1.

What are common examples used to communicate risk probability and

impact?
 A. Risk checklist, risk assessment, regression analysis, and assumption
and constraint analysis
 B. Monitor Risks process, multi-dimensional risk assessment, control
chart, and Monte Carlo simulation
 C. Probability distributions, sensitivity analysis, modelling and
simulation, and probability and impact matrix
 D. Monitor Risks process, assumption and constraint analysis,
modelling and simulation, and risk register
2. When using the risk register to manage the cost risk analysis, which of the
following models the way correlation arises, and avoids the need to
estimate the correlation coefficients?
 A. Risk Monte Carlo analysis
 B. Risk driver method
 C. Risk scatter diagram
 D. Risk RACI matrix
3. Which of the following characteristics would a risk tolerant person or group
demonstrate?
 A. Adaptable and resourceful; not afraid to take action; thrill seeking
 B. Discomfort with uncertainty; low tolerance for ambiguity; seeks
security and resolution in the face of risk
 C. Risk taking is a price worth paying for future payoffs; seeks
strategies and tactics that have high future payoffs; thinks abstractly
and creatively envisioning possibilities, and not afraid of change or
unknowns
 D. Reasonable comfort with most uncertainty; accepts risk as a normal
feature of projects and business, and takes uncertainty in stride with no
apparent or significant influence on their behaviour
4. The risk manager organizes a stakeholder meeting to obtain agreement on
project risk response strategies. At the conclusion of this meeting, the risk
response strategies should be which of the following?
 A. Scheduled, budgeted, and easy for project stakeholders to
understand
 B. Cost-effective, validated by Monte Carlo analysis, and assigned
 C. Iterative, scaled to the project, and addressing threats and
opportunities
 D. Timely, cost-effective, agreed-upon, and accepted
5. 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?
 A. The functional manager is responsible for providing the training.
 B. Provide project specific risk training and mentor through the risk
process.
 C. Send the new team member the risk management plan to read.
 D. Provide the new team member with a copy of the risk register and
latest status report.
6. The stakeholder is unwilling to make decisions that would result in
negative consequences to the project. Which of the following describes the
stakeholder's attitude regarding project risks?
 A. Risk averse
 B. Risk neutral
 C. Risk accepting
 D. Not enough information available to describe the stakeholder's risk
attitude
Answer: A
7. 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 a small
project, and lack of a plan will reduce costs.
Which of the following should the project manager do?
 A. Advise the stakeholder that risk management is a valuable
undertaking and must be applied to all projects to some degree.
 B. Cancel the workshop, as the stakeholder is senior and risk
management is an optional process, especially on smaller projects.
 C. Continue with the workshop but remove the stakeholder from the
list of attendees.
 D. Review the scope in an attempt to save money in other areas of the
project to provide funding for the risk management activities.
Answer: A
8. What is a project issue within a project environment?
 A. A negative effect on a project objective arising from occurrence of a
threat
 B. A certain event which has a positive or negative impact in the
project
 C. A risk which has a significant impact on the project
  D. An uncertain event which may impact the project
Answer: A
9. What is the purpose of mitigating negative risks as a part of the risk
response process?
 A. To transfer the probability of a risk happening to a third party, and
to reduce the severity of the impact
 B. To reduce the probability of a risk happening, and/or reduce the
severity of the impact
 C. To accept the probability of a risk happening to reduce the severity
of the impact
 D. To increase the probability of a risk happening, but reduce the
severity of the impact
Answer: B
10.In the country where a project is being executed, customs procedures are
complex and change frequently. During the risk identification process, the
project team identifies a risk related to delays in customs on substantial
equipment that will likely occur. Equipment delays on this project could
lead to the project cancellation.
How should the probability and impact be characterized for this risk?
 A. Low probability/low impact
 B. High probability/low impact
 C. Low probability/high impact
 D. High probability high impact
Answer: D

11.Which of the following is not a part of the risk register?

(a) Identified Risks
(b) List of Stakeholders
(c) Low Value Risks
(d) All of the above
12.Which of the following is not one of the three estimates used in PERT?
(a) Optimistic Estimate
(b) Pessimistic Estimate
(c) Probabilistic Estimate
(d) Most Likely Estimate
13.Which of the following is an output of the Identify Risks process?
(a) Watch List
(b) High Impact Risks
(c) Low Impact Lists
(d) Risk Register
14.You are collecting risks using various techniques. Which of the following
techniques will you not use in this process?
(a) Checklist Analysis
(b) Earned Value Management
(c) SWOT Technique
(d) Assumption Analysis
15.In resource smoothing:
(a) Start and finish dates are adjusted based on resource constraints
(b) Critical path changes
(c) The critical path does not change
(d) Project completion date changes
16.Which of the following is an example of force majeure?
(a) A very high impact risk
(b) Unidentified risk
(c) Natural calamity
(d) Non-important risks
17.In which process do you create the plan to manage risks?
(a) Plan Risk Management
(b) Control Risks
(c) Plan Risk Responses
(d) Identify Risks
18.Which of the following is a correct statement?
