Test Questions

1. Which of these is a valid negative risk response?

A. Exploit
B. Mitigate
C. Enhance
D. Share

2. Which of these is accurate regarding risk management?

A. Organizations are not likely to perceive risk as a threat to project success.
B. It has its origins in the uncertainty present in all projects.
C. The attitudes of individuals and organizations must not be a factor
affecting risk management.
D. It is a passive activity in project management.

3. Anne is the project manager of a project. She has evaluated certain

responses from prospective sellers and wants to select a contract model
that will transfer risk to the seller. Which of the following should she
select in order to achieve this?
A. Time and Material contract
B. Fixed price contract
C. Cost-Plus-Fixed-Fee contract
D. Cost-Plus-Incentive-Fee contract

4. Your project sponsor has asked you to present your project’s high-level
risk register to him in the next project update meeting. To create your
high-level risk register, which of the following processes must be
performed?
A. Plan Risk Management
B. Perform Qualitative Risk Analysis
C. Identify Risks
D. Monitor Risks

5. Which of these is an input to the Monitor Risks process?

A. Risk audits
B. Change requests
C. Work performance information
D. Work Performance Reports
6. Which of the following is true about risks?
A. The risk register documents all the identified risks in detail.
B. Risk impact should be considered, but probability of occurrence is not
important.
C. Risks always have negative impact and not positive.
D. Risk Response Plan is another name for Risk Management Plan.

7. During which stage of risk planning are risks prioritized based on their
relative probability and impact?
A. Perform Qualitative risk analysis
B. Identify Risks
C. Perform Quantitative risk analysis
D. Plan Risk Responses

8. If a project has a 60 percent chance of a $100,000 profit and a 40 percent

chance of a $100,000 loss, the expected monetary value of the project is:
A. $20,000 profit
B. $40,000 loss
C. $100,000 profit
D. $60,000 loss

9. With high levels of uncertainty and unpredictability in a fast-paced and

highly competitive global marketplace, where long-term scope is difficult
to define, it is becoming even more important to have a __________ for
effective adoption and tailoring of development practices to respond to the
changing needs of the environment.
A. Rigid management approach
B. Predefined detailed scope
C. Contextual framework
D. Blackbox approach

10. At the beginning of the project, a project manager realized the technical
expertise of the team was limited, a risk to the project. Midway through
the project, the project manager decided that this was no longer a risk
and considered it outdated. As part of which process would he do the risk
reassessment?
A. Perform Qualitative Risk Analysis
B. Perform Quantitative Risk Analysis
C. Perform Risk Assessment
D. Monitor Risks
11. After brainstorming potential project risks, what is the recommended
method for prioritizing these risks and their mitigation plans?
A. RACI chart
B. Control chart
C. Fishbone diagram
D. Probability and impact matrix

12. Which of the following is a hierarchical representation of project risks?

A. Risk Register
B. Risk Mitigation
C. Risk Categories
D. Risk Breakdown Structure

13. Which term best describes the Identify Risks process?

A. Finite
B. Redundant
C. Iterative
D. Inconsequential

14. During the Plan Risk Management process, assigning ___________ will
help you and the project team identify all important risks and work more
effectively during the identification process.
A. Risk factors
B. Blame
C. Risk mitigation plans
D. Risk categories

15. Project risks should be identified by:

A. Those invited to the risk identification process only
B. Key project stakeholders only
C. The project manager only
D. All project personnel
16. With a growing awareness of so-called unknowable-unknowns, the
existence of emergent risk is becoming clear. These are risks that can only
be recognized after they have occurred. Emergent risks can be tackled
through developing:
A. Project resilience
B. Project charter
C. Project management plan
D. Project risk management plan

17. In general, Perform Qualitative Risk Analysis is:

A. Not often completed
B. Complete and 100 percent accurate
C. In-depth and thorough
D. focused on high-priority risks

18. Which of these is not a data analysis technique used during quantitative
risk analysis?
A. Tornado diagram
B. Decision tree
C. RACI chart
D. Influence diagrams

19. Which of the following items needs to be kept in mind when relying on
risk identification checklists?
A. They are biased.
B. They are not exhaustive.
C. They are often inaccurate.
D. They are easy to prepare.

