PMI PMI Certifications PMI-RMP Questions & Answers

• Question 571:

  A project manager is educating the project team on risk management regarding the role of threats and opportunities. The team decides to log the opportunities in the current project's risk register to try to maximize their chances of occurrence.

  What should the project team do next?

  A. Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis.

  B. Log the threats in the risk register to try to minimize the probability of occurrence.

  C. Log the threats in the risk register to try to maximize the probability of occurrence.

  D. Update the project management plan to ensure the results of the opportunities are captured.

  Correct Answer: D

  Explanation: According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, the project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all the subsidiary plans and baselines from the project management processes1. The project management plan should be updated whenever there are changes in the project scope, schedule, cost, quality, resources, communications, risks, procurements, or stakeholder engagement2. In this case, the project team has decided to log the opportunities in the current project's risk register, which is a component of the project management plan. Opportunities are positive risks that may have a beneficial effect on the project objectives, such as cost savings, schedule acceleration, or quality improvement3. Therefore, the project team should update the project management plan to ensure the results of the opportunities are captured and reflected in the relevant subsidiary plans and baselines. For example, if an opportunity leads to a cost saving, the project team should update the cost management plan and the cost baseline accordingly. References: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 89 2: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 123 3: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 397

• Question 572:

  A project manager is working on a complex construction project. During the risk identification process, hundreds of risks were identified. The team seems to be confused regarding on which risks to focus. The project manager advises the team to go ahead and start assessing the likelihood and impact of each risk.

  What process is this part of?

  A. Plan Risk Management

  B. Perform Qualitative Risk Analysis

  C. Perform Quantitative Risk Analysis

  D. Monitor and Control Risk

  Correct Answer: B

  Explanation: The process of assessing the likelihood and impact of each identified risk is part of the Perform Qualitative Risk Analysis process. This process helps prioritize risks based on their probability and impact, allowing the project team to focus on the most significant risks. By doing so, the project manager and team can allocate resources and effort to address the risks that pose the greatest threat or opportunity to the project.

  The process of assessing the likelihood and impact of each risk is part of the Perform Qualitative Risk Analysis process, which is the process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics. This process helps the project manager and the team to focus on the high-priority risks that have the most influence on achieving the project objectives. The other processes are not relevant to the question scenario. Plan Risk Management is the process of defining how to conduct risk management activities for a project. Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives. Monitor and Control Risk is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. References: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications, page 71. A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, pages 397-3982.

• Question 573:

  A risk management professional is currently facilitating the risk planning process with the project team. To increase the breadth of considered risks, the team wants to include high- level and strategic project risks.

  What should the risk management professional do next?

  A. Perform a sensitivity analysis to the higher-level aggregate activities

  B. Develop a risk breakdown structure (RBS) identifying the potential risk categories

  C. Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis

  D. Perform a base line Monte Carlo simulation to address overall threats to project objectives

  Correct Answer: C

  Explanation: A SWOT analysis is a risk identification technique that helps to identify high- level and strategic project risks by examining the internal and external factors that may affect the project objectives. A SWOT analysis involves listing the strengths, weaknesses, opportunities, and threats of the project, and then analyzing how they may impact the project positively or negatively. A SWOT analysis can help to uncover potential risks that may not be obvious from other techniques, such as prompt lists, interviews, or brainstorming12 References: 1: PMI Risk Management Professional (PMI-RMP) Handbook, page 10 2: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Seventh Edition, page 11.2.2.1

• Question 574:

  A project manager was informed that the testing of the latest component in the project's software update release was not successful. As a result, 1he delivery timelines for the software release wifi be delayed, The project manager did not previously capture this as a risk to the project.

  What should the project manager do next to avoid similar risks?

  A. Add contingencies to other tasks to mitigate similar risks.

  B. Reassess risks with a new assumptions and constraints analysis.

  C. Review the risk response plan looking for lessons learned.

  D. Log the event in the issue log and update the project management plan.

  Correct Answer: B

• Question 575:

  A project manager has finished the project charter for a project and has now moved into the planning phase. In the first planning meeting, the project manager is trying to determine the risk tolerance and risk attitudes of the project's key stakeholders.

