PMI PMP-Project Management Professional Practice Exam Q. 1221 to 1230
Largest Questions Bank with All Unique Questions prepared by Project Management Experts as per the latest PMBOK
(Quickly Review Your Skills before appearing for PMI PMP Certification Exam)
Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1221: Risk score measures the:
A. Variability of the estimate
B. Product of the probability and impact of the risk
C. Range of schedule and cost outcomes
D. Reduced monetary value of the risk event
Section: Mix Questions
Justification in favor of the correct answer:
The risk score provides a convenient way to compare risks because comparing impacts or probabilities alone is meaningless. It helps guide risk responses.
<<<<<< =================== >>>>>>
Q. 1222: Which of the following is an example of recommended corrective action in risk management?
A. Conducting a risk audit
B. Engaging in additional risk response planning
C. Performing the contingency plan
D. Conducting a risk review
Section: Mix Questions
Justification in favor of the correct answer:
Corrective action in risk management is the process of making changes to bring expected performance in line with the risk management plan. Such action consists of performing either the planned risk response, such as implementing contingency plans, or a workaround.
<<<<<< =================== >>>>>>
Q. 1223: The primary advantage of using decision-tree analysis in project risk management is that it:
A. Considers the attitude of the decision maker toward risk
B. Forces consideration of the probability of each outcome
C. Helps to identify and postulate risk scenarios for the project
D. Shows how risks can occur in combination
Section: Mix Questions
Justification in favor of the correct answer:
As a graphical way to bring together information, decision-tree analysis quantifies the likelihood of failure and places a value on each decision. Usually applied to cost and time considerations, this form of risk analysis may be linked to a sensitivity analysis.
<<<<<< =================== >>>>>>
Q. 1224: Your project is using complex, unproven technology. Your team conducted a brainstorming session to identify risks. Poor allocation of project resources was the number one risk. This risk was placed on the risk register, which included at this point a:
A. Watch list
B. Potential risk response
C. Known unknown
D. List of other risks requiring additional analysis
Section: Mix Questions
Justification in favor of the correct answer:
The risk register is prepared first in the identify risks process. It contains a list of identified risks in as much detail as possible and a list of potential responses when they are identifiable at this time.
<<<<<< =================== >>>>>>
Q. 1225: When managing current projects, it is important to use lessons learned from previous projects to improve the organization’s project management process. Therefore, in project closing procedures, it is important to review the:
A. Secondary risks that occurred
B. Checklists for identify risks
C. WBS dictionary
D. Fallback plan
Section: Mix Questions
Justification in favor of the correct answer:
Checklists are a tool and a technique of the identify risks process and include risks encountered on similar, previous projects identified through the lessons learned process and from other sources. The project team should review the checklist as part of the identify risks process as well as during closeout. The team should add to the list as necessary, based on its experience, to help others in the future.
<<<<<< =================== >>>>>>
Q. 1226: Risk mitigation involves:
A. Using performance and payment bonds
B. Eliminating a specific threat by eliminating the cause
C. Avoiding the schedule risk inherent in the project
D. Reducing the probability and/or impact of an adverse risk event to an acceptable threshold
Section: Mix Questions
Justification in favor of the correct answer:
It is often more effective to take early action to reduce probability and/or impact of a risk occurring on a project than attempting to repair the damage after the risk has occurred.
<<<<<< =================== >>>>>>
Q. 1227: On a typical project, when are risks highest and impacts (amount at stake) lowest?
A. During the concept phase
B. At or near completion of the project
C. During the implementation phase
D. When the project manager is replaced
Section: Mix Questions
Justification in favor of the correct answer:
Risks are highest at the beginning of a project because the project faces an uncertain future, and impacts are lowest at this time because investments in human and material resources are minimal.
<<<<<< =================== >>>>>>
Q. 1228: Two key inputs to the perform quantitative risk analysis process are the:
A. WBS and milestone list
B. Scope management plan and process improvement plan
C. Schedule management plan and cost management plan
D. Procurement management plan and quality baseline
Section: Mix Questions
Justification in favor of the correct answer:
The cost and schedule of a project are two areas significantly affected by risk occurrences. Information on these two areas, because of their quantitative nature, provides excellent input to the perform quantification risk process to help determine overall impact and to provide guidelines as managing risk reserves.
<<<<<< =================== >>>>>>
Q. 1229: The highest risk impact generally occurs during which one of the following project life-cycle phases?
A. Concept and planning
B. Planning and implementation
C. Implementation and closeout
D. Concept and closeout
Section: Mix Questions
Justification in favor of the correct answer:
Opportunity and risk generally remain high during the concept and planning phases. However, the amount at stake remains low because of the relatively low level of investment up to that point. During project implementation and closeout, however, risk falls to lower levels as remaining unknowns are translated into knowns. At the same time, the amount at stake rises steadily as the necessary resources are invested to complete the project.
<<<<<< =================== >>>>>>
Q. 1230: Which one of the following statements best characterizes an activity cost or duration estimate developed with a limited amount of information?
A. It should be part of the planning for the needed management reserve.
B. It is an input to identify risks.
C. It is an output from identify risks.
D. It must be factored into the list of prioritized project risks.
Section: Mix Questions
Justification in favor of the correct answer:
Much of the output from planning in other knowledge areas, such as activity cost and duration estimates, may entail risk and is reviewed during the identify risks process. This process requires an understanding of the schedule, cost, and quality management plans found in the project management plan. Estimates that are aggressive or developed with a limited amount of information are even more likely to entail risk and, therefore, must also be an input to the identify risks process.
Access the full Database of All Questions
An expert on R&D, Online Training and Publishing. He is M.Tech. (Honours) and is a part of the STG team since inception.