Risk Management Professional (PMI-
RMP) Examination Practice Exam 2026
| 100 Questions & Answers with
Detailed Rationales | Complete PMI-
RMP Exam Prep & Study Guide
1. What is the primary objective of risk management in an organization?
A. Eliminate every possible risk
B. Identify, assess, and manage risks to support organizational objectives
C. Transfer all risks to third parties
D. Avoid making decisions involving uncertainty
Answer: Identify, assess, and manage risks to support organizational objectives
Rationale: Effective risk management focuses on understanding uncertainty and
managing it in a way that supports the achievement of organizational
objectives.
2. Which statement best defines risk?
A. A guaranteed loss
B. A financial transaction
C. An uncertain event or condition that may affect objectives
D. A problem that has already occurred
,Answer: An uncertain event or condition that may affect objectives
Rationale: Risk involves uncertainty and can have either negative or positive
effects on objectives, depending on the risk framework used.
3. Which activity should generally occur first in the risk management process?
A. Risk response
B. Risk monitoring
C. Risk identification
D. Risk financing
Answer: Risk identification
Rationale: Organizations must first recognize and describe potential risks before
they can analyze, evaluate, or respond to them.
4. What is inherent risk?
A. Risk remaining after controls
B. Risk that has been insured
C. Risk existing before controls or mitigation are applied
D. Risk that cannot be measured
Answer: Risk existing before controls or mitigation are applied
Rationale: Inherent risk represents the level of risk before considering the effects
of existing controls or risk responses.
5. What is residual risk?
A. Risk before controls
B. Risk that has been eliminated
C. Risk remaining after controls and risk responses are applied
D. Risk transferred to an insurer
Answer: Risk remaining after controls and risk responses are applied
,Rationale: Residual risk is the exposure that remains after management has
implemented controls or other risk treatments.
6. Which of the following is an example of a risk appetite statement?
A. We will never experience any operational risks.
B. We accept moderate operational risk when it supports strategic growth.
C. All risks must be eliminated immediately.
D. Every employee must avoid uncertainty.
Answer: We accept moderate operational risk when it supports strategic
growth.
Rationale: Risk appetite describes the amount and type of risk an organization is
willing to pursue or retain in pursuit of its objectives.
7. What does risk tolerance describe?
A. The complete elimination of risk
B. The acceptable level of variation around objectives or risk exposure
C. The probability that a risk will occur
D. The cost of insurance
Answer: The acceptable level of variation around objectives or risk exposure
Rationale: Risk tolerance establishes boundaries within which risk exposure or
performance variation is considered acceptable.
8. Which risk response involves completely discontinuing an activity that
creates unacceptable exposure?
A. Transfer
B. Mitigation
C. Acceptance
D. Avoidance
Answer: Avoidance
, Rationale: Risk avoidance changes plans or stops the activity so that the
particular risk exposure is no longer present.
9. Which response involves reducing the likelihood or impact of a risk?
A. Acceptance
B. Mitigation
C. Avoidance
D. Exploitation
Answer: Mitigation
Rationale: Mitigation reduces either the probability of occurrence, the
consequences, or both.
10.Which risk response involves shifting financial or operational consequences
to another party?
A. Avoidance
B. Acceptance
C. Transfer
D. Escalation
Answer: Transfer
Rationale: Risk transfer moves some or all of the consequences of a risk to
another party through mechanisms such as insurance or contractual
arrangements.
11.What is risk acceptance?
A. Ignoring a risk
B. Eliminating the risk
C. Acknowledging the risk and deciding to retain it within established limits
D. Transferring the risk automatically
Answer: Acknowledging the risk and deciding to retain it within established
limits
RMP) Examination Practice Exam 2026
| 100 Questions & Answers with
Detailed Rationales | Complete PMI-
RMP Exam Prep & Study Guide
1. What is the primary objective of risk management in an organization?
A. Eliminate every possible risk
B. Identify, assess, and manage risks to support organizational objectives
C. Transfer all risks to third parties
D. Avoid making decisions involving uncertainty
Answer: Identify, assess, and manage risks to support organizational objectives
Rationale: Effective risk management focuses on understanding uncertainty and
managing it in a way that supports the achievement of organizational
objectives.
2. Which statement best defines risk?
A. A guaranteed loss
B. A financial transaction
C. An uncertain event or condition that may affect objectives
D. A problem that has already occurred
,Answer: An uncertain event or condition that may affect objectives
Rationale: Risk involves uncertainty and can have either negative or positive
effects on objectives, depending on the risk framework used.
3. Which activity should generally occur first in the risk management process?
A. Risk response
B. Risk monitoring
C. Risk identification
D. Risk financing
Answer: Risk identification
Rationale: Organizations must first recognize and describe potential risks before
they can analyze, evaluate, or respond to them.
4. What is inherent risk?
A. Risk remaining after controls
B. Risk that has been insured
C. Risk existing before controls or mitigation are applied
D. Risk that cannot be measured
Answer: Risk existing before controls or mitigation are applied
Rationale: Inherent risk represents the level of risk before considering the effects
of existing controls or risk responses.
5. What is residual risk?
A. Risk before controls
B. Risk that has been eliminated
C. Risk remaining after controls and risk responses are applied
D. Risk transferred to an insurer
Answer: Risk remaining after controls and risk responses are applied
,Rationale: Residual risk is the exposure that remains after management has
implemented controls or other risk treatments.
6. Which of the following is an example of a risk appetite statement?
A. We will never experience any operational risks.
B. We accept moderate operational risk when it supports strategic growth.
C. All risks must be eliminated immediately.
D. Every employee must avoid uncertainty.
Answer: We accept moderate operational risk when it supports strategic
growth.
Rationale: Risk appetite describes the amount and type of risk an organization is
willing to pursue or retain in pursuit of its objectives.
7. What does risk tolerance describe?
A. The complete elimination of risk
B. The acceptable level of variation around objectives or risk exposure
C. The probability that a risk will occur
D. The cost of insurance
Answer: The acceptable level of variation around objectives or risk exposure
Rationale: Risk tolerance establishes boundaries within which risk exposure or
performance variation is considered acceptable.
8. Which risk response involves completely discontinuing an activity that
creates unacceptable exposure?
A. Transfer
B. Mitigation
C. Acceptance
D. Avoidance
Answer: Avoidance
, Rationale: Risk avoidance changes plans or stops the activity so that the
particular risk exposure is no longer present.
9. Which response involves reducing the likelihood or impact of a risk?
A. Acceptance
B. Mitigation
C. Avoidance
D. Exploitation
Answer: Mitigation
Rationale: Mitigation reduces either the probability of occurrence, the
consequences, or both.
10.Which risk response involves shifting financial or operational consequences
to another party?
A. Avoidance
B. Acceptance
C. Transfer
D. Escalation
Answer: Transfer
Rationale: Risk transfer moves some or all of the consequences of a risk to
another party through mechanisms such as insurance or contractual
arrangements.
11.What is risk acceptance?
A. Ignoring a risk
B. Eliminating the risk
C. Acknowledging the risk and deciding to retain it within established limits
D. Transferring the risk automatically
Answer: Acknowledging the risk and deciding to retain it within established
limits