(a) Crashing increases risks
(b) Fast-tracking increases risks
(c) Crashing reduces risks
(d) Fast-tracking increases cost
19.In which contract does the seller bear the risk?
(a) Time and Material
(b) Cost Plus Award Fee
(c) Firm Fixed Price
(d) Cost Plus Fixed Fee
20.Which of the following is not a knowledge area in the PMBOK Guide?
(a) Time
(b) Budget
(c) Quality
(d) Risk
21.During which phase is risk highest?
(a) Closing
(b) Planning
(c) Executing
(d) Initiating
22.You want to review lessons learned for past projects. Where will you look
for them?
(a) Enterprise Environment Factor
(b) Old Contract Document
(c) Project Plan
(d) Organizational Process Assets
23.Which of the following is not true about the risk register?
(a) No changes are allowed in the risk register once it is approved
(b) It is developed during the Identify Risks process
 (c) It contains a list of identified risks
(d) All of the above
24.A risk that is an outcome of a response of a previously identified risk is
known as a:
(a) Primary Risk
(b) Secondary Risk
(c) Residual Risk
(d) Unidentified Risk
25.Which is the correct PERT formula?
(a) (Optimistic + Most likely + Pessimist)/6
(b) (Optimistic + Most likely + Pessimist)/3
(c) (Optimistic + 4*Most likely + Pessimist)/3
(d) (Optimistic + 4*Most likely + Pessimist)/6
26.Which strategy can’t be used with positive risks?
(a) Enhance
(b) Exploit
(c) Accept
(d) Mitigate
27.Which statement is true about the issue log?
(a) It monitors the resolution of the issues
(b) It contains a list of risks
(c) It has a list of problematic stakeholders
(d) All of the above
28.Which one is the least source of conflict in projects?
(a) Schedule Priority
(b) Low Salary
(c) Personal Work Style
(d) Scarce Resource
29.A risk that remains after the applying the response is known as a:
(a) Secondary Risk
(b) Primary Risk
(c) Residual Risk
(d) Unidentified Risk
30.A Pareto diagram:
(a) Is used to identify risks
(b) Is used in sensitivity analysis
(c) Explains the 80-20 principle
(d) Identifies the cause of the risk
31.A network diagram has more than one critical path. This means:
(a) More risks
(b) Fewer risks
(c) Budget may increase
(d) Time may increase
32.What is the risk breakdown structure?
(a) A classification of risks
(b) Types of risks
(c) A hierarchical representation of threats
(d) A hierarchical representation of risks
33.The contingency reserve is used to manage:
(a) Primary risks
 (b) Secondary risks
(c) Residual risks
(d) All of the above
34.When is a project manager required to get permission to use
the management reserve?
(a) It is up to the project manager
(b) Never
(c) Sometimes
(d) Always
35.In what kind of risk response strategy do you transfer the risk?
(a) Avoid
(b) Mitigate
(c) Insurance
(d) Share
36.Which of the following denotes unauthorized addition to the project scope
to make the client happy?
(a) Scope Creep
(b) Gold Plating
(c) Crashing
(d) Fast Tracking
37.What are the triple constraints?
(a) Scope, Time, Cost
(b) Risk, Scope, Time
(c) Quality, Cost, Time
(d) Human Resource, Scope, Cost
38.Which need is on the lowest level of Maslow’s Hierarchy of Needs?
(a) Security
(b) Physiological
(c) Self Esteem
(d) Self Actualization
39.Which statement is true about the RACI chart?
(a) RACI stands for: Responsible, Accountant, Consult, and Inform
(b) RACI is an example of responsibility assignment matrix
(c) RACI charts connect risks to risk owner
(d) None of the above
40.In the Control Risks process, you do all except:
(a) Monitoring Triggers
(b) Ranking Risks
(c) Updating Risk Register
(d) All of the above
41.In which risk response strategy do you make sure that the risk is realized?
(a) Mitigate
(b) Enhance
(c) Accept
(d) Exploit
42.Which diagram has an S-curve shape?
(a) Bar Chart
(b) Ishikawa Diagram
(c) Scatter Diagram
(d) Cost Baseline
43.Which statement is true about the contingency reserve?
(a) It is a percentage of the cost of the project
(b) It is used for identified risks
(c) It is used for unidentified risks
(d) None of the above
44.Probability and impact matrix helps you in which of the following?
(a) Identifying Risks
(b) Analyzing Risks
(c) Ranking Risks
(d) Quantifying Risks
45.You want to see a particular responsibility assigned to each person. Where
will you look for it?
(a) GANTT Chart
(b) Probability Impact Matrix
(c) Pareto Diagram
(d) RACI Chart
46.Which of the following is a network analysis technique?
(a) EVM
(b) EMV
(c) Delphi Technique
(d) CPM
47.During the project execution, an unidentified risk came up which may
affect your project outcome. What will you do now?
(a) Create a workaround
(b) Develop a Risk Response Plan
(c) Inform management
(d) Inform the client
48.What accuracy is required in 5 Sigma?
