Fallback plans are implemented in active acceptance to deal with managing accepted risks if the

contingency plans are insufficient

Contingency and fallback plans are the backbones of your risk management plan which help you
manage the identified risks. If any identified risk occurs you will implement the contingency plan.
However, if the contingency plan seems to be ineffective or has failed, you will implement the
fallback plan
Reserves or Contingency ‫االحتياطيات‬
1- Contingency Reserves:-‫احتياطي الطوارئ‬
*** Known Unknown(Known).
*** Identified in risk management .
*** Contingency Reserves are allocated for the Contingency plans and fallback plans.‫يتم تخصيها لـ‬
*** Added to the project cost and make the cost base line.
*** Project manager has control the cost baseline and can approve use of the contingency reserves.
*** Contingency reserves = EMV.....= P x I ...Using Decision Tree.
2- Management Reserves:-‫احتياطيات اإلدارة‬
***UnKnown Unknown(UnKnown).
*** Not Identified in risk management .
*** Management Reserves are ESTIMATED (10%of the project cost)added to the cost baseline and make the
project budget
*** Management approval is needed to use Management Reserves

There may be residual risks that will remain after the responses have been implemented, these
residual risks should be clearly identified, analyzed, documented, and communicated to all relevant
stakeholders
implemented Responses, can have potential effects can generate additional risks, known as
secondary risks and have to be analyzed and planned for in the same way as those risks which were
initially identified
In some cases you can use contingency reserve to enhance opportunity or exploit
1- Risk owner will be assigned in identify risk process then updated in Plan risk response process.

2- Risk action owner assigned for agreed and funded response in plan risk response process.

3- Risk owner assigned to each risk in identify risk process

OPA from the lessons learned and historical informations.

EEF from the industry body and Commercial database

How do you calculate the Contingency reserve for the opportunities?

The cost of the actions required to be implemented to enhance, exploit, or share the positive risks or even to
implement any contingency plan as of acceptance of the opportunity, this cost will be included in the contingency
reservers as part of the cost baseline

Fallback and Workaround

 Fallback: a fallback plan is a plan developed to deal with risks that have been identified during project planning
 for identified risks
 known unknowns
 Workaround: a workaround is the unplanned response the Project Manager need to take to deal with emerging
risks and risks that are passively accepted as the risk response during project execution (i.e. there are no pre-
determined risk response plan in place)
 for unidentified risks or risks that are passively accepted (note: risks that are accepted actively will be dealt with a
Fallback)
 unknown unknowns
Note: Risks can be either accepted actively or passively:
 active acceptance means the identified risk is accepted without any response to reduce or eliminate the chance of
occurrence but measures are planned (i.e. fallback) to deal with it once it occurs
 passive acceptance means the identified risk is accepted without any response altogether (maybe the chance of
occurrence is too low or the effect too minimal), just wait and see if workaround is needed once it occurs.
Illustrated Example
Let’s take the project of exam study and preparation as an example to illustrate the concept of Fallback
and Workaround.
Timothy, another promising project manager, has determined to get certified in two months’ time. Tim has
formulated a study plan for his exam:
 Week 1-4: finish the online course by watching the course videos on the computer at home and get the
35 Contact Hours for the exam
 Week 5-6: complete the exam application and take free mock exams to bridge any knowledge gap
 Week 7: take a week off for relaxation
 Week 8: last minute revisions and take the exam at the end of Week 8
Tim has also identified two most common risks and their fallback plans:
 not able to finish online course on time: download the PMP® courses onto his mobile phone and watch
the exam prep courses during transit and running
 not able to get the recommended results (70%-80%) for the free mock exams: purchase a paid exam
simulator for more practices (at extra costs)
Now when it is at the end of Week 5, Tim is caught in an accident that keeps him hospitalized for 1 week.
Tim has to immediately develop a workaround plan this time by moving the relaxation week (Week 7) up
to Week 5 and work on the mock exams in Week 6 – 7 to make up the loss time.
Conclusion
Though both Fallback and Workaround are used to deal with risks when they occur, Aspirants would
need to remember that:
 Fallback is pre-developed risk response strategies for identified risks in order to protect the original
project plan (the costs deal with identified risks are included in the contingency reserve)
 Workaround is immediate risk response strategies for unidentified risks (or identified risks that have
been accepted passively) in order to contain the damages to the project plan (the costs deal with
unidentified risks can be obtained from the management reserve upon management approval)
Eng Sayed MohsenEng and 2 others manage the membership, moderators, settings, and posts for PMP
TRICKS. In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat.the PM
rent Generator to reduce the probability of occurrence and threat not avoid the risk AND CORRECT ANSWER IS
C
Both beta distribution and triangular distribution takes risks and uncertainty into consideration.
The difference is when proper risk management is performed, the result will be near to the most likely, therefore we apply
beta distribution when we have risk experts work in the project.
When the project team does not include risk experts, apply traingular distribution.

