Program Management Professional Program Risk and Issue Management 1 — Questions and Answers
Question 1: What distinguishes a program-level risk from a project-level risk in PgMP?
- Program risks are always financial while project risks are always technical
- Program risks affect multiple components, strategic objectives, or benefits realization across the program (Correct answer)
- Project risks are always more severe than program risks
- There is no practical difference between them
Correct answer: Program risks affect multiple components, strategic objectives, or benefits realization across the program
Program-level risks have cross-cutting impacts affecting multiple component projects, strategic objectives, or the overall benefit delivery of the program.
Question 2: In PgMP, risk escalation from a component project to the program level should occur when:
- Any risk is identified at the project level
- The risk exceeds the project's defined thresholds or has cross-component implications (Correct answer)
- The project manager decides to escalate all risks
- Only during program phase reviews
Correct answer: The risk exceeds the project's defined thresholds or has cross-component implications
Risk escalation to the program level is triggered when a risk exceeds predefined thresholds or affects multiple components, requiring program-level response.
Question 3: The Program Risk Register should capture which information for each identified risk?
- Only the risk description and probability
- Risk description, probability, impact, response strategy, owner, and current status (Correct answer)
- Financial impact only
- The name of the person who identified the risk
Correct answer: Risk description, probability, impact, response strategy, owner, and current status
A comprehensive Risk Register records risk details, probability, impact, planned responses, ownership, and current status to enable effective monitoring and control.
Question 4: Which risk response strategy involves shifting the negative impact of a risk to a third party?
- Accept
- Avoid
- Transfer (Correct answer)
- Mitigate
Correct answer: Transfer
Transfer shifts the financial or operational impact of a risk to a third party, such as through insurance or contractual agreements.
Question 5: A risk threshold in program management defines:
- The maximum number of risks allowed in the Risk Register
- The level of risk exposure above which action is required (Correct answer)
- The minimum risk severity that must be reported
- The budget reserved exclusively for risk responses
Correct answer: The level of risk exposure above which action is required
Risk thresholds define the boundary above which risks require active management responses and potential escalation.
Question 6: What is a 'risk appetite' in the context of program risk management?
- The number of risks a program team can document
- The level of risk the organization is willing to accept in pursuit of its strategic objectives (Correct answer)
- The minimum risk level required to proceed with a program
- The financial reserve allocated to manage risks
Correct answer: The level of risk the organization is willing to accept in pursuit of its strategic objectives
Risk appetite reflects the organization's overall willingness to accept risk in pursuit of value, shaping how the program manager sets thresholds and prioritizes responses.
Program Management Professional Program Risk and Issue Management 1
What distinguishes a program-level risk from a project-level risk in PgMP?