PMP Certification Training - Overview of Project Risk Management and Processes

The video tutorial covers project risk management, emphasizing the importance of managing uncertainties in projects. It explains key terms like risk, threat, opportunity, and risk tolerance, and distinguishes between individual and overall project risks. The tutorial outlines the processes involved in risk management, including planning, identifying, analyzing, responding to, and monitoring risks. The objective is to minimize negative impacts and maximize positive opportunities in project management.

What is a common challenge in project risk management?

• Having too much historical data

• Lack of project objectives

• Uncertainty in project schedule and budget

• Overestimating team skills

Which term describes an uncertainty that can have a positive impact on a project?

• Risk tolerance

• Risk

• Threat

• Opportunity

How does risk tolerance differ from risk appetite?

• Risk tolerance is about short-term risks, while risk appetite is about long-term risks.

• Risk tolerance is about the amount of risk one can withstand, while risk appetite is about the uncertainty one is willing to take for a reward.

• Risk tolerance is about potential benefits, while risk appetite is about potential losses.

• Risk tolerance is about financial risks, while risk appetite is about operational risks.

What is the definition of individual project risk?

• The effect of uncertainty on the project as a whole

• A risk that is external to the project

• An uncertain event or condition affecting project objectives

• A risk that impacts multiple projects

Which process involves defining how to conduct risk management activities for a project?

• Plan Risk Management

• Implement Risk Responses

• Identify Risks

• Monitor Risks

What is the purpose of performing qualitative risk analysis?

• To monitor risk response implementation

• To develop risk response strategies

• To prioritize risks for future analysis or action

• To numerically analyze the effect of risks

What is the final step in the project risk management process?

• Identify Risks

• Perform Quantitative Risk Analysis

• Plan Risk Responses

• Monitor Risks