Free Practice Questions for PMI PMI-RMP Exam

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.

The Plan Risk Management process is where the project team determines the depth and breadth of risk management activities, including whether quantitative risk analysis is appropriate. PMBOK® Guide says:

" The Plan Risk Management process determines how to approach and conduct the risk management activities for a project. This includes weighing the benefits and effort of advanced techniques such as quantitative risk analysis. "

— PMBOK® Guide, 6th Edition, Section 11.1

The correct answer is B. Develop a contingency plan to cover additional logistics expenses.

This question describes a secondary risk , meaning a new risk created by the implementation of a prior risk response. The original response to supply chain disruption may have been appropriate, but it introduced an additional uncertainty: increased logistics costs. Once a secondary risk is identified, the risk manager should treat it as a normal project risk by analyzing it and determining an appropriate response. In this case, the most suitable response among the options is to develop a contingency plan for the potential added cost exposure.

A contingency plan is appropriate because the project may now face additional expenses that are uncertain in timing or magnitude. Planning for those costs provides a structured and proactive method of managing the new exposure without assuming it must automatically be accepted.

Why the other options are incorrect:

A. Accept the increased costs as part of the project ' s risk threshold. Acceptance may be appropriate in some situations, but the scenario does not indicate that the increased costs are within approved thresholds or that active planning is unnecessary. Immediate acceptance is weaker than preparing a specific response.

C. Switch suppliers to potentially reduce logistics expenses. This may create further disruption or additional risks and is not necessarily the most appropriate first response. The question asks how to address the newly identified risk, and contingency planning is the stronger risk-management action.

D. Incorporate a cost-sharing arrangement with the suppliers. This is a possible contractual tactic, but it is narrower and assumes supplier agreement. It may be part of a response strategy, but it is not the best general answer compared with a formal contingency plan.

Best-practice reasoning:

Secondary risks should be documented, analyzed, assigned, and responded to. When the new risk affects project cost, one practical response is to establish a contingency approach to manage the financial uncertainty if the risk materializes.

Reference-aligned basis:

This answer is consistent with standard risk management guidance that emphasizes:

risk responses can generate secondary risks,

secondary risks should be assessed and managed like any other identified risk,

contingency planning is a recognized way to address uncertain future cost impacts.

The project risk manager should monitor risk thresholds closely, as they represent the organization ' s risk appetite. In a project with a low risk appetite, it is essential to ensure that risks are managed within the defined thresholds to address stakeholders ' concerns and maintain their confidence in the project ' s success.

According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, risk thresholds are the measure of acceptable variation around an objective that reflects the risk appetite of the organization1. Risk appetite is the degree of uncertainty an entity is willing to take on in anticipation of a reward2. In this case, the project has a significant impact on the organization and the stakeholders have a low risk appetite, meaning they are not willing to accept much deviation from the project objectives. Therefore, the project risk manager should monitor the risk thresholds closely to ensure that the project risks do not exceed the acceptable level of variation and impact the project performance negatively. By monitoring the risk thresholds, the project risk manager can also identify when risk responses are needed and evaluate their effectiveness.

The Delphi technique allows the project risk manager to gather opinions from all stakeholders anonymously. This method would enable stakeholders to express their concerns without feeling uncomfortable in front of the influential stakeholder.

 The Delphi technique is a tool used to make quick decisions with consensus. This technique consists of sending several sets of anonymous questions to each expert. This is followed by a group discussion after every round. The Delphi technique can help the project risk manager to identify risks by soliciting the opinions of all stakeholders without revealing their identities. This way, the stakeholders can express their views freely and honestly, without being influenced or intimidated by the influential stakeholder. The Delphi technique can also reduce personal bias, ego, or emotional conflict among the participants. The project risk manager can use the results of the Delphi technique to create a list of potential risks and their causes, effects, and probabilities. References: 3, 2, 5

The best practice is to log the risk and the associated response strategies in the risk register to ensure it is monitored, analyzed, and managed throughout the project. The PMBOK® Guide states:

" All identified risks and their planned responses should be recorded in the risk register to facilitate ongoing monitoring and management. "

— PMBOK® Guide, 6th Edition, Section 11.2.3.1

Ignoring or treating these as mere assumptions could result in unmanaged risks and potential project failure.

When facing resistance from team members, the risk manager should engage in open communication to address their concerns and clarify the importance of risk management in the project.

According to the PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1, the risk manager should handle this situation by meeting with team members to address their concerns. This is because:

Resistance to risk management is a common challenge that can hinder the effectiveness and efficiency of the risk management process. Resistance can stem from various factors, such as lack of awareness, understanding, commitment, trust, or support for risk management; fear of negative consequences or blame; competing priorities or interests; or cultural differences or biases.

Meeting with team members to address their concerns is a proactive and constructive way to overcome resistance and foster a positive risk culture within the project. By meeting with team members, the risk manager can:

Communicate the value and benefits of risk management for the project and the organization, such as improving decision-making, enhancing performance, increasing stakeholder satisfaction, and reducing uncertainty and variability.

Educate and train team members on the risk management principles, processes, tools, and techniques, and how they can be applied to the project context and objectives.

Involve and empower team members in the risk management activities, such as identifying, analyzing, prioritizing, responding, and monitoring risks, and solicit their feedback and suggestions for improvement.

Recognize and reward team members for their contributions and achievements in risk management, and celebrate the successful outcomes and opportunities realized by the project.

The other options are not effective in handling this situation because:

Continuing to implement the risk strategy without addressing the resistance can lead to further conflict, resentment, and distrust among the team members, and undermine the quality and credibility of the risk management process and outputs.

Reducing the number of risk management activities can compromise the project’s ability to identify and respond to the risks that may affect its scope, schedule, cost, quality, or other objectives, and expose the project to unnecessary threats or missed opportunities.

Raising the concerns with the project sponsor can escalate the issue and create a negative impression of the team members, and may not resolve the underlying causes of the resistance or improve the team’s engagement and commitment to risk management.

PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1

Risk Management Professional (PMI-RMP)® Exam Cert Guide2

Establishing a risk management framework and involving the team in developing the risk plan creates ownership and builds risk management capability. PMBOK® Guide states:

" A risk management plan should be developed early in the project and should involve the project team to ensure buy-in and effective implementation. "

— PMBOK® Guide, 6th Edition, Section 11.1

The project manager should provide guidance and coaching to the functional groups on how to properly identify and categorize risks. This will help improve the quality of the risk register and ensure an effective risk response plan can be developed.

The project manager should coach the functional groups on how to properly conduct the process of identifying and categorizing risks, as this will help to improve the quality and consistency of the risk information and to facilitate the development of an effective risk response plan. The project manager should also provide guidance and support on how to use the appropriate tools and techniques, such as risk breakdown structure, risk taxonomy, risk checklists, risk interviews, and risk workshops, to elicit and document the risks from different perspectives and sources. By coaching the functional groups, the project manager can also enhance their risk awareness and ownership, and foster a collaborative risk culture within the project. References: The Standard for Risk Management in Portfolios, Programs, and Projects, page 71-72; PMBOK Guide, 6th edition, page 397-398.