Note: Simple average means triangular

Weighted average means beta

Question No. 54
As part of SWOT and Risk analysis, you have completed the process of enhancing the opportunities
and
reducing the threats to project objectives. What is your NEXT step?
Choice 1 Determine which risks may affect the project and document their characteristics.
Choice 2 Implement risk response plans, track identified risks, monitor residual risks, identify new
risks,
and evaluate risk process effectiveness throughout the project.
Choice 3 Define how to conduct risk management activities for a project.
Choice 4 Assess the priority of identified risks using their probability of occurrence.
Correct Choice:2
Process Group :Executing
Justification: Monitor Risks is the process of implementing. risk response plans, tracking identified
risks,
monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout
the
project. PMBOK®Guide Sixth Edition Page # 449, Section 11.6

Question No. 156

When your company buys processors from the preferred supplier, it also pays extra for a three-year
warranty which ensures that any manufacturing defects will be taken care by the supplier. The risk
response strategy used in this scenario is:
Choice 1 Exploit
Choice 2 Avoid
Choice 3 Mitigate
Choice 4 Transfer
Correct Choice:4
Process Group :Planning
Justification: Risk transference is a risk response strategy whereby the project team shifts the
impact of
a threat to a third party PMBOK®Guide Sixth Edition Page # 442, Section 11.5.2.4
Project Management House This question is tricky. Correct Answer is C. A list of prioritized risks is an output of
the Perform Qualitative Risk Analysis process. The outputs of the Identify Risks process is a risk report and a risk
register containing a list of risks, root causes of risks, a list of potential responses and a list of potential risk owners.
So the best answer is an understanding of project risks not just a list of risks or a list of potential risk owners.
PMBOK 6th edition, Page 417
George Shahat Abdelmaseeh Correct Answer is B. In this situation the project manager changed the project
management plan to make sure that the opportunity happens. PMBOK 6th edition, Page 444

185. Outputs from the Plan Risk Responses process include all of the following EXCEPT: A. Risk register
updates. B. Corrective actions. C. Project documents updates. D. Project management plan updates.

185. Answer: B. PMBOK® Guide, pages 346–348, Section 11.5.3; and page 342, Figure 11-18 Plan Risk
Responses: Outputs .1 Project Management Plan Updates … .2 Project Documents Updates In the Plan
Risk Responses process, several project documents are updated as needed. For example, when
appropriate risk responses are chosen and agreed upon, they are included in the risk register…

186. Tools and techniques of the Perform Quantitative Risk Analysis process are: A. Contracting,
contingency planning, alternative strategies, and insurance. B. Interviewing, historical results,
workarounds, and response development. C. Checklists, damage control reports, standard allowances,
and inspection. D. Data gathering and representation techniques, quantitative risk analysis and
modeling techniques, and expert judgment.

186. Answer: D. PMBOK® Guide, pages 336–341, Section 11.4.2; and page 334, Figure 11-11 Perform
Quantitative Risk Analysis: Tools and Techniques .1 Data Gathering and Representation Techniques .2
Quantitative Risk Analysis and Modeling Techniques .3 Expert Judgment

187. As an output of the Perform Quantitative Risk Analysis process, the risk register is updated. These
updates generally include: A. Prioritized list of quantified risks. B. Qualitative analysis of the threats to
ignore and opportunities to accept. C. Checklists, corrective actions, and qualified decision trees. D.
Direction, resources, and contingency costs.

