CPM CPM Risk Management & Procurement

Question 1

During risk identification for a CPM project, which technique involves structured brainstorming using a hierarchical decomposition of risk categories?

Accepted Answer

Risk Breakdown Structure (RBS)

Answer

A Risk Breakdown Structure (RBS) organizes identified risks into categories and subcategories using a hierarchical decomposition similar to a WBS.

Question 2

A CPM project manager performs a qualitative risk analysis. Which output is the PRIMARY result of this process?

Accepted Answer

Risk register updates with prioritized risk list

Answer

Qualitative risk analysis outputs prioritized risks in the risk register based on probability and impact assessments.

Question 3

In CPM procurement planning, a 'Time and Materials' contract is MOST appropriate when:

Accepted Answer

The scope of work cannot be precisely defined upfront

Answer

Time and Materials contracts are used when scope is uncertain, compensating the seller for actual time and materials consumed.

Question 4

Which risk response strategy involves shifting the negative impact of a risk to a third party, such as through insurance?

Accepted Answer

Transfer

Answer

Risk transfer moves the financial or operational consequence of a risk to another party, such as purchasing insurance or outsourcing.

Question 5

A CPM project manager calculates the Expected Monetary Value (EMV) of a risk with a 30% probability of occurring and an impact of -$50,000. What is the EMV?

Accepted Answer

-$15,000

Answer

EMV = Probability × Impact = 0.30 × (-$50,000) = -$15,000, representing the weighted average outcome of the risk.

(CPM) Certified Project Manager Practice Test

(CPM) Certified Project Manager Practice Test

CPM CPM Risk Management & Procurement