Free Practice Questions for PMI PMI-RMP Exam

In a company with rapidly changing work conditions and difficulty in predicting long-term business plans, a professional risk manager should adopt agile approaches to manage the risks (B). Agile approaches allow for flexibility, adaptability, and quick response to changes, making them suitable for managing risks in such situations. This is supported by the PMI's PMBOK Guide, Sixth Edition, and the Agile Practice Guide.

 A professional risk manager should adopt agile approaches to manage the risks in situations where the company accommodates a lot of innovation and changing work conditions, and experiences difficulty in predicting long term business plans. Agile approaches are adaptive, iterative, and collaborative methods that focus on delivering value and reducing uncertainty in a dynamic and complex environment. Agile approaches can help the risk manager to identify, analyze, respond, and monitor risks in a flexible and timely manner, by using tools and techniques such as risk-adjusted backlog, risk burndown charts, risk-based spike, and risk-based testing. Agile approaches can also help the risk manager to engage the stakeholders and the project team in risk management activities, by using practices such as daily stand-up meetings, sprint planning, sprint review, and sprint retrospective. Agile approaches can enable the risk manager to manage the risks effectively and efficiently, by aligning the risk management strategy with the project goals and the customer needs. Adopting a predictive approach to manage the risks is not the best option, as it may not be suitable or feasible for situations where the project scope, schedule, and budget are uncertain or variable. A predictive approach is a plan-driven and sequential method that relies on upfront planning and detailed documentation to manage the risks. A predictive approach may not be able to cope with the frequent changes and emerging risks that may occur in an innovative and dynamic environment. Utilizing proper documentation to help manage the risks is not the best option, as it may not be sufficient or effective for situations where the project requirements and deliverables are evolving or changing. Proper documentation is a useful and necessary component of risk management, but it is not a substitute for agile risk management practices. Proper documentation may not be able to capture and communicate the current and relevant information about the risks and their impacts in a timely and accurate manner. Conducting weekly risk management meetings with all stakeholders is not the best option, as it may not be optimal or efficient for situations where the project risks and opportunities are changing rapidly or frequently. Weekly risk management meetings are a common and beneficial practice for risk management, but they may not be enough or appropriate for agile risk management. Weekly risk management meetings may not be able to address the risks and their responses as soon as they arise or occur, and they may not be able to involve all the relevant and available stakeholders and project team members. References: 3, 4, 5

Once the contingency plan has been executed (e.g., the backup resource has shadowed the experienced developer), it is crucial to continuously monitor and manage any residual or secondary risks that may arise. These risks could include the backup resource's ability to perform effectively or the potential impact of the original developer's absence on project timelines. By updating the risk register and maintaining communication with the project team, the risk manager ensures that the project remains on track and that any new risks are promptly addressed, in alignment with PMI’s best practices for ongoing risk management​.

When risks are not as originally described, it's essential to revisit the project’s assumptions and constraints to reassess their impact and update the response plan accordingly. This step ensures that the risk management process remains accurate and relevant, allowing the project team to adapt to changing conditions effectively. PMI guidelines emphasize the importance of regularly reviewing and updating risk assessments to reflect any changes in the project's environment or scope​.

When a project is delayed, and all contingency reserves have been exhausted, the next step is to escalate the situation to upper management. This escalation allows for additional resources or support to be considered and for strategic decisions to be made at a higher level. According to PMI’s risk management practices, escalation is a key strategy when risks exceed the project's control, requiring input or intervention from senior management to resolve​.

Top of Form

Bottom of Form

The risk manager should review the agreed-upon risk tolerance to determine the correct limit for continuing construction based on the chance of rain. Risk tolerance is the level of risk an organization is willing to accept and should be established during the risk management planning process.

