PMP Risk Management 4 — Questions and Answers
Question 1: A project manager assigns a risk owner for each risk in the risk register. What is the PRIMARY responsibility of a risk owner?
- Funding the risk response
- Monitoring the risk and implementing the agreed response (Correct answer)
- Escalating all risks to senior management
- Removing the risk from the project
Correct answer: Monitoring the risk and implementing the agreed response
A risk owner is responsible for monitoring the risk and executing the planned response strategy if the risk materializes.
Question 2: During project execution, the project manager observes that risk triggers are appearing for a high-priority risk. What should the project manager do NEXT?
- Update the risk register with new probability scores
- Implement the planned risk response (Correct answer)
- Conduct a new qualitative risk analysis
- Notify the sponsor immediately
Correct answer: Implement the planned risk response
When a risk trigger occurs, the pre-planned risk response should be executed as documented in the risk register.
Question 3: Which of the following is an example of risk sharing as a response to an opportunity?
- Partnering with another company to jointly develop a new technology (Correct answer)
- Investing in training to ensure the team can exploit a technology advantage
- Accepting the benefit if the opportunity occurs naturally
- Eliminating conditions that prevent the opportunity from occurring
Correct answer: Partnering with another company to jointly develop a new technology
Sharing an opportunity involves partnering with a third party who is better positioned to capture the benefit of the opportunity.
Question 4: A project has a 70% chance of finishing on time, which would earn a $100,000 bonus, and a 30% chance of being late, incurring a $50,000 penalty. What is the overall EMV?
- $55,000 (Correct answer)
- $70,000
- $50,000
- $85,000
Correct answer: $55,000
EMV = (0.70 × $100,000) + (0.30 × -$50,000) = $70,000 - $15,000 = $55,000.
Question 5: What is a secondary risk?
- A risk that has low probability and low impact
- A risk that arises as a direct result of implementing a risk response (Correct answer)
- A risk identified after project execution begins
- A risk that cannot be mitigated or avoided
Correct answer: A risk that arises as a direct result of implementing a risk response
Secondary risks are new risks that are created as a byproduct of implementing a risk response strategy.
Question 6: In which process group does the Monitor Risks process occur?
- Planning
- Executing
- Monitoring and Controlling (Correct answer)
- Closing
Correct answer: Monitoring and Controlling
Monitor Risks is part of the Monitoring and Controlling process group, where risk responses are tracked and new risks are identified.
Question 7: A project manager decides to eliminate a risky activity from the project scope altogether. This is an example of which risk response strategy?
- Mitigate
- Transfer
- Avoid (Correct answer)
- Accept
Correct answer: Avoid
Risk avoidance involves changing the project plan to eliminate the threat or protect project objectives from its impact.
PMP Risk Management 4
A project manager assigns a risk owner for each risk in the risk register.
What is the PRIMARY responsibility of a risk owner?