  What is the first resource the project manager should reference?

  A. Benefits management plan

  B. Enterprise environmental factors (EEFs)

  C. Project charter

  D. Requirements management plan

  Correct Answer: C

  Explanation: The project charter is the first resource the project manager should reference to determine the risk tolerance and risk attitudes of the project's key stakeholders, as it contains information such as the project purpose, objectives, success criteria, high-level risks, and key stakeholder list. The project charter is an output of the Develop Project Charter process, which is part of the Initiating process group. The project charter provides the project manager with the authority to apply organizational resources to project activities and establishes a partnership between the performing organization and the requesting organization. References: PMBOK Guide, 6th edition, page 81-82. Enterprise environmental factors (EEFs) provide information about the organization's culture, risk tolerance, and risk attitudes, which can help the project manager determine the risk tolerance and risk attitudes of the project's key stakeholders. (Reference: PMBOK Guide, 6th Edition, p. 39)

• Question 576:

  A subcontractor working on a project may cause delays in the construction schedule. The project manager records this risk in the risk register and issues a change request sponsor rejects the change request.

  What should the project manager have done differently?

  A. Executed the risk strategy response and recorded it in the risk register.

  B. Performed an analysis to affirm the request is valid before submitting.

  C. Informed the client and the project sponsor that the request is being submitted.

  D. Contacted the other stakeholders so they know the request is in process.

  Correct Answer: B

  Explanation: The project manager should have performed an analysis to ensure that the change request was valid and well-supported before submitting it to the sponsor. This would help in making a strong case for the change request and increase the chances of its approval.

  The project manager should have performed an analysis to affirm the request is valid before submitting, as this would help to justify the need for the change and to demonstrate its impact on the project objectives, scope, schedule, cost, quality, and risk. The project manager should also have consulted with the project team, the subcontractor, and the risk owner to determine the best risk response strategy and to estimate the resources and time required for the change. By performing an analysis, the project manager could have increased the chances of getting the change request approved by the sponsor and avoided wasting time and effort on an invalid request. References: The Standard for Risk Management in Portfolios, Programs, and Projects, page 79; PMBOK Guide, 6th edition, page 115.

• Question 577:

  A project has a significant impact on an organization. Multiple stakeholders expressed concerns regarding the overall project risk during construction of the risk management plan, and they agreed that the risk appetite is low. What should the project risk manager monitor closely?

  A. Risk thresholds

  B. Risk response strategies

  C. Risk management reports

  D. Risk breakdown structure (RBS)

  Correct Answer: A

  Explanation: The project risk manager should monitor risk thresholds closely, as they represent the organization's risk appetite. In a project with a low risk appetite, it is essential to ensure that risks are managed within the defined thresholds to address stakeholders' concerns and maintain their confidence in the project's success. According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, risk thresholds are the measure of acceptable variation around an objective that reflects the risk appetite of the organization1. Risk appetite is the degree of uncertainty an entity is willing to take on in anticipation of a reward2. In this case, the project has a significant impact on the organization and the stakeholders have a low risk appetite, meaning they are not willing to accept much deviation from the project objectives. Therefore, the project risk manager should monitor the risk thresholds closely to ensure that the project risks do not exceed the acceptable level of variation and impact the project performance negatively. By monitoring the risk thresholds, the project risk manager can also identify when risk responses are needed and evaluate their effectiveness. References: 1: PMI, Practice Standard for Project Risk Management, 2009, p. 20 2: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 720

• Question 578:

  A project manager has determined that they cannot outsource work nor eliminate the scope. They also discover that they cannot buy insurance or mitigate the risk.

  What should the project manager do?

  A. Avoid the risk

  B. Transfer the risk

  C. Ignore the risk

  D. Accept the risk

  Correct Answer: D

  Explanation: Since the project manager cannot avoid, transfer, or mitigate the risk, the only remaining option is to accept the risk and develop a contingency plan to handle it if it occurs.

