PMP CERTIFICATION SAMPLE QUESTIONS 7.23 The project manager has just met with her team to brainstorm some of the problems that could occur on the upcoming project. Today's session was intended to generate possible issues that could arise and get everyone to start thinking in terms of what they should be looking for once the project kicks off. This meeting would be an example of what element in the risk management process? 1. Risk mitigation 2. Control and documentation 3. Risk identification 4. Analysis of probability and consequences 7.24 Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method for dealing with risk? 1. Accept it 2. Minimize it 3. Transfer it 4. Share it 7.25 A small manufacturer has won a major contract with the U.S. Army to develop a new generation of satellite phone for battlefield applications. Because of the significant technological challenges involved in this project and the company's own size limitations and lack of experience in dealing with the Army on these kinds of contracts, the company has decided to partner with another firm to collaborate on developing the technology. This decision would be an example of what kind of response to the risk? 1. Accept it 2. Minimize it 3. Transfer it 4. Share it 7.26 All the following would be considered examples of significant project risks except: 1. Financial risks 2. Technical risks 3. Commercial risks 4. Legal risks All are examples of significant potential project risks 7.27 Suppose your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium, and low). In evaluating a project's risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequences. If you are interested in prioritizing your risks, which of these should be considered first? 1. Commercial risk 2. Legal risk 3. Both should be considered equally significant 4. Neither is really much of a threat to this project, so it doesn't matter what order you assign them 7.28 Sanjay is managing a multi-million-dollar construction project that is scheduled to take nearly three years to complete. During the planning phase, he discovers a serious threat to the project schedule and budget due to the fact that he is planning to build during monsoon season in a flood area. After evaluating his options, he decides to build earlier in the year to complete critical parts of the project before the possibility of damage from monsoon flooding. This is an example of: 1. Risk avoidance 2. Risk transference 3. Risk mitigation 4. Risk acceptance 7.29 You are managing a project when an unanticipated risk event occurs. You meet with your project team and company experts and figure out a workaround to keep the project on schedule. In what process are you engaged? 1. Quantitative risk analysis 2. Qualitative risk analysis 3. Risk response 4. Control and Documentation 7.30 A probability and impact matrix is useful for: 1. Quantitative risk analysis 2. Qualitative risk analysis 3. Risk Identification 4. Control and Documentation 7.31 A workaround is: 1. A technique for managing conflict 2. A non-critical path (one with extra float) through the network diagram 3. An adjustment to the project budget 4. A response to an unplanned risk event 7.32 A fixed-price contract offers the seller (contractor): 1. A higher risk than the buyer (client) 2. The same risk as that of the buyer (client) 3. A lower risk than the buyer (client) 4. Guaranteed reimbursement of actual costs