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| Section | Objectives |
|---|---|
| Topic 1: Risk Strategy and Planning | - Risk Management Planning - Stakeholder Engagement in Risk |
| Topic 2: Risk Identification | - Overall Project Risk Identification - Identifying Individual Risks |
| Topic 3: Risk Analysis | - Quantitative Risk Analysis - Qualitative Risk Analysis |
| Topic 4: Risk Monitoring and Control | - Risk Reporting and Communication - Risk Audits and Reviews |
| Topic 5: Risk Response Planning | - Opportunity Response Strategies - Threat Response Strategies |
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NEW QUESTION # 41
A project manager has determined that an activity is too complex to complete internally so they hire a licensed contractor to complete the work. What is the project manager performing in this situation?
Answer: A
Explanation:
By hiring a licensed contractor to complete the complex activity, the project manager is transferring the risk associated with that activity to the contractor. This is an example of risk transfer, as the responsibility for managing the risk is shifted from the project manager to the contractor.
According to the PMI Risk Management Professional (PMI-RMP)®Handbook1, one of the domains of the PMI-RMP exam is Risk Response Planning, which involves developing options and actions to enhance opportunities and reduce threats to project objectives1. One of the strategies for negative risks or threats is risk transfer, which involves shifting the impact of a threat to a third party, such as a contractor, a vendor, or an insurer2. In this situation, the project manager is performing risk transfer by hiring a licensed contractor to complete the work that is too complex to complete internally. By doing so, the project manager is transferring the responsibility and liability of the activity to the contractor, who is expected to have the expertise and resources to handle the complexity. The project manager is not performing risk mitigation, which involves reducing the probability and/or impact of a threat2. The project manager is not performing risk acceptance, which involves acknowledging the existence of a threat and making a conscious decision to accept it without taking any action2. The project manager is not performing risk avoidance, which involves changing the project plan to eliminate the threat or protect the project objectives from its impact2. References: 1: PMI Risk Management Professional (PMI-RMP)®Handbook, page 62: A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, page 436.
NEW QUESTION # 42
In the country where a project is being executed, customs procedures are complex and change frequently.
During the risk identification process, the project team identifies a risk related to delays in customs on substantial equipment that will likely occur. Equipment delays on this project could lead to the project cancellation.
How should the probability and impact be characterized for this risk?
Answer: C
NEW QUESTION # 43
You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?
Answer: B
NEW QUESTION # 44
You are working with Anna on your project to determine and map the probability distributions of risk within the project. You have indicated that you will use the uniform distribution method for a portion of the project. Which part of your project is most likely to have a uniform risk distribution?
Answer: B
NEW QUESTION # 45
You are the project manager of the NHH project for your company. You have completed the first round of risk management planning and have created four outputs of the risk response planning process. Which one of the following is NOT an output of the risk response planning?
Answer: A
NEW QUESTION # 46
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