Free PMP® Exam Practice Questions on Risk Management

1. You have identified disaster situations (e.g. floods, earthquakes etc.) as potential risks to your project. When discussing with your project sponsor, she mentioned that at the project level, no steps can be taken to deal with such risk and suggested creating a contingency reserve (5% of the project budget) to be used in case of disaster situations. This is an example of:

2. You are setting up a planning meeting in an effort to develop a risk management plan for your project. Who should you invite?

3. You are a senior project manager and you are discussing project risk with a new PM. She is having trouble differentiating what is part of the Risk management plan and what is documented in the risk register. Which of the following is not a component of the risk management plan?

4. You are conducting risk management activities on your project. You have gathered pertinent stakeholders together and identified all risks. Next, you analyze the risks to determine an appropriate amount of contingency reserves to put into the project baselines. What did you forget to do?

5. Pat is a new project manager and wants to do a good job. His sponsor, experienced and a mentor of Pat, is certified in and passionate about risk management. What document would he suggest Pat focuses on, since it is used as an input and an output of most risk processes, and is frequently reviewed and updated?

6. While Implementing Risk Responses, you find that some of the risk owners are outside of the project team. What is the best way you can you encourage their participation?

7. During the Perform Qualitative Risk Analysis process you determine a risk has a 25% chance of occurring in any month of project with an eight-month duration. 8% of the project budget has been allocated for a contingency reserve and the project cost performance index is 0.7. What is the probability of the risk happening during the sixth month?

8. You are using the interviewing technique of the Quantitative Risk Analysis process. Which of the following statements is true?

9. During a status meeting with your project team, you explain to them that your risk register is only as good as the actions taken to manage the risk. Merely identifying them and recording them will not be helpful if you do not also put the responses into action. Only if _______ give the required level of effort to implementing the responses will the overall risk exposure be managed proactively. You are referring to:

10. What is the major difference between a risk audit and a risk review?