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Question #21

The project team recorded a risk in the risk register indicating that weather-related delays may impact equipment delivery during project execution. When it is time to request the equipment shipment there is bad weather, but the client wants the equipment delivered anyway .

What should the project manager do?

A . Wait until the weather improves before sending the equipment.
B . Ask the project sponsor to approve shipping the equipment.
C . Proceed with the planned risk response to move the equipment.
D . Request the shipment of the equipment to satisfy the client.

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Correct Answer: C
C

Explanation:

The project manager should proceed with the planned risk response to move the equipment, as this is the best way to deal with the weather-related risk that was identified and recorded in the risk register. A risk register is a document that lists all the identified risks, their causes, impacts, probabilities, and responses for a project 1. A risk response is a strategy or action that is taken to reduce the negative effects or enhance the positive effects of a risk event2. A risk response should be planned and executed according to the risk management plan, which is a document that describes how risk management activities will be structured and performed on a project3. The risk management plan should also define the roles and responsibilities, risk categories, risk appetite and thresholds, risk identification and analysis methods, risk response strategies, risk monitoring and reporting mechanisms, and risk governance mechanisms3. Therefore, the project manager should follow the risk management plan and the risk register to implement the planned risk response to move the equipment, as this is the most effective and efficient way to manage the risk and meet the project objectives. Waiting until the weather improves before sending the equipment, asking the project sponsor to approve shipping the equipment, or requesting the shipment of the equipment to satisfy the client are not the best options to deal with the weather-related risk. Waiting until the weather improves may cause further delays and increase the cost and scope of the project, as well as damage the relationship with the client. Asking the project sponsor to approve shipping the equipment may not be necessary or feasible, as the project sponsor may not have the authority or the availability to make such a decision. Requesting the shipment of the equipment to satisfy the client may not be realistic or safe, as the bad weather may pose a threat to the quality and integrity of the equipment, as well as the health and safety of the people involved in the transportation. These options may also deviate from the risk management plan and the risk register, which may create confusion and inconsistency in the risk management process.

Reference: 1, 2, 3.

Question #22

A project manager has been assigned to a project that is just starting. The organization has a very low risk appetite towards this project due to constraints on budget and schedule. The project stakeholders are very engaged on the project and want to ensure that there is clear visibility on the project risks and progress.

How should the project manager handle stakeholder expectations?

A . Add buffers to the schedule to accommodate risk.
B . Ensure the risk register includes all identified risks.
C . Discuss the risk response strategies with the stakeholders.
D . Develop a communication plan to share updates on risks.

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Question #23

A company in the mining industry accommodates a lot of innovation and changing work conditions.

Because of this, the company experiences difficulty in predicting long term business plans.

How should a professional risk manager manage the risks in such situations?

A . Adopt a predictive approach to manage the risks.
B . Adopt agile approaches to manage the risks.
C . Utilize proper documentation to help manage the risks.
D . Conduct weekly risk management meetings with all stakeholders.

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Correct Answer: B
B

Explanation:

In a company with rapidly changing work conditions and difficulty in predicting long-term business plans, a professional risk manager should adopt agile approaches to manage the risks (B). Agile approaches allow for flexibility, adaptability, and quick response to changes, making them suitable for managing risks in such situations. This is supported by the PMI’s PMBOK Guide, Sixth Edition, and the Agile Practice Guide.

A professional risk manager should adopt agile approaches to manage the risks in situations where the company accommodates a lot of innovation and changing work conditions, and experiences difficulty in predicting long term business plans. Agile approaches are adaptive, iterative, and collaborative methods that focus on delivering value and reducing uncertainty in a dynamic and complex environment. Agile approaches can help the risk manager to identify, analyze, respond, and monitor risks in a flexible and timely manner, by using tools and techniques such as risk-adjusted backlog, risk burndown charts, risk-based spike, and risk-based testing. Agile approaches can also help the risk manager to engage the stakeholders and the project team in risk management activities, by using practices such as daily stand-up meetings, sprint planning, sprint review, and sprint retrospective. Agile approaches can enable the risk manager to manage the risks effectively and efficiently, by aligning the risk management strategy with the project goals and the customer needs. Adopting a predictive approach to manage the risks is not the best option, as it may not be suitable or feasible for situations where the project scope, schedule, and budget are uncertain or variable. A predictive approach is a plan-driven and sequential method that relies on upfront planning and detailed documentation to manage the risks. A predictive approach may not be able to cope with the frequent changes and emerging risks that may occur in an innovative and dynamic environment. Utilizing proper documentation to help manage the risks is not the best option, as it may not be sufficient or effective for situations where the project requirements and deliverables are evolving or changing. Proper documentation is a useful and necessary component of risk management, but it is not a substitute for agile risk management practices. Proper documentation may not be able to capture and communicate the current and relevant information about the risks and their impacts in a timely and accurate manner. Conducting weekly risk management meetings with all stakeholders is not the best option, as it may not be optimal or efficient for situations where the project risks and opportunities are changing rapidly or frequently. Weekly risk management meetings are a common and beneficial practice for risk management, but they may not be enough or appropriate for agile risk management. Weekly risk management meetings may not be able to address the risks and their responses as soon as they arise or occur, and they may not be able to involve all the relevant and available stakeholders and project team members.

