Risk Planning in Project ManagementPMP Exam Questions and Answers – Risk PlanningRisk is inherent in all projects, and risks posed both threats to and opportunities for the project. Understanding the risks facing your project, better equips you to determine the appropriate strategies to deal with those risks and help you develop the response plans for the risks. Show
PMP Risk Planning Exam EssentialsCan define the purpose of the risk management planThis describes how you will define, monitor, and control risks throughout the project. Its details how risk management process is will be implemented, monitored, and controlled throughout the life of the project. Can name the purpose of identify risksThe purpose of the identify risks process is to identify all risks that might impact the project and then document them and identify the characteristics. Can define the purpose of perform qualitative risk analysisThis determines the impact the identified risks will have on the project and the probability that they will occur. It puts the risks in priority order according to their effects on the project objectives. Can define the purpose of perform quantitative risk analysisThis the value rates the impacts of risk prioritize during the perform qualitative risk analysis process, and quantify is risk exposure for the project by assigning numeric probabilities to each risk and the impacts on project objectives. Can define the purpose of the plan risk responses processPlan risk responses are the process where risk response plans are developed using strategies such as avoid, transfer, mitigate, accept, exploit, share, enhance, develop contingent response strategies, and apply expert judgment. The risk response plan describes the actions to take, should the identified risks occur. It should include all the identified risks, a description of the risks, how they will impact the project objectives, and the people assigned to manage the risk responses. Can define the risk register and some of its primary elementsThe risk register is an output of the identified risks process, and updates to the risk register occur as an output of every risk process that follows this one. By the end of the plan risk responses process, the risk register contains these primary elements:
PMP Exam Questions and Answers – Risk PlanningQuestion 1 – You are a project manager for a bottling company. Your project involves installing a new Accounting System, and you are performing the risk planning processes. You have identified several problems along with the causes of those problems. Which of the following diagrams will you use to show each problem and its causes and effects? A. Decision tree diagram Question 2 – Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks, describe which of the following processes? A. Perform quantitative risk analysiS Question 3 – Each of the following statements is true regarding the risk management plan except for which one? A. The risk management plan is an output of the plan risk management process Question 4 – You are using the interviewing technique to the perform a quantitative risk analysis process. You intend to use normal and lognormal distributions. All of the following statements are true regarding this question except which one? A. Interviewing techniques are used to quantify the probability and impact of the risks on project objectives Question 5 – The information gathering techniques used in the identify risks process include all of the following except _________________ A. Root cause analysis Question 6 – Which of the following processes assesses the likelihood of risk occurrences and their consequences using the numerical rating? A. Perform qualitative risk
analysis Question 7 – You are the project manager for a new training website. You need to perform the perform qualitative risk analysis process. When you have completed this process, you will produce all of the following as part of the project documents updates output except which one? A. Priority list of risks Question 8 – You have identified a risk event on your current project that could save $100,000 in project costs if it occurs. Which of the following is true based on this statement? A. This is a risk event that should be accepted because the rewards outweigh the threats to the project Question 9 – You have identified a risk event on your current project that could save $500,000 in project costs if it occurs. Your organization is considering hiring a consulting firm to help establish proper project management techniques to assure it to realizes these savings. Which of the following is true based on this statement? A. This is a risk event that should be accepted because the rewards outweigh the threats to the project Question 10 – Your hardware vendor or left you a voicemail saying that a snowstorm in the Midwest might prevent your equipment from arriving on time. She wanted to give you an advanced warning and lost due to return the call. Which of the following statements is true? A. This is a trigger Question 11 – You are constructing a probability and impact matrix for your project, which of the following statements is true? A. The probability and impact matrix multiplies the risk’s probability by the cost of the impact to determine and expected value of the risk event Question 12 – Your stakeholders have asked for an analysis of the cost risk. All the following are true except for which one? A. Monte Carlo analysis is the preferred method to use
to determine the cost risk Question 13 – Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest will prevent your equipment from arriving on time. You identified a risk response strategy for this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is an example of which risk response strategy? A. Transfer Question 14 – Risk attitude is an enterprise environmental factor that you should evaluate when performing the plan risk management process. Risk attitude consist of all the following elements except for which one? A. Risk appetite Question 15 – You work for a large manufacturing plant and you are working on a new project to release a new product line of toothpaste and salt. This is going to be sold into Europe which has different dimensions and cap fittings on their tubes of toothpaste. A new machine is needed to mix the ingredients into a concentrated formula and package it into these smaller containers than your US product uses. You and your stakeholders are nervous when you discover this will be the first machine your organization has purchased from your new supplier. Which of the following statements is true given the information in this question? A. The question describes risk tolerance levels of the stakeholders, which should be considered when performing the plan risk management process Question 16 – Your project team has identified several potential risks on your current project that could have a significant impact if they occurred. The team exam and the impact of the risks by keeping all the uncertain elements at their baseline values. What type of diagram will the team use to display this information? A. Fishbone diagram Question 17 – Your project team is in the process of identifying project risks on your current project. The team has the option to use all the following tools and techniques to diagram some of these present risks, except for which one? A. Ishikawa diagram Question 18 – All the following statements are true regarding the RBS except for which one? A. The RBS is contained in the risk management plan Question 19 – Your team has identified the risks on the project and determined their risk score. The team is in the middle of determining what strategy is to put in place should the risks occur. After some discussion, the team members have determined that the risk of losing their network administrator is a risk they will just deal with if it occurs. Although they think it is a probability, and the impact would be significant, they have decided to simply deal with it off to the fact. Which of the following is true regarding this question? A. This is a negative response strategy Question 20 – All the following are true regarding the perform qualitative risk analysis process except which one? A. Probability and impact and expert interviews I used to help correct biases that occur in the data you have gathered during
this process PMP Exam Answers – Risk Planning1.
B. What are the 4 main risk responses?Risk response strategies: mitigation, transfer, avoidance, acceptance.
What are the 4 components of a risk management plan?Step 1: Risk Identification.. Step 2: Risk Assessment.. Step 3: Risk Treatment.. Step 4: Risk Monitoring and Reporting.. What is a risk response plan what should be included?Risk response planning is the process of developing options and determining actions to enhance opportunities and reduce threats to the project`s objectives. It includes the identification and assignment of individuals or parties to take responsability for each agreed risk response.
What are the 3 Responses to risk?Risk Responses. Avoid – eliminate the threat to protect the project from the impact of the risk. ... . Transfer – shifts the impact of the threat to as third party, together with ownership of the response. ... . Mitigate – act to reduce the probability of occurrence or the impact of the risk.. |