20. Negative risks can either be ______, transferred, or mitigated as a

countermeasure.
A. enhanced
B. avoided
C. exploited
D. ignored
21. Which of these is not a data gathering technique used in the Identify
Risks process?
A. Interviewing
B. Checklists
C. Brainstorming
D. Delta technique

22. Lee is the project manager of a project, and he is planning responses to a

set of risks. As a direct result of implementing these risk responses, he
anticipates certain other risks to arise. These are:
A. Secondary risks
B. Primary risks
C. Planned risks
D. Workaround

23. Three strategies that typically deal with negative risks or threats are:
A. Enhance, Share, and Accept
B. Transfer, Exploit, and Accept
C. Avoid, Transfer, and Exploit
D. Avoid, Transfer, and Mitigate

24. Which of the following is not a valid instance of risk transference?

A. Use of a Cost Reimbursable contract
B. Warranties
C. Fixed Price contracts
D. Performance bonds

25. Under which of the following scenarios would you not use a decision
tree?
A. When some future scenarios are unknown
B. When you need to look at the implications of not choosing certain
alternatives
C. When the future scenarios are known
D. When the outcomes of some of the actions are uncertain
26. An organization wishes to ensure that the opportunity arising from a risk
with positive impact is realized. This organization should:
A. Exploit the risk
B. Mitigate the risk
C. Accept the risk
D. Avoid the risk

27. Which of the following processes produces a Risk Register?

A. Perform Quantitative Risk Analysis
B. Plan Risk Management
C. Perform Qualitative Risk Analysis
D. Identify Risks

28. The Risk Register contains details of all identified risks and their current
status. It is a document containing the results of:
A. Plan Risk Responses
B. Identify Risks
C. Monitor Risks
D. Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis,
and Plan Risk Responses

29. Robert wants to assign a risk owner for every project risk for which a
risk response action is planned. Where must he update this information?
A. Resource management plan
B. Risk register
C. Stakeholder register
D. Project charter
30. You are analyzing the risk in a project. You decide to do a sensitivity
analysis to determine which risks have the most potential impact on the
project. You consider using a tool to help compare the relative
importance of variables that have a high degree of uncertainty with those
variables that are more stable. One such tool is:
A. Beta Distribution
B. S-Curve
C. Control Chart
D. Tornado Diagram

31. Early in the project, you are meeting with your team and would like to
address all the strengths, weaknesses, opportunities, and threats the
project is facing. What tool should be used?
A. SWOT Analysis
B. Interviewing
C. Delphi Technique
D. Brainstorming

32. You are working with your team and are looking at the cost risks in the
project. You and your team are currently creating a tornado diagram for
the project risks. You do this as a part of which of the following
processes?
A. Qualitative Risk Analysis
B. Risk Response Planning
C. Quantitative Risk Analysis
D. Monitor Risks

33. You are managing an oil-drilling project. With oil at $143 per barrel, this
could be a highly lucrative project. However, there is a chance that the
price of oil will drop below $105 per barrel, which would eliminate the
profit in the project. This is an example of:
A. Requirement
B. Assumption
C. Risk
D. Constraint
34. There are a number of risks that have been identified in your project. The
team has decided not to change the project plan to deal with the risks, but
they have established a contingency reserve of money in the event
something triggers these risks. This is an example of what type of risk
mitigation technique?
A. Contingent Response Strategy
B. Active acceptance
C. Passive acceptance
D. Avoidance

35. You are managing a fund-raising golf tournament that has a hole-in-one
contest. However, your company cannot afford to pay the $1,000,000
award if someone does get a hole in one, so it has elected to take out an
insurance policy in the event someone does get lucky. This is an example
of:
A. Sharing
B. Mitigation
C. Transference
D. Avoidance

36. A decision tree is a Perform Quantitative Risk Analysis technique. A

decision tree is represented by a Decision Tree Diagram. The decision tree
describes a situation under consideration, the implications of each of the
available choices, and the possible scenarios. A Decision Tree Diagram
shows how to make a decision among alternative capital strategies known
as:
A. Alternative nodes
B. Question points
C. Decision nodes
D. Checkpoints
37. You have assembled a group of subject matter experts (SMEs) to define
risk probability and impact levels. You and your team are still in what
process group?
A. Risk
B. Monitor and Controlling
C. Quantitative Analysis
D. Planning

38. Robert is managing a road construction project. Due to unseasonal weather

conditions, the team productivity might be above or below target. This is an
example of:
A. Ambiguity risk
B. Variability risk
C. Mitigated risk
D. Opportunity risk

39. Which type of risk analysis ranks risks for future action or analysis by
evaluating their probability of occurrence and impact?
A. RBS
B. Assumptions analysis
C. Qualitative analysis
D. Quantitative analysis

40. Melissa is managing a hardware deployment project and is creating a risk

management plan. Which of the following would not be included in this
plan?
A. Templates
B. Roles and responsibilities
C. Budgeting
D. Methodology
41. Joe is attempting to calculate the probable financial impact of some
future uncertain scenarios. What method could he use?
A. Pareto analysis
B. Earned value analysis
C. Variance analysis
D. Expected monetary value analysis

42. When are risk identification activities performed?

A. During the Perform Qualitative Risk Analysis process
B. During the Plan Risk Management process
C. During the Perform Quantitative Risk Analysis process
D. Ongoing throughout the project

43. Risks may be identified during the entire lifecycle of a project. Identify
Risks is what type of process?
A. Qualitative
B. Effort-driven
C. Discrete
D. Iterative