Project Risk Management Risk Management Planning 2 — Questions and Answers
Question 1: Which document serves as the PRIMARY input when developing the Risk Management Plan?
- Project charter (Correct answer)
- Stakeholder register
- Work breakdown structure
- Issue log
Correct answer: Project charter
The project charter provides high-level project information including risk tolerances, making it the primary input to Plan Risk Management.
Question 2: A risk management plan specifies that all risks with a probability above 0.4 AND an impact above 0.6 require a formal response plan. This threshold definition is known as what?
- Risk appetite
- Risk threshold (Correct answer)
- Risk tolerance
- Risk capacity
Correct answer: Risk threshold
A risk threshold defines the specific measurable level at which a risk requires a formal response, distinguishing it from broader appetite or tolerance concepts.
Question 3: During Plan Risk Management, the team debates how frequently risks should be reviewed. Which section of the risk management plan documents this decision?
- Risk categories
- Timing (Correct answer)
- Roles and responsibilities
- Funding
Correct answer: Timing
The timing section of the risk management plan defines when and how often risk management activities, including risk reviews, will be performed throughout the project.
Question 4: A project sponsor insists the team skip formal risk management planning because the project is 'low complexity.' What is the BEST response from the project manager?
- Agree, since low-complexity projects rarely need formal risk planning
- Document the sponsor's decision and proceed without a risk management plan
- Explain that all projects regardless of size benefit from some level of risk planning (Correct answer)
- Escalate to the PMO immediately
Correct answer: Explain that all projects regardless of size benefit from some level of risk planning
All projects carry some level of uncertainty, and even simple projects benefit from tailored risk management planning to prevent avoidable issues.
Question 5: Which tool or technique used in Plan Risk Management involves gathering experts to define risk categories, thresholds, and methodologies?
- Data representation
- Expert judgment
- Meetings (Correct answer)
- Analytical techniques
Correct answer: Meetings
Meetings (specifically planning meetings) are the primary tool for Plan Risk Management, where the team collaborates to establish the risk management approach.
Question 6: An organization uses a standard risk breakdown structure (RBS) across all projects. How does this benefit the Plan Risk Management process?
- It eliminates the need for risk identification
- It ensures consistency in risk categorization and facilitates historical comparison (Correct answer)
- It replaces the need for expert judgment
- It automatically calculates risk probability and impact
Correct answer: It ensures consistency in risk categorization and facilitates historical comparison
A standard RBS ensures risks are categorized consistently across projects, enabling lessons learned and historical data to be applied more effectively.
Question 7: The risk management plan indicates that a quantitative risk analysis will NOT be performed on this project. What is the most likely reason?
- The project has no risks
- The project lacks sufficient data, time, or budget to justify quantitative analysis (Correct answer)
- Qualitative analysis is always superior to quantitative analysis
- PMI prohibits skipping quantitative analysis on any project
Correct answer: The project lacks sufficient data, time, or budget to justify quantitative analysis
Quantitative risk analysis is optional and is performed only when it adds value; limited data, schedule constraints, or budget may make it impractical.
Project Risk Management Risk Management Planning 2
Which document serves as the PRIMARY input when developing the Risk Management Plan?