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After completing the sprint on an agile project, a team updates the risk burndown chart and notices that risk exposure has increased to levels that could negatively affect project completion.

What should the risk manager do to return the project's risk exposure to an acceptable level?

You are the project manager of the GHE Project.

You have identified the following risks with the characteristics as shown in the following figure: How much capital should the project set aside for the risk contingency reserve?

While planning for project execution phase stakeholders are making decisions on how to respond to known and new risks.

What artifact should the stakeholders prepare?

A project manager is developing the risk management process and schedules a risk planning workshop at the start of the project. Upon receiving the invitation, a senior stakeholder emails the project manager stating that a risk management plan is not needed since this is small project, and lack of a plan will reduce costs.

Which of the following should the project manager do?

In a large enablement project with strict time lines, risks need to be closely monitored. The risk manager publishes reports comparing planned enablement sessions with actual enablement sessions, which help identify potential risks to be addressed.

Which technique is the risk manager using?

John is the project manager of the NHQ Project for his company. His project has 75 stakeholders, some of which are external to the organization. John needs to make certain that he communicates about risk in the most appropriate method for the external stakeholders.

Which project management plan will be the best guide for John to communicate to the external stakeholders?

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 project team has completed the risk response plan for a newly identified major project risk. Some team members argue the plan does not totally eliminate the risk, considering the effort required to implement it, and feel the planned response should be thrown out altogether.

What should the risk manager do in this situation?

A risk manager for a financial organization is assigned to support a project team in developing a custom software solution to manage loans.

Which document should the risk manager request first from the project sponsor to identify major risks?

The risk manager of a major project needs to ensure the organizational process assets (OPAsj are updated as a result of risk management activities.

How will the risk manager accomplish this?

Product testing can be done in multiple ways. A few project team members suggest testing be done in a laboratory environment, whereas others recommend completing the analysis via simu-lation methods. The testing manager has consulted with a peer, who recommends undertaking testing using field trials. The testing manager consults with the risk manager to assess the risk involved in the testing.

Which tool should the risk manager consider for assessing the test risk?

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 USS1.5 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?

Rex is the project manager of the BDF Project. This project will last for two years and has a budget of $2,345,000. Management has instructed Rex that the project must not go over budget as funds are very tight in the organization. During the project planning Rex and the project team discover a positive risk
event to save $75,000.
Rex wants to make certain that this risk event happens so which risk response method is most appropriate?

A new risk manager has been hired on a project and meets with the project director. The project director supplies the project's risk register and asks the risk manager for an analysis of its effectiveness.

What two actions should the risk manager do next? (Choose two.)

Which of the following components ensures that risks are examined for all new proposed change requests in the change control system?

A risk manager is tasked with establishing a risk management strategy for a multinational project with varying regulations and stakeholder priorities. The team is divided on how to approach risk management.
Some suggest implementing rigid procedures to ensure consistency across regions, while others advocate for a flexible approach to adapt to the dynamic nature of local risks. Meanwhile, the sponsor emphasizes the need for a strategy that aligns with the overall project objectives.

What should the risk manager do?

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?

You are the project manager of the NHQ Project for your company. You are discussing some of the project issues that need to be resolved in the project. You and the project stakeholders come to an agreement about the risk issues and how they will be resolved.

Where should you document this information for issue resolution?

Harry works as a project manager for the NHQ Project. He is performing quantitative risk analysis for his project. One of the project risks has a 40 percent probability of happening, and it will cost the project $65,000 if the risk happens.

What is the expected monetary value of this risk event?

The project manager asks the risk manager to determine the initial risk assessment for a six month initiative that is about to kick-off.

Which two artifacts will help the risk manager conduct the related analysis? (Choose two.)

A risk manager is facilitating a risk identification workshop on a new product with technical experts. There is no consensus among the technical experts on most of the identified risks and their characteristics. The risk manager decides to resolve this difference using another technique.

Which technique should the risk manager use in this situation?

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?

During the design phase the project team is exploring various architecture options. After reviewing the results of design pilot, two conflicting infrastructure pieces were identified.

What action should the project manager take?

While performing risk identification exercises, the risk manager often encounters biases from the project team.

How can the risk manager accurately identify what will trigger a risk?

A project team has just completed a project plan, which includes extra days for most of the critical activities

to cover any possible issues. Stakeholders want to remove these additional days, because the end date is longer than expected.

What should the risk manager do first?

Examine the figure given below.

What will be the expected monetary value of Risk C?

Which of the following would a proactive risk manager do during the Monitoring and Controlling Process?

A company is executing a high-visibility project to develop mobile phone technology. The project sponsor is concerned that an overall high risk rating may undermine support for the project within the company. The sponsor has instructed the project manager to manipulate the data used for Monte Carlo simulation to artificially reduce the risk rating.

