Determine How to Apply Risk Tools Appropriately PMI-CP Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A project manager is evaluating the impact of a key risk on the project's net present value (NPV). The risk has a 30% probability of occurring and would reduce NPV by $500,000. If the risk does not occur, NPV remains unchanged. What is the expected monetary value (EMV) of this risk?

   • A-$500,000
   • B-$150,000
   • C-$150,000 plus the probability of non-occurrence
   • D-$350,000
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   Which sequence best describes the step-by-step process of an Integrated Project Risk Assessment (IPRA)?

   • AAssess likelihood and impact, prioritize risks, identify risks, and document lessons learned.
   • BIdentify risks, assess likelihood and impact, prioritize risks, and develop response strategies.
   • CDevelop response strategies, identify risks, prioritize risks, and assess likelihood and impact.
   • DPrioritize risks, develop response strategies, identify risks, and assess likelihood and impact.
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A project manager is planning the initial risk assessment for a complex project with multiple stakeholders who have conflicting priorities. The sponsor wants a comprehensive risk identification process but also wants to minimize the time spent in workshops. The project manager must balance thoroughness with efficiency. Which approach best achieves this balance?

   • AConduct a facilitated IPRA workshop with a pre-circulated risk checklist and a structured agenda to focus the session.
   • BHold a series of one-on-one interviews with each stakeholder to gather risks individually.
   • CUse a Monte Carlo simulation to identify risks based on historical data.
   • DSkip the workshop and rely on the project manager's experience to identify risks.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A project manager is establishing a risk register for a new project. The organization requires that all risks be documented with a consistent format. The project manager wants to ensure the register is useful for tracking and communication throughout the project. Which set of fields is most essential for the risk register?

   • ARisk description, probability, and impact only.
   • BRisk description, response strategy, and the date the risk was identified.
   • CRisk ID, description, probability, impact, risk score, owner, and response strategy.
   • DRisk ID, description, and the name of the person who identified the risk.
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   What is the primary purpose of the Integrated Project Risk Assessment (IPRA) tool in contract management?

   • ATo replace the project risk register with a one-time risk identification workshop.
   • BTo provide a structured, collaborative process for identifying, assessing, and prioritizing project risks across stakeholders.
   • CTo automatically calculate the exact financial impact of every identified risk without human input.
   • DTo assign legal liability for risks to the contracting parties based on contract terms.
   Reveal Solution Discussion Select an answer first