187. Answer: A. PMBOK® Guide, page 341, Section 11.4.3; and page 334, Figure 11-11 Perform
Quantitative Risk Analysis: Outputs .1 Project Documents Updates Project documents are updated with
information resulting from quantitative risk analysis. For example, risk register updates could include: •
Probabilistic analysis of the project… • Probability of achieving cost and time objectives… • Prioritized
list of quantified risks… • Trends in quantitative risk analysis results…

192. Sensitivity analysis: A. Examines the extent to which the uncertainty of project objectives affects
each project

element simultaneously. B. Examines the extent to which the uncertainty of each project element
affects the objective being studied when all other uncertain elements are held at their baseline values.
C. Is a method for assessing stakeholders’ tolerance to risk. D. Cannot be used to determine which risks
have the most potential impact on the project.

192. Answer: B. PMBOK® Guide, page 338, Section 11.4.2.2

Sensitivity analysis. Sensitivity analysis helps to determine which risks have the most potential impact on
the project. It helps to understand how the variations in project's objectives correlate with variations in
different uncertainties. Conversely, it examines the extent to which the uncertainty of each project
element affects the objective being studied when all other uncertain elements are held at their baseline
values. One typical display of sensitivity analysis is the tornado diagram (Figure 11-15), which is useful
for comparing relative importance and impact of variables that have a high degree of uncertainty to
those that are more stable

194. The risk management plan generally includes all of the following EXCEPT: A. Methodology. B.
Definitions of risk probability and impact. C. Responses to individual risks. D. Probability and impact
matrix.

194. Answer: C. PMBOK® Guide, pages 316–318, Section 11.1.3.1 Risk Management Plan The risk
management plan is a component of the project management plan and describes how risk management
activities will be structured and performed. The risk management plan includes the following: •
Methodology. • Roles and responsibilities. • Budgeting.

• Timing. • Risk categories. • Definitions of risk probability and impact. • Probability and impact matrix.
• Revised stakeholders’ tolerances. • Reporting formats. • Tracking.

196. As an output of the Control Risks process, an updated risk register generally includes some or all of
the following EXCEPT: A. The work breakdown structure (WBS). B. Outcomes of risk reassessments, risk
audits, and periodic risk reviews. C. Identification of new risks, updates to probability, impact, priority,
response plans, ownership, and other elements of the risk register. D. Actual outcomes of the project's
risks and of the risk responses.

196. Answer: A. PMBOK® Guide, page 354, Section 11.6.3.4 Project Documents Updates Project
documents that may be updated as a result of the Control Risk process include, but are not limited to
the risk register. Risk register updates may include: • Outcomes of risk reassessments, risk audits, and
periodic risk reviews. These outcomes may include identification of new risks, updates to probability,
impact, priority, response plans, ownership, and other elements of the risk register. Outcomes can also
include closing risks that are no longer applicable and releasing their associated reserves. • Actual
outcomes of the project's risks and of the risk responses. This information can help project managers to
plan for risk throughout their organizations, as well as on future projects.

QUESTION 41 The component of the risk management plan that documents how risk activities will be
recorded is called:

Real 21 PMI PMP Exam

A.tracking B.scoping C.timing D.definin

QUESTION 59 Organizations perceive risks as:

A.events that will inevitably impact project and organizational objectives. B.the effect of uncertainty on
their project and organizational objectives. C.events which could have a negative impact on project and
organizational objectives. Real 30 PMI PMP Exam D.the negative impact of undesired events on their
project and organizational objectives

QUESTION 87 Which of the following reduces the probability of potential consequences of project risk
events?

A.Preventive action B.Risk management C.Corrective action D.Defect repair

QUESTION 160 Which risk management strategy seeks to eliminate the uncertainty associated with a
particular upside risk by ensuring that the opportunity is realized?

A.Enhance Real 83 PMI PMP Exam B.Share C.Exploit D.Accept

QUESTION 162 The definition of when and how often the risk management processes will be performed
throughout the project life cycle is included in which risk management plan component?

A.Timing B.Methodology

http://www.gratisexam.com/

C.Risk categories D.Budgeting

QUESTION 254 Which changes occur in risk and uncertainty as well as the cost of changes as the life
cycle of a typical project progresses?

