PMBOK Risk Management Processes 2 — Questions and Answers
Question 1: Which PMBOK process establishes how risk management activities will be structured and performed throughout the project?
- Identify Risks
- Plan Risk Management (Correct answer)
- Perform Qualitative Risk Analysis
- Monitor Risks
Correct answer: Plan Risk Management
Plan Risk Management defines the approach, tools, and data sources for risk management activities on a project.
Question 2: A project team is evaluating risks by assessing the likelihood and impact of each identified risk without numerical data. Which process are they performing?
- Perform Quantitative Risk Analysis
- Plan Risk Responses
- Perform Qualitative Risk Analysis (Correct answer)
- Identify Risks
Correct answer: Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis prioritizes risks using subjective assessments of probability and impact.
Question 3: What is the PRIMARY output of the Identify Risks process?
- Risk Register (Correct answer)
- Risk Report
- Risk Management Plan
- Risk Response Plan
Correct answer: Risk Register
The Risk Register is the primary output of Identify Risks, documenting identified risks and their characteristics.
Question 4: A risk response strategy where the project team decides to eliminate a threat by changing the project plan is called:
- Mitigate
- Transfer
- Avoid (Correct answer)
- Escalate
Correct answer: Avoid
Avoid eliminates the threat by changing the project plan to remove the risk or protect project objectives from its impact.
Question 5: During which process does the project team use Monte Carlo simulation to model combined risk effects?
- Perform Qualitative Risk Analysis
- Plan Risk Responses
- Perform Quantitative Risk Analysis (Correct answer)
- Monitor Risks
Correct answer: Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis uses numerical techniques like Monte Carlo simulation to quantify overall project risk.
Question 6: Which risk response strategy for threats involves shifting the financial impact of a risk to a third party?
- Accept
- Mitigate
- Escalate
- Transfer (Correct answer)
Correct answer: Transfer
Transfer shifts ownership of a threat and its impact to a third party, such as through insurance or outsourcing.
Question 7: Residual risks are best described as risks that:
- Have been identified but not yet analyzed
- Remain after risk responses have been implemented (Correct answer)
- Are discovered during project execution
- Have a high probability and low impact
Correct answer: Remain after risk responses have been implemented
Residual risks are those that are expected to remain after risk responses are executed, including intentionally accepted risks.
PMBOK Risk Management Processes 2
Which PMBOK process establishes how risk management activities will be structured and performed throughout the project?