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Question: 81. During a risk review, the project team identifies a newly emerging threat that was not included in the original risk register. What should the risk manager do first?

1. Close an existing risk to make room for the new one
   2. Assess and document the newly identified risk
   3. Immediately transfer the risk to a supplier
   4. Wait until the risk becomes an issue

Correct Answer: 2. Assess and document the newly identified risk

Explanation:

Newly emerging risks should be captured and assessed so that the project team can understand their potential effect on objectives. The risk manager should document the risk and gather enough information to evaluate its probability, impact, causes, and potential responses. Waiting until the risk becomes an issue would eliminate the opportunity for proactive management. Transferring the risk is a response decision that should occur only after the risk has been properly assessed and an appropriate strategy selected. Closing another risk simply to make room is unnecessary. Continuous risk identification and assessment help ensure that the risk register reflects the project’s current uncertainty.

Question: 82. A project team has limited resources and needs to determine which identified threats require immediate attention based on their relative probability and impact. Which technique is most appropriate?

1. Qualitative risk analysis
   2. Monte Carlo simulation
   3. Decision tree analysis
   4. Risk audit

Correct Answer: 1. Qualitative risk analysis

Explanation:

Qualitative risk analysis helps the project team prioritize identified risks by assessing characteristics such as probability, impact, urgency, and other agreed factors. A probability-impact matrix is commonly used to categorize risks and identify those requiring greater attention. Monte Carlo simulation and decision tree analysis are quantitative techniques that require numerical inputs and are used for more detailed modeling of uncertainty. A risk audit evaluates the effectiveness of risk management processes rather than prioritizing individual risks. When resources are limited and the immediate need is to determine relative risk priority, qualitative risk analysis is appropriate.

Question: 83. A company is willing to accept additional schedule risk if doing so may create significant strategic benefits, but it has a very low tolerance for risks involving legal compliance. What does this illustrate?

1. Risk trigger
   2. Risk appetite
   3. Risk register
   4. Residual risk

Correct Answer: 2. Risk appetite

Explanation:

Risk appetite describes the level and type of uncertainty an organization is willing to pursue, retain, or tolerate in pursuit of its objectives. The organization in this scenario is more willing to accept schedule uncertainty when strategic benefits may result, while showing very limited willingness toward legal-compliance risks. This demonstrates that risk appetite can differ across objectives and risk categories. A risk trigger is a condition indicating that a risk may occur. A risk register records risk information, while residual risk is the exposure remaining after a response. Therefore, the scenario primarily describes organizational risk appetite.

Question: 84. A project manager determines that a threat can be eliminated by removing the activity that creates the threat from the project scope. Which risk response strategy is being considered?

1. Transfer
   2. Mitigate
   3. Avoid
   4. Accept

Correct Answer: 3. Avoid

Explanation:

Avoidance eliminates a threat by changing the project plan, scope, approach, or conditions so that the source of the risk is removed. In this scenario, removing the activity that creates the threat directly eliminates the source of the uncertainty. Mitigation would reduce the probability or impact while allowing the activity or threat to remain. Transfer would shift ownership or financial consequences to another party, while acceptance would retain the risk without proactive action to alter it. Avoidance may involve changing scope, using a different technical approach, or selecting another method that removes the threat from the project’s objectives.

Question: 85. A risk owner reports that a planned mitigation action has been completed. What should the risk manager do next?

1. Reassess the risk and determine the remaining exposure
   2. Automatically close the risk
   3. Remove the risk owner
   4. Transfer the remaining risk without analysis

Correct Answer: 1. Reassess the risk and determine the remaining exposure

Explanation:

Completing a mitigation action does not automatically mean that the risk has disappeared. The risk manager should evaluate the effect of the response and reassess the remaining probability, impact, and exposure. The original threat may have been reduced but could still exist as residual risk. The reassessment may also reveal new risks or changes in assumptions. Automatically closing the risk could remove important information prematurely. Transferring the remaining exposure should only occur if it is an appropriate and authorized response. Reassessment ensures that the risk register and response strategy accurately reflect the project’s current conditions.