A.Risk and uncertainty increase; the cost of changes increases. B.Risk and uncertainty increase; the cost
of changes decreases, C.Risk and uncertainty decrease; the cost of changes increases. D.Risk and
uncertainty decrease; the cost of changes decreases.

QUESTION 351 Expected monetary value (EMV) is computed by which equation?

A.Value of each possible outcome multiplied by probability of occurrence B.Value of each possible
outcome multiplied by probability of non-occurrence C.Multiplying the value of each possible outcome
by the probability of occurrence and adding the products together Real 179 PMI PMP Exam
D.Multiplying the value of each possible outcome by the probability of non-occurrence and adding the
products togethe

QUESTION 508 Real 238 PMI PMP Exam The approaches, tools, and data sources that will be used to
perform risk management on a project are determined by the:

A.Methodology B.Risk category C.Risk attitude D.Assumption analysis

Correct Answer:

Question 309: When completing your risk management plan you also decide to create a contingency
plan. What is the main reason for creating a risk contingency plan? A: Unknown risks that cannot be
managed proactively. B: To deal with known risks with a large uncertainty about the probability of
occurrence. C: Unknown risks that have been identified in the risk management plan. D: Known
risks that if they occur can have a larger-thananticipated impact on your project.

Question 309: When completing your risk management plan you also decide to create a contingency
plan. What is the main reason for creating a risk contingency plan? The correct answer is A. A:
Unknown risks cannot be managed proactively; contingency plans are for unknown risks. B: Risk
contingency plans deal with all unknown risks, no matter if they are large or small. C: Risk
contingency plans deal with risks that haven’t been identified in the risk management plan. D: Risk
contingency plans deal with unknown risks, not known risks
Question 310: While completing your risk management plan you also decide to create a fallback plan.
What is the main reason for creating a fallback plan? A: To deal with known risks with a large
uncertainty about the probability of occurrence. B: Unknown risks that cannot be managed
proactively. C: Unknown risks that have been identified in the risk management plan. D: Known
risks that if they occur can have a larger-thananticipated impact on your project.

Question 310: While completing your risk management plan you also decide to create a fallback plan.
What is the main reason for creating a fallback plan? The correct answer is B. A: Risk fallback, or
contingency, plans deal with all unknown risks, no matter if they are large or small. B: Unknown risks
are risks that cannot be managed proactively, and fallback, or contingency, plans are for unknown risks.
C: Risk fallback, or contingency, plans deal with risks that haven’t been identified in the risk
management plan. D: Risk fallback, or contingency, plans deal with unknown risks, not known risks.

Question 318: You are congratulating your team for the time and effort taken to develop the first
iteration of your project risk register. You are now contemplating the many uses that your risk register
will have in your project and the many different areas in which it can be used as an input into the work
being done. Which of the following PMBOK ® Guide processes does not use the risk register as an input?
A: Control Risks B: Manage Stakeholder Engagement C: Plan Procurement Management D:
Perform Qualitative Risk Analysis

Question 318: You are congratulating your team for the time and effort taken to develop the first
iteration of your project risk register. You are now contemplating the many uses that your risk register
will have in your project and the many different areas in which it can be used as an input into the work
being done. Which of the following PMBOK ® Guide processes does not use the risk register as an input?
The correct answer is B. A: The Control Risks process does use the risk register as an input so it knows
what risks it is intending to monitor and control. B: The risk register is not used as an input into this
process. C: The Plan Procurement Management process does use a risk register as an input so it can
take into account contract-related risks that have been identified. D: The Perform Qualitative Risk
Analysis process does use a risk register as an input so it knows which risks to perform qualitative risk
analysis on

Question 322: Your team has successfully identified many categories of risks, and within each category
they have identified specific risk events that may impact your project. You have documented all of this
information in an initial list of identified risks as part of the iterative development of your risk register.
At this early stage, this document will generally have all of the following information on it except? A:
Cause B: Event C: Consequence D: Probability

