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PMI-RMP exam is designed to test the candidate's knowledge and skills in risk management. PMI-RMP exam covers various aspects of risk management, including risk identification, risk analysis, risk response planning, risk monitoring, and risk control. PMI-RMP exam is divided into five domains, which are risk strategy and planning, stakeholder engagement, risk process facilitation, risk monitoring and reporting, and performing specialized risk analysis. PMI-RMP exam consists of 170 multiple-choice questions and the duration of the exam is 3.5 hours.
PMI-RMP certification exam is one of the most sought-after certifications for professionals in the field of project management. It is a globally recognized certification that validates an individual's expertise in risk management. PMI Risk Management Professional certification is offered by the Project Management Institute (PMI), which is a non-profit organization that aims to promote excellence in project management.
NEW QUESTION # 63
You work as a project manager for BlueWell Inc. You would like to utilize sensitivity analysis in your project, but the management does not understand how this will be displayed. What type of chart is usually used with sensitivity analysis to show the relative affect of risks on the project?
- A. Tornado diagram
- B. Force field analysis chart
- C. Ishikawa chart
- D. GERT Chart
Answer: A
NEW QUESTION # 64
A race director is planning a marathon with US$80,000 in upfront costs that will be offset by race fees. The remainder of the funds will be donated to a national charity. State law mandates that all money paid by the participants must be refunded if the race is cancelled for any reason.
Which of the following is the best example of a risk mitigation response?
- A. Purchase an insurance policy covering up to US$85,000 in losses, at a cost of US$5,000, in the event the race is cancelled.
- B. Charge the runners an additional amount to cover the US$80,000.
- C. Let the runners know the race will be cancelled only in the event of an emergency.
- D. Inform the charity that they will receive no funds should the race be cancelled.
Answer: A
NEW QUESTION # 65
SIMULATION
Fill in the blank with an appropriate phrase.
________is the study of how the variation (uncertainty) in the output of a mathematical model can be apportioned, qualitatively or quantitatively, to different sources of variation in the input of a model.
Answer:
Explanation:
Sensitivity analysis
NEW QUESTION # 66
A risk management professional is in the process of categorizing risks when a subject matter expert (SME) suggests categorizing the risks by their impact to the project objectives. Why should the risk management professional use this approach?
- A. To determine there more attentive project leadership and organizational involvement is needed.
- B. To assign risks and risk severities to functional discipline and departments effectively.
- C. To ensure that project priorities are being appropriately factored into risk response plans.
- D. To enable the team in identifying the specific causes of risks associated with project objectives.
Answer: C
Explanation:
Explanation
Categorizing risks by their impact on project objectives ensures that risk response plans are aligned with project priorities. This helps in focusing on the most critical risks and their potential impact on the project's success.
NEW QUESTION # 67
The risk manager notices that in their workshops, most of the risks identified are threats. What should the risk manager do to increase the number of opportunities identified?
- A. Conduct a political, economic, sociological, technological, legal, and environmental (PESTLE) analysis
- B. Interview more stakeholders who have a positive mindset
- C. Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis
- D. Use the Delphi technique involving experts who have identified opportunities in the past
Answer: C
Explanation:
Explanation
A SWOT analysis is a strategic planning tool that helps identify an organization's strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis, the risk manager can encourage the project team to think more broadly about potential opportunities, leading to a more balanced view of risks and opportunities.
NEW QUESTION # 68
Thomas is a key stakeholder in your project. Thomas has requested several changes to the project scope for the project you are managing. Upon review of the proposed changes, you have discovered that these new requirements are laden with risks and you recommend to the change control board that the changes be excluded from the project scope. The change control board agrees with you. What component of the change control system communicates the approval or denial of a proposed change request?
- A. Scope change control system
- B. Change log
- C. Configuration management system
- D. Integrated change control
Answer: D
NEW QUESTION # 69
You are the project manager for your organization. You have identified a risk event you're your organization could manage internally or externally. If you manage the event internally it will cost your project $578,000 and an additional $12,000 per month the solution is in use. A vendor can manage the risk event for you. The vendor will charge $550,000 and $14,500 per month that the solution is in use. How many months will you need to use the solution to pay for the internal solution in comparison to the vendor's solution?
- A. Approximately 8 months
- B. Approximately 11 months
- C. Approximately 13 months
- D. Approximately 15 months
Answer: B
NEW QUESTION # 70
What quantitative tools and techniques are used to perform risk analysis in order to support stakeholder decision making for the project?
