PMP Rita Exam Prep Questions -11-Answered 100% Correct

B. Document them and revisit during project monitoring and controlling C. Document them and set them aside because they are already covered in your contingency plans D. Document them and give them to the customer - ANSWER-Answer B Risks change throughout the project. You need to review risks at intervals during the project to ensure that non-critical risks have not become critical. 9. All of the following are ALWAYS inputs to the risk management process EXCEPT: A. Historical information B. Lessons learned C. Work breakdown structure D. Project status reports - ANSWER-Answer D Project status reports (choice D) can be an input to risk management. However, when completing risk management for the first time, you would not have project status reports. Therefore, project status reports are not always an input to risk management. 10. Risk tolerances are determined in order to help: A. The team rank the project risks B. The project manager estimate the project C. The team schedule the project D. Management know how other managers will act on the project - ANSWER-Answer A If you know the tolerances of the stakeholders, you can determine how they might react to different situations and risk events. You use this information to help assign levels of risk on each work package or activity. 11. All of the following are common results of risk management EXCEPT: A. Contract terms and conditions are created B. The project management plan is changed C. The communications management plan is changed D. The project charter is changed - ANSWER-Answer D A change to the project charter is not always necessary. In fact, a change to the charter is a fundamental change to the project and may require a major adjustment to all aspects of the project management plan. There are many reasons the other choices could happen as a result of risk. Since a contract can only be created after risks are known (a contract is a tool to transfer risks), it is common sense that choice A cannot be the exception. The project management plan (choice B) could change to include a modified WBS and new work packages related to mitigating risk. The communications management plan (choice C) could change as a way to address a risk. Choice D is the best answer. 12. Purchasing insurance is BEST considered an example of risk: A. Mitigation B. Transfer C. Acceptance D. Avoidance - ANSWER-Answer B To mitigate risk (choice A), we either reduce the probability of the event happening or reduce its impact. Many people think of using insurance as a way of decreasing impact. However, mitigating risk is taking action before a risk event occurs. Buying insurance is not such an action. Acceptance of risk (choice C) does not involve such action as purchasing insurance. Avoidance of risk (choice D) means we change the way we will execute the project so the risk is no longer a factor. Transference is passing the risk off to another party. 13. You are finding it difficult to evaluate the exact cost impact of risks. You should evaluate on a(n): A. Quantitative basis B. Numerical basis C. Qualitative basis D. Econometric basis - ANSWER-Answer C If you cannot determine an exact cost impact to the event, use qualitative estimates such as Low, Medium, High, etc. 14. Outputs of the Plan Risk Responses process include: A. Residual risks, fallback plans, and contingency reserves B. Risk triggers, contracts, and a risk list C. Secondary risks, process updates, and risk owners D. Contingency plans, project management plan updates, and change requests - ANSWER-Answer A