PMP Risk Management 3

Question 1

Which of the following BEST describes a risk appetite?

Accepted Answer

The level of risk exposure an organization is willing to accept

Answer

Risk appetite refers to the degree of uncertainty an organization is willing to accept in pursuit of its objectives.

Question 2

A tornado diagram is used in which type of risk analysis?

Accepted Answer

Sensitivity analysis

Answer

Tornado diagrams are a key output of sensitivity analysis, displaying which risks have the greatest potential impact on project objectives.

Question 3

What is the purpose of a fallback plan in risk management?

Accepted Answer

To replace the contingency plan if it proves ineffective

Answer

A fallback plan is implemented if the primary contingency response fails, serving as a secondary layer of defense.

Question 4

A project manager is enhancing conditions that make a positive risk more likely to occur. This is an example of:

Accepted Answer

Enhancing

Answer

Enhancing is a positive risk (opportunity) response strategy that increases the probability or impact of an opportunity.

Question 5

Which process in risk management involves determining which risks may affect the project and documenting their characteristics?

Accepted Answer

Identify Risks

Answer

The Identify Risks process is focused on finding potential risk events and documenting them in the risk register.

PMP - Project Management Professional Practice Test