Program Management Professional Program Risk and Issue Management 3

Question 1

Monte Carlo simulation in program risk management is used to:

Accepted Answer

Model the range of possible outcomes based on probability distributions of identified risks

Answer

Monte Carlo simulation runs thousands of scenario iterations using probability distributions to produce a range of possible cost and schedule outcomes.

Question 2

Which risk response strategy is most appropriate for a risk that cannot be avoided or transferred but whose impact can be lessened?

Accepted Answer

Mitigate

Answer

Mitigation reduces the probability or impact of a threat to an acceptable level when the risk cannot be avoided or transferred.

Question 3

A contingency reserve in program budgeting is intended to:

Accepted Answer

Cover the financial impact of identified risks that may occur

Answer

Contingency reserves are specifically allocated to fund responses to identified risks (known unknowns) that are included in the Risk Register.

Question 4

The difference between a contingency reserve and a management reserve in program budgeting is:

Accepted Answer

Contingency reserves cover identified risks; management reserves cover unidentified, unknown risks

Answer

Contingency reserves address known risks (identified and quantified), while management reserves address unknown risks not identified in advance.

Question 5

An Issue Log in program management is used to:

Accepted Answer

Record, assign, track, and resolve current problems impacting the program

Answer

The Issue Log is a tracking tool for active problems, capturing each issue's description, owner, priority, and resolution status.

Program Management Professional Practice Test

Program Management Professional Practice Test

Program Management Professional Program Risk and Issue Management 3