PMBOK FREE PMBOK Managing Project Risks Questions and Answers 2 — Questions and Answers
Question 1: A project manager identifies a risk that could delay the critical path by three weeks. The probability is low but the impact is very high. What is the BEST risk response strategy?
- Accept the risk passively
- Develop a contingency plan with triggers (Correct answer)
- Transfer the entire project to another team
- Ignore the risk due to low probability
Correct answer: Develop a contingency plan with triggers
High-impact risks on the critical path warrant contingency plans with defined triggers, even when probability is low.
Question 2: During the Perform Quantitative Risk Analysis process, which technique uses probability distributions to model schedule and cost outcomes?
- Decision tree analysis
- Monte Carlo simulation (Correct answer)
- Influence diagrams
- SWOT analysis
Correct answer: Monte Carlo simulation
Monte Carlo simulation iterates thousands of scenarios using probability distributions to forecast likely project outcomes.
Question 3: What is the PRIMARY purpose of a risk register in project management?
- To document only negative risks identified during planning
- To serve as a repository for all identified risks and their response plans (Correct answer)
- To replace the need for a risk management plan
- To assign blame when risks materialize
Correct answer: To serve as a repository for all identified risks and their response plans
The risk register is a comprehensive document that records all identified risks, their analysis results, and planned responses.
Question 4: A project team discovers a new risk during execution that was not identified in planning. What should the project manager do FIRST?
- Immediately escalate to the sponsor
- Add it to the risk register and assess its impact (Correct answer)
- Halt all project work until the risk is resolved
- Implement a workaround without documentation
Correct answer: Add it to the risk register and assess its impact
Newly identified risks should be logged in the risk register and assessed before determining the appropriate response.
Question 5: Which risk response strategy involves shifting the negative impact of a risk to a third party?
- Mitigate
- Avoid
- Transfer (Correct answer)
- Exploit
Correct answer: Transfer
Risk transfer shifts the financial or operational impact to a third party, commonly through insurance or contracts.
Question 6: What is a secondary risk in project risk management?
- A risk that occurs after the project closes
- A risk that arises as a direct result of implementing a risk response (Correct answer)
- The second-highest ranked risk on the risk register
- A risk identified by a team member other than the project manager
Correct answer: A risk that arises as a direct result of implementing a risk response
Secondary risks are new risks created specifically by the implementation of a response to an original risk.
PMBOK FREE PMBOK Managing Project Risks Questions and Answers 2
A project manager identifies a risk that could delay the critical path by three weeks.
The probability is low but the impact is very high.
What is the BEST risk response strategy?