What should the project manager do?

At the completion of a small project, the risk manager performs a risk audit and finds that several identified risks had occurred, and the impact was significantly larger than expected. While the project remained on schedule, the project budget increased by 50%. The project met all risk response milestones and no additional, previously unidentified risks, occurred on the project.

Based on this information, what risk management process improvement should the risk manager recommend for future similar projects?

Ned is the project manager of the HNN project for your company. Ned has asked you to help him complete some probability distributions for his project.

What portion of the project will you most likely use for probability distributions?

Which of the following processes involves choosing the alternative strategies, executing a contingency or fallback plan, taking corrective action, and modifying the project management plan?

A project team is concerned about a risk which, if occurs, might add additional complexity to their work.
The team will need help from an external vendor, but the contracting process is long.

What should the risk manager do in this case?

An organization faces immense competition in the market and decides 10 accelerate a key project.

What is the first action for the project risk manager to take?

The scope of a large mobile network deployment project includes equipment to be furnished by the customer. The risk manager is concerned that the equipment delivery might be delayed, causing additional delays in the project.

What should the risk manager do?

You are the project manager of your organization. Your organization will receive a bonus if the project finishes by December 20. Management has communicated this bonus to you and your project team and has asked you to evaluate the project to see if it is possible to realize the reward. The bonus offered to your organization is $750,000. You have examined the project and believe that you can crash the project for an additional $275,000 and reach the December 20 date.
Management is thrilled with your assessment and they approve the crash fee.

What risk response is this?

In a large industrial business, an on-going system development project faces a previously identified risk.
The risk is adequately managed by the risk manager, however there is still residual risk.

What should the risk manager do?

John works as a project manager for BlueWell Inc. He is determining which risks can affect the project.

Which of the following inputs of the identify risks process is useful in identifying risks associated to the time allowances for the activities or projects as a whole, with a width of the range indicating the degrees of risk?

A project manager wants to represent the distribution of uncertainty around a risk model element.
However, good data on the variability, of the risk model element has not been collected, and only contains minimum and maximum values.

What curve should the project manager use to represent the distribution?

A project team member identifies, but does not document, a risk early in the project, because it is considered to be trivial. This risk occurs later and negatively impacts the project.

What could the project manager do to avoid this situation?

Ben is the project manager of the CMH Project for his organization. He has identified a risk that has a low probability of happening, but the impact of the risk event could save the project and the organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs her to research the time, cost, and method to improve the probability of the positive risk event. Ben then communicates the risk event and response to management.

What risk response has been used here?

A project manager is running a high-cost telecommunications project. There is a monthly status meeting, and the risk manager should provide an update to the project team and project sponsors on major risks.

What risk related information should be included in the monthly status meeting of this complex project?

PESTLE, TECOP, and SPECTRUM are three examples of prompt lists that can be used during risk management activities.
Prompt lists are used to do which of the following?

Based on this information, which of the following has the highest risk exposure?

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 project has four risks that are identified during the risk identification process. The table shows the probability of each risk occurring and the corresponding cost.

What is the total estimated monetary value of cost for this project?

A risk management professional is currently facilitating the risk planning process with the project team. To increase the breadth of considered risks, the team wants to include high-level and strategic project risks.

What should the risk management professional do next?

You are the project manager of the NNQ Project for your company and are working with your project team to define contingency plans for the risks within your project. Mary, one of your project team members, asks what a contingency plan is.

Which of the following statements best defines what a contingency response is?

A risk manager for a cross-functional project is initiating the risk identification process. The risk manager conducted some meetings for stakeholders to express their concerns, but some stakeholders are complaining that their opinions were not considered.

How should the risk manager address these concerns?

A risk manager administered a pre-workshop risk survey in preparation for the upcoming workshop. The workshop invitees participated in the survey and submitted many risks encompassing all project phases and risk areas. The risk manager sorts risks by similarities and categories for the workshop.

What should the risk manager do next to visually organize the risks?

Joyce is the project manager for her company. Joyce and her project team are working through the quantitative analysis for certain risk events within her project. According to the enterprise environmental factors the project manager is to perform sensitivity analysis on any risk with an impact greater than $5,000 in the project.

What is the sensitivity analysis?

In addition to monitoring and controlling the project risks for their status and information the risk monitoring and controlling process accomplishes four key things for a project.

Which one of the following is NOT a determination that is made by the risk monitoring and controlling process?

The company is a risk seeking organization, and has experienced measurable success based on their current strategy for growth. A new project has an overall project risk that exceeds the risk levels documented in the risk management plan.

What would be the best course of action for the company to take with the project based on its current scope?

