PMBOK FREE PMBOK Managing Project Risks Questions and Answers 3 — Questions and Answers
Question 1: A project manager is using an Expected Monetary Value (EMV) analysis for a decision. Risk A has a 30% probability and a -$100,000 impact. What is the EMV of Risk A?
- -$100,000
- -$30,000 (Correct answer)
- -$70,000
- -$130,000
Correct answer: -$30,000
EMV is calculated by multiplying probability (0.30) by impact (-$100,000), resulting in -$30,000.
Question 2: Which document defines how risk management activities will be structured and performed throughout the project?
- Risk register
- Risk management plan (Correct answer)
- Project charter
- Stakeholder register
Correct answer: Risk management plan
The risk management plan outlines the methodology, roles, budgeting, timing, and categories for risk management activities.
Question 3: During risk identification, the team uses a technique that examines the project from the perspective of strengths, weaknesses, opportunities, and threats. What is this technique called?
- Delphi technique
- Root cause analysis
- SWOT analysis (Correct answer)
- Checklist analysis
Correct answer: SWOT analysis
SWOT analysis broadens risk identification by examining internal strengths and weaknesses alongside external opportunities and threats.
Question 4: A project manager decides to reduce the probability of a risk event by adding extra testing phases. Which risk response strategy is being applied?
- Avoidance
- Transference
- Mitigation (Correct answer)
- Acceptance
Correct answer: Mitigation
Mitigation reduces the probability or impact of a risk to an acceptable threshold, such as adding testing to catch defects early.
Question 5: What is the difference between a risk owner and a risk action owner?
- There is no difference; they are the same role
- The risk owner monitors the risk while the risk action owner executes the response (Correct answer)
- The risk action owner identifies risks while the risk owner closes them
- The risk owner only handles positive risks
Correct answer: The risk owner monitors the risk while the risk action owner executes the response
The risk owner is accountable for monitoring the risk, while the risk action owner is responsible for carrying out the specific response actions.
Question 6: During the Monitor Risks process, the project manager reviews risks that did not occur and are no longer relevant. What should be done with these risks?
- Leave them in the risk register unchanged
- Close them in the risk register and release any contingency reserves (Correct answer)
- Move them to the lessons learned register only
- Reassign them to a different project
Correct answer: Close them in the risk register and release any contingency reserves
Risks that are no longer relevant should be formally closed and associated contingency reserves released back to the project.
PMBOK FREE PMBOK Managing Project Risks Questions and Answers 3
A project manager is using an Expected Monetary Value (EMV) analysis for a decision.
Risk A has a 30% probability and a -$100,000 impact.
What is the EMV of Risk A?