(a) 69%
(b) 93.3%
(c) 99.977%
(d) 99.38%
49.In which risk response strategy do you go for the teaming agreement?
(a) Exploit
(b) Share
(c) Enhance
(d) Transfer
50.The goal of qualifying risks is:
(a) Identify risks
(b) Evaluate individual risk
(c) Determine the EMV
(d) All of the above
51.In a decision tree diagram, a circle represents:
(a) Decision
(b) Events
(c) Probability
(d) Impact
52.The indication that any risk is about to occur is known as:
(a) Risk Threshold
(b) Tolerance
 (c) Risk Trigger
(d) None of the above
53.When do you perform the risk identification process?
(a) Throughout the project
(b) At the beginning of the project
(c) At the end of the project
(d) Before signing the project charter
54.Which is not a communication methods type?
(a) Interactive Communication
(b) Pull Communication
(c) Push Communication
(d) Aggressive Communication
55.Risk management includes all, except?
(a) Create WBS
(b) Identify risks
(c) Qualify risks
(d) Sensitivity Analysis
56.Which of the following is not a contract type?
(a) T&M
(b) CPIF
(c) Make or Buy
(d) FFP
57.Reducing the probability of a negative risk happening is known as:
(a) Risk Mitigation
(b) Risk Transfer
(c) Exploit
(d) Enhance
58.A person who prefers to avoid risk is known as:
(a) Risk Tolerant
(b) Risk Averse
(c) Risk Hater
(d) Risk Seeker
59.Some of your stakeholders are hesitating in helping you identify risks.
Which technique will you use to get their output?
(a) Monte Carlo
(b) Delphi Technique
(c) Facilitated Workshop
(d) Interview
60.Your team is located in different geographic locations and you want to
discuss some issues with all team members. Which communication tool
will you use?
(a) Live Meeting
(b) Telephone
(c) War Room
(d) Internet
61.Which statement is not true about the decision tree method?
(a) It is a tool and technique of the Quantitative Risk Analysis process
(b) It helps choose the best option
(c) It helps in identifying risks
(d) It is an EMV technique
62.Who determines the size of the management reserve?
(a) The Project Manager
(b) Management
(c) Team Members
(d) Client
63.The risk register is created in the Identifying Risks process, and then it is
continuously updated. Which of the following is not updated during the
Qualitative Risk Analysis process?
(a) Risk prioritization
(b) New risks
(c) Response plan for risks
(d) None of the above
64.Which risk response strategy will utilize the contingency reserve?
(a) Enhance
(b) Exploit
(c) Mitigate
(d) Share
65.In which phase will the project experience most of the identified risks?
(a) Initiation
(b) Planning
(c) Execution
(d) Closing
66.To whom should you send the Performance Reports?
(a) Everyone
(b) Client
(c) As mentioned in the communication plan
(d) Team members
67.Sending information from one place to another place is known as:
(a) Transmit Message
(b) Noise
(c) Feedback
(d) Medium
68.In which format will you ask your client to submit change requests?
(a) Verbal
(b) Written
(c) Formal Written
(d) On Phone
69.You discover a risk that a team member may suffer an accident if you
allow the project to continue. What would be your next step?
(a) Remove the team member
(b) Analyze the risk
(c) Stop the concerning activity
(d) Inform management
70.Your management told you that if you complete the project before two
months, you can bid for a new project. You do everything you are capable
of completing the project ahead of time so that you can get the new
project. What kind of response strategy are you using here?
(a) Enhance
(b) Exploit
 (c) Accept
(d) Mitigate
71.In your team, there are 15 members including you. How many lines of
communications are there?
(a) 105
(b) 120
(c) 60
(d) 210
72.In your team, five members report to you. Later on, three more members
are added. What is the increase in communication lines?
(a) 42
(b) 21
(c) 18
(d) 36
73.Which is an example of active listening?
(a) Making eye contact
(b) Rubbing your nose
(c) Reading an SMS
(d) Feeling sleepy
74.Your team member informs you that a particular piece of equipment may
malfunction during the peak of its usage. You told him to do nothing, and
you decide to manage it once the equipment fails. What kind of strategy is
this?
(a) Avoid
(b) Accept
(c) Exploit
(d) Mitigate
75.Which one is a root cause analysis tool?
(a) Fishikawa Diagram
(b) Monte Carlo Simulation
(c) Bar Chart
(d) Pareto Diagram
76.To get risks from a few important stakeholders, you approach them
individually and ask questions. Which technique are you using here?
(a) Brainstorming
(b) Facilitated Workshop
(c) Interview
(d) Delphi
77.There is a 30% chance that a certain piece of equipment may fail, which
may cost you 500 USD. Find the expected monetary value for this event.
(a) 150
(b) 500
(c) 1500
(d) 60
78.Which statement is not true about the risk register?
(a) It should include both positive and negative risks
(b) It should not include positive risks
(c) It should include low impact risks
(d) It should always be updated
79.In which process do you select the seller?
