PMI-RMP PDF Question and Answer

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2. Question 1. (Multi Select) . A project manager is identifying risks on a project and decides to use a risk checklist to gather historical data accumulated from similar projects. With several different historical project files to choose from, which two pieces of information should the project manager include in their risk checklist? (Choose two.) A: Budget variance data from previously completed projects. B: Project scope and cost management plans from previous projects. C: Lessons learned from similar completed projects. D: Previous project risks that may be relevant to this project. E: Stakeholder analysis metrics from projects with similar risk profiles. Correct Answer: C, D Explanation: A risk checklist is a tool for identifying risks based on historical information and knowledge from similar projects. It is a list of potential risk sources or categories that can be used to prompt the project team to consider possible risks that may affect the project. A risk checklist should include information that is relevant and useful for identifying risks, such as lessons learned from similar completed projects and previous project risks that may be relevant to this project. These two pieces of information can help the project manager to learn from past experiences and avoid repeating the same mistakes or overlooking the same threats or opportunities. A risk checklist should not include information that is not directly related to risk identification, such as budget variance data from previously completed projects, project scope and cost management plans from previous projects, or stakeholder analysis metrics from projects with similar risk profiles. These pieces of information may be useful for other aspects of project management, such as planning, monitoring, or controlling, but they are not helpful for identifying risks on a project. PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Chapter 11: Project Risk Management, p. 397. 5 Lessons learned and previous project risks are valuable sources of information for creating a risk checklist. They provide insights into potential risks that may impact the current project and help the project manager develop appropriate risk responses. Budget variance data, project scope and cost management plans, and stakeholder analysis metrics, although useful, are not directly https://www.practicetestsoftware.com/pmi/pmi-rmp Page 2 of 8

3. related to risk identification. (Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.2) Question 2. (Single Select) As per the risk analysis process carried out for a project, two risks are registered. The probability risk A will occur is 40% and its monetary impact to the project is US$100,000. The probability risk B will occur is 60% and its monetary impact to the project is US$20,000. What is the total contingency budget that should be created? A: US$68,000 B: US$52,000 C: US$120,000 D: US$80,000 Correct Answer: B Explanation: In risk management, to calculate the contingency budget for risks, we use the Expected Monetary Value (EMV) formula: EMV=Probability of Risk×Impact of Risk\text{EMV} = \text{Probability of Risk} \times \text{Impact of Risk}EMV=Probability of Risk×Impact of Risk For Risk A: Probability: 40% or 0.40 Impact: US$100,000\text{EMV of Risk A} = 0.40 \times 100,000 = US$40,000 For Risk B: Probability: 60% or 0.60 Impact: US$20,000\text{EMV of Risk B} = 0.60 \times 20,000 = US$12,000 Total contingency budget = EMV of Risk A + EMV of Risk B https://www.practicetestsoftware.com/pmi/pmi-rmp Page 3 of 8

4. 40,000 + 12,000 = US$52,000 Thus, the total contingency budget required for both risks is US$52,000. This approach follows PMI’s risk management guidelines, specifically under the "Quantitative Risk Analysis" process. This process focuses on determining numerical probabilities and monetary impacts to compute ?t?h?e? ?e?x?p?e?c?t?e?d? ?f?i?n?a?n?c?i?a?l? ?i?m?p?a?c?t? ?o?f? ?i?d?e?n?t?i?f?i?e?d? ?r?i?s?k?s ? ??. Question 3. (Single Select) A company is preparing a formal response to bid for an infrastructure engineering, procurement, and construction project. When should a risk register be developed to identify risks? A: During the project execution phase to allow the project manager to understand the risk attitudes of stakeholders. B: When a client project kick-off meeting is held to introduce risk assessment process to the client. C: Before a formal bid response is provided to the client to gain a greater understanding of the project’s risk profile. D: After a project budget is set up with a purchase order to charge hours for a risk workshop. Correct Answer: C Explanation: A risk register should be developed before submitting a formal bid response to help the company understand the project's risk profile and account for potential risks in their proposal. This allows the company to make informed decisions about cost, schedule, and resources. (Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.2) A risk register is a document that is used as a risk management tool to identify potential setbacks within a project. A risk register is typically created at the start of a project (before it begins), and is regularly referenced and updated throughout the life of a project through deliberate risk monitoring and control1. A risk register is an important component of any successful risk management process and helps mitigate potential project delays that could arise. A risk register is shared with project stakeholders to ensure information is stored in one accessible place2. A risk register also helps to establish a hierarchy of risks, starting with the https://www.practicetestsoftware.com/pmi/pmi-rmp Page 4 of 8

