PMI-RMP Practice Questions

The risk management plan provides guidance on how often the risk register should be updated or

reviewed. It takes into account the specific industry, project, and organizational context, including the

business rhythm.

When a team member is struggling to ensure the coverage of all risks in a complex project, the risk

manager should develop a risk breakdown structure (RBS). An RBS helps in systematically identifying

risks by categorizing them into different levels and areas, making it easier to ensure that all potential

risks are considered. This structured approach is particularly useful in complex projects where risks

may arise from multiple sources.

PMI advocates the use of an RBS as a best practice for comprehensive risk identification, particularly

in large or complex projects where the range of potential risks can be extensive  .

The project manager should consult or review project contracts, lessons learned registers from

analogous projects, and the risk management plan to develop an effective risk planning for the

project.

According to the PMBOK® Guide, the risk management plan is one of the key inputs for the plan risk

management process, which is the first process in the project risk management knowledge area. The

risk management plan describes how risk management activities will be structured and performed

throughout the project. It includes information such as the methodology, roles and responsibilities,

budget, timing, risk categories, definitions of risk probability and impact, probability and impact

matrix, revised stakeholders’ risk tolerances, reporting formats, and tracking (page 409). Therefore,

option D is the correct answer.

The project contracts are also an important input for the plan risk management process, as they may

contain terms and conditions that can create or affect various project risks. For example, contracts

may include clauses related to penalties, incentives, warranties, intellectual property rights,

termination, force majeure, arbitration, indemnification, etc. The project manager should review the

project contracts to identify any potential sources of risk and plan appropriate responses (page 410).

Therefore, option A is the correct answer.

The lessons learned registers from analogous projects are another valuable input for the plan risk

management process, as they provide historical information and knowledge that can help the project

manager identify and analyze risks, as well as plan risk responses. The lessons learned registers may

contain information such as the risks that occurred, the root causes of the risks, the risk triggers, the

effectiveness of the risk responses, the residual and secondary risks, the risk owners, the risk ratings,

the risk trends, etc. The project manager should consult the lessons learned registers from similar or

comparable projects to learn from past experiences and avoid repeating mistakes (page 411).

Therefore, option B is the correct answer.

The risk register is not an input for the plan risk management process, but an output. The risk

register is a document that contains the list of identified risks, their causes, potential responses, and

other relevant information. The risk register is created during the identify risks process, which is the

second process in the project risk management knowledge area. The risk register is then updated

and refined throughout the project as more information becomes available and new risks emerge

(page 414). Therefore, option C is incorrect.

The code of regulations is not an input for the plan risk management process, but a type of

enterprise environmental factor. Enterprise environmental factors are the conditions, not under the

control of the project team, that influence, constrain, or direct the project. The code of regulations

refers to the rules and standards that govern the project’s industry, domain, or sector. The code of

regulations may affect the project’s scope, schedule, cost, quality, resources, communications,

procurement, and risk management. The project manager should consider the code of regulations

when planning risk management activities, but it is not an artifact that needs to be reviewed or

consulted (page 38). Therefore, option E is incorrect.

Reference: PMBOK® Guide, pages 38, 409-411, 4141

The risk matrix heat map is a graphical tool that displays the probability and impact of risks in a

project. The horizontal axis represents the probability of occurrence, and the vertical axis represents

the impact rating. The colors indicate the level of risk exposure, from green (low) to red (high). The

risk in question is located in the upper right quadrant of the matrix, which means it has a high impact

rating. The probability of occurrence can be estimated by looking at the scale on the horizontal axis.

The risk is slightly to the left of the 50% mark, which means it has a probability of occurrence of

about 40%. Therefore, the correct statement that describes the risk is B. The risk has a probability of

40% of occurrence and a high impact rating. Reference: PMI, The Standard for Risk Management in

Portfolios, Programs, and Projects, 2019, p. 104-105.

The project manager should reassess the risks and analyze the reserve to determine if any

adjustments can be made to accommodate the expected additional work. This will help in identifying

potential budget-saving measures and making informed decisions on how to proceed.

According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, risk

reassessment is the process of reanalyzing existing project risks and identifying new risks throughout

the project life cycle1. Reserve analysis is the process of estimating the amount of contingency

reserve and management reserve needed to account for the uncertainty and variability of the

project2. In this case, the project manager should conduct a risk reassessment and reserve analysis

as the next step, because the budget overruns during execution have changed the risk profile of the

project and reduced the available funds to handle future risks. By conducting a risk reassessment, the

project manager can update the risk register and the risk response plan with the current status of the

project risks and the effectiveness of the risk responses. By conducting a reserve analysis, the project

manager can determine if the remaining contingency reserve and management reserve are sufficient

to cover the potential impact of the project risks, and request additional funds if needed.