(a) Plan Procurement Management
(b) Conduct Procurements
(c) Control Procurements
(d) Close Procurements
80.A stakeholder has a bad reputation for requesting many changes. How will
you manage this stakeholder?
(a) Ignore him
(b) Involve him from the beginning of the project
(c) Flatly deny all of his requests
(d) Speak with management
81.Your team member told you that if you rent some equipment a little earlier
than planned, you will save some money. What will be your next step?
(a) You will follow his advice
(b) You will reject the suggestion
(c) You will review it further
(d) You’ll inform management
82.You raise a change request to approve changes in the schedule baseline.
Which form of communication is it?
(a) Informal Written
(b) Formal Written
(c) Written
(d) Para-lingual
83.During risk analysis, you come to the conclusion that a particular risk has
a remote chance of occurring. Even if it occurs, there will be very little
impact on any project parameter. What will you do with this risk?
(a) You will ignore it
(b) You will further analyze it
(c) You will keep it on the watch list
(d) None of the above
84.According to Herzberg’s Hygiene theory, which is a motivating factor?
(a) Salary
(b) Good working condition
(c) Relationship with Boss
(d) Career growth
85.Which of the following risk response strategies can be used for negative
and positive risks?
(a) Accept
(b) Mitigate
(c) Enhance
(d) Exploit
86.In which project process do you identify the project risks?
(a) Initiating and Planning
(b) Initiating, Planning, and Executing
(c) Initiating, Planning, and Monitoring & Controlling
(d) All phases
87.Usually, which risk management process is avoided for low cost and non-
important projects?
(a) Perform Qualitative Risk Analysis
(b) Perform Quantitative Risk Analysis
 (c) Control Risks
(d) Plan Risk Responses
88.While reviewing the project scope, you notice that a part of the project is
beyond your capability. Then your team suggests you assign this work to
any contractor who is a specialist in it. What kind of risk response strategy
is it?
(a) Share
(b) Enhance
(c) Transfer
(d) Avoid
89.Which of the following strategies cannot be used with negative risks?
(a) Transfer
(b) Avoid
(c) Mitigate
(d) Exploit
90.According to the PMBOK Guide 5th Edition, how many risk response
strategies are available to manage risks?
(a) 7
(b) 5
(c) 4
(d) 3
91.A joint venture is an example of which kind of risk response strategy?
(a) Exploit
(b) Share
(c) Transfer
(d) Enhance
92.During the execution phase of the project, you discover a risk that was not
previously identified. What will your next step be?
(a) Note it to the risk register and analyze it
(b) Ignore it
(c) Create a workaround
(d) Create a response plan
93.In a decision tree diagram, a square or rectangle represents:
(a) Decisions
(b) Events
(c) Probability
(d) Impact
94.In which project process do you identify the project stakeholders?
(a) Initiating and Planning
(b) Initiating, Planning, and Executing
(c) Initiating, Planning, and Monitoring & Controlling
(d) All phases
95.In which process do you define the risk categories?
(a) Identify Risks
(b) Plan Risk Management
(c) Perform Qualitative Risk Analysis
(d) Plan Risk Responses
96.The project budget consists of:
(a) Cost baseline plus management reserve
(b) Cost baseline plus contingency reserve
 (c) Cost baseline plus activity contingency reserve
(d) Control account plus contingency reserve
97.You are in the risk qualifying process and qualifying risks. Considering
the low-risk tolerance level of your stakeholders, which of the following
statements is true?
(a) As the risk tolerance is high, you will have fewer risks on the watch list
(b) As the risk tolerance is high, you will have more risks on the watchlist
(c) As tolerance is high, there will be no watchlist
(d) There is no impact on the watchlist
98.What kind of probability distribution curve has an only minimum and
maximum values?
(a) Beta
(b) Triangular
(c) Uniform
(d) Traditional
99.In which of the following cases will you have the largest number of risks?
(a) If your stakeholders are risk-averse
(b) If your stakeholders are risk seekers
(c) If your stakeholders are risk-neutral
(d) If the risk attitude of stakeholders is high
100. In which of the following process do you analyze stakeholders’ risk
attitude?
(a) Plan risk management
(b) Plan risk response
(c) Perform qualitative risk analysis
(d) Perform quantitative risk analysis
101. Which of the following risk evaluation techniques can be used to
analyze and demonstrate causal relationships in high-risk scenarios?
(a) Tornado Analysis
(b) Monte Carlo
(c) Bowtie
(d) AHP
102. While implementing a risk response plan, a secondary risk comes up
which you did not identify earlier. How will you manage it?
(a) Using an accept risk response strategy
(b) Using a mitigation risk response strategy
(c) Using an avoid risk response strategy
(d) Through a workaround
103. An identified risk occurred and you successfully managed it.
However due to this response, another risk was generated and you have
to manage it immediately, otherwise, it will impact your project objective
severely. What will your next step be?
