CPM CPM Risk Management & Contingency Planning

Question 1

Which risk response strategy involves shifting the negative impact of a risk to a third party?

Accepted Answer

Transfer

Answer

Transferring risk shifts the financial or operational impact to a third party, such as through insurance or outsourcing.

Question 2

In the CPM framework, what is a contingency reserve primarily used for?

Accepted Answer

Covering identified risks that may occur

Answer

Contingency reserves are budget set aside to address identified risks included in the risk register that may materialize during the project.

Question 3

A project manager is evaluating risks by multiplying probability by impact. Which technique is being used?

Accepted Answer

Expected monetary value (EMV)

Answer

Expected Monetary Value (EMV) is calculated by multiplying the probability of a risk event by its monetary impact to quantify risk exposure.

Question 4

Which of the following best describes a residual risk?

Accepted Answer

A risk that remains after risk responses have been applied

Answer

Residual risks are those that remain after planned risk responses have been implemented and are typically accepted and monitored.

Question 5

During risk identification, which tool involves team members independently generating ideas before sharing them with the group?

Accepted Answer

Nominal Group Technique

Answer

The Nominal Group Technique has participants generate ideas independently first, then share and prioritize them as a group to reduce groupthink bias.

(CPM) Certified Project Manager Practice Test