Reference: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth

Edition, 2017, p. 442 2: PMI, A Guide to the Project Management Body of Knowledge (PMBOK®

Guide), Sixth Edition, 2017, p. 215

A SWOT analysis is a risk identification technique that helps to identify high-level and strategic

project risks by examining the internal and external factors that may affect the project objectives. A

SWOT analysis involves listing the strengths, weaknesses, opportunities, and threats of the project,

and then analyzing how they may impact the project positively or negatively. A SWOT analysis can

help to uncover potential risks that may not be obvious from other techniques, such as prompt lists,

interviews, or brainstorming12

: 1: PMI Risk Management Professional (PMI-RMP)® Handbook, page 10 2: A Guide to the Project

Management Body of Knowledge (PMBOK® Guide) – Seventh Edition, page 11.2.2.1

According to the PMBOK Guide, risk prioritization is the process of assigning a level of importance to

each identified risk based on its probability and impact, as well as other factors such as urgency,

stakeholder tolerance, and project objectives. Risk prioritization helps the project team to focus on

the most significant risks and allocate resources accordingly. One of the tools and techniques for risk

prioritization is stakeholder engagement, which involves involving the key stakeholders in the risk

analysis and decision making process. Stakeholder engagement helps to ensure that the risk

prioritization reflects the expectations and p

of the stakeholders, and that they are aware

of and agree with the results. By engaging the key stakeholders during the prioritization process, the

risk manager could have avoided the board’s request to sort the risks differently, as the board would

have been part of the process and would have accepted the outcome. Reference: = PMBOK Guide,

6th edition, pages 406-407; The Standard for Risk Management in Portfolios, Programs, and Projects,

page 67.

A risk trigger is an indication or warning sign that a risk is about to occur or has occurred. A risk

trigger can be an event, a condition, or a situation that signals the onset of a risk. A risk trigger can

help the project team to identify and respond to risks in a timely manner. In this case, the lack of

space to install air conditioners is a risk with high impact on the project. A potential need to share

the space with other machinery is an example of an early risk trigger, because it indicates that the

space issue may become a problem in the future. If the project team detects this trigger, they can

take proactive actions to avoid or mitigate the risk, such as finding an alternative location, modifying

the design, or negotiating with the stakeholders. Reference: PMI, The Standard for Risk Management

in Portfolios, Programs, and Projects, 2019, p. 102-103.

When a project lacks predefined organizational process assets (OPAs) related to risk categories, the

risk manager can utilize the Work Breakdown Structure (WBS) to identify potential project risk

categories. The WBS decomposes the project scope into manageable components, providing a

hierarchical representation of all deliverables and work packages. By analyzing each element of the

WBS, the risk manager can systematically identify areas where risks may arise, effectively

categorizing them based on project activities and deliverables. This approach ensures a

comprehensive assessment of potential risks across all aspects of the project, facilitating targeted

risk management efforts.

PMI Risk Management Study Guide Reference:

The PMI-RMP Exam Preparation Study Guide notes that "the WBS serves as a foundational tool for

risk identification, enabling project teams to systematically examine each component for potential

risks and categorize them appropriately."

Adding the identified risk to the risk register is the best action that the risk manager can take to

address this risk. The risk register is a document that records the identified risks, their characteristics,

their status, and their responses. By adding the risk to the risk register, the risk manager can ensure

that the risk is not overlooked or ignored, and that it will be subjected to further probability and

impact analysis to determine its priority and response strategy. Accepting the identified risk because

other stakeholders feel that there are higher priority risks to address is not a good practice, as it may

lead to overlooking a potentially significant risk that could affect the stakeholder’s team. Mitigating

the identified risk in order to reduce the probability of impacting the stakeholder’s team is not

advisable, as it may be a premature or unnecessary action without proper analysis of the risk

probability and impact. Escalating the identified risk to the project sponsor and allowing them to

determine the best course of action is not appropriate, as it may be an overreaction or a sign of lack

of competence from the risk manager, who should be able to handle the risk identification and

analysis process. Reference: PMI Risk Management Professional (PMI-RMP)® Exam Content Outline1,

PMI Practice Standard for Project Risk Management2, Risk Management Professional (PMI-RMP)®

Cert Guide3