(a) Develop a response plan and implement it
(b) Develop a response plan, get permission to use the management
reserve, and implement the response
(c) Develop a contingency response plan and implement it
(d) As the risk can severely impact your project objective, try to avoid it
104. Which of the following statements is true about risks?
(a) Risks are highest during the execution phase
(b) Risks are highest when the project nears the end
 (c) Risks are highest when the project starts
(d) Risks remain constant during the whole project life cycle
105. You are in an African country and identifying risks for your project.
Your team members identify a risk that during a particular time there is a
3% probability of rain. As the probability of this risk is low, you only ask
team members to set a contingency reserve for this risk. What risk
response strategy is this?
(a) Accept
(b) Mitigate
(c) Avoid
(d) Enhance

106. You are in an African country and identifying risks for your project.
Your team members identify a risk that during a particular time there is a
3% probability of rain. As the probability of this risk is low, you ask team
members to note down this risk and do nothing. What risk response
strategy is this?
(a) Avoid
(b) Mitigate
(c) Accept
(d) Enhance
107. There is a risk of equipment failure and you have identified another
piece of equipment to replace it if it fails. However, there is a chance that
this equipment may not perform as well as the original equipment. What
kind of risk is this?
(a) Known risk
(b) Secondary risk
(c) Unknown risk
(d) Residual risk
108. After analyzing the risks and developing the risk response plan,
which technique helps you see if the overall project risks have decreased?
(a) EMV
(b) Latin Hypercube
(c) Tornado Analysis
(d) EVM
109. How is the nominal group technique different from the Delphi
technique?
(a) An open discussion is conducted in the nominal group technique, while
in Delphi you ask questions anonymously
(b) An open discussion is conducted in the Delphi technique, while in the
nominal group technique you ask questions anonymously
(c) In the nominal group technique, after a discussion voting takes place
to rank opinions, while in Delphi a moderator collects opinions
anonymously and compiles them
(d) Both are the same except Delphi is anonymous
110. How is an affinity diagram different from the brainstorming
technique?
(a) Both categorize risks, however, an affinity diagram uses a diagram
and brainstorming uses slips
 (b) Brainstorming categorizes risks while an affinity diagram prioritizes
them
(c) Both prioritize risks but brainstorming uses a voting system
(d) Brainstorming prioritizes risks while an affinity diagram categorizes
them
Go to the Answer

Answers
Answer-1: b
Explanation: The list of stakeholders is recorded in the stakeholder register, not
in the risk register.
Go to the Question
***
Answer-2: c
Explanation: Probabilistic Estimate is not an estimate which is used in the PERT
formula.
Reference: The PMBOK Guide 5th Edition, Page: 170
Go to the Question
***
Answer-3: d
Explanation: The risk register is the only output of the Identify Risks Process.
Reference: The PMBOK Guide 5th Edition, Page: 319
Go to the Question
***
Answer-4: b
Explanation: Earned Value Management is a technique of the Control Costs
process.
Reference: The PMBOK Guide 5th Edition, Page: 215
Go to the Question
***
Answer-5: c
Explanation: In resource smoothing, activities are allowed to be delayed within
their free and total float; therefore the critical path does not change here.
Reference: The PMBOK Guide 5th Edition, Page: 180
Go to the Question
***
Answer-6: c
Explanation: Natural calamity (such as flood or earthquake) is an example of
force majeure because you cannot control it.
Go to the Question
***
Answer-7: c
Explanation: In the Plan Risk Responses process you create the plan to manage
the identified risks.
Reference: The PMBOK Guide 5th Edition, Page: 342
Go to the Question
***
Answer-8: b
Explanation: Fast-tracking increases the risks and the crashing technique
increases the cost. Although the crashing process also increases the risks, it is
less risky than fast-tracking.
Reference: The PMBOK Guide 5th Edition, Page: 181
Go to the Question
***
Answer-9: c
Explanation: In a firm-fixed-price contract the price is fixed, and if the cost
escalates it has to be borne by the seller. This type of contract should be used
when you have a very well defined scope of work. Please note that if the work is
not clearly defined, the buyer may have to bear the burden.
Reference: The PMBOK Guide 5th Edition, Page: 363
Go to the Question
***
Answer-10: b
Explanation: Budget is included in the Cost Management Knowledge area; the
budget itself is not a knowledge area.
Go to the Question
***
Answer-11: d
Explanation: During the initiation phase risk is higher because there is less
clarity on everything. However, as the project progresses, the risk goes down
gradually.
Go to the Question
***
Answer-12: d
Explanation: Lessons learned are a part of the organizational process assets.
Reference: The PMBOK Guide 5th Edition, Page: 27
Go to the Question
***
Answer-13: a
Explanation: The risk register is developed during the Identify Risks process
and then it is updated continuously throughout the project.
Reference: The PMBOK Guide 5th Edition, Page: 319
Go to the Question
***
Answer-14: b
Explanation: Secondary risks are risks that may come up as a result of
implementing the response of any identified risk.
Reference: The PMBOK Guide 5th Edition, Page: 343
Go to the Question
***
Answer-15: d
Explanation: The correct PERT formula is:
PERT= (Optimistic + 4*Most-likely + Pessimist)/6
Reference: The PMBOK Guide 5th Edition, Page: 171
Go to the Question
***
Answer-16: d
Explanation: Mitigate is a negative risk response strategy that cannot be used
with positive risks. Exploit, Accept, and Enhance are positive risk response
strategies.
