PMI-RMP - PMI Risk Management Professional Threat Response Strategies Questions and Answers 1 — Questions and Answers
Question 1: A construction project faces a high probability of significant delays due to forecasted severe weather during a critical foundation-pouring phase. To counter this, the project manager revises the project schedule to complete the foundation work two months earlier, during a season with historically stable weather. This action is a clear example of which threat response strategy?
- Mitigate
- Transfer
- Avoid (Correct answer)
- Accept
Correct answer: Avoid
The 'Avoid' strategy involves changing the project plan to eliminate the threat or protect the project from its impact. By altering the schedule to perform the work during a different season, the project manager has eliminated the threat posed by the forecasted severe weather.
Question 2: A project manager identifies a risk that is beyond the project's scope and their authority to manage effectively. The risk, if it occurs, would impact multiple departments across the entire organization. The project manager documents the risk and formally communicates it to the program manager and the steering committee for resolution. Which threat response strategy is being implemented?
- Transfer
- Mitigate
- Accept
- Escalate (Correct answer)
Correct answer: Escalate
The 'Escalate' strategy is appropriate when a threat is outside the project's boundaries or the project manager's authority. The risk is moved to a higher level within the organization (e.g., program management, portfolio management, or senior leadership) that has the capability and authority to manage it.
Question 3: A software development project requires a specialized data encryption module. Rather than developing the module in-house, which carries significant technical and security risks, the project manager decides to procure a certified, third-party component and sign a service-level agreement that includes warranties and financial penalties for failure. Which strategy does this action represent?
- Transfer (Correct answer)
- Avoid
- Mitigate
- Accept
Correct answer: Transfer
The 'Transfer' strategy shifts the ownership and/or negative impact of a threat to a third party. By purchasing a component with warranties and a service-level agreement, the financial and performance-related consequences of the risk are shifted to the vendor.
Question 4: A project team identifies a risk that a new manufacturing process might have a higher-than-expected defect rate. To address this, the team decides to conduct a small-scale pilot run of the process, implement additional quality control checkpoints, and provide extra training to the machine operators. These actions BEST exemplify which threat response strategy?
- Avoid
- Mitigate (Correct answer)
- Transfer
- Escalate
Correct answer: Mitigate
The 'Mitigate' strategy aims to reduce the probability of a risk's occurrence and/or its impact on project objectives to an acceptable threshold. The pilot run, added quality checks, and training are all proactive steps designed to decrease the likelihood and severity of the high defect rate.
Question 5: During the planning of an international conference, the project team identifies the risk of low attendance from a specific region due to a minor, concurrent local holiday. The potential impact on revenue is small. The team documents the risk but decides not to spend resources on a targeted marketing campaign for that region. Instead, they create a small contingency fund to cover a potential revenue shortfall. This response is an example of:
- Passive Acceptance
- Mitigation
- Active Acceptance (Correct answer)
- Transfer
Correct answer: Active Acceptance
'Active Acceptance' involves acknowledging a risk and developing a contingency plan or allocating time, money, or resource reserves to be used if the risk occurs. By creating a contingency fund, the team has a deliberate plan, which distinguishes this from 'Passive Acceptance' where no action would be taken.
Question 6: Which of the following statements provides the most accurate distinction between the 'Mitigate' and 'Avoid' threat response strategies?
- Mitigation involves third parties through contracts, while Avoidance focuses on changing the project schedule.
- Avoidance aims to eliminate the cause of a threat entirely, while Mitigation seeks to reduce its probability or impact. (Correct answer)
- Mitigation is a passive strategy that uses contingency reserves, while Avoidance is an active strategy.
- Avoidance is only used for risks with high financial impact, while Mitigation is used for schedule risks.
Correct answer: Avoidance aims to eliminate the cause of a threat entirely, while Mitigation seeks to reduce its probability or impact.
The core difference lies in their objective. The 'Avoid' strategy seeks to eliminate the risk altogether, often by changing the project plan, scope, or objectives so the threat can no longer have an impact. In contrast, 'Mitigate' accepts that the risk will still exist but takes proactive steps to reduce its likelihood of occurring or the severity of its impact if it does.
PMI-RMP - PMI Risk Management Professional Threat Response Strategies Questions and Answers 1
A construction project faces a high probability of significant delays due to forecasted severe weather during a critical foundation-pouring phase.
To counter this, the project manager revises the project schedule to complete the foundation work two months earlier, during a season with historically stable weather.
This action is a clear example of which threat response strategy?