5. most impactful. The goal should be to have a path to mitigating those risks, reducing the harm they cause, or eliminating them. The register should also outline what’s considered an acceptable level of risk and how to set up insurance to help offset the impacts3. Therefore, a risk register should be developed before a formal bid response is provided to the client to gain a greater understanding of the project’s risk profile. This will help to estimate the project costs, schedule, and scope more accurately and realistically, as well as to identify the contingency plans and reserves needed to deal with the potential risks. Developing a risk register during the project execution phase, when a client project kick-off meeting is held, or after a project budget is set up with a purchase order are all too late to effectively identify and manage the risks that could affect the project success. 2, 3, 1, 4 Question 4. (Single Select) A risk manager completed risk response planning for a project that is currently in the execution phase. During a periodic review of the risk register, the project manager recognizes that some key secondary risks have not been considered. Who should the project manager hold accountable for missing the risks? A: The audit team B: The risk manager C: The risk owners D: The discipline engineers Correct Answer: B Explanation: The risk manager is responsible for ensuring that all risks, including secondary risks, are identified and addressed during the risk response planning process. If key secondary risks were missed, the risk manager should be held accountable. (Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.5) The risk manager is responsible for identifying and analyzing risks, as well as planning and implementing risk responses. Secondary risks are those risks that arise as a direct result of implementing a risk response to a specific risk. The risk manager should have considered the potential secondary risks during the risk response planning and updated the risk register https://www.practicetestsoftware.com/pmi/pmi-rmp Page 5 of 8

6. accordingly. The project manager should hold the risk manager accountable for missing the secondary risks and ensure that they are properly addressed12 : 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 5. (Multi Select) . A project manager is identifying risks on a project and decides to use a risk checklist to gather historical data accumulated from similar projects. With several different historical project files to choose from, which two pieces of information should the project manager include in their risk checklist? (Choose two.) A: Budget variance data from previously completed projects. B: Project scope and cost management plans from previous projects. C: Lessons learned from similar completed projects. D: Previous project risks that may be relevant to this project. E: Stakeholder analysis metrics from projects with similar risk profiles. Correct Answer: C, D Explanation: A risk checklist is a tool for identifying risks based on historical information and knowledge from similar projects. It is a list of potential risk sources or categories that can be used to prompt the project team to consider possible risks that may affect the project. A risk checklist should include information that is relevant and useful for identifying risks, such as lessons learned from similar completed projects and previous project risks that may be relevant to this project. These two pieces of information can help the project manager to learn from past experiences and avoid repeating the same mistakes or overlooking the same threats or opportunities. A risk checklist should not include information that is not directly related to risk identification, such as budget variance data from previously completed projects, project scope and cost management plans from previous projects, or stakeholder analysis metrics from projects with similar risk profiles. These pieces of information may be useful for other aspects of project management, such as planning, monitoring, or controlling, but they are not helpful for identifying risks on a https://www.practicetestsoftware.com/pmi/pmi-rmp Page 6 of 8

7. project. PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Chapter 11: Project Risk Management, p. 397. 5 Lessons learned and previous project risks are valuable sources of information for creating a risk checklist. They provide insights into potential risks that may impact the current project and help the project manager develop appropriate risk responses. Budget variance data, project scope and cost management plans, and stakeholder analysis metrics, although useful, are not directly related to risk identification. (Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.2) https://www.practicetestsoftware.com/pmi/pmi-rmp Page 7 of 8

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