Reference: The PMBOK Guide 5th Edition, Page: 344
Go to the Question
***
Answer-17: a
Explanation: An issue log is used to monitor the resolution of issues.
Reference: The PMBOK Guide 5th Edition, Page: 305
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***
Answer-18: b
Explanation: Schedule priority, scarce resource, and personal work style are the
main reasons for conflicts in projects. A low salary is not a source of conflict.
Reference: The PMBOK Guide 5th Edition, Page: 282
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***
Answer-19: c
Explanation: Residual risk is a risk that remains after implementing the
response plan.
Reference: The PMBOK Guide 5th Edition, Page: 558
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***
Answer-20: c
Explanation: A Pareto diagram is also known as an 80-20 principle. According to
Pareto, 80% of problems are caused by 20% of sources.
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***
Answer-21: a
Explanation: If a network diagram has more than one critical path, this means
you will have to manage two paths, i.e. more risks.
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***
Answer-22: d
Explanation: In the risk breakdown structure you can breakdown the risks
according to their category; it is a hierarchical representation of risks.
Reference: The PMBOK Guide 5th Edition, Page: 560
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***
Answer-23: d
Explanation: The contingency reserve is used to manage the identified risks. All
risks given in the questions are identified risks.
Reference: The PMBOK Guide 5th Edition, Page: 310
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***
Answer-24: d
Explanation: The project manager cannot use the management reserve without
permission from the management; he always needs permission to use the
management reserve.
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***
Answer-25: c
Explanation: In the insurance risk response strategy you transfer the risk to a
third party. Please note that transferring does not mean that the risk has been
eliminated. By transferring a risk, you are transferring responsibility to a third
party to manage this risk if it occurs.
Reference: The PMBOK Guide 5th Edition, Page: 344
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***
Answer-26: b
Explanation: In gold plating, team members add functions to make the client
happy, although it is not included in the scope. Scope creep refers to the
uncontrolled changes to the scope. Please note that in scope creep team
members do not add anything to the scope willingly. Crashing and fast-tracking
are schedule compression techniques.
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***
Answer-27: a
Explanation: Scope, time, and cost are collectively known as the triple
constraints.
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Answer-28: b
Explanation: Physiological needs are the lowest on Maslow’s Hierarchy of
Needs. One must fulfill his physiological needs before going for higher needs.
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***
Answer-29: b
Explanation: RACI matrix is a kind of responsibility assignment matrix where
you can see the relation of activity with the team members.
Reference: The PMBOK Guide 5th Edition, Page: 262
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***
Answer-30: b
Explanation: Risk ranking is performed under the Perform Qualitative Risk
Analysis process.
Reference: The PMBOK Guide 5th Edition, Page: 328
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***
Answer-31: d
Explanation: In the exploit risk response strategy, you make sure that the risk is
realized. However, in enhance you only try to realize the opportunity.
Reference: The PMBOK Guide 5th Edition, Page: 345
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***
Answer-32: d
Explanation: The cost baseline curve is also known as an S-Curve because
initially the cost is low and it gradually increases, and as the project ends, the
cost again goes down.
Reference: The PMBOK Guide 5th Edition, Page: 214
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***
Answer-33: b
Explanation: The contingency reserve is used to manage identified risks.
Reference: The PMBOK Guide 5th Edition, Page: 310
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***
Answer-34: c
Explanation: Probability and impact matrix is a tool and technique of the
Perform Qualitative Risk analysis process; it helps you in ranking the identified
risks.
Reference: The PMBOK Guide 5th Edition, Page: 331
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***
Answer-35: d
Explanation: The RACI chart is a kind of responsibility assignment matrix (RAM)
where you can see the resources assigned to work package or activity. The RACI
chart means: Responsible, Accountable, Consult, and Inform. On the RACI chart,
you can see the accountability of the person for any activity.
Reference: The PMBOK Guide 5th Edition, Page: 262
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***
Answer-36: d
Explanation: CPM stands for the Critical Path Method, which is a network
analysis technique.
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***
Answer-37: a
Explanation: If any unidentified risk occurs, you will manage it through the
workaround.
Reference: The PMBOK Guide 5th Edition, Page: 353
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Answer-38: c
Explanation: In 5 Sigma 99.977% accuracy is desired.
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Answer-39: b
Explanation: You go for the teaming agreement with another company when
you see a big opportunity, and you alone are not capable of realizing it. In
sharing the risk response strategy, you team up with another company or go for
a joint venture to realize the opportunity.
Reference: The PMBOK Guide 5th Edition, Page: 346
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***
Answer-40: b
Explanation: In risk qualification, you review each risk for its probability and
impact on the project objectives.
Reference: The PMBOK Guide 5th Edition, Page: 328
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***
Answer-41: b
Explanation: In a decision tree diagram, a circle represents events, and a
rectangle or square represents a decision.
