PMP Exam Study Group Pretest Ch 11 Project Risk Management

1. A project manager has just started the risk management process on a project. Which of the following statements accurately describes the objectives of risk management on a project?

• A. Risk management plan is done to increase a probability and/or impact of positive risk
• B. Risk management plan is done to decrease a probability and/or impact of negative risk
• C. Risk management is done to minimize all risks
• D. Risk management plan is done to increase a probability and/or impact of positive risk and decrease a probability and/or impact of negative risk

2. While discussing risk management with a team member, what should the project manager say about the different risk levels?

• A. There are two levels: Individual project risk and overall project risks
• B. There are only one level of risk individual project risk
• B. There are only one level of risk overall project risk
• D. There are two levels: project risk and operation risks

3. A team member stops the project manager during the meeting to ask about positive risks. Which of the following statements about positive risks is false?

• A. Positive risk can lead to shortened schedule
• B. Positive risk can lead to longer schedule
• C. Positive risk can lead to smaller budget
• D. Positive risk can lead to more customer satisfaction

4. As part of the Risk Response planning for your project, you are trying to come up with a strategy to deal with negative risks or threats. In order to eliminate the impact of a particular risk, you relax the objective that is in jeopardy by extending the project schedule. This is an example of:

• A. Transference
• B. Mitigation
• C. Avoidance
• D. Postponement

5. Which of the following statements is false in regard to how risk will affect the project?

• A. Risk will continue emerge during lifetime of project
• B. Risk should be monitored and managed as the project progress
• C. Risk identification should done only at the beginning of the project
• D, Risk identification done throughout of the project

6. Which of the following is not a valid instance of risk transference?

• A. Use of a Cost Reimbursable contract
• B. Warranties
• C. Fixed Price contracts
• D. Performance bonds

7. You are the project manager of a project and are about to conduct a risk identification exercise in a few days’ time. You want to remind the participants in the exercise beforehand of the various sources from which risk may arise in the project. What could you use to help you do this?

• A. An Impact Matrix
• B. A Risk Register
• C. A Risk Simulation Structure (RSS)
• D. A Risk Breakdown Structure (RBS)

8. What kind of risk is about uncertainties that exist regarding what might happen in the future and cannot be predicted currently, such as regulatory frameworks or the future development of technology?

• A. Ambiguity Risk
• B. Variability Risk
• C. Positive Risk
• D. Enterprise Risk

9. The project manager has met with the legal department within the organization to be informed of a new regulation that was recently passed that may impact the project. The project manager has added this risk to the risk register. What process should the project manager do next?

• A. Plan Risk Management
• B. Plan Risk Respon
• C. Perform Quantitative Risk Analysis
• D. Monitor risk

10. While working on a 60-story skyscraper project, one supplier has informed the project manager that due to dangerous weather at the warehouse, the materials will be anywhere 1 to 2 months late. The project manager has already accounted for this risk and has decided to go with another supplier to get the materials. What process best illustrates this scenario?

• A. Plan Risk Response
• B. Monitor Risk
• C. Implement Risk Response
• D. Identify Risk