PMI PMI Certifications PMI-RMP Questions & Answers

• Question 491:

  A risk manager has been assigned to a project constructing a chemical laboratory. Unfamiliar with chemical laboratories, the risk manager is unsure of where to start objectively identifying risks.

  What should the risk manager do?

  A. Import a risk register from other industry chemical laboratories.

  B. Define chemical laboratory safety risk thresholds.

  C. Review published operational experience reports.

  D. Draft threat and opportunity risks that come to mind.

  Correct Answer: C

  Explanation: Reviewing published operational experience reports from similar projects or industries can help the risk manager objectively identify risks for the chemical laboratory project. These reports provide valuable insights into potential risks and lessons learned from other projects.

  According to the PMBOK Guide, one of the tools and techniques for the identify risks process is data gathering. Data gathering is the process of collecting information from various sources to identify potential risks that may affect the project objectives. One of the data gathering techniques is document analysis, which involves reviewing and analyzing available project documents and other information sources to identify potential risks. Some of the documents that can be analyzed are project charter, project management plan, stakeholder register, assumptions log, agreements, and lessons learned1. One of the information sources that can be useful for identifying risks in a project constructing a chemical laboratory is published operational experience reports. These are reports that document the experiences, lessons learned, best practices, and recommendations from other organizations or projects that have constructed or operated chemical laboratories. These reports can provide valuable insights into the common risks, challenges, and opportunities that are associated with chemical laboratory projects, such as safety hazards, environmental regulations, equipment failures, design specifications, quality standards, and stakeholder expectations. By reviewing published operational experience reports, the risk manager can objectively identify risks that are relevant and applicable to their project, as well as learn from the successes and failures of others23. Some of the other options are not relevant or appropriate for the question scenario: Importing a risk register from other industry chemical laboratories is not a valid option, as it would not allow the risk manager to objectively identify risks that are specific and unique to their project. A risk register is a document that records the identified risks, their causes, impacts, responses, owners, and other information related to the risk management process. A risk register is a project-specific document that reflects the characteristics, objectives, and context of a particular project. Importing a risk register from other industry chemical laboratories would not ensure that the risks are relevant, accurate, or comprehensive for the risk manager's project. Moreover, it would violate the intellectual property rights and confidentiality agreements of the other projects1. Defining chemical laboratory safety risk thresholds is not a tool or technique for identifying risks, but rather for performing qualitative risk analysis. Risk thresholds are the measures of the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Risk thresholds are used to determine the significance of each risk and to prioritize them for further analysis or action. Defining chemical laboratory safety risk thresholds would not help the risk manager to objectively identify risks, but rather to evaluate them1. Drafting threat and opportunity risks that come to mind is not an objective or systematic way of identifying risks, but rather a subjective and intuitive one. This option would rely on the risk manager's personal judgment, experience, or creativity, which may not be sufficient or reliable for identifying risks in a project constructing a chemical laboratory. This option would also not ensure that the risks are based on factual and verifiable information sources, such as project documents or published reports. Drafting threat and opportunity risks that come to mind would not help the risk manager to objectively identify risks, but rather to generate them1. References: PMBOK Guide, 6th edition, pages 397-399, 414-415, 431-432, 441-4421; Risk Management Professional (PMI-RMP) Cert Guide, pages 63-642; Risk Management Professional Exam Outline, page 73.

• Question 492:

  Business rhythm can fluctuate greatly between different industries and vary between companies within the same industry. What should be used 10 determine how often a project's risk register should be updated or reviewed in a given year when the project is in an industry with a very high business rhythm?

  A. The risk management plan

  B. The risk triggers

  C. The risk prioritization criteria

  D. The portfolio management plan

  Correct Answer: A

  Explanation: The risk management plan provides guidance on how often the risk register should be updated or reviewed. It takes into account the specific industry, project, and organizational context, including the business rhythm.

• Question 493:

  A certain risk is identified for a major project, and the risk response is planned. However, the analysis reveals a high probability for a secondary risk which will be tolerated based on the organization's risk thresholds. The secondary risk is subsequently registered. During project execution, the primary risk occurs, the planned action is taken, and the secondary risk emerges

  What two actions should the risk owner take? (Choose two.)

  A. Implement the secondary risk response and update the project documents.

  B. Conduct meeting with all stakeholder to agree on post impact solutions.

  C. Set the corresponding trigger conditions to the secondary risk.

  D. Engage the project manager to authorize the secondary risk's response.

  E. Update and communicate assessments of the secondary risk's impact.

  Correct Answer: AE

  Explanation: The risk owner should implement the secondary risk response, as it is now being tolerated, and update the project documents accordingly. They should also update and communicate the assessments of the secondary risk's impact to ensure everyone is aware of the situation.

