PMI PMI Certifications PMI-RMP Questions & Answers

• Question 501:

  A risk manager is managing risks of a mission critical application. A subject matter expert (SME) asks the risk manager to treat every single risk identified as an extremely high priority.

  What should the risk manager do?

  A. Ask the project sponsor if every risk in the risk register can have the same priority.

  B. Mark every identified risk as an extremely high priority and any future risks as a lower priority.

  C. Agree with the SME, treat every risk with equal priority, and inform all stakeholders.

  D. Perform a sensitivity analysis and determine the correct priority of every identified risk.

  Correct Answer: D

  Explanation: According to the PMBOK Guide, 6th edition, Section 11.6.2.1, Sensitivity Analysis, a sensitivity analysis is a technique that helps to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes. A sensitivity analysis can be used to prioritize risks based on their relative effect on the project objectives, such as cost, schedule, quality, or scope. A sensitivity analysis can also help to identify areas where risk response efforts may be most effective. Therefore, the risk manager should perform a sensitivity analysis and determine the correct priority of every identified risk, rather than agreeing with the SME or the project sponsor, or marking every risk with the same or different priority without proper analysis. References: PMBOK Guide, 6th edition, Section 11.6.2.1, Sensitivity Analysis1 The risk manager should perform a sensitivity analysis to assess the impact of each risk on the project objectives. This will help in determining the correct priority of every identified risk, ensuring that resources are allocated effectively and that the most critical risks are addressed first.

• Question 502:

  When conducting a risk identification exercise, what two actions should the risk manager take? (Choose two.)

  A. Request a contingency reserve from management

  B. Arrange a team meeting, review the project's scope, and discuss dependency mapping

  C. Ensure participants review relevant documents before attending the meeting

  D. Ensure that all the relevant stakeholders participate

  E. Update the risk register during the team meeting.

  Correct Answer: BD

  Explanation: 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. Some of the data gathering techniques are brainstorming, interviews, checklists, assumption and constraint analysis, and document analysis1. To conduct a risk identification exercise using data gathering techniques, the risk manager should take the following actions: Arrange a team meeting, review the project's scope, and discuss dependency mapping. This action can help the risk manager to facilitate a brainstorming session with the project team and other subject matter experts, where they can generate a list of potential risks based on the project scope and the dependencies among the project activities. Dependency mapping is a technique that helps to identify the relationships and interdependencies among the project components, such as tasks, resources, deliverables, and stakeholders2. By reviewing the project scope and discussing the dependency mapping, the risk manager can ensure that the risk identification exercise covers all the relevant aspects of the project and does not miss any important risk sources. Ensure that all the relevant stakeholders participate. This action can help the risk manager to obtain different perspectives and insights from the stakeholders who have different roles, interests, and expectations in the project. Stakeholders are individuals or groups who can affect or be affected by the project outcomes. They may have valuable information, experience, or expertise that can help to identify potential risks that may not be obvious to the project team. By ensuring that all the relevant stakeholders participate in the risk identification exercise, the risk manager can increase the comprehensiveness and accuracy of the risk identification process and foster stakeholder engagement and buy- in1. References: PMBOK Guide, 6th edition, pages 397-399, 414-4151; Mastering the PMI Risk Management Professional (PMI-RMP) Exam, page 70

• Question 503:

  A large, land-based infrastructure project has begun. The project makes assumptions about the site conditions and has economic, technical, and environmental constraints

  What should the project manager do next to determine risk impact of assumptions and constraints?

  A. Add all assumptions and constraints to the risk register.

  B. Add the risk impact of the assumptions in the risk register.

  C. Add the assumptions and constraints to the assumption log.

  D. Add the assumptions and constraints in the project charter.

  Correct Answer: C

  Explanation: The project manager should add the assumptions and constraints to the assumption log to track and analyze their impact on the project. The assumption log is a project document that records all project assumptions and constraints throughout the project life cycle. (Reference: PMBOK Guide, 6th Edition, p. 89) The project manager should add the assumptions and constraints to the assumption log, which is a project document that records the assumptions and constraints that affect the project scope, schedule, cost, and quality. The assumption log can help the project manager to identify and analyze the risks that may arise from the validity of the assumptions and the impact of the constraints. The assumption log can also be used as an input for the Identify Risks process, where the project manager can determine the risk impact of the assumptions and constraints and add them to the risk register accordingly. References: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 38, 397.

