The PMI Risk Management Professional (PMI-RMP)® Certification exam’s main aim is to demonstrate an individual’s ability to identify and assess project risks, minimize threats, and capitalize on opportunities. Candidates with superior risk management abilities are also recommended to perform a specific job aligned with the needs of a project environment that is becoming increasingly global, virtual, and complicated. In that circumstance, candidates should enhance and defend the organization’s needs.
For a project manager with a focus on project risk management, especially large projects or complicated environments, PMI-RMP® is the best option.
Take the PMI RMP practice test and track your progress as you prepare for the PMI certification exam. SPOTO free RMP study material can assist you in passing your exam on the first try. The PMI RMP exam questions provided below are simulations of the actual certification exam and provide you with a realistic image of what to expect. Right now, try it!
1. You are a project manager for a primary new manufacturing plant that has never been done before. The project cost is estimated at the US $30,000,000 and will make use of four sellers. Once begun, the project cannot be canceled, as there will be a significant expenditure on plant and equipment. As the project manager, it would be most critical to carefully:
A. Review of all cost proposals from the sellers
B. Examine the budget reserves.
C. Complete the project charter.
D. Perform identification of risks.
Under such a situation, it is essential to perform an identification of risks activity carefully. Identification of all possible risks is vital for projects with a high impact of risks.
2. The weatherman predicted a 45% chance of rain and a 10% chance that the rain will be accompanied by wind. What is the probability that the baseball game will be called due to rain and wind?
If two or more risk events are occurring simultaneously, the combined effect is the multiplication of all probabilities to determine the cumulative effect. Combined probability = 0.45× 0.10 = 0.045. It means 4.5%.
3. Resource Consultancy has a large internal project to be initiated. Resource Consultancy is working with Pace Consultancy to staff this project to provide three resources for six months based on an agreed monthly rate. The resources will be part of the team managed by Resource Consultancy for six months. Which Resource Consultancy should use contract type to keep the risk minimum?
A. Purchase Order
B. Cost plus Fee
C. Fixed cost
D. Time and Material
In Time and Material contract, unit rates of resources can be accommodated when hired from a third party. Fixed price and Cost reimbursable contracts are generally not used for the hiring of only resources.
4. Analogous Cost Estimating may have high risk because it is:
A. Generally Accurate
B. Generally less accurate
C. Uses statistical relationship between historical data and other variables
D. Bottom-up estimating
Analogous cost estimating is a top-down approach, and it is generally less accurate.
5. Given the following information, is the project schedule ahead or behind what was planned for this period? EV = 95, PV = 85, AC = 100.
A. Ahead, because the result of the variance formula is negative
B. Behind, because the result of the variance formula is negative.
C. Ahead, because the result of the variance formula is positive.
D. Behind, because the result of the variance formula is positive.
Using SV formula, SV= EV-PV + 95-85 = 10 (Positive value). In this case, SV is more than1. It means the project is ahead of schedule. Options 1 & 2 are wrong as the value of EV is positive. Option D is not correct since the positive SV value denotes ahead of the planned schedule.
6. Sam is currently managing a bridge construction project. The project is in the execution phase. During the planning phase of the project, Sam developed a comprehensive stakeholder management plan for the project. However, the frequency of the plan review has not been defined. How often should Sam review the stakeholder management plan?
A. On a monthly basis.
B. On a regular basis; frequency needs to be decided by Sam
C. On a weekly basis.
D. The stakeholder management plan cannot be reviewed during the execution of the project.
D is the correct answer as the stakeholder management plan cannot be reviewed in the execution phase. It should have been done in the planning phase.
7. Assuming that the ends of a range estimates are +/- 3 sigma from the mean, which of the following range estimates involves the LEAST risk?
A. 30 days, plus or minus five days.
B. 22-30 days.
C. O=27 days, P=33 days, Most likely=30 days.
D. Mean of 28 days.
Assuming that the 1sigma value is 1, only Options C is closer. Values of ML- 30, P- 30+3=33, and O-30-3=27. Other options do not show range with three-sigma distribution, and it involves the least risk.
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8. The sponsor and the project manager are discussing what type of contract the project manager plans to use on the project. The buyer from the procurement department points out that the performing organization has to spend a lot of money hiring a design team to come up with the design for this project. The project manager is concerned that the risk for the organization is as tiny as possible. What type of contract should the project manager use to keep the risk as minimum as possible for the buyer?
A. Cost plus incentive
B. Firm fixed price
C. Time and material
D. Cost reimbursable
In an FFP contract, buyer risk is relatively low compared to other agreements.
9. Which one is the win-win conflict resolution technique that project managers should use most for resolving conflict among project team members and other stakeholders, including performing risk management activities?
