Free PMI PMI-RMP Practice Exam with Questions & Answers

The project manager should evaluate the risk with the team and update the issueing to address the concerns of the stakeholders and local businesses.

This concern is a potential risk that could affect the project’s reputation, stakeholder satisfaction, and profitability. The project manager should evaluate the risk with the team and update the issue log, which is a tool for documenting and monitoring the resolution of issues that arise during the project. The issue log should include information such as the issue description, the priority, the owner, the status, and the actions taken. The project manager should also communicate with the stakeholders and the local businesses to address their concerns and seek a mutually beneficial solution. The project manager should not ignore the concern, as it could escalate into a bigger problem. The project manager should not discuss the concern with the local business owners alone, as this could bypass the stakeholders and create more conflicts. The project manager should not update the key risks and perform a quantitative risk analysis, as this is a time-consuming and complex process that may not be necessary for this type of risk. The project manager should not adjust the construction work hours to after business hours, as this could incur additional costs, disrupt the project schedule, and affect the workers’ safety and productivity. References: PMI, 2017. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Newtown Square, PA: Project Management Institute, Inc., pp. 115-116, 408-4091

The project manager should monitor and control secondary and residual risks in the risk register. This will ensure that any new risks identified during the implementation of the risk response plan are captured and managed effectively. Monitoring and controlling risks is a continuous process that helps in identifying, analyzing, and planning for new risks as well as updating the risk register as needed.

 According to the PMI Risk Management Professional (PMI-RMP)®Examination Content Outline, one of the tasks under the domain of Risk Response Planning is to “identify and assess the effectiveness of alternative strategies to reduce threats or enhance opportunities, such as mitigation, transference, avoidance, and acceptance” 1. This implies that the project manager should also consider the potential secondary or residual risks that may arise from implementing the chosen risk response strategy. Secondary risks are new risks that are created as a direct result of implementing a risk response, while residual risks are those that remain after therisk response has been executed 2. Both types of risks should be identified and assessed for their impact and probability, and added to the risk register for further monitoring and control. Therefore, the correct answer is A.

References: 1: PMI Risk Management Professional (PMI-RMP)® Examination Content Outline, page 91 2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, page 4362

An Ishikawa diagram, also known as a fishbone or cause-and-effect diagram, is a tool used to systematically identify potential factors causing an overall effect. In the context of risk management, it helps in pinpointing specific triggers that could lead to identified risks. By categorizing potential causes, the project team can visualize and analyze the root causes of risks, ensuring that risk triggers are well-defined and understood. This clarity enhances the effectiveness of response actions when risks materialize.

PMI Risk Management Study Guide References:

The PMI-RMP Exam Preparation Study Guide discusses the use of Ishikawa diagrams in risk identification, stating that they "assist teams in uncovering root causes of potential risks by visually mapping out cause-and-effect relationships."

According to the PMI-RMP Exam Content Outline1, one of the domains of the PMI-RMP certification is risk monitoring and reporting. This domain includes tasks such as “monitor and report on risk metrics and trends”, “monitor the status of risk response activities and update risk register and risk report accordingly”, and “monitor and control project contingency and management reserves”. These tasks imply that the risk manager should regularly check and report on the status of risks identified according to their prioritization (B), monitor the status and oversee execution of the risk response plan for each identified risk ©, and ensure management reserves are sufficient to cover the mitigation plans for all identified risks (D). These actions will help the risk manager to ensure the risk management plan remains effective during the project timeframe. Therefore, the best answers are B, C, and D.

References: 1: PMI-RMP Exam Content Outline, pages 9-10.

According to the PMBOK Guide, the risk owner is the person assigned the responsibility of monitoring the risk and implementing the risk response plan. The risk owner should be involved in the risk response execution and evaluation, and should communicate the results and outcomes to the relevant stakeholders. In the case of a data breach, the risk owner should coordinate a response with the risk manager and other parties involved, such as the security team, the legal team, the customer service team, and the senior management. The risk owner should also report the status of the risk and the effectiveness of the response plan to the risk manager. The risk manager should oversee the risk response process and ensure that the risk is handled appropriately and in alignment with the project objectives and stakeholder expectations. References: = PMBOK Guide, 6th edition, pages 452-453; The Standard for Risk Management in Portfolios, Programs, and Projects, page 79.