• Question 504:

  A home solar panel project has many internal and external stakeholders including households, businesses, community groups, electric utility companies, local government officials, landlords, and investors. What should the project manager do when engaging stakeholders?

  A. Include all stakeholders in the project's governance.

  B. Communicate response strategies to all stakeholders.

  C. Ignore any risks beyond stakeholders' tolerance.

  D. Consider stakeholders' positions and opinions regarding the project's output.

  Correct Answer: D

  Explanation: The project manager should consider stakeholders' positions and opinions regarding the project's output when engaging stakeholders. This approach helps to address stakeholders' concerns, expectations, and potential objections, and it can lead to better decision-making and more successful project outcomes. It is important for the project manager to maintain open communication with stakeholders and to be responsive to their needs and perspectives.

  According to the PMI Risk Management Professional (PMI-RMP) Examination Content Outline, one of the tasks under the domain of stakeholder engagement is to "engage stakeholders by communicating with them to understand their positions and opinions regarding the project's output, and to ensure that their interests are considered in the risk management process" (Task 1.3). This implies that the project manager should consider stakeholders' perspectives and expectations when engaging them, and not ignore, exclude, or impose on them. Therefore, option D is the correct answer. Option A is incorrect because not all stakeholders need to be involved in the project's governance, which is the set of policies, processes, and procedures that define how the project is managed and controlled. The project's governance should be determined by the project sponsor and the project management office (PMO), and only include those stakeholders who have authority and responsibility for the project's success. Option B is incorrect because communicating response strategies to all stakeholders is not a stakeholder engagement activity, but a risk communication activity. The project manager should communicate response strategies to the relevant stakeholders who are assigned to implement or monitor them, and not to all stakeholders indiscriminately. Option C is incorrect because ignoring any risks beyond stakeholders' tolerance is not a stakeholder engagement activity, but a risk attitude activity. The project manager should identify and assess all risks that may affect the project's objectives, regardless of stakeholders' tolerance levels. The project manager should also consult with stakeholders to determine their risk appetite, threshold, and attitude, and use this information to prioritize and respond to risks accordingly. References: PMI Risk Management Professional (PMI-RMP) Examination Content Outline, pages 5-61

• Question 505:

  A budget change request was initiated by a functional manager in an organization due to a shortage in the functional manager's department budget. The functional manager asks the CEO to approve utilization of a contingency budget reserved for one of the projects in its closing phase.

  What should the risk manager of the related project have done to prevent this situation from happening?

  A. Reformed the risk monitoring and closing process properly.

  B. Created the project work plan and budget more accurately.

  C. Educated the project team on budget change requests.

  D. Communicated better with the organization's CEO.

  Correct Answer: A

  Explanation: According to the PMI Risk Management Professional (PMI-RMP) Handbook1, one of the domains of the PMI-RMP exam is Risk Monitoring and Reporting, which involves tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and evaluating risk process effectiveness throughout the project1. The risk manager of the related project should have reformed the risk monitoring and closing process properly to ensure

  that the contingency budget is only used for the intended risks and not for other purposes. The risk manager should have also communicated the status and outcomes of the risk activities to the relevant stakeholders, such as the functional

  manager and the CEO, to avoid any confusion or conflict over the budget allocation1. References: 1: PMI Risk Management Professional (PMI-RMP) Handbook, page 6.

  The risk manager should have ensured a more accurate project work plan and budget to prevent the functional manager from requesting to use the project's contingency budget. A well-planned budget would have avoided the shortage in the

  functional manager's department budget.

• Question 506:

  In a large industrial business, an on-going system development project faces a previously identified risk. The risk is adequately managed by the risk manager, however there is still residual risk.

  What should the risk manager do?

  A. Update the risk register accordingly and review it in regular project meetings.

  B. Accept the risk because residual risks are often low.

  C. Ask a subject matter expert (SME) to assess the residual risk and take action.

  D. Assign a risk owner and set it as high priority and high impact.

  Correct Answer: C

  Decision tree analysis is a technique that uses a graphical representation of various possible outcomes and consequences of different courses of action, based on their probabilities of occurrence and associated payoffs or costs. It can help the project team to compare and evaluate the alternatives and choose the optimal one. In this case, the risk manager should use decision tree analysis to help the team members predict the outcomes of their potential choices following their probability of occurrence. Political, economic, social, technological, legal, and environmental (PESTLE) analysis, strengths, weaknesses, opportunities, and threats (SWOT) analysis, and cost-benefit analysis are not techniques that can directly help the team members to predict the outcomes of their potential choices following their probability of occurrence, and are therefore not the best answer. References: PMI Risk Management Professional (PMI-RMP) ontent Outline1, PMI Practice Standard for Project Risk Management2, Risk Management Professional (PMI-RMP) Cert Guide3

• Question 507:

  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.