In a large mobile network deployment project, there is delay risk due to insufficient staffing. The risk manager is considering executing a response plan, which involves allowing staff members to work overtime. However, this action may lead to excessive additional cost.

What should the risk manager do?

A risk manager on an infrastructure project gathers and analyzes performance data. The risk manager wants to identify which variables will impact the schedule and determine how these factors interact.

Which data analysis tool should the risk manager use to forecast future performance?

A project team identified some risks in a project. Team members became interested in predicting the outcomes of their potential choices following their probability of occurrence.

Which technique should the risk manager use?

John works as a project manager for ABD project. He and his team, are working on the following activities:
1. Relative ranking or priority list of project risks
2. Watchlists of low priority risk
3. Trends in Qualitative Risk Analysis results

On which of the following processes is John working on?

The project risk manager is in the process of identifying risks. The project sponsor has communicated that there is an influential stakeholder who has a senior management position. The other stakeholders do not feel comfortable speaking in front of this stakeholder.

What should the project risk manager do next to identify risks?

Which of the following risk responses delineates that the project plan will not be changed to deal with the risk?

A risk manager for a new product development project has worked diligently with stakeholders and the project team to identify and document risks. These project risks vary widely in probability and impact.

Which three actions should the risk manager take to inform the identification of resource requirements for individual risk responses? (Choose 3).

During a status meeting, a functional manager complains that the server backup failed, impacting the department. This was a known risk documented in the risk register as an accepted risk. After reviewing the meeting minutes, itis determined that the functional manager had not participated in the risk planning phase.

Which of the identification methods should have been applied?

What are the supporting elements for effective risk management?

A project is in the execution phase and involves large volumes of supplies. The project is the last phase of a 10-year initiative. The project sponsor asks the project manager to provide the performance report for the whole initiative.

Which analysis should the risk manager do to provide the project manager with the performance report?

Tom is the project manager of the GGG project for his company. He is working with the project team on the Perform Qualitative Risk Analysis process. Tom is having the project team to review the project scope statement as an input to the qualitative risk analysis process.

Why?

You are the project manager of the NJJ project. Your enterprise environmental factors require that you establish certain risk management rules regarding low risks within your project.

What is the best policy for risks with low probability and low impact in the project management?

When monitoring the execution quality of risk-related plans and processes, which of the following would be a useful metric to track and record?

A new resource is added to the project team from a matrix organization.

How should the project's risk manager familiarize the new team member with the project's risk management process?

An organization is embarking on a multi-million-dollar project with numerous identified risks.

What should the project risk team do to navigate the risks on this project?

The stakeholders of a building construction project are not comfortable with the project manager's handling of the project as they believe there is a financial risk. The project manager asks the risk manager to assist in demonstrating to the stakeholders that the project risks are under a tolerable threshold.

What should the risk manager do first to demonstrate this to the stakeholders?

A risk manager has been assigned to replace a risk manager on sick leave. The new risk manager notices that the risk register is missing data that are key to the risk management process.

Which data will the risk manager require first?

David is the project manager of the NKL Project for his organization. He has been asked to create a proposal for a construction project for a client. David realizes that there are several requirements within the SOW and RFP provided by the client that would eliminate his company from bidding on the construction project. David proposed to management that his organization create a partnership with a competitor so that together they could bid on the construction project and qualify for the customer's requirements.

What risk response is David proposing to management?

The project enters a testing phase to validate a project requirement. The testing is occurring in a common company testing area maintained by operations. The project team accepts the external customer's additional testing requirements, which may cause a slip in the schedule. A risk is identified, added to the risk register, and a response is developed.

What is the next step to be completed?

A project is In the initiation phase. The project stakeholders are Invited to a meeting to share their thoughts that may impact the project In a positive or negative way.

What will be the main output of this meeting?

A project manager has determined that they cannot outsource work nor eliminate the scope. They also discover that they cannot buy insurance or mitigate the risk.

What should the project manager do?

A risk manager is conducting a qualitative risk analysis for a renewable energy project that faces tight deadlines. The team identifies risks such as weather unpredictability, material cost fluctuations, and potential regulatory delays. While some members advocate prioritizing high-likelihood risks, others emphasize addressing unlikely but high-impact risks.

What should the risk manager do?

You are the project manager for BlueWell Inc. Your current project is a high priority and high profile project within your organization. You want to identify the project stakeholders that will have the most power in relation to their interest on your project. This will help you plan for project risks, stakeholder management, and ongoing communication with the key stakeholders in your project.
In this process of stakeholder analysis, what type of a grid or model should you create based on these conditions?

Shelly is the project manager of the BUF project for her company. In this project Shelly needs to establish some rules to reduce the influence of risk bias during the qualitative risk analysis process.

