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Question #51

An organization that spans across different countries undergoes a digital transformation project. The project manager has assigned a risk management team leader who is a risk management certified candidate in their domain.

What should the risk management team leader do in the early stages of the project?

A . Conduct qualitative risk analysis to prioritize potential risks.
B . Plan a solid risk response plan and secure the necessary funding.
C . Educate stakeholders on best practices to perform risk management.
D . Benchmark to an organization which has executed a similar project,

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Correct Answer: C
C

Explanation:

In the early stages of a project, the risk management team leader should conduct qualitative risk analysis to prioritize potential risks. This will help the team to focus on the most significant risks and develop appropriate risk response strategies.

According to the PMI-RMP Handbook, the early stages of the project are the best time to establish the risk management plan, which is a document that describes how risk management activities will be structured and performed on the project. It is one of the main outputs of the Plan Risk Management process. The risk management plan should be developed with the involvement and input of key stakeholders, such as the project sponsor, customer, team members, subject matter experts, and other relevant parties. The risk management plan should also define the roles and responsibilities of the stakeholders in risk management, as well as the reporting and escalation mechanisms.

The risk management team leader, who is a risk management certified candidate in their domain, should educate stakeholders on best practices to perform risk management in the early stages of the project. This is because the stakeholders may have different levels of knowledge, experience, and expectations regarding risk management, especially in an organization that spans across different countries. The risk management team leader should provide training, coaching, and guidance to the stakeholders on how to apply the risk management processes, tools, and techniques, as well as how to use the risk management plan. The risk management team leader should also promote a positive risk culture and encourage stakeholder participation and collaboration in risk management activities. The other options are not valid for what the risk management team leader should do in the early stages of the project:

Conduct qualitative risk analysis to prioritize potential risks: This is not a valid option because the qualitative risk analysis is part of the Perform Qualitative Risk Analysis process, which comes after the Identify Risks process and before the Perform Quantitative Risk Analysis process. The risk management team leader should not conduct the qualitative risk analysis before developing the risk management plan and identifying the risks.

Plan a solid risk response plan and secure the necessary funding: This is not a valid option because the risk response plan is part of the Plan Risk Responses process, which comes after the Perform Qualitative Risk Analysis and Perform Quantitative Risk Analysis processes. The risk management team leader should not plan the risk response plan and secure the necessary funding before developing the risk management plan, identifying, and analyzing the risks.

Benchmark to an organization which has executed a similar project: This is not a valid option because benchmarking is a technique for risk identification, but it is not the only one. The risk management team leader should use a combination of techniques to identify risks, not just focus on one aspect. Also, benchmarking is not the same as educating stakeholders, which implies providing training, coaching, and guidance on risk management best practices.

Reference: PMI-RMP Handbook1, PMBOK® Guide2, Practice Standard for Project Risk Management2

Question #52

A project manager is assigned to a new project and is told they need to develop the project’s risk register.

When should the project manager identify the project risks?

A . Identify risks only at the project’s midpoint for the stakeholders to review them
B . Ensure project team members proactively identify risks throughout the project to plan for possible response strategies
C . Identify risks at the beginning of the project because the risk posture will not change
D . Delegate risk identification to each team member and have them record the risks on separate risk registers for their areas

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Correct Answer: B
B

Explanation:

Risk identification should be an ongoing process throughout the project lifecycle. Encouraging project team members to proactively identify risks allows for continuous risk management and the development of appropriate response strategies as new risks emerge.

According to the PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline1, one of the tasks in the domain of Risk Identification is to ensure that project team members proactively identify risks throughout the project life cycle, using various tools and techniques, to enable planning for possible risk response strategies 1. Risk identification is an iterative process that should be performed regularly and frequently throughout the project, as new risks may emerge or existing risks may change due to internal or external factors2. The project manager should involve the project team members and other relevant stakeholders in the risk identification process, as they may have different perspectives, expertise, and insights on the project risks3. The project manager should not identify risks only at the project’s midpoint for the stakeholders to review them, because that would be too late and ineffective to manage the risks that may have already occurred or escalated4. The project manager should not identify risks at the beginning of the project because the risk posture will not change, because that would be unrealistic and imprudent to assume that the project environment and conditions will remain static and predictable5. The project manager should not delegate risk identification to each team member and have them record the risks on separate risk registers for their areas, because that would create inconsistency, duplication, and fragmentation of the risk information, and prevent a holistic and integrated view of the project risks.

Reference: 1: PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline, page 82: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 3983: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 3994: Risk Identification: When and How Often to Do It During the Project Life Cycle5: Risk Management: Why Is It Important?. : Risk Register in Project Management – Project Management Academy.

Question #53

A new risk manager is assigned to an ongoing project, what should the new risk manager do first to assess the project environment?

