The Project Management Institute’s (PMI) Project Risk Management Professional (PMI-RMP®) Certification equips you with the Project Risk Management capabilities necessary to meet the demands of an increasingly global, virtual, and sophisticated project environment.
When taking the PMI-RMP certification exam, take the PMI-RMP test and track your progress. This free RMP study materials might assist you in passing your exam the first time.
1. In adaptive projects, 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 in order to balance demand against the team’s delivery throughout is called:
A. Kanban System
B. Sprint development
C. PDCA framework
In Kanban system, limiting of team’s work in progress has been done to possibly reduce the risks based on lean manufacturing concept.
2. Quantitative risk analysis model reflects individual project risks and other sources of uncertainty. If the cost, duration and resource requirement for a planned activity is uncertain, the range of possible values can be represented in the model as a probability distribution. Which one of the following tools and technique is 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 methods of quantitatively analyzing uncertainty in the project
3. 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 the stakeholder management plan be reviewed by Sam?
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 right answer as the stakeholder management plan cannot be reviewed in the execution phase. It should have been done in the planning phase.
4. 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 as a formal communication technique.
5. The weatherman predicted there is 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 at the same time, 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%.
6. 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 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 annual return of $60,000 and an IRR of 12%.
B. Project A requires making an initial investment of $100,000 and will give monthly return of $5,000 and an IRR of 14%.
C. Project B requires making an initial investment of $200,000 and will give monthly return of $8,000 and an IRR of 11%
D. Project C requires making an initial investment of $100,000 and will give annual return of $40,000 and an IRR of 10.5%
The project with higher IRR should be selected, if project selection method based on IRR is followed. There is no need to look at other figures and try to calculate something.
7. 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 planned schedule.
8. 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.
9. 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 certain selection methods or criteria.
10. Arnold has joined as the Project Manager of an infrastructure project. One of the project documents available to Arnold lists down all the risks in a hierarchical fashion. What is this document known as?
A. Risk Management Plan.
B. List of risks.
C. Monte Carlo diagram.
D. Risk Breakdown Structure.
Risk Breakdown Structure is a hierarchical representation of project risks
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