A. Compromise / Reconcile
C. Smoothing /Accommodating
D. Collaboration/Problem Solve
Collaboration/Problem Solving is the win-win conflict resolution approach in most situations.
10. You are the Project Manager of Target Structural Consultants. The Project team members are from the HR and Finance departments. The team members report to their respective departmental managers, and you have limited control over them, and you feel this constraint will be a project risk. What type of organizational hierarchy do Target Structural Consultants follow?
A. Projectized organization
B. Functional organization
C. Matrix organization
D. None of these.
In a functional organization structure, team members report to the respective department heads, and the Project manager has relatively more minor control over them.
11. Which of the following processes has risk register as the primary output?
A. Plan Risk Management
B. Identify Risks
C. Monitor Risks
D. Perform Qualitative Risk Analysis
The risk register is an output of the Risk Identification process.
12. In adaptive projects, an on-demand approach based on the theory of constraints and pull-based scheduling concepts from lean manufacturing to limit a team’s work in progress and possibly reduce risks to balance the demand against the team’s delivery throughout is called:
A. Kanban System
B. Sprint development
C. PDCA framework
In the Kanban system, limiting of team’s work in progress has been done to possibly reduce the risks based on the lean manufacturing concept.
13. The cost of choosing one project and giving up another is called:
A. Sunk cost
B. Fixed cost
C. Opportunity cost.
D. Net present value
Opportunity cost is the opportunity of benefits lost by not selecting a particular project while opting for another project based on specific selection methods or criteria.
14. Quantitative risk analysis model reflects individual project risks and other sources of uncertainty. If the cost, duration, and resource requirement for a planned activity are uncertain, the range of possible values can be represented in the model as a probability distribution. Which one of the following tools and techniques are used in the quantitative risk analysis to present methods to analyze such uncertainty?
A. Influence diagram
B. Representations of uncertainty
C. Sensitivity analysis
D. Decision tree analysis
Representations of uncertainty is the technique used in the Perform Quantitative risk analysis to present quantitatively analyzing the delay in the project.
15. You have just been assigned as the project manager of Global Telecom Inc. for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project, but no one has evaluated them to assess the range of possible project outcomes. What would you propose as the project manager?
A. Perform Quantitative Risk Analysis.
B. Plan Risk Responses.
C. Plan Risk Management
D. Monitor risks.
Plan Risk Management is the process of defining how to conduct risk management activities for a project and will cover all aspects of identifying risks under such situations.
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16. Workarounds are determined during which risk management process?
A. Risk monitoring
B. Identify Risk.
C. Perform Quantitative risk analysis
D. Plan Risk response.
In the Risk monitoring process, the effectiveness of all approved risk responses is evaluated. If they are not adequate, workarounds are planned to tackle the risk events. Even for newly identified risks, workarounds are prepared during the Monitor Risks process.
17. You are the Project Manager for ABC Design Consultants. You have been asked to help choose one of the four potential project proposals. The senior management always advises the internal rate of return (IRR) technique for project selection from a financial risk point of view. Which one of the following projects should you recommend to the management?
A. Project D requires making an initial investment of $200,000 and will give an annual return of $60,000 and an IRR of 12%.
B. Project A requires making an initial investment of $100,000 and will give a monthly return of $5,000 and an IRR of 14%.
C. Project B requires making an initial investment of $200,000 and will give a monthly return of $8,000 and an IRR of 11%
D. Project C requires making an initial investment of $100,000 and will give an annual return of $40,000 and an IRR of 10.5%
The project with a higher IRR should be selected if the project selection method based on IRR is followed. There is no need to look at other figures and try to calculate something.
18. Which of the following statements is true about risk management?
A. When evaluating risks, their impact should be considered. However, the probability of occurrence is not essential.
B. Risk register documents all the risks (positive or negative) in detail
C. Risks, if they happen, always have a negative impact and seldom have a positive impact.
D. Risk response plan is another name for Risk Management Plan.
The risk register contains all risks, whether positive or negative. Option A is wrong because probability is also essential. Option C is incorrect because there are also positive risks. Option D is incorrect as they are not the same and the Risk management plan includes details of risk response planning
19. Which of the following is not an example of formal communication while exchanging project information with stakeholders?
B. Project status report
D. Minutes of meeting
Email is not considered a formal communication technique.
20. Raymond is the Project Manager for an Afforestation project. To strengthen the identifying risks process, Raymond sends out a questionnaire containing identified risks by the project team to gather inputs from six experts and maintain anonymity. Which technique is Raymond using?
A. Delphi technique
D. Documentation review
In the Delphi technique, the anonymity of participants is maintained to avoid biases.
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