- A. Sensitivity analysis
- B. Risk probability and impact assessment
- C. Interviewing
- D. Probability and impact matrix
Answer: C
NEW QUESTION # 71
Wendy is the project manager of the FBL project for your company. She has identified several risks within her project and has created a risk contingency reserve of $45,000 total. Her project is nearly complete and many of the risks have not happened in the project. What should Wendy do with the funds in the contingency reserve?
- A. The funds remain in the contingency reserve until all of the risks have passed.
- B. The funds remain in the contingency reserve until the project is closed.
- C. The funds for the risks that have passed and have not happened are transferred to the project budget.
- D. The funds for the risks that have passed and have not happened are released.
Answer: D
NEW QUESTION # 72
A project manager wants to represent the distribution of uncertainty around a risk model element. However, good data on the variability, of the risk model element has not been collected, and only contains minimum and maximum values.
What curve should the project manager use to represent the distribution?
- A. Normal
- B. Uniform
- C. Lognormal
- D. Beta
Answer: D
NEW QUESTION # 73
A certain risk is identified for a major project, and the risk response is planned. However, the analysis reveals a high probability for a secondary risk which will be tolerated based on the organization's risk thresholds. The secondary risk is subsequently registered. During project execution, the primary risk occurs, the planned action is taken, and the secondary risk emerges What two actions should the risk owner take? (Choose two.)
- A. Conduct meeting with all stakeholder to agree on post impact solutions.
- B. Engage the project manager to authorize the secondary risk's response.
- C. Implement the secondary risk response and update the project documents.
- D. Set the corresponding trigger conditions to the secondary risk.
- E. Update and communicate assessments of the secondary risk's impact.
Answer: C,E
Explanation:
Explanation
The risk owner should implement the secondary risk response, as it is now being tolerated, and update the project documents accordingly. They should also update and communicate the assessments of the secondary risk's impact to ensure everyone is aware of the situation.
NEW QUESTION # 74 
The project sponsor has asked the project manager how much more a P90 will cost. The sponsor has budgeted for a P40. The project values are in thousands.
How much additional funding would the sponsor need to budget for a P90?
- A. US$8,495,000
- B. US$794,000
- C. US$913,000
- D. US$9,408,000
Answer: C
NEW QUESTION # 75
David is the project manager of HGF project for his company. David, the project team, and several key stakeholders have completed risk identification and are ready to move into qualitative risk analysis. Tracy, a project team member, does not understand why they need to complete qualitative risk analysis. Which one of the following is the best explanation for completing qualitative risk analysis?
- A. Qualitative risk analysis helps segment the project risks, create a risk breakdown structure, and create fast and accurate risk responses.
- B. All risks must pass through quantitative risk analysis before qualitative risk analysis.
- C. It is a cost-effective means of establishing probability and impact for the project risks.
- D. It is a rapid and cost-effective means of establishing priorities for the plan risk responses and lays the foundation for quantitative analysis.
Answer: D
NEW QUESTION # 76
Linda is the project manager of the NAB Project. One of the risks her project team has identified is too dangerous for the project team to manage internally so she has hired a vendor to complete this portion of the project and to manage the identified risk. What risk response has Linda used in this instance?
- A. Contractual
- B. Mitigation
- C. Avoidance
- D. Transference
Answer: D
NEW QUESTION # 77
You work as a project manager for BlueWell Inc. You are preparing for the risk identification process. You will need to involve several of the project's key stakeholders to help you identify and communicate the identified risk events. You will also need several documents to help you and the stakeholders identify the risk events.
Which one of the following is NOT a document that will help you identify and communicate risks within the project?
- A. Activity cost estimates
- B. Activity duration estimates
- C. Risk register
- D. Stakeholder register
Answer: C
NEW QUESTION # 78
A risk manager completed risk response planning for a project that is currently in the execution phase. During a periodic review of the risk register, the project manager recognizes that some key secondary risks have not been considered.
Who should the project manager hold accountable for missing the risks?
- A. The audit team
- B. The risk manager
- C. The risk owners
- D. The discipline engineers
Answer: B
Explanation:
Explanation
The risk manager is responsible for ensuring that all risks, including secondary risks, are identified and addressed during the risk response planning process. If key secondary risks were missed, the risk manager should be held accountable. (Reference: Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Sixth Edition, Section 11.5) The risk manager is responsible for identifying and analyzing risks, as well as planning and implementing risk responses. Secondary risks are those risks that arise as a direct result of implementing a risk response to a specific risk. The risk manager should have considered the potential secondary risks during the risk response planning and updated the risk register accordingly. The project manager should hold the risk manager accountable for missing the secondary risks and ensure that they are properly addressed12 References: 1: PMI Risk Management Professional (PMI-RMP) Handbook, page 10 2: A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Seventh Edition, page 11.2.2.1
NEW QUESTION # 79
You are the project manager of the NHK Project. Management wants to know how often your risk identification process will occur during the project. Considering that your project is scheduled to last one year and involvs five distinct phases, how often should risk identification take place?
