Risk Management PK0-005 Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A project manager is updating the risk register after a brainstorming session. The team identified a risk that a key vendor may deliver a critical component two weeks late, which would delay the project by one month. The probability is assessed as 30% and the impact as high. Which action should the project manager take next?

   • ADocument the risk in the risk register with a risk score of 0.3 × high impact and assign an owner.
   • BImmediately implement a mitigation strategy to avoid the delay by ordering the component from a second vendor.
   • CTransfer the risk to the vendor by negotiating a penalty clause in the contract.
   • DAccept the risk because the probability is low and the impact is manageable within the project buffer.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A project manager is creating a risk register for a new project. Which of the following should be included for each identified risk?

   • AThe risk description and the project schedule
   • BOnly the risk description and the risk owner
   • CThe risk description and the project budget
   • DRisk description, probability, impact, risk score, and response strategy
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A project manager is reviewing the risk register and notices that a risk with a high probability and high impact has not been updated in three months. The risk owner has not provided any status updates. What should the project manager do first?

   • AIncrease the risk score because the risk owner is not responding.
   • BContact the risk owner to get a status update and reassess the risk.
   • CRemove the risk from the register because it has not occurred.
   • DEscalate the issue to the project sponsor.
   Reveal Solution Discussion Select an answer first
5. 29application · medium

   During a project kickoff, the project manager asks the team to identify potential risks. A team member suggests that the risk of a key developer leaving should be documented. Who is ultimately responsible for ensuring this risk is added to the risk register and assigned an owner?

   • AThe human resources department
   • BThe project sponsor
   • CThe project manager
   • DThe team member who suggested the risk
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A project manager is deciding whether to allocate a contingency budget for a risk that could cause a $50,000 cost overrun. The risk has a 20% probability of occurring. Which quantitative analysis technique should be used to determine the expected monetary value (EMV) of this risk?

   • ADivide the impact by the probability to get $250,000.
   • BUse the risk score from qualitative analysis to determine the budget.
   • CMultiply the probability (0.20) by the impact ($50,000) to get an EMV of $10,000.
   • DAdd the probability and impact to get a risk score of 50.2.
   Reveal Solution Discussion Select an answer first