. She is working with the project team and several
subject matter experts to perform the quantitative risk analysis process. During this process she and the
project team uncover several risks events that were not previously identified. What should Jenny do with
these risk events?
A. The events should be entered into qualitative risk analysis.
B. The events should be determined if they need to be accepted or responded to.
C. The events should be entered into the risk register.
D. The events should continue on with quantitative risk analysis.
Answer: C

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NO.11 What risk identification technique allows participants to identify the project risks and to remain
anonymous?
A. Influence diagrams
B. Assumptions analysis
C. Surveys
D. Delphi technique
Answer: D

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NO.12 Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to last
14 months and has a budget at completion of $4,555,000. Tracy's organization will receive a bonus of
$80,000 per day that the project is completed early up to $800,000. Tracy realizes that there are several
opportunities within the project to save on time by crashing the project work. Crashing the project is what
type of risk response?
A. Transference
B. Mitigation
C. Exploit
D. Enhance
Answer: D

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NO.13 You are the project manager of the NHJ project for your company. This project has a budget at
completion of $1,650,000 and you are 60 percent complete. According to the project plan, however, the
project should be 65 percent complete. In this project you have spent $995,000 to reach this point of
completion. There is a risk that this project may be late so you have taken some measures to recover the
project schedule. Management would like to know, based on current performance, what the estimate at
completion for this project will be. What is the estimate at completion?
A. $1,650,000
B. $1,666,667
C. $663,333
D. -$8,333
Answer: B

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NO.14 You are the project manager of the NHQ Project for your company. You have completed qualitative and
quantitative analysis of your identified project risks and you would now like to find an approach to increase
project opportunities and to reduce threats within the project. What project management process would
best help you?
A. Monitor and control project risks
B. Create a risk governance approach
C. Create the project risk register
D. Plan risk responses
Answer: D

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NO.15 Shelly is the project manager of the BUF project for her company. In this project Shelly needs to
establish some rules to reduce the influence of risk bias during the qualitative risk analysis process. What
method can Shelly take to best reduce the influence of risk bias?
A. Group stakeholders according to positive and negative stakeholders and then complete the risk
analysis
B. Determine the risk root cause rather than the person identifying the risk events
C. Establish risk boundaries
D. Establish definitions of the level of probability and impact of risk event
Answer: D

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NO.16 You are a risk auditor for your company. You are reviewing the contract types a project manager has
used in her project. Of the following, which contract type has the most risk for the project manager as a
buyer?
A. Cost plus percentage of costs
B. Time and material
C. Cost plus incentive fee
D. Fixed-price, incentive fee
Answer: A

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NO.17 You work as a project manager for BlueWell Inc. You want to create a visual diagram, which can depict
the resources that will be used within the project. Which of the following diagrams will you create to
accomplish the task?
A. Roles and responsibility matrix
B. Work breakdown structure
C. Resource breakdown structure
D. RACI chart
Answer: C

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NO.18 John is the project manager of the NHQ Project for his company. His project has 75 stakeholders,
some of which are external to the organization. John needs to make certain that he communicates about
risk in the most appropriate method for the external stakeholders. Which project management plan will be
the best guide for John to communicate to the external stakeholders?
A. Risk Response Plan
B. Risk Management Plan
C. Communications Management Plan
D. Project Management Plan
Answer: C

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NO.19 Tom is the project manager for his organization. In his project he has recently finished the risk
response planning. He tells his manager that he will now need to update the cost and schedule baselines.
Why would the risk response planning cause Tom the need to update the cost and schedule baselines?
A. New or omitted work as part of a risk response can cause changes to the cost and/or schedule
baseline.
B. Risk responses protect the time and investment of the project.
C. Risk responses may take time and money to implement.
D. Baselines should not be updated, but refined through versions.
Answer: A

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NO.20 You are the project manager of the GYH project for your organization. Management has asked you to
begin identifying risks and to use an information gathering technique. Which one of the following risk
identification approaches is an information gathering technique?
A. Root cause analysis
B. Assumptions analysis
C. SWOT analysis
D. Documentation reviews
Answer: A

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NO.21 Frank is the project manager of the NHQ project for his company. Frank is working with the project
team, key stakeholders, and several subject matter experts on risks dealing with the new materials in the
project. Frank wants to utilize a risk analysis method that will help the team to make decisions in the
presence of the current uncertainty surrounding the new materials. Which risk analysis approach can
Frank use to create an approach to make decisions in the presence of uncertainty?
A. Monte Carlo Technique
B. Qualitative risk analysis process
C. Quantitative risk analysis process
D. Delphi Technique
Answer: C

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NO.22 Kelly is the project manager of the BHH project for her organization. She is completing the risk
identification process for this portion of her project. Which one of the following is the only thing that the
risk identification process will create for Kelly?
A. Risk register
B. Risk register updates
C. Change requests
D. Project document updates
Answer: A

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NO.23 There are five outputs of the risk monitoring and controlling process. Which one of the following is NOT
an output of the process?
A. Organizational process assetsupdates
B. Risk register updates
C. Vendor contracts
D. Change requests
Answer: C

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NO.24 Your organization has named you the project manager of the JKN Project. This project has a BAC of
$1,500,000 and it is expected to last 18 months. Management has agreed that if the schedule baseline
has a variance of more than five percent then you will need to crash the project. What happens when the
project manager crashes a project?
A. Project risks will increase.
B. The project will take longer to complete, but risks will diminish.
C. Project costs will increase.
D. The amount of hours a resource can be used will diminish.
Answer: C

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NO.25 Virginia is the project manager for her organization. She has hired a subject matter expert to interview
the project stakeholders on certain identified risks within the project. The subject matter expert will assess
the risk event with what specific goal in mind?
A. To determine the level of probability and impact for each risk event
B. To determine the bias of the risk event based on each person interviewed
C. To determine the probability and cost of the risk event
D. To determine the validity of each risk event
Answer: A

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NO.26 Sammy is the project manager for her organization. She would like to rate each risk based on its
probability and affect on time, cost, and scope. Harry, a project team member, has never done this before
and thinks Sammy is wrong to attempt this approach. Harry says that an accumulative risk score should
be created, not three separate risk scores. Who is correct in this scenario?
A. Harry is correct, because the risk probability and impact considers all objectives of the project.
B. Harry iscorrect, the risk probability and impact matrix is the only approach to risk assessment.
C. Sammy is correct, because organizations can create risk scores for each objective of the project.
D. Sammy is correct, because she is the project manager.
Answer: C

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NO.27 You are preparing to start the qualitative risk analysis process for your project. You will be relying on
some organizational process assets to influence the process. Which one of the following is NOT a
probable reason for relying on organizational process assets as an input for qualitative risk analysis?
A. Studies of similar projects by risk specialists
B. Risk databases that may be available from industry sources
C. Review of vendor contracts to examine risks in past projects
D. Information on prior, similar projects
Answer: C

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NO.28 Examine the figure given below.
What will be the expected monetary value of Risk C?
A. -$113,750
B. $175,000 if the risk event actually happens
C. -$175,000
D. -$27,000
Answer: D

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NO.29 Which risk response is acceptable for both positive and negative risk events?
A. Transferring
B. Acceptance
C. Sharing
D. Enhancing
Answer: B

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NO.30 Jenny is the project manager of the NHJ Project for her company. She has identified several positive
risk events within the project and she thinks these events can save the project time and money. You, a
new team member wants to know that how many risk responses are available for a positive risk event.
What will Jenny reply to you?
A. Four
B. Three
C. Seven
D. Acceptance is the only risk response for positive risk events.
Answer: A

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