Question: 86. A project team is considering whether to invest in an additional quality-control activity. The activity costs $8,000 and is expected to reduce a potential risk exposure of $30,000 to $10,000. Ignoring other factors, what is the expected reduction in exposure before considering the activity cost?

1. $8,000
   2. $10,000
   3. $20,000
   4. $30,000

Correct Answer: 3. $20,000

Explanation:

The expected reduction in exposure is calculated by comparing the exposure before and after the proposed response. The original exposure is $30,000, while the estimated exposure after the quality-control activity is $10,000. Therefore, the reduction is $30,000 − $10,000 = $20,000. The $8,000 activity cost is relevant when evaluating the overall economic value of the response, but it does not change the amount of exposure reduction itself. This type of comparison can help the project team evaluate whether a proposed risk response provides sufficient benefit relative to its cost.

Question: 87. A risk manager asks the team to identify the underlying causes of a recurring project risk rather than simply documenting its symptoms. Which technique would be most useful?

1. Root-cause analysis
   2. Monte Carlo simulation
   3. Probability-impact matrix
   4. Risk transfer

Correct Answer: 1. Root-cause analysis

Explanation:

Root-cause analysis is used to identify the fundamental conditions or causes that generate a problem or risk. Understanding the underlying cause can help the project team develop more effective responses instead of repeatedly addressing symptoms. Monte Carlo simulation quantifies uncertainty by modeling possible outcomes. A probability-impact matrix helps prioritize risks based on likelihood and impact. Risk transfer shifts specified consequences or ownership to another party. Since the team specifically wants to understand why the recurring risk occurs, root-cause analysis is the most appropriate technique.

Question: 88. A project manager identifies a potential opportunity to accelerate completion by partnering with another organization that has specialized equipment. The two organizations agree to jointly pursue the opportunity and divide the resulting benefits. Which response strategy applies?

1. Accept
   2. Enhance
   3. Share
   4. Avoid

Correct Answer: 3. Share

Explanation:

Sharing is an opportunity response strategy in which the project works with another party to capture a positive risk. The collaboration can involve partnerships, joint ventures, special-purpose arrangements, or other structures in which responsibility and benefits are shared. In this case, the external organization contributes specialized equipment while both parties pursue the opportunity and divide the benefits. Enhancement would increase the probability or impact of an opportunity without necessarily sharing ownership. Acceptance would involve taking advantage of the opportunity if it occurs without proactive pursuit. Avoidance is generally associated with threats. Therefore, sharing is appropriate.

Question: 89. A project manager wants to estimate the probability of completing a project before a contractual deadline while accounting for uncertainty across multiple activities. Which technique should be considered?

1. Delphi technique
   2. Monte Carlo simulation
   3. SWOT analysis
   4. Risk audit

Correct Answer: 2. Monte Carlo simulation

Explanation:

Monte Carlo simulation can model uncertainty across multiple project activities and generate a probability distribution of possible completion dates. The project manager can then evaluate the likelihood of meeting a contractual deadline under different simulated outcomes. This is particularly useful for quantitative schedule risk analysis because uncertainty in several activities can combine to affect the overall project duration. The Delphi technique gathers expert judgment, SWOT supports broad risk identification, and risk audits evaluate the effectiveness of risk-management processes. Since the objective is to estimate the probability of meeting a specific deadline under multiple uncertainties, Monte Carlo simulation is appropriate.

Question: 90. A project has a risk response that successfully reduces the probability of a threat, but the response introduces a new integration risk. How should the new integration risk be managed?

1. Treat it as a secondary risk and assess it separately
   2. Ignore it because the original risk was reduced
   3. Automatically classify it as residual risk
   4. Remove the original response

Correct Answer: 1. Treat it as a secondary risk and assess it separately

Explanation:

A new risk that results directly from implementing a risk response is a secondary risk. It should be identified, documented, assessed, assigned to an appropriate owner, and managed independently of the original risk. Reducing the original threat does not eliminate the new exposure created by the response. Calling the new risk residual risk would be incorrect because residual risk refers to the remaining exposure from the original risk after the response. The original response should not automatically be removed simply because it created another risk; the team should evaluate both exposures and determine appropriate responses.

