PMI-RMP Plan Risk Management 2 — Questions and Answers
Question 1: What is the primary output of the Plan Risk Management process?
- Risk register
- Risk management plan (Correct answer)
- Risk report
- Probability and impact matrix
Correct answer: Risk management plan
The risk management plan is the sole output of the Plan Risk Management process.
Question 2: When during a project should Plan Risk Management be performed?
- Only at project closeout
- Early in the project, completed before mid-project (Correct answer)
- After all risks are identified
- Only when a risk occurs
Correct answer: Early in the project, completed before mid-project
Plan Risk Management should begin when the project is conceived and be completed early in the project.
Question 3: Which document defines the methodology, roles, and timing for risk activities?
- Project charter
- Risk management plan (Correct answer)
- Stakeholder register
- Scope statement
Correct answer: Risk management plan
The risk management plan describes how risk management activities will be structured and performed.
Question 4: What does 'risk appetite' describe in risk management planning?
- The cost of risk responses
- The degree of uncertainty an organization is willing to accept in anticipation of reward (Correct answer)
- The number of risks identified
- The schedule reserve available
Correct answer: The degree of uncertainty an organization is willing to accept in anticipation of reward
Risk appetite is the level of uncertainty an entity is willing to take on in anticipation of a reward.
Question 5: Which technique is commonly used to develop the risk management plan?
- Monte Carlo simulation
- Expert judgment and meetings (Correct answer)
- Decision tree analysis
- Sensitivity analysis
Correct answer: Expert judgment and meetings
Expert judgment, data analysis, and planning meetings are key tools for Plan Risk Management.
Question 6: What does 'risk threshold' represent?
- The total budget reserve
- The level of risk exposure above which action is required (Correct answer)
- The list of all known risks
- The probability of the most likely risk
Correct answer: The level of risk exposure above which action is required
A risk threshold is the level of exposure above which risks are addressed and below which they may be accepted.
Question 7: Which input provides the overall risk attitudes and tolerances of stakeholders?
- Work breakdown structure
- Enterprise environmental factors (Correct answer)
- Activity cost estimates
- Quality metrics
Correct answer: Enterprise environmental factors
Enterprise environmental factors include stakeholder risk appetites and tolerances that shape planning.
PMI-RMP Plan Risk Management 2
What is the primary output of the Plan Risk Management process?