PMP Risk Management 5 — Questions and Answers
Question 1: Which type of risk refers to the inherent uncertainty in all projects before any risk responses are implemented?
- Residual risk
- Secondary risk
- Inherent risk (Correct answer)
- Known unknown
Correct answer: Inherent risk
Inherent risk is the natural level of risk existing before any controls or mitigations are applied to the project.
Question 2: A risk probability and impact matrix is used primarily to:
- Calculate the exact financial cost of each risk
- Prioritize risks for further analysis and response planning (Correct answer)
- Assign risk owners to each identified risk
- Determine the overall project risk score
Correct answer: Prioritize risks for further analysis and response planning
The probability and impact matrix categorizes and prioritizes risks based on their likelihood and potential effect, guiding where to focus resources.
Question 3: A project manager reviews the risk register and finds several risks with low probability and low impact. The MOST appropriate response strategy is to:
- Mitigate all of them immediately
- Accept them and monitor passively (Correct answer)
- Escalate them to the project sponsor
- Transfer them to the customer
Correct answer: Accept them and monitor passively
Low-probability, low-impact risks are typically accepted passively with periodic monitoring rather than consuming resources for active response.
Question 4: Which input is MOST critical when performing Perform Quantitative Risk Analysis?
- Risk register (Correct answer)
- Stakeholder register
- Communications management plan
- Resource breakdown structure
Correct answer: Risk register
The risk register contains the list of identified and prioritized risks that serve as the foundation for quantitative risk analysis.
Question 5: A project manager uses Monte Carlo simulation to analyze project schedule risk. The PRIMARY output of this simulation is:
- A single deterministic project end date
- A probability distribution of possible outcomes (Correct answer)
- A ranked list of risks by impact
- The critical path with risk adjustments
Correct answer: A probability distribution of possible outcomes
Monte Carlo simulation runs thousands of iterations to produce a probability distribution showing the range and likelihood of different project outcomes.
Question 6: A project manager is reviewing risk responses and finds that after mitigation, some risk still remains. This remaining risk is called:
- Secondary risk
- Residual risk (Correct answer)
- Accepted risk
- Known unknown
Correct answer: Residual risk
Residual risk is the amount of risk remaining after risk responses have been implemented, which the team accepts as a known remainder.
Question 7: Which of the following BEST distinguishes a known unknown from an unknown unknown in project risk management?
- Known unknowns are risks identified and quantified; unknown unknowns are identified but not yet quantified
- Known unknowns are identified risks that can be planned for; unknown unknowns are risks that cannot be anticipated (Correct answer)
- Known unknowns are covered by management reserves; unknown unknowns are covered by contingency reserves
- Known unknowns are technical risks; unknown unknowns are business risks
Correct answer: Known unknowns are identified risks that can be planned for; unknown unknowns are risks that cannot be anticipated
Known unknowns are identified uncertainties that can be planned for with contingency reserves, while unknown unknowns are unforeseeable events covered by management reserves.
PMP Risk Management 5
Which type of risk refers to the inherent uncertainty in all projects before any risk responses are implemented?