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***
Answer-42: c
Explanation: Risk triggers, which are sometimes known as risk symptoms, are a
warning sign that a risk is about to occur.
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***
Answer-43: a
Explanation: Risk identification is an ongoing process, so you will identify risks
throughout the project.
Reference: The PMBOK Guide 5th Edition, Page: 321
Go to the Question
***
Answer-44: d
Explanation: Aggressive communication is a made-up word; the rest are types
of communication methods.
Reference: The PMBOK Guide 5th Edition, Page: 295
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***
Answer-45: a
Explanation: Create WBS is a Scope Management process. WBS stands for work
breakdown structure, which is a hierarchical decomposition of the project work.
Reference: The PMBOK Guide 5th Edition, Page: 125
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***
Answer-46: c
Explanation: Make or Buy is a decision which you have to make during the
procurement management plan. Here you will decide whether you should
procure a particular task or if you should do it on your own.
Reference: The PMBOK Guide 5th Edition, Page: 363, 364, 365
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***
Answer-47: a
Explanation: In risk mitigation, you try to reduce the probability of happening
the risk or its impact. In risk transfer, you transfer the responsibility to a third
party. Exploit and enhance are positive risk response strategies.
Reference: The PMBOK Guide 5th Edition, Page: 345
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***
Answer-48: b
Explanation: A risk-averse person or organization is not comfortable with
digesting risks. They are not very creative or supportive towards risks. They
usually try to avoid risks unless the reward to take on the risks is high enough to
outweigh the aversion of the risk.
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***
Answer-49: b
Explanation: In this case you will use the Delphi Technique, because this
technique collects responses anonymously.
Reference: The PMBOK Guide 5th Edition, Page: 324
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***
Answer-50: d
Explanation: With the use of the internet, you can communicate with several
people simultaneously located in different geographic locations. You cannot use a
live meeting or war room because team members are located in different places.
Telephone communication will be a mess if you make a conference call with all
team members.
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***
Answer-51: c
Explanation: Decision tree analysis helps you in all mentioned options except
identifying risks.
Reference: The PMBOK Guide 5th Edition, Page: 339
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***
Answer-52: b
Explanation: The size of the management reserve is determined by the
management. Usually it lies between 5% and 10%.
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***
Answer-53: c
Explanation: Risk responses are determined in the Plan Risk Responses
process, and then they are updated in the risk register.
Reference: The PMBOK Guide 5th Edition, Page: 342
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***
Answer-54: c
Explanation: In enhance, exploit and share risk response strategies, no reserve
is needed because they are positive risk response strategies which do not require
the use of any reserve. However, the mitigation technique requires the use of the
contingency reserve because here you are managing negative risks.
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***
Answer-55: c
Explanation: In the execution phase you will carry out the work-related
activities, and therefore, most of the identified risk will be faced in this phase.
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***
Answer-56: c
Explanation: Performance reports will be sent to the stakeholders you have
decided on during the Plan Communication Management process.
Reference: The PMBOK Guide 5th Edition, Page: 296
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***
Answer-57: a
Explanation: Sending information from one place to another is known as
transmit message.
Reference: The PMBOK Guide 5th Edition, Page: 293
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Answer-58: c
Explanation: Change requests must always be formally written.
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Answer-59: b
Explanation: First of all you analyze the risk. It is also possible that the
probability of this risk happening is too low. Once you qualify the risk, you will
proceed with the next action based on your risk analysis.
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***
Answer-60: b
Explanation: In exploit risk response strategies, you do everything to ensure
that the opportunity is realized. Please note that in enhance you also try to
realize the opportunity but you do not ensure that opportunity is realized.
Reference: The PMBOK Guide 5th Edition, Page: 345
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***
Answer-61: a
Explanation: Communication Channel = n*(n-1)/2, (where n is the number of
members)
=15(15-1)/2 = 105
Reference: The PMBOK Guide 5th Edition, Page: 292
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***
Answer-62: b
Explanation: Communication channel= 6(6-1)/2= 15
New communication channel = 9(9-1)/2=36
New communication channel = 36-15=21
Reference: The PMBOK Guide 5th Edition, Page: 292
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***
Answer-63: a
Explanation: Making eye contact and repeating the sentence are examples of
active listening.
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***
Answer-64: b
Explanation: This is an example of accept risk response strategy where you
simply accept the risk and do nothing except note it down.
Reference: The PMBOK Guide 5th Edition, Page: 345
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***
Answer-65: a
Explanation: Fishikawa diagram is also known as a Fishbone diagram, Ishikawa
diagram, and root cause analysis diagram.
Reference: The PMBOK Guide 5th Edition, Page: 236
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***
Answer-66: c
Explanation: In interview you approach individual stakeholders and ask
questions to get their output.
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***
Answer-67: a
Explanation: Expected Monetary Value = Probability * Impact
EMV = 0.3*500
= 150
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***
Answer-68: b
Explanation: The risk register includes all risks regardless of whether they
positive or negative, and it is continuously updated throughout the project.
Reference: The PMBOK Guide 5th Edition, Page: 327
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***
Answer-69: b
Explanation: In the Conduct Procurements process, you select the seller.