When facing resistance from team members, the risk manager should engage in open communication to address their concerns and clarify the importance of risk management in the project.

According to the PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1, the risk manager should handle this situation by meeting with team members to address their concerns. This is because:

Resistance to risk management is a common challenge that can hinder the effectiveness and efficiency of the risk management process. Resistance can stem from various factors, such as lack of awareness, understanding, commitment, trust, or support for risk management; fear of negative consequences or blame; competing priorities or interests; or cultural differences or biases.

Meeting with team members to address their concerns is a proactive and constructive way to overcome resistance and foster a positive risk culture within the project. By meeting with team members, the risk manager can:

Communicate the value and benefits of risk management for the project and the organization, such as improving decision-making, enhancing performance, increasing stakeholder satisfaction, and reducing uncertainty and variability.

Educate and train team members on the risk management principles, processes, tools, and techniques, and how they can be applied to the project context and objectives.

Involve and empower team members in the risk management activities, such as identifying, analyzing, prioritizing, responding, and monitoring risks, and solicit their feedback and suggestions for improvement.

Recognize and reward team members for their contributions and achievements in risk management, and celebrate the successful outcomes and opportunities realized by the project.

The other options are not effective in handling this situation because:

Continuing to implement the risk strategy without addressing the resistance can lead to further conflict, resentment, and distrust among the team members, and undermine the quality and credibility of the risk management process and outputs.

Reducing the number of risk management activities can compromise the project’s ability to identify and respond to the risks that may affect its scope, schedule, cost, quality, or other objectives, and expose the project to unnecessary threats or missed opportunities.

Raising the concerns with the project sponsor can escalate the issue and create a negative impression of the team members, and may not resolve the underlying causes of the resistance or improve the team’s engagement and commitment to risk management.

References:

PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1

Risk Management Professional (PMI-RMP)® Exam Cert Guide2

The project manager should assess and record associated secondary risks and proceed to treat them as any other risks. This involves identifying and evaluating the potential negative health effects of using pesticides and developing a plan to mitigate these risks. While it is important to consider the concerns of residents, the health authorities have determined that not moving forward with the plan will have more serious consequences on public health.

 Secondary risks are those that arise as a direct outcome of implementing a risk response. In this case, the use of pesticides is a risk response to limit the risks of harmful insects, but it may also cause negative health effects to some residents. This is a secondary risk that needs to be assessed and recorded in the risk register, along with its probability, impact, and response plan. The project manager should not suspend the project, as this would ignore the primary risk of harmful insects. The project manager should not consult with health experts to provide a risk trigger, as this is not a valid risk management technique. A risk trigger is an indication that a risk event is about to occur or has occurred, not a condition that prevents a risk response from being implemented. The project manager should not proceed with the project as normal, as this would neglect the secondary risk and its potential consequences. The project manager should follow the risk management process and treat the secondary risk as any other risk in the project. References: PMI. (2017). A Guide to the Project Management Body of Knowledge(PMBOK® Guide) – Sixth Edition. Chapter 11: Project Risk Management, p. 408. 5

The risk manager should have their team review the scope of work and requirements to ensure they understand the project's objectives and deliverables. Additionally, reviewing the risk management plan will help the team understand the risk management process, roles, and responsibilities, and prepare for the risk identification workshop.

According to the PMBOK® Guide – Sixth Edition1, the scope of work and requirements are key inputs for the risk identification process, as they define the project boundaries, deliverables, assumptions, and constraints. The risk management plan is also an essential input, as it provides the guidelines and framework for how risk management will be performed throughout the project. The other options are not relevant for risk identification, as they are either related to other processes (such as Monte Carlo analysis for quantitative risk analysis) or not directly related to the project risks (such as the list of pre-approved contractors or the organization chart for city permit department). References: PMBOK® Guide – Sixth Edition, pages 397-398.

The risk manager should advise the project manager to hire additional developers as soon as project metrics indicate that the risk of delay is materializing. This approach ensures that the response is timely and directly tied to the project’s actual performance, allowing for better resource management and minimizing unnecessary costs. This aligns with PMI's risk management principles, which advocate for the timely execution of risk responses based on objective data and metrics​.