NEW QUESTION 1
You are the project manager of the NNH Project. In this project you have created a contingency response that the schedule performance index should be less than 0.93. The NHH Project has a budget at completion of $945,000 and is 45 percent complete though the project should be 49 percent complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is the project's schedule performance index?

• A. -$37,800
• B. 0.93
• C. 0.92
• D. 1.06

Answer: C

NEW QUESTION 2
Consider the risk probability-impact matrix in the figure given below:
If Risk B happens in this project, how much will be left in the contingency reserve?

• A. $193,500
• B. -$334,500
• C. It depends on the total budget of the project.
• D. $148,300

Answer: A

NEW QUESTION 3
The Identify Risk process determines the risks that affect the project and document their characteristics. Why should the project team members be involved in the Identify Risk process?

• A. They are the individuals that will need a sense of ownership and responsibility for the risk events.
• B. They are the individuals that will have the best responses for identified risks events within the project.
• C. They are the individuals that are most affected by the risk events.
• D. They are the individuals that will most likely cause and respond to the risk events.

Answer: A

NEW QUESTION 4
You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of $350,000. When it comes to creating a risk response for this event what is the risk exposure of the event that must be considered for the cost of the risk response?

• A. The risk exposure of the event is $245,000.
• B. The risk exposure of the event is $500,000.
• C. The risk exposure of the event is $350,000.
• D. The risk exposure of the event is $850,000.

Answer: A

NEW QUESTION 5
You are the project manager of the NHH Project for your company and you have completed the risk analysis processes for the risk events. You and the project team have created risk responses for most of the identified project risks. Now, you would like to assign risk owners to the events. Which risk events should have risk response owners?

• A. Only the risks with a high risk rating
• B. Each agreed-to and funded risk response should have a risk response owner
• C. Each risk that has a risk response should have a risk response owner
• D. Only the risk events that are considered a negative risk event with a high risk rating

Answer: B

NEW QUESTION 6
Frank is the project manager of the NHL Project for his company and he is starting the risk identification process for the project. Frank needs to ensure that the correct stakeholders are interviewed as part of risk identification. What document will help Frank to communicate and solicit inputs of the project stakeholders during risk identification?

• A. Project charter
• B. Risk register
• C. Requirements management plan
• D. Stakeholder register

Answer: D

NEW QUESTION 7
Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is calculated during quantitative risk analysis. He is worried about the risk exposure which is too low for the events surrounding his project requirements. How is the risk exposure calculated?

• A. The risk exposure of a risk event is determined by historical information.
• B. The probability of a risk event times the impact of a risk event determines the true risk exposure.
• C. The probability of a risk event plus the impact of a risk event determines the true risk exposure.
• D. The probability and impact of a risk event are gauged based on research and in-depth analysis.

Answer: B

NEW QUESTION 8
You work as a project manager for TechSoft Inc. You are preparing to plan risk responses for your project with your project team. How many risk responses are available for a positive risk event in the project?

• A. Three
• B. Four
• C. Seven
• D. One

Answer: B

NEW QUESTION 9
During qualitative risk analysis you want to define the risk urgency assessment. All of the following are indicators of risk priority except for which one?

• A. Cost of the project
• B. Risk rating
• C. Warning signs
• D. Symptoms

Answer: A

NEW QUESTION 10
You are the project manager of a large project that will last four years. In this project, you would like to model the risk based on its distribution, impact, and other factors. There are three modeling techniques that a project manager can use to include both event-oriented and project-oriented analysis. Which modeling technique does NOT provide event-oriented and project-oriented analysis for identified risks?

• A. Sensitivity analysis
• B. Jo-Hari Window
• C. Expected monetary value
• D. Modeling and simulation

Answer: B

NEW QUESTION 11
You are the project manager for Genpact Inc. You have established quarterly risk management meetings. Which of the following is not a component of a risk management meeting?

• A. Assessing the overall status of risks in the project
• B. Review of risk responses
• C. Assessment or risk
• D. The availability of the individual

Answer: D

NEW QUESTION 12
Linda is the project manager of the NAB Project. One of the risks her project team has identified is too dangerous for the project team to manage internally so she has hired a vendor to complete this portion of the project and to manage the identified risk. What risk response has Linda used in this instance?

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

Answer: A

NEW QUESTION 13
Tom is the project manager for his organization. In his project he has recently finished the risk response planning. He tells his manager that he will now need to update the cost and schedule baselines. Why would the risk response planning cause Tom the need to update the cost and schedule baselines?

• A. New or omitted work as part of a risk response can cause changes to the cost and/or schedule baseline.
• B. Risk responses protect the time and investment of the project.
• C. Risk responses may take time and money to implement.
• D. Baselines should not be updated, but refined through versions.

Answer: A

NEW QUESTION 14
Which of the following is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold?

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

Answer: D

NEW QUESTION 15
You and your project team are just starting the risk identification activities for a project that is scheduled to last for 18 months. Your project team has already identified a long list of risks that need to be analyzed. How often should you and the project team do risk identification?

• A. It depends on how many risks are initially identified.
• B. At least once per month
• C. Identify risks is an iterative process.
• D. Several times until the project moves into execution

Answer: C

NEW QUESTION 16
Which one of the following is the only output for the qualitative risk analysis process?

• A. Enterprise environmental factors
• B. Project management plan
• C. Risk register updates
• D. Organizational process assets

Answer: C

NEW QUESTION 17
Management has asked you to perform a risk audit and report back on the results. Bonny, a project team member asks you what a risk audit is. What do you tell Bonny?

• A. A risk audit is a review of all the risks that have yet to occur and what their probability of happening are.
• B. A risk audit is a review of the effectiveness of the risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.
• C. A risk audit is a review of all the risk probability and impact for the risks, which are still present in the project but which have not yet occurred.
• D. A risk audit is an audit of all the risks that have occurred in the project and what their true impact on cost and time has been.

Answer: B

NEW QUESTION 18
There are seven risk responses, a project manager can use to address risk events. Which one of the following is a risk response that is appropriate for positive or negative risk events depending on the scenario in the project?

• A. Avoidance
• B. Acceptance
• C. Sharing
• D. Transference

Answer: B

NEW QUESTION 19
You are the project manager of the HJK project for your organization. You and the project team have created risk responses for many of the risk events in the project. A teaming agreement is an example of what risk response?

• A. Transference
• B. Acceptance
• C. Mitigation
• D. Sharing

Answer: D

NEW QUESTION 20
You are the project manager of the AFD project for your company. You are working with the project team to reassess existing risk events and to identify risk events that have not happened and whose relevancy to the project has passed. What should you do with these events that have not happened and would not happen now in the project?

• A. Add the risks to the risk register
• B. Add the risks to a low-priority watchlist
• C. Close the outdated risks
• D. Add the risk to the issues log

Answer: C

NEW QUESTION 21
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