  According to the PMI-RMP ontent Outline1, one of the tools and techniques for risk response planning is risk response strategies. These are the actions that the project manager and the project team take to address the identified risks, either positive or negative. For negative risks or threats, the PMI-RMP ontent Outline1 lists four possible strategies: avoid, transfer, mitigate, and accept. Avoid risk means changing the project plan to eliminate the threat or its impact2. For example, changing the scope, schedule, or budget to avoid a risk. Transfer risk means shifting the impact of a threat to a third party, such as a contractor, vendor, or insurer2. For example, buying insurance, outsourcing, or using performance bonds to transfer a risk. Mitigate risk means reducing the probability and/or impact of a threat2. For example, conducting more tests, adopting best practices, or providing training to mitigate a risk. Accept risk means acknowledging the existence of a threat and being willing to deal with its consequences2. For example, doing nothing, establishing a contingency reserve, or developing a contingency plan to accept a risk. In this question, the project manager has determined that they cannot outsource work (transfer) nor eliminate the scope (avoid). They also discover that they cannot buy insurance (transfer) or mitigate the risk. Therefore, the only remaining option is to accept the risk. Accepting the risk does not mean ignoring the risk, but rather recognizing it and preparing for its potential occurrence and impact. Therefore, the best answer is D. References: 1: PMI-RMP ontent Outline, page 9. 2: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Sixth Edition, page 443.

• Question 579:

  A list of risks was identified that could occur during the design phase. Now, the team finished the design phase and those risks did not materialize.

  What should the project manager do next?

  A. Close the risks and update their status in the risk register.

  B. Use their contingency with other risks that are still open.

  C. Remove the risk from the list as they are no longer applicable.

  D. Reevaluate those risks' severity, and update the risk register.

  Correct Answer: A

  Explanation: Since the design phase is complete and the identified risks did not materialize, the project manager should close the risks and update their status in the risk register. The project manager should close the risks that did not materialize during the design phase and update their status in the risk register. Closing risks is part of the monitor and close risks process, which involves tracking the implementation of risk responses, monitoring the residual and secondary risks, and evaluating the effectiveness of risk management throughout the project. Closing risks also involves updating the risk register with the current status of the risks, the outcomes of the risk responses, and any lessons learned from the risk management process. Updating the risk register helps to maintain an accurate and updated record of the project risks and their impacts. References: PMI, Project Risk Management, 2nd edition, 2019, p. 97-981

• Question 580:

  A risk manager manages risks in a construction project. A stakeholder mentions that if there is less than a 50% chance of rain, construction should continue. Another stakeholder says that if there is less than a 60% chance of rain, construction should continue.

  What should the risk manager do next to find out the correct limit?

  A. Review the agreed-upon risk tolerance

  B. Perform a sensitivity analysis of the risk

  C. Find out the stakeholders' risk appetite

  D. Use industry standard risk thresholds

  Correct Answer: A

  Explanation: The risk manager should review the agreed-upon risk tolerance to determine the correct limit for continuing construction based on the chance of rain. Risk tolerance is the level of risk an organization is willing to accept and should be established during the risk management planning process. Risk tolerance is the degree of uncertainty that a stakeholder is willing to accept in respect to a negative outcome on a project objective. Risk tolerance can be expressed as a percentage, a range, a value, or a qualitative statement. Risk tolerance should be agreed upon by the project team and the stakeholders at the beginning of the project, and documented in the risk management plan. The risk manager should review the agreed- upon risk tolerance to find out the correct limit for the rain probability that would affect the construction activity. This would help to resolve the conflicting opinions of the stakeholders and ensure that the risk management decisions are aligned with the project objectives and expectations. Reviewing the agreed-upon risk tolerance is the best option among the choices given, as it is the most relevant and reliable source of information for the risk manager. Performing a sensitivity analysis, finding out the stakeholders' risk appetite, or using industry standard risk thresholds are not as effective or appropriate ways of finding out the correct limit, as they do not reflect the specific agreement and context of the project. References: PMI-RMP Certification Handbook1, page 9; PMBOK Guide, pages 414-415.