View Full PMI PMI-RMP Exam Dumps and Practice Test Dumps

 

Question: 101. A project team identifies a threat that could be eliminated by changing the project’s procurement strategy from a single-source supplier to multiple qualified suppliers. Which risk response strategy is being considered?

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

Correct Answer: 2. Avoid

Explanation:

Avoidance involves changing the project approach so that the threat is eliminated or its source is removed. In this scenario, changing from a single-source procurement strategy to multiple qualified suppliers can eliminate the specific exposure created by dependence on one supplier. Mitigation would reduce the probability or impact of the threat while retaining some exposure. Transfer would shift ownership or financial consequences to another party, while acceptance would retain the risk without proactive action. Because the proposed procurement change removes the source of the single-supplier threat, it represents an avoidance strategy.

Question: 102. During a quantitative risk analysis, a project manager calculates the probability of several cost outcomes and wants to determine the expected financial value of the alternatives. Which technique should be used?

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

Correct Answer: 1. Expected monetary value analysis

Explanation:

Expected monetary value (EMV) analysis combines the probability of an uncertain event with its monetary impact to calculate an expected financial value. It is useful when comparing alternatives or evaluating potential financial consequences under uncertainty. Threats can be represented as negative values and opportunities as positive values when using a signed convention. SWOT analysis supports broad risk identification, while the Delphi technique gathers structured expert judgment. A risk audit evaluates the effectiveness of risk-management processes. Because the project manager wants to calculate expected financial values from probabilities and monetary outcomes, EMV analysis is the appropriate technique.

Question: 103. A project team identifies a positive risk that could substantially increase project benefits, but realizing it requires expertise that the project team does not possess. What response could involve partnering with another organization that has the required expertise?

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

Correct Answer: 3. Share

Explanation:

Sharing is an opportunity response strategy that involves working with another party to capture a positive risk. A partnership, joint venture, or other collaborative arrangement can provide expertise, resources, or capabilities that the project team does not have internally. The benefits and responsibilities associated with the opportunity can be allocated among the participating parties. Avoidance and mitigation are commonly associated with threats, while acceptance means taking advantage of an opportunity if it occurs without proactive pursuit. Because the project needs another organization’s expertise to realize the opportunity, a shared arrangement is an appropriate response.

Question: 104. A project manager discovers that a previously identified threat is no longer possible because the external condition that caused it has permanently disappeared. What should happen to the risk?

1. Increase its probability rating
   2. Close the risk after documenting the reason
   3. Transfer it to the sponsor
   4. Continue monitoring it indefinitely

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

Explanation:

A risk can be closed when the condition that created it no longer exists and the risk is no longer relevant to the project. The project manager should document the reason for closure so that stakeholders understand why active management is no longer required. Increasing the probability would contradict the available information, while transferring the risk is unnecessary if the threat has disappeared. Continuing to monitor an irrelevant risk indefinitely can create unnecessary administrative burden and reduce attention available for active exposures. Proper closure keeps the risk register accurate and focused on meaningful current uncertainty.

Question: 105. A risk manager wants to compare the relative priority of risks using both probability and impact ratings. Which tool is most appropriate?

1. Probability-impact matrix
   2. Decision tree
   3. Monte Carlo simulation
   4. Risk audit

Correct Answer: 1. Probability-impact matrix

Explanation:

A probability-impact matrix is commonly used during qualitative risk analysis to compare and prioritize risks according to their likelihood and potential effect on project objectives. Risks can be categorized into levels such as low, moderate, or high based on predefined scales. A decision tree is used to evaluate alternatives under uncertainty, often with quantitative financial analysis. Monte Carlo simulation models distributions of possible outcomes, while a risk audit evaluates risk-management effectiveness. Since the objective is to compare relative risk priority using probability and impact ratings, the probability-impact matrix is the appropriate tool.

Question: 106. A project manager determines that a risk response has reduced a threat but has not completely eliminated it. What should the remaining exposure be called?

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

Correct Answer: 3. Residual risk

Explanation:

Residual risk is the exposure that remains after a risk response has been implemented. A response may significantly reduce the probability or impact of a threat without completely eliminating it. The remaining exposure should continue to be documented and monitored according to the project’s risk-management approach. A secondary risk is a new risk created as a direct result of implementing a response. A risk trigger is a warning condition that indicates a risk may occur, while risk appetite describes the amount of uncertainty an organization is generally willing to accept. Therefore, remaining exposure after a response is residual risk.

Question: 107. A project team is developing a contingency plan for a threat. The team identifies a specific event that would indicate the contingency plan should be activated. What is this event called?

1. Risk appetite
   2. Risk trigger
   3. Risk category
   4. Risk owner

Correct Answer: 2. Risk trigger

Explanation:

A risk trigger is a condition or event that signals that a risk is becoming imminent or that a planned response should be activated. Identifying triggers helps the project team determine when to move from monitoring to action. A risk appetite describes an organization’s willingness to accept uncertainty. A risk category groups risks according to common characteristics, while the risk owner is the person responsible for managing a particular risk. Because the question describes a specific event that initiates a contingency response, it represents a risk trigger.

Question: 108. A project sponsor asks whether the organization’s willingness to accept a particular risk is consistent with established limits for that project. Which concept should the risk manager explain?

1. Risk threshold
   2. Risk breakdown structure
   3. Risk identification
   4. Risk exploitation

Correct Answer: 1. Risk threshold

Explanation:

A risk threshold represents the level of risk exposure or condition at which a specific action or decision may be required. It provides a boundary for determining whether risk exposure remains acceptable or requires escalation or additional response. Risk appetite is the broader level of uncertainty an organization is willing to pursue or tolerate, while a threshold provides a more specific boundary for action. A risk breakdown structure categorizes risks, and risk exploitation applies to opportunities. When the question concerns established limits for deciding when action is required, risk threshold is the relevant concept.

Question: 109. A project manager asks stakeholders to identify possible risks based on their knowledge of previous projects and organizational experience. Which technique is primarily being used?

1. Expert judgment
   2. Monte Carlo simulation
   3. Sensitivity analysis
   4. Decision tree analysis

Correct Answer: 1. Expert judgment

Explanation:

Expert judgment uses the knowledge and experience of individuals with relevant expertise to identify, assess, or manage project risks. Stakeholders and subject-matter experts can contribute insights based on previous projects, organizational experience, technical knowledge, or industry conditions. Monte Carlo simulation is a quantitative modeling technique, while sensitivity analysis evaluates the influence of uncertain variables on an outcome. Decision tree analysis compares alternatives and uncertain outcomes, often using expected values. Since the project manager is relying on stakeholder knowledge and experience to identify potential risks, expert judgment is the primary technique described.

Question: 110. A project manager wants to determine how much uncertainty in activity durations could affect the probability of meeting a fixed project deadline. Which quantitative technique is most suitable?

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

Correct Answer: 2. Monte Carlo simulation

Explanation:

Monte Carlo simulation can model uncertainty in activity durations and generate a distribution of possible project completion dates. This allows the project manager to estimate the probability of meeting a fixed deadline rather than relying on a single deterministic schedule estimate. Risk audits examine the effectiveness of risk-management activities, while SWOT analysis and risk categorization are primarily useful for identifying and organizing risks. Because the objective is to quantify the effect of multiple duration uncertainties on the probability of meeting a deadline, Monte Carlo simulation is an appropriate technique.

Question: 111. A risk manager wants to determine whether a particular risk response is providing the expected reduction in risk exposure. Which activity is most appropriate?

1. Risk response monitoring
   2. Risk identification only
   3. Risk categorization
   4. Opportunity exploitation

Correct Answer: 1. Risk response monitoring

Explanation:

Risk response monitoring evaluates whether planned responses are being implemented and whether they are producing the intended results. If a response was expected to reduce probability or impact, the project team should compare current exposure with the expected effect and determine whether further action is necessary. Risk identification focuses on discovering risks, while categorization organizes risks into groups. Opportunity exploitation is a strategy for ensuring a positive risk occurs. Monitoring response effectiveness supports adaptive risk management because conditions can change and a response that was initially effective may later require modification.

Question: 112. A project manager identifies several risks that originate from a common organizational process weakness. What benefit can result from identifying the common cause?

1. All risks can automatically be closed
   2. A single response may address multiple related risks
   3. Every risk must be transferred
   4. The risk register becomes unnecessary

Correct Answer: 2. A single response may address multiple related risks

Explanation:

Identifying a common root cause can help the project team develop a coordinated response that addresses several related risks at once. For example, a weakness in an organizational approval process might contribute to multiple schedule and compliance risks. Addressing the underlying process weakness may therefore reduce exposure across several risks more efficiently than treating each symptom independently. The existence of a common cause does not mean all risks can be closed or must be transferred. The risk register remains necessary to document individual risks and their management. Root-cause analysis can therefore improve the efficiency and effectiveness of risk responses.

Question: 113. A project team decides to take no proactive action against a low-level threat but agrees to monitor it and take action if its exposure increases. Which strategy is being used?

1. Avoidance
   2. Transfer
   3. Active acceptance
   4. Exploitation

Correct Answer: 3. Active acceptance

Explanation:

Active acceptance involves recognizing a risk while establishing a plan for monitoring or responding if specified conditions occur. In this scenario, the team does not take immediate proactive action but agrees to monitor the threat and act if its exposure increases. Avoidance would eliminate the threat, while transfer would shift specified consequences or ownership to another party. Exploitation is an opportunity response and does not apply to a threat. Active acceptance is therefore appropriate because the team has intentionally chosen not to proactively change the risk but has established a condition-based approach for future action.

Question: 114. A project manager is evaluating a risk that could affect the project as a whole because several individual risks may interact and produce a combined effect. What should the manager assess?

1. Overall project risk
   2. Individual risk trigger
   3. Risk category
   4. Risk owner

Correct Answer: 1. Overall project risk

Explanation:

Overall project risk concerns the effect of uncertainty on the project as a whole. Individual risks may interact, correlate, or combine in ways that produce a broader effect on project objectives. Evaluating overall project risk helps stakeholders understand the aggregate exposure rather than focusing only on individual risk events. A risk trigger identifies a condition associated with a specific risk, a risk category organizes risks by type, and a risk owner is accountable for managing an individual risk. Because the scenario emphasizes interactions among multiple risks and their combined effect, overall project risk is the appropriate concept.

Question: 115. A project team identifies a major opportunity and takes action specifically designed to guarantee that the opportunity is realized. Which response strategy is being used?

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

Correct Answer: 2. Exploit

Explanation:

Exploitation is an opportunity response strategy intended to ensure that a positive risk occurs. The project team takes proactive action to make the opportunity happen rather than simply increasing its probability or impact. Enhancement, by contrast, seeks to increase the likelihood or benefit of an opportunity but does not necessarily guarantee that it will occur. Sharing involves another party in capturing the opportunity, while acceptance means taking advantage of the opportunity if it occurs without proactive pursuit. When the team specifically acts to ensure that the opportunity is realized, exploitation is the appropriate response.

Question: 116. A project manager wants to evaluate whether the cost of a proposed risk response is justified by the reduction in expected risk exposure. What should the manager compare?

1. Response cost with expected reduction in risk exposure
   2. Number of risks with number of stakeholders
   3. Risk categories with project phases
   4. Risk owners with team members

Correct Answer: 1. Response cost with expected reduction in risk exposure

Explanation:

Evaluating a risk response should include consideration of its expected benefit relative to its cost. Comparing the cost of the response with the expected reduction in risk exposure helps the team determine whether the proposed action is economically reasonable, assuming the estimates are sufficiently reliable. A response that costs more than the benefit it provides may require reconsideration, although other strategic, regulatory, safety, or contractual factors can also influence the decision. The other comparisons listed do not directly evaluate response value. Cost-benefit thinking supports selection of proportionate and efficient risk responses.

Question: 117. During a risk workshop, the team examines how project assumptions could fail and what risks might result from those failures. Which analysis is being performed?

1. Assumption analysis
   2. Procurement analysis
   3. Risk transfer
   4. Monte Carlo simulation

Correct Answer: 1. Assumption analysis

Explanation:

Assumption analysis examines assumptions underlying project planning and considers the uncertainty associated with them. An assumption may be treated as true during planning, but if it proves incorrect, it can create a threat or opportunity for the project. By examining how assumptions could fail, the team can identify related risks and assess their potential effects. Procurement analysis focuses on acquiring goods or services, risk transfer is a response strategy, and Monte Carlo simulation is a quantitative modeling technique. Therefore, examining the validity and potential failure of project assumptions is assumption analysis.

Question: 118. A project manager discovers that an identified risk has moved from low priority to high priority because both its probability and impact have increased. What should the manager consider?

1. Revising the risk response and escalating if required
   2. Closing the risk because it has changed
   3. Removing the risk owner
   4. Ignoring the new rating until the next project phase

Correct Answer: 1. Revising the risk response and escalating if required

Explanation:

A significant increase in probability and impact can substantially change a risk’s exposure and priority. The project manager should reassess the risk, determine whether the current response remains adequate, and consider escalation if established thresholds or authority limits are exceeded. Closing the risk simply because its rating changed would be inappropriate. Removing the risk owner does not address the increased exposure, and delaying action may allow the threat to affect project objectives. Risk monitoring is intended to identify such changes early so that risk responses can be adapted to current conditions.

Question: 119. A project team wants to determine whether an identified threat has a meaningful effect on the project’s objectives before investing resources in detailed quantitative analysis. What should the team perform first?

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

Correct Answer: 1. Qualitative risk analysis

Explanation:

Qualitative risk analysis can be used to assess and prioritize identified risks before deciding whether more detailed quantitative analysis is justified. By evaluating probability, impact, urgency, and other agreed characteristics, the team can determine which risks warrant deeper analysis. Quantitative techniques such as Monte Carlo simulation, decision tree analysis, and sensitivity analysis generally require additional numerical information and resources. Conducting qualitative assessment first can help focus quantitative analysis on the risks and uncertainties most relevant to project objectives. This supports efficient use of project resources while maintaining a structured approach to risk management.

Question: 120. A project manager reviews the risk register at the end of a project phase and finds that several risks have been resolved, while new risks have emerged because of the next phase’s activities. What should the manager do?

1. Keep the risk register unchanged for consistency
   2. Close resolved risks and identify, assess, and document new risks
   3. Delete all previous risk information
   4. Transfer every new risk to the sponsor

Correct Answer: 2. Close resolved risks and identify, assess, and document new risks

Explanation:

Risk management is an ongoing process, and the risk profile can change significantly between project phases. Resolved risks should be closed and documented appropriately, while new risks associated with upcoming activities should be identified, assessed, and added to the risk register. Keeping the register unchanged would create outdated information, while deleting all previous information would eliminate useful historical context and lessons. New risks should not automatically be transferred to the sponsor; their appropriate owners and responses should be determined based on the project’s governance and risk-management approach. Maintaining an updated risk register supports effective decision-making throughout the project lifecycle.