What method can Shelly take to best reduce the influence of risk bias?

Who is responsible for the stakeholder expectations management in a high-profile, high-risk project?

A new risk manager has been assigned to a project experiencing delays, quality issues, low performance, and client complaints. The work is being completed with the client's vendor, which apparently has been causing all of the issues.

What should the risk manager do first?

When processing freight invoices for a project, the project manager notices the shipping costs exceeded the budget due to increased fuel costs. The risk manager included this risk in the project's contingency allowance. When reviewing the project budget execution reports, the project manager notices unused budget remaining in other closed tasks of the project that could cover the additional shipping costs.

What should the project manager do?

What identification technique is used to help reduce the ambiguity of a risk statement?

You are the project manager of the GGK project for your company. The GGK project has a budget of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the project to increase the likelihood of completing the project early as the project was only scheduled to be 35 percent complete at this time. This positive risk response, while keeping the project ahead of schedule, has added significant costs to the project. You have already spent $575,000 to reach this point in the project.
Management would like to know what your cost performance index and the schedule performance index is for this project.

What are these values?

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?

Ben is the project manager of the YHT Project for his company. Alice, one of his team members, is confused about when project risks will happen in the project.

Which one of the following statements is the most accurate about when project risk happens?

Ted is the project manager of the HRR project for his company. Management has asked that Ted periodically reviews the contingency reserve as risk events happen, pass, or are still pending.

What is the purpose of reviewing the contingency reserve?

You and your project team have identified the project risks and now are analyzing the probability and impact of the risks.

What type of analysis of the risks provides a quick and high-level review of each identified risk event?

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?

During what process should a project manager assign a risk owner?

A project to deploy a new technology in field offices across the country has just been initiated. Some stakeholders are not supportive of this project because their teams will potentially be impacted by staff reductions once the technology is implemented.

How should the risk manager address this concern?

The risk register is developed during the initial phases of a virtualized desktop deployment. The register is reviewed by peers, responses are planned, reviewed again, and risks are prioritized. After project completion, the risk register is reviewed as part of the formal lessons learned process. During the review, itis realized that the risk register was not updated, and many responses were not executed during the deployment.

Which of the following options should have been performed during the execution of the project?

A project manager was informed that the testing of the latest component in the project's software update release was not successful. As a result, 1he delivery timelines for the software release wifi be delayed, The project manager did not previously capture this as a risk to the project.

What should the project manager do next to avoid similar risks?

Kelly is the project manager of the NNQ Project for her company. This project will last for one year and has a budget of $350,000. Kelly is working with her project team and subject matter experts to begin the risk response planning process.

When the project manager begins the plan risk response process, what two inputs will she need?

Towards the end of definitive design, project costs have increased to the point where it will be classified as

a capital asset project. The customer has expressed they want one final total project completion date and will afford no extensions after it is established.

How should the risk manager proceed?

You work as a project manager for BlueWell Inc. Your project is running late and you must respond to the risk.

Which risk response can you choose that will also cause you to update the human resource management plan?

Sammy is the project manager for her organization. She would like to rate each risk based on its probability and affect on time, cost, and scope. Harry, a project team member, has never done this before and thinks Sammy is wrong to attempt this approach. Harry says that an accumulative risk score should be created, not three separate risk scores.
Who is correct in this scenario?

An agriculture government agency faces different challenges with farmers and landlords In implementing its ambitious growth strategy. The agency decided to establish an enterprise risk management unit to identify risks, analyze risks, and provide a handbook showing how to handle the surrounding uncertainty.

What should the risk management expert recommend the agency do first to identify risks and develop the handbook?

Three months into a program, multiple workstreams are showing issues. At this point, the program manager requires that a risk impact assessment be conducted.

What will help calculate the impact?

A project is underway to implement a new customer support software. During testing, the risk manager discovers that the integration with the existing customer relationship management system is more complex than initially planned, potentially delaying the project. The risk manager needs to update project documents to reflect this new information.

Which steps should the risk manager consider when updating relevant project documents?

Which of the following situational factors has a significant effect on risk attitude?

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?

The risk manager is prioritizing risks based on the potential impact to cost and schedule and identifies the following 4 risks:

Risk 1 has a US$500,000 potential cost increase, and a 60 day potential schedule slippage, with a 25% probability of occurring Risk 2 has a US$200,000 potential cost increase, and a 20 day potential schedule slippage, with a 60% probability of occurring Risk 3 has a US$1,200,000 potential cost increase, and a 90 day potential schedule slippage, with a 10% probability of occurring Risk 4 has @ US$600,000 potential cost increase, and a 70 day potential schedule slippage, with a 20% probability of occurring Using expected monetary value calculation, which risk has the greatest potential impact to cost and schedule?