Question: 91. During quantitative risk analysis, a project manager wants to identify the variables that have the strongest influence on the project’s estimated cost. Which technique is most suitable?

1. Risk audit
   2. Sensitivity analysis
   3. Brainstorming
   4. Risk breakdown structure

Correct Answer: 2. Sensitivity analysis

Explanation:

Sensitivity analysis determines how changes in uncertain variables influence a selected project outcome. When the outcome is estimated project cost, the technique can identify which variables have the greatest effect on that estimate. This helps the project manager focus further analysis, monitoring, and response planning on the uncertainties with the greatest influence. A risk audit evaluates risk-management processes, brainstorming supports idea generation and risk identification, and a risk breakdown structure organizes risks into categories. Therefore, when the goal is to determine which uncertain variables most strongly influence project cost, sensitivity analysis is appropriate.

Question: 92. A project team identifies a threat but determines that no cost-effective proactive action is available. The team documents the risk, monitors it, and prepares a contingency approach if it occurs. Which strategy is being used?

1. Exploit
   2. Transfer
   3. Acceptance
   4. Avoidance

Correct Answer: 3. Acceptance

Explanation:

Acceptance is appropriate when the project team acknowledges a threat but chooses not to take proactive action to alter its probability or impact. The team may still monitor the risk and prepare a contingency plan so that it can respond if the risk occurs. This differs from avoidance, which changes the project to eliminate the threat, and transfer, which shifts specified ownership or consequences to another party. Exploitation applies to positive risks or opportunities. Acceptance can therefore be an intentional and documented strategy, particularly when proactive action is not cost-effective or practical relative to the exposure.

Question: 93. A project manager discovers that a previously identified risk has become irrelevant because the related project activity was permanently removed. What should the project manager do?

1. Increase the risk probability
   2. Close the risk after documenting the reason
   3. Transfer the risk to the sponsor
   4. Keep the risk active until project completion

Correct Answer: 2. Close the risk after documenting the reason

Explanation:

When the source of a risk is permanently removed and the risk is no longer relevant, the risk can be closed. The project manager should document the reason for closure so that the project record clearly shows why the risk is no longer being actively managed. Keeping an irrelevant risk active can clutter the risk register and reduce attention available for current exposures. Increasing its probability or transferring it to the sponsor would not be justified because the underlying risk source no longer exists. Proper risk closure helps maintain an accurate and useful risk management record.

Question: 94. A project team wants to understand how a proposed risk response could create additional risks before the response is implemented. What should the team examine?

1. Secondary risks
   2. Risk appetite
   3. Risk categories
   4. Historical cost variance

Correct Answer: 1. Secondary risks

Explanation:

Secondary risks are risks that arise as a direct result of implementing a risk response. Before implementing a significant response, the project team should consider whether the proposed action could introduce new uncertainty. For example, changing a supplier might reduce delivery risk but create quality, contractual, or integration risks. Risk appetite describes willingness to accept uncertainty, while risk categories organize risks and historical cost variance is a performance measurement rather than a risk-response concept. Examining potential secondary risks supports more complete response planning and helps prevent a response from creating unmanaged exposure elsewhere in the project.

Question: 95. A risk manager notices that a threat’s probability has remained low, but its potential impact has increased substantially because project scope has changed. What should happen?

1. Maintain the original rating without review
   2. Close the risk because probability is low
   3. Reassess the risk based on the changed scope
   4. Automatically transfer the risk

Correct Answer: 3. Reassess the risk based on the changed scope

Explanation:

Changes in project scope can affect both the probability and impact of identified risks. Even if the probability remains low, a significant increase in potential impact can materially change the overall exposure and priority of the risk. The risk manager should therefore reassess the risk using the current project conditions and determine whether its rating, response, ownership, or escalation status should change. Closing the risk based solely on low probability ignores the increased consequence. Automatic transfer is also inappropriate without analysis. Continuous reassessment ensures that risk decisions remain aligned with the current project environment.

Question: 96. A project sponsor asks for a single monetary estimate representing the expected financial effect of several uncertain events, including both potential gains and losses. Which technique can provide such an estimate?

