The Project Management Institute’s (PMI) Project Risk Management Professional (PMI-RMP®) Certification provides you with the Project Risk Management competencies required to fulfill the demands of a global, virtual, and complex project environment.
Take the PMI-RMP test prior to taking the PMI certification exam to monitor your progress. This free RMP practice exam questions may help you pass your test on the first attempt.
1. 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 5 days.
B. 22-30 days.
C. O=27 days, P=33 days, Most likely=30 days.
D. Mean of 28 days.
Assuming that 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 3 sigma distribution and it involves least risk.
2. 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 also wants to maintain anonymity. Which technique is Raymond using?
A. Delphi technique
C. Brain storming
D. Documentation review
In Delphi technique, anonymity of participants are maintained to avoid biases.
3. Workarounds are determined during which risk management process?
A. Risk monitoring
B. Identify Risk.
C. Perform Quantitative risk analysis
D. Plan Risk response.
In Risk monitoring process, the effectiveness of all approved risk responses are evaluated. If they are not adequate, workarounds are planned to tackle the risk events. Even for newly identified risks, workarounds are planned during Monitor Risks process.
4. David is a Project Manager for Prime Consultants. He has been asked to help choose one of the four potential project proposals. The management used Payback Period technique for project selection. Which one of the following projects should David recommend to the management?
A. Building an apartment. Project involves making an investment of $200,000. After six months, there will be monthly rental returns of $5000
B. Building a bridge. Project involves making an investment of $1,000,000. After two years, there will be monthly returns via toll for the bridge of $50,000
C. Building a house. Project involves making an investment of $500,000. After one year, there will be monthly rental returns of $10,000
D. Building a school. Project involves making an investment of $500,000. After one year, there will be monthly returns via school fees of $50,000.
Simply calculate the payback period for each scenario using the formula: Payback period= Total outflows or investments/total inflows ( all for months or years) Option A: 6months + 200,000/5000 = 6+40 = 46 months Option B: 24 months + 1,000,000/50,000 = 24+ 20 = 44 months Option C: 12 months + 500,000/10,000 = 12+50 = 62 months Option D: 12 months + 500,000/50,000 = 12+ 10 = 22 Months. The project with lowest payback period should be selected.
5. You are the Project Manager of Target Structural Consultants. The Project team members are from 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 does Target Structural Consultants follow?
A. Projectized organization
B. Functional organization
C. Matrix organization
D. None of these.
In functional organization structure, team members report to the respective department heads and the Project manager has relatively less control over them
6. One of the risks your project team has discovered has a high probability that the equipment your team is developing will not perform under very high pressure, which is one of the client’s requirements. In order to handle this risk, your team has chosen to prototype the equipment based on your advice as the project manager. This is an example of what risk strategy.
Prototype is a mitigation risk response strategy for negative risks. To ensure acceptance of the final product under development, prototype will help reduce risks associated with product development.
7. You have just been assigned as the project manager of the 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 over all aspects of identification of risks, under such situation.
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 procurement department points out that the performing organization has to spend a lot of money in hiring a design team to come up with the design for this project. The project manager is concerned that the risk for the organization be as small 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 FFP contract, buyer risk is relatively low compared to other contracts.
9. 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 top-down approach and it is generally less accurate
10. The process of Manage Stakeholders Engagement and the processes of Implement Risk Responses are part of which process group?
B. Monitoring and Control
Executing process group include all “Manage” processes
SPOTO’s PMI RMP exam dumps encompass all of the actual certification exam questions and provide you with an accurate representation of what to anticipate. Utilize these RMP exam questions to expedite your learning and put your project management knowledge to the test. RMP test dumps may assist you in instantly eliminating project management areas!