Project Management Risk Response Planning 3 — Questions and Answers
Question 1: A project manager wants to reduce the probability of a supplier delay risk by adding a second approved supplier. This strategy is BEST described as:
- Avoid
- Mitigate (Correct answer)
- Transfer
- Share
Correct answer: Mitigate
Adding a second supplier reduces the probability of the delay risk occurring, which is the definition of mitigation.
Question 2: A risk has been identified that exceeds the project manager's authority level to address. The BEST response is to:
- Accept the risk passively
- Mitigate the risk immediately
- Escalate the risk to the sponsor or senior management (Correct answer)
- Transfer the risk to a vendor
Correct answer: Escalate the risk to the sponsor or senior management
Escalation is the appropriate strategy when a risk falls outside the project's authority or scope to address.
Question 3: Which of the following BEST describes a contingency plan?
- A proactive action taken before a risk event occurs
- A pre-planned response that activates when a defined trigger event happens (Correct answer)
- A reserve set aside in the project budget
- A list of all identified risks and their owners
Correct answer: A pre-planned response that activates when a defined trigger event happens
A contingency plan is a pre-defined response activated when a specific trigger (risk event) occurs.
Question 4: The 'Exploit' strategy for opportunities aims to:
- Reduce the probability of a positive risk
- Ensure the opportunity definitely occurs (Correct answer)
- Transfer the opportunity to a third party
- Accept the opportunity if it occurs naturally
Correct answer: Ensure the opportunity definitely occurs
Exploiting an opportunity means taking actions to ensure the positive event definitely happens, maximizing its probability to 100%.
Question 5: A project manager updates the project documents and risk register after completing Plan Risk Responses. Which document captures agreed-upon response strategies and risk owners?
- Project charter
- Risk report (Correct answer)
- Stakeholder register
- Quality management plan
Correct answer: Risk report
The risk report (introduced in PMBOK 6) consolidates overall risk exposure and individual risk information including responses and ownership.
Question 6: A risk response that reduces the financial impact of a risk by negotiating a fixed-price contract with a vendor is BEST categorized as:
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
A fixed-price contract shifts the financial risk of cost overruns to the vendor, making it a transfer strategy.
Question 7: After all planned responses are implemented, the remaining risk exposure is known as:
- Secondary risk
- Residual risk (Correct answer)
- Inherent risk
- Trigger risk
Correct answer: Residual risk
Residual risk is the remaining risk that persists after responses have been implemented and accepted by stakeholders.
Project Management Risk Response Planning 3
A project manager wants to reduce the probability of a supplier delay risk by adding a second approved supplier.
This strategy is BEST described as: