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Top 10 PMP Exam FAQs-Project Risk Management Questions,Answers

This page of project management blog covers top 10 PMP Exam FAQs. This PMP Exam questions and answers are based on project risk management.

List of Frequently Asked Questions(FAQs) and Answers

Question-1: Risk transfer could involve all of the following except:
a. Cost type of contracts
b. Fixed price contract
c. Eliminating risk through beta testing
d. Performance bonds

Question-2: Risk management should be done:
a. Just before meeting with a client
b. Consistently throughout the project life cycle
c. As soon as time and cost estimates are ready
d. Early in the execution phase

Question-3: All of the following are inputs to the risk identification process EXCEPT:
a. Risk Management Plan
b. Categories of risk
c. Workaround plan
d. Published information

Question-4: The tools and techniques of quantitative risk analysis are:
a. Contracting, contingency planning, alternative strategies and insurance
b. Interviewing, historical results, workarounds and additional response development
c. checklists, damage control reports, standard allowances, and inspection
d. Interviewing, probability distribution, expert judgment, sensitivity analysis, EMV, decision tree analysis, and modeling and simulation

Question-5: The risk management plan may include all of the following EXCEPT:
a. Methodology
b. Definitions of risk probability and impact matrix
c. Responses to individual risks
d. Stakeholders tolerances

These PMP EXAM FAQs on risk management cover questions and answers very useful for the PMP aspirants.

Question-6: The Delphi technique has all of the following characteristics EXCEPT:
a. It is a way to reach a consensus of experts
b. It is a technique in which experts participate anonymously
c. It helps reduce bias in the data and keeps any person from having undue influence on the outcome
d. It is an ancient Greek technique to ensure that actions of subordinates are aligned with the vision of senior executives

Question-7: If a risk has a 20% chance of happening in a given month and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month of the project?
a. Less than 1%
b. 20%
c. 60%
d. 80%
Answer-7:Many people miss this one. No calculation is needed. If there is a 20% chance in any month the chance in the fourth month must also be 20%.

Question-8: If a risk event has a 90% chance of occurring, and the consequences will be Rs. 10,000.What does Rs. 9000 represent?
a. Risk value
b. Present Value
c. Expected monitory value
d. Contingency budget
Answer-8: EMV = probability X impact

Question-9: Use of insurance is BEST considered an example of risk:
a. Mitigation
b. Transfer
c. Acceptance
d. Avoidance

Question-10: An output from risk response planning is:
a. Residual risks
b. Risk Identified
c. Prioritized list of risks
d. Risk Monitoring and Control
Answer-10: Impacts (choice D) are generally created during risk quantification. Prioritized risks (choice C) are created during qualification and quantification. Risks are identified (choice B) during risk identification. The best answer is A.

Question-11: Workarounds are determined in response to :
a. Risk Identification
b. Risk Quantification
c. Risk Management Plan
d. Negative Risk that has occurred
Answer-11: A workaround refers to determining how to handle a negative risk that has occurred. Distinguished from contingency plan in that a workaround plan is not planned in advance of the occurrence of the risk event.

Answers to Project Risk Management FAQS

1. C   2. B   3. C   4. D   5. C   6. D   7. B   8. C   9. B   10. A   11. D  


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