 Risk tolerance is the degree of uncertainty that a stakeholder is willing to accept in respect to a negative outcome on a project objective. Risk tolerance can be expressed as a percentage, a range, a value, or a qualitative statement. Risk tolerance should be agreed upon by the project team and the stakeholders at the beginning of the project, and documented in the risk management plan. The risk manager should review the agreed-upon risk tolerance to find out the correct limit for the rain probability that would affect the construction activity. This would help to resolve the conflicting opinions of the stakeholders and ensure that the risk management decisions are aligned with the project objectives and expectations. Reviewing the agreed-upon risk tolerance is the best option among the choices given, as it is the most relevant and reliable source of information for the risk manager. Performing a sensitivity analysis, finding out the stakeholders’ risk appetite, or using industry standard risk thresholds are not as effective or appropriate ways of finding out the correct limit, as they do not reflect the specific agreement and context of the project. References: PMI-RMP® Certification Handbook1, page 9; PMBOK® Guide, pages 414-415.

An Ishikawa diagram (also known as a fishbone or cause-and-effect diagram) is a tool used to identify and analyze the root causes and sources of a risk. It helps the risk manager gain a deeper understanding of the risk source and likelihood. (Reference: PMBOK Guide, 6th Edition, p. 139)

 An Ishikawa diagram, also known as a fishbone diagram or a cause-and-effect diagram, is a tool that can help the risk manager to analyze the root causes of a risk and to identify the factors that influence its occurrence and impact. An Ishikawa diagram can also help to visualize the relationships among different causes and to prioritize the most significant ones. By developing and employing an Ishikawa diagram, the risk manager can gain a deeper understanding of the source and likelihood of the risk and plan appropriate responses accordingly. References: The Standard for Risk Management in Portfolios, Programs, and Projects, page 72; PMBOK Guide, 6th edition, page 398.

In complex projects with multiple deliverables, locations, and stakeholders, best practice is to combine individual risk identification (e.g., interviews, surveys) with group-based methods (e.g., focus groups, workshops) to ensure comprehensive risk coverage and diverse input. According to the PMBOK® Guide:

“Both individual and group risk identification techniques are valuable. Combining interviews (individual) with facilitated workshops or focus groups (group) can help identify risks at all levels and build a comprehensive risk register for the overall project.”

— PMBOK® Guide, 6th Edition, Section 11.2.2.2 (Data Gathering: Interviews, Facilitation)

ISO 31000 also recommends a mix of approaches to ensure risks are not overlooked due to limited perspectives.

The risk manager should conduct a risk planning workshop with senior management and other key stakeholders to review the risk management plan, the risk register, and the contingency reserves. The risk manager should explain the purpose and benefits of contingency reserves, and how they are calculated and allocated based on the risk exposure of the project. The risk manager should also discuss the potential impact of removing or reducing the contingency reserves on the project objectives, scope, schedule, cost, and quality. The risk manager should facilitate a collaborative decision-making process to reach a consensus on the best course of action for the project. References: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 77-78, 92-93.

When initiating a project to incorporate a cybersecurity team, the risk manager should first analyze the following documents:

·        Industry's standard procedures: Understanding industry best practices and standards is critical for setting up a cybersecurity team, as these procedures will guide the development of secure processes and protocols.

·        IT infrastructure, networks, and data information: Analyzing the current IT infrastructure is essential to identify vulnerabilities, assess risks, and plan for the necessary security measures that the cybersecurity team will manage.

·        Government laws and regulations: Cybersecurity is a highly regulated area. Understanding the relevant laws and regulations ensures that the project complies with all legal requirements and avoids potential penalties.

These documents provide the necessary foundation to assess the risks and develop a comprehensive cybersecurity strategy​​.

Each project is unique, even when similar to previous projects, and therefore, it requires a tailored risk strategy. A specific risk strategy for a project ensures that the risks are managed in alignment with the organization’s risk appetite while considering the unique aspects of the project. The risk strategy will identify the specific risk thresholds for the project, which may differ from other projects due to variations in scope, stakeholders, or external conditions.

PMI emphasizes the importance of aligning the risk management strategy with the organizational risk appetite. This alignment ensures that the project’s approach to risk is consistent with the organization's broader risk management framework and that it reflects the unique risk profile of the project​​.