- A. Monthly
- B. Vary depending on the situations within the project
- C. Once per project life cycle phase
- D. Quarterly
Answer: B
NEW QUESTION # 80
When selecting strategies as an activity of Plan Risk Response, what is the overall goal?
- A. Select the strategies with the greatest benefit to stakeholders.
- B. Select the strategies with the least financial impact.
- C. Select the strategies with the least overall impact to resources.
- D. Select the strategies with the greatest overall positive influence.
Answer: D
Explanation:
Explanation
The overall goal of selecting strategies during the Plan Risk Response activity is to choose those strategies that have the greatest overall positive influence on the project, considering factors such as cost, schedule, and resources.
NEW QUESTION # 81
Lamont is the project manager of a project that has recently finished the final project deliverables. The project customer has signed off on the project deliverable and Lamont has a few administrative closure activities to complete. In the project, there were several large risks that could have wrecked the project but Lamont and his project team found some creative methods to resolve the risks without affecting the project costs or project end date. What should Lamont do with the risk responses he identified during the project's monitoring and controlling process?
- A. Include the responses in the project management plan.
- B. Nothing. The risk responses are included in the project's risk register already.
- C. Include the risk responses in the organization's lessons learned database.
- D. Include the risk response in the project risk management plan.
Answer: C
NEW QUESTION # 82
Gary is the project manager of the MMQ project for his company. He is working with his project team to plan the risk responses for his project. Sarah, a project team member, does not
understand the process that Gary is using to plan the risk responses. Which approach is the preferred method to address project risks and the risk responses?
- A. Risks in the project should be addressed by their priority for creating risk responses.
- B. Risks in the project should be addressed by the organization's risk tolerance for creating risk responses.
- C. Risks in the project should be addressed by their probability for creating risk responses.
- D. Risks in the project should be addressed by their impact for creating risk responses.
Answer: A
NEW QUESTION # 83
A project manager wants to work on understanding the project risks. The project manager works with the integrated project team to develop the risk handling strategies for the identified risks.
How should the project manager work with these risk handling strategies?
- A. Review and revise the strategies periodically.
- B. Implement the strategies immediately.
- C. Implement the strategies after completing the risk analysis.
- D. Ensure the strategies are approved by the stakeholders.
Answer: A
Explanation:
Explanation
Risk handling strategies should be reviewed and revised periodically to ensure they remain effective and relevant as the project progresses. This allows the project manager to adapt to changing circumstances and minimize the impact of risks on the project.
According to the PMBOK Guide, risk handling strategies are the specific actions that are taken to implement the risk response plan. The risk response plan is the output of the Plan Risk Responses process, which describes how the project team intends to address the identified risks. The risk handling strategies should be aligned with the risk response strategies, which are the general approaches to deal with the risks, such as avoid, transfer, mitigate, accept, exploit, share, enhance, or accept.
The project manager should work with the risk handling strategies by reviewing and revising them periodically. This is because the project risks are not static, but dynamic and uncertain. They may change over time due to various factors, such as changes in the project scope, schedule, cost, quality, resources, stakeholder expectations, assumptions, constraints, etc. Therefore, the project manager should monitor and control the risk handling strategies to ensure that they are still effective and appropriate for the current risk situation. The project manager should also update the risk register and the risk report with the results of the risk handling strategies, such as the residual risks, secondary risks, and risk triggers.
The other options are not valid for how the project manager should work with the risk handling strategies:
Implement the strategies after completing the risk analysis: This is not a valid option because the risk analysis is not the final step in the risk management process. The risk analysis is part of the Perform Qualitative Risk Analysis and Perform Quantitative Risk Analysis processes, which come after the Identify Risks process and before the Plan Risk Responses process. The risk analysis helps the project manager to prioritize and evaluate the risks, but it does not provide the specific actions to address them.
The risk handling strategies are developed in the Plan Risk Responses process, which comes after the risk analysis.
