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| Section | Objectives |
|---|---|
| Topic 1: Risk Monitoring and Control | - Risk Reporting and Communication - Risk Audits and Reviews |
| Topic 2: Risk Response Planning | - Threat Response Strategies - Opportunity Response Strategies |
| Topic 3: Risk Strategy and Planning | - Risk Management Planning - Stakeholder Engagement in Risk |
| Topic 4: Risk Analysis | - Qualitative Risk Analysis - Quantitative Risk Analysis |
| Topic 5: Risk Identification | - Identifying Individual Risks - Overall Project Risk Identification |
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NEW QUESTION # 163
Which of the following should the risk manager consider as external environmental factors when creating the risk management plan?
Answer: D
NEW QUESTION # 164
The project manager performed' a variance analysis on the project during the execution phase. The variances were shown as increasing What does this result imply?
Answer: D
Explanation:
Explanation
Increasing variances during the execution phase imply that the uncertainty and risk are increasing, as the project performance is deviating from the planned values.
NEW QUESTION # 165
An organizational-change initiative to implement a new data warehouse requires the development of an implementation plan. The plan must comprehensively train all staff to use the new warehouse for self-service business intelligence. The project sponsor is concerned that an unsuccessful implementation plan will reflect negatively on the sponsor. During a recent conversation with the project team, the sponsor indicates a desire to transfer the risk fully.
What should the risk manager do?
Answer: A
Explanation:
A verbatim extract cannot be authenticated without access to the applicable official PMI Risk Manager study guide or source document. The PMI-aligned explanation is as follows:
Risk transfer is a threat-response strategy in which responsibility for managing the threat and some or all of its financial consequences is shifted to a third party.
Common transfer mechanisms include:
* Insurance.
* Warranties.
* Performance bonds.
* Guarantees.
* Fixed-price contracts.
* Service-level agreements.
* Outsourcing arrangements.
Hiring qualified contractors and outsourcing the training activity is the option most closely aligned with the sponsor's request to transfer the risk. The contract can assign defined responsibilities, performance standards, deliverables, remedies, and financial consequences to the external provider.
The outsourcing arrangement should clearly define:
* Training scope.
* Required competencies.
* Number and location of trainees.
* Delivery schedule.
* Acceptance criteria.
* Performance measurements.
* Service levels.
* Responsibilities for retraining.
* Remedies for inadequate performance.
* Reporting and escalation procedures.
However, transferring a risk does not necessarily eliminate all risk. The organization may retain residual risks, including vendor failure, reputational impact, poor user adoption, inadequate requirements, contract disputes, or weak oversight. The sponsor and organization also retain ultimate accountability for achieving the intended business outcome.
Option B represents a contingent or fallback response. Retaining trainers does not transfer the original risk to another party.
Option C represents risk acceptance supported by a contingency reserve. The organization retains the financial consequences rather than transferring them.
Option D represents collaboration or mitigation using internal resources. It does not contractually transfer ownership or financial exposure to an external party.
The most appropriate answer is therefore to outsource the activity to contractors through a properly structured contractual arrangement.
References:
PMI, PMBOK Guide-Sixth Edition, Section 11.5, Plan Risk Responses.
PMI, PMBOK Guide-Sixth Edition, threat-response strategies, including avoid, transfer, mitigate, accept, and escalate.
PMI, Practice Standard for Project Risk Management, guidance concerning risk-response selection, transfer mechanisms, residual risk, and secondary risk.
PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, guidance concerning risk treatment, accountability, contracting, and residual exposure.
NEW QUESTION # 166
Pete works as a project manager for BlueWell Inc. The Management has told him that he must implement an agreed-upon contingency response if the cost performance index in his project is less than 0.90. Consider that Pete's project has a budget at completion of $275,000. His project is
65 percent complete and he has spent $175,000 to date. However, Pete is scheduled to be 78 percent complete. What is the cost performance index for this project to determine if the contingency response should happen?
Answer: C
NEW QUESTION # 167
You work as a project manager for TechSoft Inc. You, the project team, and the key project stakeholders have completed a round of quantitative risk analysis. You now need to update the risk register with your findings so that you can communicate the risk results to the project stakeholders - including management. You will need to update all of the following information except for which one?
Answer: B
NEW QUESTION # 168
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