Question 322: Your team has successfully identified many categories of risks, and within each category
they have identified specific risk events that may impact your project. You have documented all of this
information in an initial list of identified risks as part of the iterative development of your risk register.
At this early stage, this document will generally have all of the following information on it except? The
correct answer is D. A: Your initial list of identified risks may describe the known causes of individual
risk events. B: Your initial list of identified risks will describe individual risk events. C: Your initial list
of identified risks will describe the consequences of individual risk events should they occur. D: You
don’t determine probability of risks until completing qualitative and quantitative risk analysis, so the
first iterations of your list of identified risks may not have probability information on it.
Question 324: As project manager on a project, you have begun the process of qualitatively assessing
the probability and impact to risks that have been identified on your project. Which of the following is
not an input you would find useful in completing this work? A: Project charter B: Risk management
plan C: Risk register D: Scope baseline

Question 324: As project manager on a project, you have begun the process of qualitatively assessing
the probability and impact to risks that have been identified on your project. Which of the following is
not an input you would find useful in completing this work? The correct answer is A. A: The project
charter is used as an input into several processes, but not the Perform Qualitative Risk Analysis process
in the PMBOK ® Guide, so this is the correct answer. B: The risk management plan is an essential
input into this the Perform Qualitative Risk Analysis process in the PMBOK ® Guide.

C: The risk register is an essential input into the Perform Qualitative Risk Analysis process in the PMBOK
® Guide. D: The scope baseline is used as an input into the Perform Qualitative Risk Analysis process
in the PMBOK

Question 327: While completing your assessment of the risks on your project, you begin to examine the
ones with the greatest potential threat to your project. You are using a diagram to help you complete
this task, and you are currently looking at the high priority risks for further analysis. What diagram
would best help you? A: Probability and impact matrix B: Scatter diagram C: Pareto chart D:
Risk register

Question 327: While completing your assessment of the risks on your project, you begin to examine the
ones with the greatest potential threat to your project. You are using a diagram to help you complete
this task, and you are currently looking at the high priority risks for further analysis. What diagram
would best help you? The correct answer is A. A: The probability and impact matrix shows the low,
medium, and high risks on the project. B: A scatter diagram is generally used during quality
management, and it plots two variables on the X and Y axis. C: A Pareto chart lists the hierarchical
order of the frequency of known events or defects to allow you to assess which 20% of events or defects
are causing 80% of the problems. D: The risk register contains information about risk categories, risk
events, qualitative risk analysis, quantitative risk analysis, and plan risk responses. It is the risk
breakdown structure. It shows the hierarchy of project risks by risk category.

Question 328: An important aspect of your qualitative risk analysis is determining the validity of the
information you are using. What is this technique commonly called? A: Risk data quality assessment
B: Assumption analysis C: Risk urgency assessment D: Risk categorization

Question 328: An important aspect of your qualitative risk analysis is determining the validity of the
information you are using. What is this technique commonly called? The correct answer is A. A:
Since qualitative analysis contains a high degree of subjectivity, it is important that you determine the
quality of the data you are using. B: Assumptions analysis documents the assumptions made during
the risk management processes. C: Risk urgency assessment looks at the timeframe for risks
occurring, with those risks in the near future deemed to be more urgent than those that may occur

Question 330: After completing work to perform qualitative risk analysis on identified risks in your risk
register, you have produced several updates to your risk register. Which of the following processes
described in the PMBOK ® Guide indirectly uses these updates? A: Identify Risks B: Project
Integration Management C: Project Time Management D: Plan Risk Responses

Question 330: After completing work to perform qualitative risk analysis on identified risks in your risk
register, you have produced several updates to your risk register. Which of the following processes
described in the PMBOK ® Guide indirectly uses these updates? The correct answer is A. A: The risk
register update is indirectly used as an input into the Identify Risks process because the risk register is
refined and subject to iterations. B: The Project Integration Management knowledge area of the
PMBOK ® Guide contains six processes, none of which uses risk register updates as an input. C: The
Project Time Management knowledge area of the PMBOK ® Guide contains seven processes, none of
which uses risk register updates as an input. D: The Plan Risk Responses process does not utilize risk
register updates

Question 335: After completing your risk register and a quantitative assessment of the financial value of
prioritized risks on your project, you have a dollar amount added to your project budget. What is this
amount typically called? A: Contingent response strategy B: Management reserve C: Slush fund
D: Contingency reserve

Question 335: After completing your risk register and a quantitative assessment of the financial value
of prioritized risks on your project, you have a dollar amount added to your project budget. What is this
amount typically called? The correct answer is D. A: A contingent response strategy is a type of risk
response that is triggered by a predefined trigger or event. B: A management reserve is generally an
amount held and controlled by management; projects that encounter completely unforeseeable risk
events can apply to use some of it. C: A slush fund is a common term used by some organizations to
describe an amount of money used for various unspecified purposes. D: A contingency reserve is
budget included in the cost baseline that is allocated to identified risks that have been assessed
quantitatively.

