NEW QUESTION 1
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?

• A. It helps to evaluate if the remaining reserve is adequate for the risk exposure.
• B. It helps to determine how much more funds will need to be invested in the project.
• C. It helps to evaluate secondary and residual risks related to the risk responses and their costs.
• D. It helps to determine the probability and impact of project risks.

Answer: A

NEW QUESTION 2
You work as a project manager for BlueWell Inc. You are preparing for the risk identification process. You will need to involve several of the project's key stakeholders to help you identify and communicate the identified risk events. You will also need several documents to help you and the stakeholders identify the risk events. Which one of the following is NOT a document that will help you identify and communicate risks within the
project?

• A. Risk register
• B. Activity cost estimates
• C. Stakeholder register
• D. Activity duration estimates

Answer: A

NEW QUESTION 3
The only output of the perform qualitative risk analysis are risk register updates. When the project manager updates the risk register he will need to include several pieces of information including all of the following except for which one?

• A. Trends in qualitative risk analysis
• B. Risk probability-impact matrix
• C. Watchlist of low-priority risks
• D. Risks grouped by categories

Answer: B

NEW QUESTION 4
You work as a project manager for BlueWell Inc. You are about to complete the quantitative risk analysis process for your project. You can use three available tools and techniques to complete this process. Which one of the following is NOT a tool or technique that is appropriate for the quantitative risk analysis process?

• A. Expert judgment
• B. Data gathering and representation techniques
• C. Organizational process assets
• D. Quantitative risk analysis and modeling techniques

Answer: C

NEW QUESTION 5
A project team member has just identified a new project risk. The risk event is determined to have significant impact but a low probability in the project. Should the risk event happen it'll cause the project to be delayed by three weeks, which will cause new risk in the project. What should the project manager do with the risk event?

• A. Add the identified risk to a quality control management control chart.
• B. Add the identified risk to the issues log.
• C. Add the identified risk to the risk register.
• D. Add the identified risk to the low-level risk watchlist.

Answer: C

NEW QUESTION 6
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?

• A. Exploiting
• B. Teaming agreement
• C. Transference
• D. Sharing

Answer: D

NEW QUESTION 7
You are the project manager of the NGQQ Project for your company. To help you communicate project status to your stakeholders, you are going to create a stakeholder register. All of the following information should be included in the stakeholder register except for which one?

• A. Assessment information of the stakeholders' major requirements, expectations, and potential influence
• B. Stakeholder classification of their role in the project
• C. Identification information for each stakeholder
• D. Stakeholder management strategy

Answer: D

NEW QUESTION 8
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?

• A. Bias towards risk in new resources
• B. Risk probability and impact matrixes
• C. Risk identification
• D. Uncertainty in values such as duration of schedule activities

Answer: D

NEW QUESTION 9
Mark works as a project manager of the NNH project. In this project, he has created a contingency response that the cost performance index should be less than 0.91. The NHH project has a budget at completion of $950,000 and is 43 percent complete - though the project should be 50 percent complete. The project has spent $470,897 to reach the 43 percent complete milestone. What is the project's cost performance index?

• A. 0.95
• B. 0.80
• C. 0.87
• D. 0.91

Answer: C

NEW QUESTION 10
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?

• A. Negative $26,000
• B. Negative $67,000
• C. Zero - the risk event has not yet occurred
• D. $27,000

Answer: A

NEW QUESTION 11
Joan is the project manager of the KYU project for her company. She is working with management on defining a contingency reserve for her project. Currently the project is scheduled to last 18 months and it has a cost budget of $2.5 million. What two areas of the project can the contingency reserve address in regard to risk management?

• A. Quality and costs
• B. Cost and resource management
• C. Risk and project planning
• D. Costs and schedule

Answer: D

NEW QUESTION 12
You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of your company, on several risks within the project. Nancy understands that through qualitative analysis you have identified 80 risks that have a low probability and low impact as the project is currently planned. Nancy's concern, however, is that the impact and probability of these risk events may change as conditions within the project may change. She would like to know where will you document and record these 80 risks that have low probability and low impact for future reference. What should you tell Nancy?