  According to the PMI-RMP Handbook1, the risk owner is responsible for implementing the risk response plan and monitoring the risk and its secondary risks. Therefore, the risk owner should take the following two actions when the secondary risk emerges: Implement the secondary risk response and update the project documents. This action is consistent with the risk response strategy of tolerance, which means accepting the risk and its consequences. The risk owner should execute the planned response for the secondary risk, such as contingency plans or fallback plans, and update the relevant project documents, such as the risk register, the risk report, and the lessons learned register, to reflect the current status and impact of the risk. Update and communicate assessments of the secondary risk's impact. This action is consistent with the risk monitoring and control process, which involves tracking the identified risks, evaluating their impact and probability, and reporting the risk information to the appropriate stakeholders. The risk owner should reassess the secondary risk's impact on the project objectives, such as scope, schedule, cost, and quality, and communicate the results to the project manager and other relevant stakeholders, such as the sponsor, the customer, and the team members. References: PMI-RMP Handbook1 PMBOK Guide, 6th edition, Chapter 11: Project Risk Management2

• Question 494:

  The project risk manager for an environmental preservation project has started the process of monitoring and controlling risks, The project manager has asked the project team to document the results of this process.

  How should this documentation be utilized in the future?

  A. To return the remaining amount of the contingency reserve

  B. To ensure information is recorded for lessons learned

  C. To comply with the rules and regulations

  D. To hold those who created the risk accountable

  Correct Answer: B

  Explanation: Documenting the results of the risk monitoring and controlling process is important for creating lessons learned. This helps future projects by providing a reference for risk management practices and experiences.

  The documentation of the results of monitoring and controlling risks is a valuable source of information for lessons learned. Lessons learned are the documented information that reflects both the positive and negative experiences of a project.

  They represent the organization's commitment to project management excellence and the project manager's opportunity to learn from the actual experiences of others. By documenting the results of monitoring and controlling risks, the project

  team can capture the effectiveness of the risk responses, the changes in the risk exposure, the root causes of the risks, the best practices and the lessons learned for future projects. This documentation can help to improve the risk

  management process, enhance the project performance, and increase the organizational knowledge base. References: PMI Risk Management Professional (PMI- RMP) Examination Content Outline and Specifications1, page 10; A Guide to

  the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, page 406; Lessons learned - PMI.

• Question 495:

  The project risk manager is in the process of identifying risks. The project sponsor has communicated that there is an influential stakeholder who has a senior management position. The other stakeholders do not feel comfortable speaking in front of this stakeholder.

  What should the project risk manager do next to identify risks?

  A. Review the risk breakdown structure to ensure project scope is covered.

  B. Use the brainstorming technique to remove personal bias.

  C. Use expert judgment to remove ego or emotional conflict.

  D. Consider the Delphi technique to gather all stakeholder opinions.

  Correct Answer: D

  Explanation: The Delphi technique allows the project risk manager to gather opinions from all stakeholders anonymously. This method would enable stakeholders to express their concerns without feeling uncomfortable in front of the influential stakeholder. The Delphi technique is a tool used to make quick decisions with consensus. This technique consists of sending several sets of anonymous questions to each expert. This is followed by a group discussion after every round. The Delphi technique can help the project risk manager to identify risks by soliciting the opinions of all stakeholders without revealing their identities. This way, the stakeholders can express their views freely and honestly, without being influenced or intimidated by the influential stakeholder. The Delphi technique can also reduce personal bias, ego, or emotional conflict among the participants. The project risk manager can use the results of the Delphi technique to create a list of potential risks and their causes, effects, and probabilities. References: 3, 2, 5

• Question 496:

  A new risk manager is assigned to an ongoing project, what should the new risk manager do first to assess the project environment?

  A. Review potential next steps with the project team.

  B. Review the scope of work to determine the prescribed project methodology.

  C. Review the policies and practices that are outlined in the risk management plan.

  D. Review the contract and determine the resources and project funding.

  Correct Answer: C

  Explanation: When a new risk manager is assigned to an ongoing project, their first step should be to review the existing risk management plan to understand the current policies, practices, and strategies in place.

  The new risk manager should first review the policies and practices that are outlined in the risk management plan, as this is the document that describes how risk management will be performed on the project. The risk management plan defines the roles and responsibilities, risk categories, risk appetite and thresholds, risk identification and analysis methods, risk response strategies, risk monitoring and reporting mechanisms, and risk governance structure for the project. The new risk manager should familiarize themselves with the risk management plan to understand the project environment and the expectations and requirements for risk management. The other options are not the first actions that the new risk manager should take. Reviewing potential next steps with the project team is a good practice, but it should be done after reviewing the risk management plan to ensure alignment and consistency. Reviewing the scope of work to determine the prescribed project methodology is not directly related to risk management, and it may not provide sufficient information about the project environment and the risk management approach. Reviewing the contract and determining the resources and project funding is part of the project initiation process, and it may not reflect the current status and issues of the project. References: 2, 3, 4

• Question 497:

  The risk manager conducted an updated Monte Carlo simul-ation for the project at the end of a phase. The simul-ation reveals a key activity is now on the critical path.

  What recommendation should the risk manager make to the project manager?

  A. Add more float to the key activity

  B. Add more contingency to the project

  C. Review the plans for the key activity

  D. Increase the budget for the key activity

  Correct Answer: C

  Explanation: The risk manager should recommend that the project manager review the plans for the key activity, as this will help identify potential issues and opportunities to improve the activity's performance and reduce its impact on the critical path.

