PMT 3600V EXAM 2 LATEST EXAM QUESTIONS AND SOLUTIONS -
VERIFIED ANSWERS 2026/2027
Q: What is a risk? ANSWER An uncertain event or condition that, if it
occurs, has a positive or negative effect on project objectives.
Q: What is a threat? ANSWER A negative risk.
Q: What is an opportunity? ANSWER A positive risk.
Q: What document captures all identified risks? ANSWER The Risk
Register.
Q: What is risk appetite? ANSWER The degree of uncertainty an
organization is willing to accept.
Q: What is risk tolerance? ANSWER The specific amount of variation
around a target that is acceptable.
Q: What is risk threshold? ANSWER The point at which a risk becomes
unacceptable, triggering a response.
Q: What is the Identify Risks process? ANSWER The process of
determining individual risks along with their characteristics.
Q: What is a risk trigger? ANSWER An early warning sign that a risk is
about to occur.
Q: What tool uses a brainstorming structure where ideas are generated
without criticism? ANSWER Nominal Group Technique.
Q: What diagram shows the causes of a specific risk? ANSWER An
Ishikawa (or fishbone) diagram.
Q: What is the Delphi technique? ANSWER A anonymous expert
consensus method to gather risk information.
Q: What is the SWOT analysis used for in risk? ANSWER To assess
Strengths, Weaknesses, Opportunities, and Threats.
Q: What is the output of the Perform Qualitative Risk Analysis process?
ANSWER Risk prioritization (updates to the risk register).
,Q: What tool ranks risks based on their probability and impact? ANSWER
A Probability and Impact Matrix.
Q: What is a risk rating? ANSWER A score assigned to a risk based on its
probability and impact.
Q: What is the purpose of Perform Quantitative Risk Analysis? ANSWER
To numerically analyze the effect of identified risks on overall project
objectives.
Q: What is Expected Monetary Value (EMV)? ANSWER Probability
multiplied by Impact (used for decision trees).
Q: If a risk has a 10% chance of costing $10,000, what is its EMV?
ANSWER $1,000.
Q: What is a decision tree used for? ANSWER To make decisions based on
the EMV of different paths.
Q: What is Monte Carlo simulation? ANSWER A computerized
mathematical technique that uses probability distributions to model
project risk.
Q: What does a Monte Carlo simulation output for schedule? ANSWER A
probability distribution of completion dates.
Q: What does a Monte Carlo simulation output for cost? ANSWER A
probability distribution of total project costs.
Q: What is the purpose of the Plan Risk Responses process? ANSWER To
develop options and actions to enhance opportunities and reduce threats.
Q: What are the five strategies for negative risks (threats)? ANSWER
Escalate, Avoid, Transfer, Mitigate, Accept.
Q: What does the "Avoid" risk strategy mean? ANSWER Changing the
project plan to eliminate the threat entirely.
Q: What does the "Transfer" risk strategy mean? ANSWER Shifting the
impact of a risk to a third party (e.g., insurance, warranties).
Q: What does the "Mitigate" risk strategy mean? ANSWER Reducing the
probability and/or impact of a risk.
Q: What does "Accept" risk mean? ANSWER Acknowledging the risk but
not taking proactive action unless it occurs.
, Q: What is a contingency reserve? ANSWER Time or money set aside to
address identified risks.
Q: What is a management reserve? ANSWER Time or money set aside for
unknown risks (unknown-unknowns).
Q: What are the four strategies for positive risks (opportunities)?
ANSWER Escalate, Exploit, Share, Enhance, Accept.
Q: What does the "Exploit" strategy mean? ANSWER Ensuring the
opportunity is definitely realized.
Q: What does the "Share" strategy mean? ANSWER Allocating ownership
of the opportunity to a third party best able to capture it.
Q: What does the "Enhance" strategy mean? ANSWER Increasing the
probability and/or impact of an opportunity.
Q: What is a secondary risk? ANSWER A risk that arises as a direct result
of implementing a risk response.
Q: What is a residual risk? ANSWER A risk that remains after risk
responses have been implemented.
Q: What is the purpose of the Implement Risk Responses process?
ANSWER To execute the planned risk responses.
Q: What is the purpose of Monitor Risks? ANSWER To track identified
risks, monitor residual risks, identify new risks, and evaluate risk
response effectiveness.
Q: What is a risk audit? ANSWER An independent assessment of the
effectiveness of risk management processes.
Q: What is a risk reassessment? ANSWER Regularly reviewing risks to see
if their probability/impact has changed.
Q: What is technical performance analysis? ANSWER Comparing technical
accomplishments during execution against the schedule.
Q: What is the difference between an issue and a risk? ANSWER A risk is
uncertain; an issue has already occurred.
Q: Where are issues documented? ANSWER The Issue Log.