Question 337: Your team is completing an exercise to determine which risks have the greatest potential
impact on your project. They are assessing the extent to which the uncertainty of each element of the
project affects the risk being examined when all other uncertain elements are held at static baseline
values. What is this technique commonly known as? A: Tornado diagram B: Expected monetary
value analysis C: Sensitivity analysis D: Modeling and simulation

Question 337: Your team is completing an exercise to determine which risks have the greatest
potential impact on your project. They are assessing the extent to which the uncertainty of each
element of the project affects the risk being examined when all other uncertain elements are held at
static baseline values. What is this technique commonly known as? The correct answer is C. A: A
tornado diagram graphically represents risk areas of the project and the relative degree of uncertainty
or sensitivity of each risk category. B: Expected monetary value analysis takes the probability and
known numerical impact to determine a financial or time analysis of the risk. C: Sensitivity analysis is
the technique to determine the relative impact of a particular risk on independent project variables. A
tornado diagram can be used to show the results of the sensitivity analysis. D: Modeling and
simulation of risk are generally completed by computers because there is statistical analysis that needs
to be completed.

Question 347: You have completed the final steps to develop a complete risk register with identified
risks, a priority assessment, a qualitative assessment of all risks, a quantitative assessment of the top
priority risks, and you have also identified appropriate risk responses for each risk. Which of the
following is not an expected output from completing this work? The correct answer is D. A: The
specific project documents that will be updated will be the risk register to include your planned risk
responses. B: Once you have produced your plan risk responses, you may need to update several
aspects of the project management plan to reflect the plan risk responses. C: A specific part of the
project management plan that may be updated as a result of the plan risk responses will be the cost
management plan, especially if there are costs associated with your planned risk responses. D:
Contingent response strategies are techniques used in the Plan Risk Response process in the PMBOK ®
Guide, which is what the information contained in the question is indicating you have just completed.

Question 348: Your project has been underway for 9 months when a major problem occurs that is not
included in the risk register. What is your BEST course of action? A: Begin the process of evaluating
the risk qualitatively, then quantitatively. B: Begin the process of evaluating the risk quantitatively,
then qualitatively. C: Create a workaround. D: Contact your project sponsor.

Question 348: Your project has been underway for 9 months when a major problem occurs that is not
included in the risk register. What is your BEST course of action? The correct answer is C. A: Given
that the question outlines that this is a major problem, you will not have time to evaluate the risk in any
manner. B: Given that the question outlines that this is a major problem, you will not have time to
evaluate the risk in any manner. If you were to do so, however, you would perform qualitative analysis.
C: In this case, the risk has occurred and has created an impact on the project, so there is no need to
begin a formal evaluation process. Your risk response plan would identify that a workaround is the best
option for unanticipated risks. D: Given that this has been identified as a major problem, your best
course of action in this instance is to create a workaround first and then contact your project sponsor

Question 350: The project you are working on is over halfway through, and you have begun to measure
that price increases on the steel that you require for the project have gone 8% over your estimate for
price increases over the timeframe of the project. As a result, you put in place a policy to procure all the
remaining steel required for the project and pay for it to be stored in a warehouse instead of ordering
the steel as you require it. This is an example of what? A: Contingent response strategy B:
Mitigation C: Transference D: Exploiting

Question 350: The project you are working on is over halfway through, and you have begun to
measure that price increases on the steel that you require for the project have gone 8% over your
estimate for price increases over the timeframe of the project. As a result, you put in place a policy to
procure all the remaining steel required for the project and pay for it to be stored in a warehouse
instead of ordering the steel as you require it. This is an example of what? The correct answer is A. A:
In this instance, your contingent response strategy would have documented that should prices increase
over the estimates, this would constitute a trigger to enact a particular contingent response strategy.
B: This is not an example of risk mitigation; it is an example of a contingent response strategy being
enacted in response to defined triggers. C: This is not an example of transference; it is an example of
a contingent response strategy being enacted in response to defined triggers. D: This is not an
example of exploiting; it is an example of a contingent response strategy being enacted in response to
define triggers.