Implement the strategies immediately: This is not a valid option because the risk handling strategies should not be implemented without proper planning and approval. The risk handling strategies should be documented in the risk response plan, which should be communicated and approved by the project sponsor, customer, and other relevant stakeholders. The risk handling strategies should also be integrated with the other project management plans, such as the scope, schedule, cost, quality, resource, communication, procurement, and stakeholder management plans. The risk handling strategies should be implemented only when the risk triggers or conditions occur, or when the project manager decides to do so based on the risk analysis and evaluation.
Ensure the strategies are approved by the stakeholders: This is not a valid option because the approval of the risk handling strategies is not the only thing that the project manager should do with them. The approval of the risk handling strategies is part of the Plan Risk Responses process, which comes before the Implement Risk Responses and Monitor Risks processes. The project manager should also implement, monitor, and control the risk handling strategies to ensure that they are effective and appropriate for the current risk situation.
References: PMBOK Guide1, Risk Management Professional (PMI-RMP) Cert Guide1
NEW QUESTION # 84
Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a vendor to complete all work packages that deal with the electrical wiring. By removing the risk internally to a licensed electrician Adrian feels more comfortable with project team being safe. What type of risk response has Adrian used in this example?
- A. Acceptance
- B. Mitigation
- C. Avoidance
- D. Transference
Answer: D
NEW QUESTION # 85
While planning for project execution phase stakeholders are making decisions on how to respond to known and new risks. What artifact should the stakeholders prepare?
- A. Issue log
- B. Change log
- C. Risk-adjusted back log
- D. Assumption log
Answer: C
Explanation:
Explanation
The stakeholders should prepare a risk-adjusted backlog when making decisions on how to respond to known and new risks. A risk-adjusted backlog helps prioritize work items based on their risk level and potential impact on the project.
A risk-adjusted backlog is an artifact that reflects the prioritization of the product backlog items based on their risk exposure. It is used to plan for the execution phase of an agile project, where the stakeholders can decide how to respond to known and new risks by selecting the most valuable and least risky items to deliver. A risk-adjusted backlog can help the stakeholders to optimize the value delivery and reduce the uncertainty of the project outcomes. References: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 113; PMI, Agile Practice Guide, 2017, p. 54.
NEW QUESTION # 86
You are the project manager of the NGQQ Project for your company. To help you communicate project status to your stakeholders, you are going to create a stakeholder register. All of the following information should be included in the stakeholder register except for which one?
- A. Identification information for each stakeholder
- B. Stakeholder management strategy
- C. Stakeholder classification of their role in the project
- D. Assessment information of the stakeholders' major requirements, expectations, and potential influence
Answer: B
NEW QUESTION # 87
The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin.
The project manager would like the risk manager to take full advantage of opportunities.
Which response should the risk manager take?
- A. Exploit
- B. Mitigate
- C. Accept
- D. Transfer
Answer: A
Explanation:
Explanation
The risk manager should choose to exploit opportunities, as this response aims to maximize the positive effects of opportunities, which can help recover the project's contingency reserve and profit margin.
Exploit is a positive risk response strategy that aims to ensure that the opportunity is realized 1. It involves eliminating the uncertainty associated with a particular upside risk and making it happen 2. For example, if there is an opportunity to reduce the project cost by using a cheaper supplier, the project manager can exploit it by signing a contract with the supplier and securing the savings. Exploit is the opposite of avoid, which is a negative risk response strategy that seeks to eliminate the threat or protect the project from its impact 2.
The other options are not appropriate for taking full advantage of opportunities. Mitigate is a negative risk response strategy that reduces the probability and/or impact of a threat 2. It is the opposite of enhance, which is a positive risk response strategy that increases the probability and/or impact of an opportunity 1. Accept is a risk response strategy that involves acknowledging the risk and not taking any action unless the risk occurs 2.
It can be applied to both threats and opportunities, but it does not actively pursue them. Transfer is a negative risk response strategy that shifts the impact of a threat to a third party, along with ownership of the response 2. It is the opposite of share, which is a positive risk response strategy that allocates ownership of an opportunity to a third party who is best able to capture it for the benefit of the project 1.
References: 1: How To Exploit and Enhance Project Opportunities - Project Risk Coach 2 2: A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Sixth Edition, page 443-4451
NEW QUESTION # 88
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To be eligible for the PMI-RMP certification exam, candidates must have a minimum of 3 years of experience in risk management and 40 hours of formal risk management education. Candidates must also pass the PMI-RMP certification exam, which is a challenging exam that requires a thorough understanding of risk management concepts and techniques. The PMI-RMP certification is valid for three years and requires the candidate to earn 30 professional development units (PDUs) in the area of risk management to maintain their certification.
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