  Correct Answer: B

  Explanation: The expected outcome of developing the risk management plan is to define how risk management activities will be executed throughout the project. This includes the processes, tools, and techniques that will be used to identify, assess, and manage risks. The risk management plan is a document that describes how risk management activities will be structured and performed throughout the project. It provides guidance on how to identify, analyze, respond, monitor, and control risks, as well as how to communicate, document, and report them. The risk management plan also defines the roles and responsibilities of the project team and stakeholders in risk management, the risk categories and breakdown structure, the risk thresholds and appetite, the risk management tools and techniques, and the risk management budget and schedule. The risk management plan is an output of the plan risk management process, which is the first process in the project risk management knowledge area. Developing the risk management plan is essential for ensuring that the project risks are closely managed and aligned with the project objectives and stakeholder expectations. References: PMI, Project Risk Management, 2nd edition, 2019, p. 67-681

• Question 508:

  During a risk identification process in a construction project, the lack of space to install air conditioners is raised as a risk with high impact. Which is an example of an early risk trigger?

  A. A potential need to share the space with other machinery

  B. A different type of equipment received before installation

  C. A time delay during air conditioning installation activities

  D. A quality nonconformance issue raised during the inspection

  Correct Answer: A

  Explanation: A risk trigger is an indication or warning sign that a risk is about to occur or has occurred. A risk trigger can be an event, a condition, or a situation that signals the onset of a risk. A risk trigger can help the project team to identify and respond to risks in a timely manner. In this case, the lack of space to install air conditioners is a risk with high impact on the project. A potential need to share the space with other machinery is an example of an early risk trigger, because it indicates that the space issue may become a problem in the future. If the project team detects this trigger, they can take proactive actions to avoid or mitigate the risk, such as finding an alternative location, modifying the design, or negotiating with the stakeholders. References: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 102-103.

• Question 509:

  A project is evaluating a new software to streamline the current purchase order process. The current process is labor-intensive and involves printing, ink signatures, scanning, and emailing. Several team members gathered cycle time data to gauge the current process and evaluate the new process.

  What should the risk manager do next with the data set?

  A. Perform a probability and impact assessment

  B. Perform Monte Carlo simulations

  C. Perform a sensitivity analysis

  D. Perform a risk data quality assessment

  Correct Answer: D

  Explanation: After gathering cycle time data, the risk manager should perform a risk data quality assessment to ensure the data is accurate, reliable, and relevant for evaluating the current process and the new software. A risk data quality assessment is a technique to evaluate the degree to which the data about risks is useful and accurate for risk management. It involves examining the reliability, credibility, accuracy, and validity of the data collected. A risk data quality assessment can help the risk manager to determine the confidence level of the risk analysis and the quality of the risk responses. Performing a risk data quality assessment is the next logical step after gathering the cycle time data, as it will help to ensure that the data is suitable for further analysis and decision making. References: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications1, page 9; A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, page 397.

• Question 510:

  The risk manager is facilitating risk planning activities with the team. The team is documenting all the check points along the way that might indicate delays on critical deliverables.

  What is this an example of?

  A. Risk responses

  B. Risk triggers

  C. Risk registers

  D. Risk categories

  Correct Answer: B

  Explanation: The team is documenting all the checkpoints along the way that might indicate delays on critical deliverables, which is an example of risk triggers. Risk triggers are events or conditions that indicate a risk may be about to occur or has already occurred, helping the project team to monitor and respond to risks effectively. Risk triggers are indicators or warning signs that a risk event is about to occur or has occurred. They help to monitor the status of risks and initiate risk responses when needed. Documenting risk triggers is part of the Plan Risk Responses process, which aims to develop options and actions to enhance opportunities and reduce threats to project objectives. References: The Standard for Risk Management in Portfolios, Programs, and Projects, page 78; PMBOK Guide, 6th edition, page 402.