Question 354: The project team members assigned responsibility for controlling risks on your project
are doing a great job. Which of the following is not an expected output of the work they are
completing? A: Project management plan updates B: Change requests C: Organizational Process
Assets updates D: Work performance data

Question 354: The project team members assigned responsibility for controlling risks on your project
are doing a great job. Which of the following is not an expected output of the work they are completing?
The correct answer is D. A: Specific parts of the project management plan that will be updated as a
result of carrying out the Control Risks process risks will be the risk management plan. B: Change
requests are an output from the Control Risks process in the PMBOK ® Guide. C: Organizational
Process Assets updates are an output from the Control Risks process in the PMBOK ® Guide. D: Work
performance data is an input into, not an output from, the Control Risks process in the PMBOK ® Guide,
so this is the correct answer.
(60) Using the PMBOK definition of contingency reserve, which of the following statements about
contingency
reserves is false?
5. A contingency reserve is a separately planned quantity used to allow for future situations which may be
planned for only in part.
6. Contingency reserves may be set aside for known unknowns.
7. Contingency reserves may be set aside for unknown unknowns.
8. Contingency reserves are normally included in the project's cost and schedule baselines.
Answer:C
(61) Which of the following is true about pure risk?
5. The risk can be deflected or transferred to another party through a contract or insurance policy.
6. Pure risks involve the chance of both a profit and a loss.
7. No opportunities are associated with pure risk, only losses.
8. a and c
9. a and b
Answer:D
(62) A contingency plan is:
5. A planned response that defines the steps to be taken if an identified risk event should occur.
6. A workaround
7. A reserve used to allow for future situations which may be planned for only in part.
8. a and c
9. a and b
Answer:A
(64) Management reserves are used to handle which type of risk?
6. Unknown unknowns
7. Known unknowns
8. business risks
9. pure risks
Answer:A

(161) Project risk is characterized by three factors:

14. Severity of impact, duration of impact and cost of impact
15. Identification, type of risk category and probability of impact
16. Risk event, risk probability and the amount at stake
17. Occurrence, frequency and cost
Answer: C

QUESTION NO: 2

Which changes occur in risk and uncertainty as well as the cost of changes as the life cycle of a typical
project progresses?

A. Risk and uncertainty increase; the cost of changes increases. B. Risk and uncertainty increase; the cost
of changes decreases, C. Risk and uncertainty decrease; the cost of changes increases. D. Risk and
uncertainty decrease; the cost of changes decreases.

Answer:C

QUESTION NO: 65

A project manager should document the escalation path for unresolved project risks in the:

A. Change control plan B. Stakeholder register C. Risk log D. Communications management plan

Answer: D

QUESTION NO: 94

The organization's perceived balance between risk taking and risk avoidance is reflected in the risk:

A. Responses B. Appetite C. Tolerance D. Attitude

Answer: A

QUESTION NO: 288

High-level project risks are included in which document?

A. Business case B. Risk breakdown structure C. Project charter D. Risk register

Answer: C

QUESTION NO: 417

A change log for communications can be used to communicate to the appropriate stakeholders that
there are changes:

A. To the project management plan. B. To the risk register. C. In the scope verification processes. D. And
their impact to the project in terms of time, cost, and risk.

Answer:D

QUESTION NO: 467

What risk technique is used to quantify the probability and impact of risks on project objectives?

A. Expert judgment B. Risk registry C. Risk response planning D. Interviewing

Answer:D

QUESTION NO: 479

Which of the following documents allows the project manager to assess risks that may require near
term action?

A. Probability and impact matrix B. Contingency analysis report C. Risk urgency assessment D. Rolling
wave plan

Answer:C

QUESTION NO: 666

Which of the following are three inputs to the risk register?