Q: What is the overall risk of a project also called? ANSWER Composite
risk.
VERIFIED ANSWERS 2026/2027
Q: What is a risk? ANSWER An uncertain event or condition that, if it
occurs, has a positive or negative effect on project objectives.
Q: What is a threat? ANSWER A negative risk.
Q: What is an opportunity? ANSWER A positive risk.
Q: What document captures all identified risks? ANSWER The Risk
Register.
Q: What is risk appetite? ANSWER The degree of uncertainty an
organization is willing to accept.
Q: What is risk tolerance? ANSWER The specific amount of variation
around a target that is acceptable.
Q: What is risk threshold? ANSWER The point at which a risk becomes
unacceptable, triggering a response.
Q: What is the Identify Risks process? ANSWER The process of
determining individual risks along with their characteristics.
Q: What is a risk trigger? ANSWER An early warning sign that a risk is
about to occur.
Q: What tool uses a brainstorming structure where ideas are generated
without criticism? ANSWER Nominal Group Technique.
Q: What diagram shows the causes of a specific risk? ANSWER An
Ishikawa (or fishbone) diagram.
Q: What is the Delphi technique? ANSWER A anonymous expert
consensus method to gather risk information.
Q: What is the SWOT analysis used for in risk? ANSWER To assess
Strengths, Weaknesses, Opportunities, and Threats.
Q: What is the output of the Perform Qualitative Risk Analysis process?
ANSWER Risk prioritization (updates to the risk register).
,Q: What tool ranks risks based on their probability and impact? ANSWER
A Probability and Impact Matrix.
Q: What is a risk rating? ANSWER A score assigned to a risk based on its
probability and impact.
Q: What is the purpose of Perform Quantitative Risk Analysis? ANSWER
To numerically analyze the effect of identified risks on overall project
objectives.
Q: What is Expected Monetary Value (EMV)? ANSWER Probability
multiplied by Impact (used for decision trees).
Q: If a risk has a 10% chance of costing $10,000, what is its EMV?
ANSWER $1,000.
Q: What is a decision tree used for? ANSWER To make decisions based on
the EMV of different paths.
Q: What is Monte Carlo simulation? ANSWER A computerized
mathematical technique that uses probability distributions to model
project risk.
Q: What does a Monte Carlo simulation output for schedule? ANSWER A
probability distribution of completion dates.
Q: What does a Monte Carlo simulation output for cost? ANSWER A
probability distribution of total project costs.
Q: What is the purpose of the Plan Risk Responses process? ANSWER To
develop options and actions to enhance opportunities and reduce threats.
Q: What are the five strategies for negative risks (threats)? ANSWER
Escalate, Avoid, Transfer, Mitigate, Accept.
Q: What does the "Avoid" risk strategy mean? ANSWER Changing the
project plan to eliminate the threat entirely.
Q: What does the "Transfer" risk strategy mean? ANSWER Shifting the
impact of a risk to a third party (e.g., insurance, warranties).
Q: What does the "Mitigate" risk strategy mean? ANSWER Reducing the
probability and/or impact of a risk.
Q: What does "Accept" risk mean? ANSWER Acknowledging the risk but
not taking proactive action unless it occurs.
, Q: What is a contingency reserve? ANSWER Time or money set aside to
address identified risks.
Q: What is a management reserve? ANSWER Time or money set aside for
unknown risks (unknown-unknowns).
Q: What are the four strategies for positive risks (opportunities)?
ANSWER Escalate, Exploit, Share, Enhance, Accept.
Q: What does the "Exploit" strategy mean? ANSWER Ensuring the
opportunity is definitely realized.
Q: What does the "Share" strategy mean? ANSWER Allocating ownership
of the opportunity to a third party best able to capture it.
Q: What does the "Enhance" strategy mean? ANSWER Increasing the
probability and/or impact of an opportunity.
Q: What is a secondary risk? ANSWER A risk that arises as a direct result
of implementing a risk response.
Q: What is a residual risk? ANSWER A risk that remains after risk
responses have been implemented.
Q: What is the purpose of the Implement Risk Responses process?
ANSWER To execute the planned risk responses.
Q: What is the purpose of Monitor Risks? ANSWER To track identified
risks, monitor residual risks, identify new risks, and evaluate risk
response effectiveness.
Q: What is a risk audit? ANSWER An independent assessment of the
effectiveness of risk management processes.
Q: What is a risk reassessment? ANSWER Regularly reviewing risks to see
if their probability/impact has changed.
Q: What is technical performance analysis? ANSWER Comparing technical
accomplishments during execution against the schedule.
Q: What is the difference between an issue and a risk? ANSWER A risk is
uncertain; an issue has already occurred.
Q: Where are issues documented? ANSWER The Issue Log.
Q: What is the overall risk of a project also called? ANSWER Composite
risk.