  The risk manager should recommend the project manager to review the plans for the key activity, which is now on the critical path according to the Monte Carlo simulation. The critical path is the sequence of activities that determines the minimum possible duration of the project. Any delay on the critical path will affect the project completion date. Therefore, it is important to review the plans for the key activity and identify any potential risks, issues, or opportunities that may affect its performance. The risk manager and the project manager should also evaluate the feasibility and effectiveness of any risk response strategies for the key activity, such as fast-tracking, crashing, or resource optimization. The other options are not appropriate recommendations for the risk manager to make. Adding more float to the key activity is not possible, since the critical path has zero float by definition. Adding more contingency to the project may not address the specific risks or issues related to the key activity. Increasing the budget for the key activity may not improve its duration or quality, and may also increase the project cost baseline unnecessarily. References: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications, page 91. A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, pages 215-2162. Project Critical Path Analysis Using Monte Carlo Simulation3.

• Question 498:

  The project team has correctly identified, assessed, and planned responses for a project's risks. The risk manager is required to prepare a quarterly report on the performance of managing the risks. What are two options the risk manager should consult for the analysis? (Choose two.)

  A. Proximity dales for open risks

  B. Backlog of change orders to be submitted to client

  C. Risks that have materialized and the overall risk profile

  D. Number of schedule baseline changes approved

  E. Risks due to the number of claims submitted to the client

  Correct Answer: CE

  The risk manager should consult the risks that have materialized and the overall risk profile to analyze the performance of managing the risks, as well as the risks due to the number of claims submitted to the client. These options provide insights into how well risks are being managed and the potential impact on the project. The risk manager should consult the risks that have materialized and the overall risk profile, as these are indicators of how well the risk management process is working and how the project is affected by the risks. The risk manager should also consult the risks due to the number of claims submitted to the client, as these are potential sources of conflict, litigation, and reputation damage that may impact the project objectives and stakeholder satisfaction. References: The Standard for Risk Management in Portfolios, Programs, and Projects, page 83; PMBOK Guide, 6th edition, page 414.

• Question 499:

  A project manager has determined that an activity is too complex to complete internally so they hire a licensed contractor to complete the work. What is the project manager performing in this situation?

  A. Risk mitigation

  B. Risk transfer

  C. Risk acceptance

  D. Risk avoidance

  Correct Answer: B

  Explanation: By hiring a licensed contractor to complete the complex activity, the project manager is transferring the risk associated with that activity to the contractor. This is an example of risk transfer, as the responsibility for managing the risk is shifted from the project manager to the contractor.

  According to the PMI Risk Management Professional (PMI-RMP) Handbook1, one of the domains of the PMI-RMP exam is Risk Response Planning, which involves developing options and actions to enhance opportunities and reduce threats to project objectives1. One of the strategies for negative risks or threats is risk transfer, which involves shifting the impact of a threat to a third party, such as a contractor, a vendor, or an insurer2. In this situation, the project manager is performing risk transfer by hiring a licensed contractor to complete the work that is too complex to complete internally. By doing so, the project manager is transferring the responsibility and liability of the activity to the contractor, who is expected to have the expertise and resources to handle the complexity. The project manager is not performing risk mitigation, which involves reducing the probability and/or impact of a threat2. The project manager is not performing risk acceptance, which involves acknowledging the existence of a threat and making a conscious decision to accept it without taking any action2. The project manager is not performing risk avoidance, which involves changing the project plan to eliminate the threat or protect the project objectives from its impact2. References: 1: PMI Risk Management Professional (PMI-RMP) Handbook, page 62: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, page 436.

• Question 500:

  A risk manager on an infrastructure project gathers and analyzes performance data. The risk manager wants to identify which variables will impact the schedule and determine how these factors interact.

  Which data analysis tool should the risk manager use to forecast future performance?

  A. Sensitivity analysis

  B. What-if scenario analysis

  C. Regression analysis

  D. Decision tree analysis

  Correct Answer: C

  Explanation: Regression analysis is a data analysis tool that helps identify variables that impact the schedule and determine how these factors interact. It is used to forecast future performance based on historical data and the relationship

  between variables. (Reference:

  PMBOK Guide, 6th Edition, p. 248)

  According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, regression analysis is a data analysis tool that examines the relationship between one or more independent variables and a dependent variable1.

  Regression analysis can be used to forecast future performance based on historical data and trends2. In this case, the risk manager wants to identify which variables will impact the schedule (the dependent variable) and determine how these

  factors interact (the independent variables). Therefore, the risk manager should use regression analysis to create a mathematical model that can predict the schedule performance based on the values of the variables. Regression analysis

  can also help the risk manager to assess the significance and strength of the relationship between the variables and the schedule3. References: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition,

  2017, p. 720 2: PMI, Practice Standard for Project Risk Management, 2009, p. 95 3: Tips and Tricks for Passing the Risk Management Professional (PMI-RMP ...