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| Section | Objectives |
|---|---|
| Risk Strategy and Planning | - Risk Management Planning - Stakeholder Engagement in Risk |
| Risk Analysis | - Quantitative Risk Analysis - Qualitative Risk Analysis |
| Risk Identification | - Identifying Individual Risks - Overall Project Risk Identification |
| Risk Response Planning | - Opportunity Response Strategies - Threat Response Strategies |
| Risk Monitoring and Control | - Risk Reporting and Communication - Risk Audits and Reviews |
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NEW QUESTION # 103
You are the project manager of the NHQ project for your company. Management has told you that you must implement an agreed upon contingency response if the Cost Performance Index in your project is less than 0.90. Consider that your project has a budget at completion of $250,000 and is 60 percent complete. You are scheduled to be however, 75 percent complete, and you have spent $165,000 to date. What is the Cost Performance Index for this project to determine if the contingency response should happen?
Answer: C
NEW QUESTION # 104
Nancy is the project manager of the NHH project. She and the project team have identified a significant risk in the project during the qualitative risk analysis process. Bob is familiar with the technology that the risk is affecting and proposes to Nancy a solution to the risk event. Nancy tells Bob that she has noted his response, but the risk really needs to pass through the quantitative risk analysis process before creating responses. Bob disagrees and ensures Nancy that his response is most appropriate for the identified risk. Who is correct in this scenario?
Answer: A
Explanation:
Explanation
NEW QUESTION # 105
One project in a program needs to be completed in 6 months because there is a large bonus for early completion. Consequently, the program manager transfers all resources to this project and arranges for employees to receive overtime pay.
Which risk response strategy is the program manager using in this scenario?
Answer: D
NEW QUESTION # 106
A major data-center initiative involves performing a sensitivity analysis to determine the required level of disaster recovery. Several key stakeholders disagree about which level of disaster recovery is required. The lessons-learned database includes examples from previous similar initiatives, as well as a competitor's advertised disaster-recovery plans. The difference for this data center is its geographical location and unique climate requirements.
What should the risk manager do to quantify the risk?
Answer: B
Explanation:
The Delphi technique is a structured expert-judgment method used when information is uncertain, incomplete, or subject to disagreement.
Under this technique, experts provide their assessments independently, often anonymously. Their responses are summarized and redistributed for additional review until a reasonable level of agreement or convergence is achieved.
This approach is appropriate because the stakeholders disagree about the required disaster-recovery level, and the available historical information may not fully apply to the project's unique geographical and climate conditions.
The Delphi technique can reduce the influence of dominant personalities, seniority, group pressure, and authority bias. It can help the risk manager develop more reliable probability, impact, recovery-time, recovery- point, and financial-loss estimates.
Option A is not the best answer because organizational process assets, including lessons learned, are useful inputs but may not adequately address the project's unique conditions or resolve stakeholder disagreement.
Option C is incorrect because a 360-degree assessment is normally used for evaluating employee behavior, leadership, or performance. It is not a standard quantitative risk-analysis technique.
Option D is not the best answer because enterprise environmental factors and external benchmarks may provide useful information, but they may not account for the data center's unique geographical location and climate exposure.
References:
PMI, PMBOK Guide-Sixth Edition, Section 11.4, Perform Quantitative Risk Analysis.
PMI, PMBOK Guide-Sixth Edition, guidance concerning expert judgment, data gathering, sensitivity analysis, and uncertainty analysis.
PMI, Practice Standard for Project Risk Management, qualitative and quantitative risk-analysis guidance.
PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, guidance concerning uncertainty, expert judgment, and reliable risk information.
NEW QUESTION # 107
During a risk reassessment workshop with the project team and some external stakeholders, two key external stakeholders are overemphasizing the impact of a few project risks. This has led to a conflict.
How should the risk manager handle this situation?
Answer: A
Explanation:
Explanation
According to the PMBOK Guide, one of the tools and techniques for the plan risk management process is ground rules. Ground rules are the rules of conduct or behavior that are established by the project team and other stakeholders to ensure a productive and respectful environment for risk management activities. Ground rules can cover various aspects of risk management, such as roles and responsibilities, communication protocols, decision-making processes, meeting agendas, and conflict resolution methods1. By referring to the team's ground rules on how to resolve conflicts, the risk manager can handle the situation where two key external stakeholders are overemphasizing the impact of a few project risks. This can help the risk manager to maintain a constructive and collaborative atmosphere in the risk reassessment workshop, as well as to ensure that the risk analysis and prioritization are based on objective and consistent criteria.
Some of the other options are not relevant or appropriate for the question scenario:
Requesting for a skilled facilitator to help resolve conflicts that have arisen is not a feasible or effective option, as it would interrupt the flow of the risk reassessment workshop and delay the risk management process. The risk manager should be able to facilitate the workshop and handle conflicts by themselves, using the tools and techniques that they have planned and agreed upon with the project team and stakeholders.
Running a sensitivity analysis to check which risks have the most impact is a technique for the perform quantitative risk analysis process, which is not applicable in the context of a risk reassessment workshop. A sensitivity analysis is a quantitative method that examines the effect of varying one risk parameter at a time on the project objectives, such as cost or schedule. It is not a tool for resolving conflicts or validating the impact of risks, as it does not consider the interrelationships and dependencies among risks or the probability of risk occurrence1.
Using the assumption analysis technique to validate the assumptions is a technique for the identify risks process, which is not suitable for the situation where conflicts have already arisen in the risk reassessment workshop. An assumption analysis is a technique that explores the validity of the assumptions that are made during the project planning and risk management processes. It is not a tool for resolving conflicts or verifying the impact of risks, as it does not address the root causes or the consequences of the disagreements among the stakeholders1.
References: PMBOK Guide, 6th edition, pages 407-408, 431-432, 437-438, 441-4421; PMI-RMP Exam Content Outline, 2015, pages 7-8.
NEW QUESTION # 108
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