• A. Risks with low probability and low impact are recorded in a watchlist for future monitoring.
• B. All risks, regardless of their assessed impact and probability, are recorded in the risk log.
• C. Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.
• D. All risks are recorded in the risk management plan.

Answer: A

NEW QUESTION 13
Joan is a project management consultant and she has been hired by a firm to help them identify risk events within the project. Joan would first like to examine the project documents including the plans, assumptions lists, project files, and contracts. What key thing will help Joan to discover risks within the review of the project documents?

• A. The project documents will help the project manager, or Joan, to identify what risk identification approach is best to pursue.
• B. Lack of consistency between the plans and the project requirements and assumptions can be the indicators of risk in the project.
• C. Poorly written requirements will reveal inconsistencies in the project plans and documents.
• D. Plans that have loose definitions of terms and disconnected approaches will reveal risks.

Answer: B

NEW QUESTION 14
Don has hired Jerry, a contractor, to complete a portion of his project work. The contract used was a cost-plus contract. If Don were to perform a risk audit, who would carry the risk in this scenario?

• A. Don would because he is the project manager.
• B. Jerry would because of the contract type.
• C. Don would because of the contract type.
• D. Jerry would because he is the hired contractor.

Answer: C

NEW QUESTION 15
A high-profile, high-priority project within your organization is being created. Management wants you to pay special attention to the project risks and do all that you can to ensure that all of the risks are identified early in the project. Management has to ensure that this project succeeds. Management's risk aversion in this project is associated with what term?

• A. Quantitative risk analysis
• B. Risk conscience
• C. Risk mitigation
• D. Utility function

Answer: D

NEW QUESTION 16
You are the project manager of the NHQ Project for your company. You have completed qualitative and quantitative analysis of your identified project risks and you would now like to find an approach to increase project opportunities and to reduce threats within the project. What project management process would best help you?

• A. Monitor and control project risks
• B. Create a risk governance approach
• C. Create the project risk register
• D. Plan risk responses

Answer: D

NEW QUESTION 17
Stephen is the project manager of the GBB project. He has worked with two subject matter experts and his project team to complete the risk assessment technique. There are approximately 47 risks that have a low probability and a low impact on the project. Which of the following answers best describes what Stephen should do with these risk events?

• A. The low probability and low impact risks should be added to a watchlist for future monitoring.
• B. Because they are low probability and low impact, the risks can be dismissed.
• C. The low probability and low impact risks should be added to the risk register.
• D. Because they are low probability and low impact, Stephen should accept the risks.

Answer: A

NEW QUESTION 18
Amy is the project manager for her company. In her current project the organization has a
very low tolerance for risk events that will affect the project schedule. Management has asked Amy to consider the affect of all the risks on the project schedule. What approach can Amy take to create a bias against risks that will affect the schedule of the project?

• A. She can create an overall project rating scheme to reflect the bias towards risks that affect the project schedule.
• B. She can filter all risks based on their affect on schedule versus other project objectives.
• C. She can have the project team pad their time estimates to alleviate delays in the project schedule.
• D. She can shift risk-laden activities that affect the project schedule from the critical path as much as possible.

Answer: A

NEW QUESTION 19
Courtney is the project manager for her organization. She is working with the project team to complete the qualitative risk analysis for her project. During the analysis Courtney encourages the project team to begin the grouping of identified risks by common causes. What is the primary advantage to group risks by common causes during qualitative risk analysis?

• A. It helps the project team realize the areas of the project most laden with risks.
• B. It saves time by collecting the related resources, such as project team members, to analyze the risk events.
• C. It can lead to developing effective risk responses.
• D. It can lead to the creation of risk categories unique to each project.

Answer: C

NEW QUESTION 20
Thomas is the project manager of the NHJ Project for his company. He has identified several positive risk events within his project and he thinks these events can save the project time and money. Positive risk events, such as these within the NHJ Project are also known as what?

• A. Benefits
• B. Opportunities
• C. Ancillary constituent components
• D. Contingency risks

Answer: B

NEW QUESTION 21
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