Reference: 3, 4, 5

Question #24

While implementing the risk response plan for a previously identified risk, some secondary risks were identified but not captured on the risk register. The project manager decided to review the risk management plan to ensure this does not happen for future, similar situations .

What should the project manager do next?

A . Identify secondary or residual risks for associated risk plans.
B . Develop risk response plans for all identified risks.
C . Update the communications management plan to avoid future issues
D . Monitor and control secondary and residual risks in the risk register.

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Question #25

A project manager is working on a high priority and high profile project. The project team had identified three opportunities, and after analysis, risk responses were recorded. Although risk responses were adequate for the identified opportunities, two of those opportunities were not acted upon. During the risk audit, the project manager found out that several of the planned risk responses were not implemented.

What should the project manager have done to avoid this?

A . Provided regular training to the risk owners for plan implementation
B . Determined risk triggers and thresholds in the risk response plan
C . Increased communications to influence stakeholder risk responses
D . Updated the project schedule, adding risk owner implementation tasks.

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Question #26

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

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Question #27

A home solar panel project has many internal and external stakeholders including households, businesses, community groups, electric utility companies, local government officials, landlords, and investors .

What should the project manager do when engaging stakeholders?

A . Include all stakeholders in the project’s governance.
B . Communicate response strategies to all stakeholders.
C . Ignore any risks beyond stakeholders’ tolerance.
D . Consider stakeholders’ positions and opinions regarding the project’s output.

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Correct Answer: D
D

Explanation:

The project manager should consider stakeholders’ positions and opinions regarding the project’s output when engaging stakeholders. This approach helps to address stakeholders’ concerns, expectations, and potential objections, and it can lead to better decision-making and more successful project outcomes. It is important for the project manager to maintain open communication with stakeholders and to be responsive to their needs and perspectives.

According to the PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline, one of the tasks under the domain of stakeholder engagement is to “engage stakeholders by communicating with them to understand their positions and opinions regarding the project’s output, and to ensure that their interests are considered in the risk management process” (Task 1. 3). This implies that the project manager should consider stakeholders’ perspectives and expectations when engaging them, and not ignore, exclude, or impose on them. Therefore, option D is the correct answer.

Option A is incorrect because not all stakeholders need to be involved in the project’s governance, which is the set of policies, processes, and procedures that define how the project is managed and controlled. The project’s governance should be determined by the project sponsor and the project management office (PMO), and only include those stakeholders who have authority and responsibility for the project’s success.

Option B is incorrect because communicating response strategies to all stakeholders is not a stakeholder engagement activity, but a risk communication activity. The project manager should communicate response strategies to the relevant stakeholders who are assigned to implement or monitor them, and not to all stakeholders indiscriminately.

Option C is incorrect because ignoring any risks beyond stakeholders’ tolerance is not a stakeholder engagement activity, but a risk attitude activity. The project manager should identify and assess all risks that may affect the project’s objectives, regardless of stakeholders’ tolerance levels. The project manager should also consult with stakeholders to determine their risk appetite, threshold, and attitude, and use this information to prioritize and respond to risks accordingly.

Reference: PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline, pages 5-61

Question #28

A project manager is developing the risk register and works with the team to analyze risks and determine their probability and impact. There is valuable historical data available that may be used to simulate the overall risk outcome.

Which type of analysis should the project manager use in this instance?

A . Check list analysis
B . Cause and effect
C . Specialized meeting
D . Quantitative analysis

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Question #29

Project stakeholders can often be risk averse with little to no knowledge of the risk process .

How should a risk manager increase stakeholder risk appetite?

A . Exclude risk averse stakeholders from future risk discussions
B . Explain risk handling and mitigation strategies
C . Increase the impact of all risks in the risk breakdown structure (RBS)
D . Develop a generous probabilistic cash flow model

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Question #30

A risk manager documents the causes in the risk register and needs to ensure the risk is adequately described .

What is critical for the risk manager to consider when describing the causes?

A . Each cause has a degree of uncertainty
B . Each cause has well defined owner
C . The causes represent actual conditions
D . The causes must be validated by the risk owner

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