1. Expected monetary value analysis
   2. SWOT analysis
   3. Delphi technique
   4. Risk audit

Correct Answer: 1. Expected monetary value analysis

Explanation:

Expected monetary value (EMV) analysis combines the probability and financial impact of uncertain events to estimate their expected monetary contribution. Positive opportunities can be represented as positive values, while threats can be represented as negative values when using a signed convention. The individual expected values can then be combined to support financial decision-making, provided the underlying assumptions and independence considerations are understood. SWOT analysis supports broad assessment, Delphi gathers expert judgment, and risk audits evaluate risk processes. When the objective is a monetary estimate of expected financial effects from uncertain events, EMV analysis is appropriate.

Question: 97. A project manager establishes a predefined point at which a risk must be escalated to senior management because the exposure exceeds the team’s authority. What does this predefined point represent?

1. Risk category
   2. Risk threshold
   3. Risk breakdown structure
   4. Risk owner

Correct Answer: 2. Risk threshold

Explanation:

A risk threshold represents a level of risk exposure or condition beyond which a particular action, such as escalation, becomes necessary. In this scenario, the project manager establishes a predefined point at which exposure exceeds the team’s authority and must be escalated. A risk category organizes risks by type, while a risk breakdown structure provides a hierarchical classification of risk sources. The risk owner is the person responsible for managing a particular risk. Defining thresholds helps establish clear decision boundaries and enables consistent escalation when risk exposure exceeds agreed limits.

Question: 98. A project team uses expert judgment to estimate probabilities, but the experts provide widely different results. What could the risk manager do to improve consistency in the estimates?

1. Eliminate all expert estimates
   2. Use structured expert elicitation such as the Delphi technique
   3. Close the risks with conflicting estimates
   4. Assign all estimates to the project sponsor

Correct Answer: 2. Use structured expert elicitation such as the Delphi technique

Explanation:

When expert estimates vary significantly, a structured elicitation approach can help identify assumptions, reduce individual influence, and move toward more consistent estimates. The Delphi technique is one such approach because experts provide input independently and can reconsider their estimates after reviewing summarized group feedback. Eliminating expert judgment may remove valuable domain knowledge, while closing risks because experts disagree does not resolve the uncertainty. Assigning all estimates to the sponsor also does not provide a structured estimation process. A disciplined expert-elicitation technique can improve transparency and consistency while preserving specialized knowledge.

Question: 99. A project manager compares the project’s current risk exposure with previously established risk thresholds and discovers that several risks are now above their approved limits. What should the manager consider?

1. Escalation or additional risk responses
   2. Automatic risk closure
   3. Removal of the risk register
   4. Ignoring the thresholds until project closure

Correct Answer: 1. Escalation or additional risk responses

Explanation:

When risk exposure exceeds established thresholds, the project manager should evaluate whether escalation, additional response actions, or other governance measures are required. Thresholds provide predefined boundaries for decision-making and help ensure that significant exposure receives appropriate attention. Exceeding a threshold does not automatically mean a risk should be closed; rather, it signals that the current management approach may no longer be sufficient. Ignoring the thresholds would undermine the purpose of establishing them. The specific response should depend on the project’s risk management plan, authority structure, and stakeholder agreements.

Question: 100. A project manager conducts a periodic review of the project’s risk responses and discovers that one response is no longer effective because project conditions have changed. What should the manager do?

1. Continue the response unchanged until project closure
   2. Remove the risk from the register
   3. Reassess the risk and revise the response as necessary
   4. Treat the risk as automatically accepted

Correct Answer: 3. Reassess the risk and revise the response as necessary

Explanation:

Risk responses should be monitored because project conditions, assumptions, dependencies, and external factors can change over time. If a response is no longer effective, the project manager should reassess the risk and determine whether the response should be modified, replaced, supplemented, or escalated. Continuing an ineffective response wastes resources and may leave the project exposed. Removing the risk from the register does not eliminate the underlying uncertainty, and the risk does not become accepted automatically simply because its response is ineffective. Ongoing monitoring and adaptation are essential parts of effective project risk management.