A . Review potential next steps with the project team.
B . Review the scope of work to determine the prescribed project methodology.
C . Review the policies and practices that are outlined in the risk management plan.
D . Review the contract and determine the resources and project funding.

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Question #54

A risk manager faces resistance as they try to implement the project’s risk strategy. Some members of the project team believe it is a waste of time and money.

What should the risk manager do?

A . Continue to implement the risk strategy
B . Meet with team members to address their concerns.
C . Reduce the number of risk management activities.
D . Raise the concerns with the project sponsor,

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Correct Answer: B
B

Explanation:

When facing resistance from team members, the risk manager should engage in open communication to address their concerns and clarify the importance of risk management in the project.

According to the PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1, the risk manager should handle this situation by meeting with team members to address their concerns. This is because:

Resistance to risk management is a common challenge that can hinder the effectiveness and efficiency of the risk management process. Resistance can stem from various factors, such as lack of awareness, understanding, commitment, trust, or support for risk management; fear of negative consequences or blame; competing priorities or interests; or cultural differences or biases. Meeting with team members to address their concerns is a proactive and constructive way to overcome resistance and foster a positive risk culture within the project.

By meeting with team members, the risk manager can:

Communicate the value and benefits of risk management for the project and the organization, such as improving decision-making, enhancing performance, increasing stakeholder satisfaction, and reducing uncertainty and variability.

Educate and train team members on the risk management principles, processes, tools, and techniques, and how they can be applied to the project context and objectives.

Involve and empower team members in the risk management activities, such as identifying, analyzing, prioritizing, responding, and monitoring risks, and solicit their feedback and suggestions for improvement.

Recognize and reward team members for their contributions and achievements in risk management, and celebrate the successful outcomes and opportunities realized by the project. The other options are not effective in handling this situation because:

Continuing to implement the risk strategy without addressing the resistance can lead to further conflict, resentment, and distrust among the team members, and undermine the quality and credibility of the risk management process and outputs.

Reducing the number of risk management activities can compromise the project’s ability to identify and respond to the risks that may affect its scope, schedule, cost, quality, or other objectives, and expose the project to unnecessary threats or missed opportunities.

Raising the concerns with the project sponsor can escalate the issue and create a negative impression of the team members, and may not resolve the underlying causes of the resistance or improve the team’s engagement and commitment to risk management.

Reference: PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1 Risk Management Professional (PMI-RMP) ® Exam Cert Guide2

Question #55

A project is evaluating a new software to streamline the current purchase order process. The current process is labor-intensive and involves printing, ink signatures, scanning, and emailing. Several team members gathered cycle time data to gauge the current process and evaluate the new process .

What should the risk manager do next with the data set?

A . Perform a probability and impact assessment
B . Perform Monte Carlo simulations
C . Perform a sensitivity analysis
D . Perform a risk data quality assessment

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Question #56

The project sponsor asks the project manager about the accuracy of the project data. The project manager realizes that some risks have not been updated recently .

What should the project manager do regarding those risks?

A . Review the assumptions analysts
B . Conduct a checklist analysis on each risk
C . Create a risk response plan for those risks
D . Review the risk register to check for the new risks

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Question #57

A two-year project with a budget of US$2 million has completed about 60% of the work at the end of the first year. The actual cost incurred to complete the remaining 40% of work is about USS 1. 5 million. As a part of performing a specialized risk analysis, the calculated schedule performance index (SPI) is 1. 2 and cost performance index (CPI) is 0.53 .

How should the risk manager interpret such a low CPI value?

A . The cost control processes is ineffective.
B . The cost baseline is inaccurate.
C . The actual reported costs are inaccurate.
D . The cost related risks are effectively managed.

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Question #58

A risk manager is managing risks in a project. During the initial stages of project execution, a new risk is identified. There is a very small chance that this risk will occur and even if it occurs, the impact would be low.

What should the risk manager do with this risk?

A . Put the risk on the watch list.
B . Seek guidance from subject matter experts (SMEs).
C . Ignore this risk as it is not critical.
D . Inform the stakeholders about this risk.

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Question #59

A project manager identified a risk of communication issues with the client which may impact the project schedule. A member of (he sales team advises that this client prefers face-to- face conversations.

What should the project manager do to avoid this risk?

A . Record this risk and the clients preference in the risk register.
B . Ask the sales person to lead the communication with the client
C . Call the client and advise that online communication is easier and faster.
D . Meet the client and plan tor critical milestone meetings.

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Question #60

A complex project that had hundreds of risks is almost done. The project manager is closing the risks as part of the closing process. One team member mentions that there are important documents to be updated.

Which document will need to be updated?

A . Lessons learned
B . Contingency register
C . Risk register
D . Issue log

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