A. Risk register updates, stakeholder register, and quality management plan B. Communication
management plan, enterprise environmental factors, and activity duration estimates C. Risk
management plan, activity cost estimates, and project documents D. Project scope statement,
organizational process assets, and scope baseline

Answer: C

QUESTION NO: 677

Risk responses reflect an organization's perceived balance between:

A. risk taking and risk avoidance. B. known risk and unknown risk. C. identified risk and analyzed risk. D.
varying degrees of risk.

Answer:A

QUESTION NO: 704

The probability and impact matrix is primarily used to:

A. Quantify risk issues for trends during a quality audit. B. Develop a risk register for risk planning. C.
Evaluate each risk’s importance and priority during Perform Qualitative Risk Analysis. D. Define risk and
compare impacts during Perform Quantitative Risk Analysis.

Answer:C

QUESTION NO: 767

What are assigned risk ratings based upon?

A. Root cause analysis

B. Assessed probability and impact C. Expert judgment D. Risk Identification

Answer:B

QUESTION NO: 862

Which of the following are documented directions to perform an activity that can reduce the probability
of negative consequences associated with project risks?

A. Recommended corrective actions B. Recommended preventive actions C. Risk audits D. Risk

reassessments

Answer:B

31. Project risk is defined as the cumulative effect of chances of _____ which will adversely affect
project objectives. A. Likely events B. Complex activities C. Complex schedules D. Uncertain occurrences

38. Assigning values of risk for a project is best accomplished through structured methodologies that
ensure all project elements are evaluated. This is done as a tool and technique during? A. Qualitative
risk analysis B. Risk identification C. Risk management planning D. Risk monitoring and control

49. The objective with which the project team will measure the effectiveness of its execution of the risk
response plan is based on the? A. Overall risk ranking for the project B. Probability rating C. Risk
assessment score D. Acceptable threshold for ris

29. What are the tools and techniques of the Quantitative Risk Analysis process? A. Checklists,
flowcharting, interviewing B. Interviewing, sensitivity analysis, decision tree analysis, simulation C.
Checklists, sensitivity analysis, decision tree analysis, information gathering techniques D. Interviewing,
checklists, assumption analysis, risk probability impact

14. Tools and techniques used in Risk Quantification include: A. Expected monetary value B. Decision
trees C. Simulation D. All of the above

32. When there is uncertainty associated with one or more aspects of the project, one of the first steps
to take is to: A. Revise project plan B. Conduct a risk-benefit analysis C. Conduct a needs analysis D.
Increase the estimated cost

1. Tools & techniques for risk identification include a. Decision tree analysis, information-gathering
techniques, checklists, assumptions analysis, diagramming techniques b. Documentation reviews,
information-gathering techniques, checklists, assumptions analysis, diagramming techniques c. Periodic
risk response audits, information-gathering techniques, checklists, assumptions analysis, diagramming
techniques d. Risk probability and impact, information-gathering techniques, checklists, assumptions
analysis, diagramming techniques

43. Residual and secondary risks are outputs from a. Risk management planning b. Risk identification c.
Quantitative risk analysis d. Risk response planning

63. Inputs to risk management include a. Project charter, project plan, defined roles and responsibilities,
stakeholder risk tolerance, templates for the organization's risk management plan, and the work
breakdown structure b. Project plan, organizational risk management policies, defined roles and
responsibilities, stakeholder risk tolerance, templates for the organization's risk management plan, and
the work breakdown structure c. Project charter, organizational risk management policies, defined roles
and responsibilities, stakeholder risk tolerance, templates for the organization's risk management plan,
and the work breakdown structure d. Project charter, organizational risk management policies,
responsibility assignment matrix, stakeholder risk tolerance, templates for the organization's risk
management plan, and the work breakdown structure

18. One of the outputs of risk identification is a. Potential risk events b. Corrective actions c. Alternate
strategies d. Alternative action
QUESTION NO: 29

You are the project manager for a new website for the local zoo. You need to perform Qualitative

Risk Analysis. When you've completed this process, you'll produce all of the following as part of

the risk register update output except which one?

A. Probability of achieving time and cost estimates

B. Watch list of low-priority risks

C. Priority list of risks

D. Risks grouped by categories

Answer: A

Explanation:

Probability of achieving time and cost estimates is an update that is produced from the

Quantitative Risk Analysis process.