Reference: The PMBOK Guide 5th Edition, Page: 371
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***
Answer-70: b
Explanation: If you have a stakeholder who requests many changes, involve
him from the start of the project so that he can agree with and be aware of
everything going on in the project.
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***
Answer-71: c
Explanation: Of course you will analyze the suggestion before reaching any
conclusion. You cannot take action on any advice unless you review the request
and analyze its impact on any other project objective or parameters.
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***
Answer-72: b
Explanation: This is an official formal request which must be sent in a formal
written form of communication. Change request is always a formal written
communication.
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Answer-73: c
Explanation: Low-priority risks are kept on the watch list for future monitoring.
You cannot ignore any low-rated risk because you never know when it may
become a high-ranking risk.
Reference: The PMBOK Guide 5th Edition, Page: 330
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***
Answer-74: d
Explanation: Salary, working conditions, and a good relationship with the boss
are important but they are not a motivating factor. They don’t motivate you to
work harder. Career growth is a motivating factor which encourages you to
perform better and prove yourself.
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***
Answer-75: a
Explanation: Accept risk response strategy can be used with both types of risks.
Reference: The PMBOK Guide 5th Edition, Page: 344
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***
Answer-76: d
Explanation: Risk identification is an iterative process; therefore, risks will be
identified throughout the project.
Reference: The PMBOK Guide 5th Edition, Page: 321
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***
Answer-77: b
Explanation: The Perform Quantitative Risk Analysis is a complex and time-
consuming process, usually performed on large and complex projects, and
ignored on low-cost non-important projects.
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***
Answer-78: c
Explanation: Since you are giving this task to another party, it is a transfer risk
response strategy.
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***
Answer-79: d
Explanation: Exploit is a positive risk response strategy where you ensure that
the risk is realized.
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***
Answer-80: a
Explanation: The three strategies for negative risks are: avoid, transfer, and
mitigate. The three strategies for positive risks are: exploit, enhance, and share.
The last strategy is “accept,” which can be used with both types of risks.
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***
Answer-81: b
Explanation: In a joint venture, you team with another company to share the
opportunity. This is an example of a share risk response strategy.
Reference: The PMBOK Guide 5th Edition, Page: 346
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***
Answer-82: a
Explanation: Risk identification is an ongoing process; you will identify them
throughout the project. However, as you identify a new risk, you will note it down
in the risk register and analyze it for the next action.
Go to the Question
***
Answer-83: a
Explanation: In a decision tree diagram, a rectangle or square represents a
decision and a circle represents events.
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***
Answer-84: d
Explanation: Stakeholder identification is an iterative process, and hence it will
be performed throughout the project.
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***
Answer-85: b
Explanation: Risk categories, definitions of risk probability and impact,
methodologies, etc. are determined in the Plan Risk Management Process.
Reference: The PMBOK Guide 5th Edition, Page: 317
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Answer-86: a
Explanation: The project budget consists of the cost baseline and management
reserve. The cost baseline consists of the work package cost estimate plus
contingency reserve.
Reference: The PMBOK Guide 5th Edition, Page: 213
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***
Answer-87: a
Explanation: As the risk tolerance is low for your stakeholders, they are risk-
averse and in this case, you will have fewer risks on the watch list.
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***
Answer-88: c
Explanation: This is a property of a uniform distribution where you have two
values: maximum and minimum.
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Answer-89: b
Explanation: If your stakeholders are risk seekers, this means they will want to
manage even a small risk to avoid issues with the project. In this case, the
number of risks will be higher.
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Answer-90: a
Explanation: Risk attitude, probability, and impact definitions are determined in
the plan risk management process.
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Answer-91: c
Explanation: Bowtie method helps you analyze and demonstrate causal
relationships in high-risk scenarios.
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Answer-92: d
Explanation: If any unidentified risk occurs, you will manage it through a
workaround.
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***
Answer-93: b
Explanation: As this is an unidentified risk, you will manage it with the
management reserve. To use the management reserve, you need the
management’s approval.
Go to the Question
***
Answer-94: c
Explanation: When the project starts there is the greatest potential for risks.
This goes down as the project progresses.
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***
Answer-95: a
Explanation: This is an example of an active accept risk response strategy
where you are keeping a contingency reserve to manage the risk if it occurs.
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***
Answer-96: c
Explanation: This is an example of a passive accept risk response strategy
where you are doing nothing except acknowledging the risk.
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***
Answer-97: d
Explanation: A risk that remains after even applying the risk response strategy
is known as a residual risk.
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Answer-98: b
Explanation: Monte Carlo and Latin Hypercube techniques let you know if the
overall project risk has been reduced or not after developing the risk response
strategies.
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Answer-99: c
Explanation: In the nominal group technique, after a discussion, you vote to
rank the ideas for further discussion. In Delphi, you send a questionnaire to
stakeholders anonymously so they can give their input without any fear.
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Answer-100: d
Explanation: In an affinity diagram you categorize risks while brainstorming is
used to rank the ideas through group discussion.
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