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Risk Management Flashcards

7 cards from real PMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Risk Management flashcards as text

  1. A project manager notices that a key supplier is experiencing financial difficulties. Which risk response strategy is MOST appropriate?

    Answer: Transfer the risk by requiring a performance bond

    Transferring risk through a performance bond shifts the financial consequence to the supplier or a third party if the supplier fails to deliver.

  2. During risk quantification, a project manager calculates that a risk has a 30% probability of occurring and would cost $50,000 if it does. What is the Expected Monetary Value (EMV)?

    Answer: $15,000

    EMV = Probability × Impact = 0.30 × $50,000 = $15,000.

  3. Which document serves as the primary input for the Identify Risks process?

    Answer: Assumption log

    The assumption log is a key input to Identify Risks because undocumented or false assumptions are a major source of project risk.

  4. A risk that has occurred and become an actual problem is called a:

    Answer: Issue

    When a risk event occurs and materializes, it becomes an issue that must be managed through the issue log.

  5. A project team implements a workaround. This means they are:

    Answer: Responding to a risk that has no pre-planned response

    A workaround is an unplanned response developed to address a risk or issue that did not have a pre-planned contingency response.

  6. Which risk analysis technique uses optimistic, pessimistic, and most likely estimates to model schedule or cost uncertainty?

    Answer: Three-point estimating (PERT)

    Three-point estimating (PERT) uses optimistic, pessimistic, and most likely estimates to calculate a weighted average and model uncertainty.

  7. A newly identified risk arises late in the project execution phase. What is the FIRST action the project manager should take?

    Answer: Add it to the risk register and perform qualitative analysis

    Any newly identified risk should first be documented in the risk register and then analyzed to determine its priority before taking further action.