Project Management Risk Management: Multiple Choice Questions and Answers, Exams of Business Informatics

A series of multiple-choice questions and answers related to project management, focusing on risk management scenarios. it tests understanding of risk identification, response strategies (mitigation, transfer, avoidance, acceptance), and the application of these strategies in real-world project situations. The questions cover various aspects of project management, including team management, resource allocation, and stakeholder communication. valuable for students learning about project risk management and professionals seeking to test their knowledge.

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2024/2025

Available from 05/26/2025

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PMP Exam Prep
During project execution, the project manager realizes that a team member is not completing
tasks in accordance with the project management plan. What is the first action the project
manager should take?
A. Build a matrix team to review the relationships on all project teams.
B. Ask all the team members to focus more on the project.
C. Reassign the uncompleted tasks to another team member.
D. Engage the team member to determine the reasons for poor performance. correct answer D
A project manager who is handling multiple projects in five different countries has issued a new
directive on workplace attire and office arrangements. This has been met with resistance in
three countries, resulting in a series of misunderstandings with the project manager.
What should the project manager have done?
A. Contacted senior management before issuing a general directive
B. Assessed the cultural and personal traits in the various countries before issuing a general
directive
C. Determined the socioeconomic status of the team members before issuing a general
directive
D. Obtained a list of preferences from the team members before issuing a general directive
correct answer B
A senior team member was very influential and played a crucial role in past projects. In this new
project, the senior member no longer plays a crucial role and is demotivated.
What should the project manager do to address this situation?
A. Arrange a team meeting to discuss ways of increasing motivation.
B. Provide incentives to increase motivation.
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PMP Exam Prep

During project execution, the project manager realizes that a team member is not completing tasks in accordance with the project management plan. What is the first action the project manager should take? A. Build a matrix team to review the relationships on all project teams. B. Ask all the team members to focus more on the project. C. Reassign the uncompleted tasks to another team member. D. Engage the team member to determine the reasons for poor performance. correct answer D A project manager who is handling multiple projects in five different countries has issued a new directive on workplace attire and office arrangements. This has been met with resistance in three countries, resulting in a series of misunderstandings with the project manager. What should the project manager have done? A. Contacted senior management before issuing a general directive B. Assessed the cultural and personal traits in the various countries before issuing a general directive C. Determined the socioeconomic status of the team members before issuing a general directive D. Obtained a list of preferences from the team members before issuing a general directive correct answer B A senior team member was very influential and played a crucial role in past projects. In this new project, the senior member no longer plays a crucial role and is demotivated. What should the project manager do to address this situation? A. Arrange a team meeting to discuss ways of increasing motivation. B. Provide incentives to increase motivation.

C. Ask the functional manager to speak with the team member. D. Arrange a one-on-one meeting with the team member. correct answer D A delivery team member is complaining about the workload and the number of top priorities they are handling. Another team member is complaining that they cannot do their own work due to the lack of progress from this team member. They are both frustrated and low- performing because of this dispute. What should the project manager do to improve team performance? A. Find common ground between the two team members so that they know they have areas of agreement. B. Recognize that emotions are part of this issue and address them first. C. Initiate conflict-solving techniques to avoid situations that get out of control. D. Utilize stakeholder engagement tools and escalate the situation. correct answer B During a standup meeting, some of the team members strongly disagree about how tasks have been distributed. They feel tired and frustrated because task distribution has been a frequent complaint throughout the project. What should the project manager do? A. Review the project management plan to determine how to manage this specific situation. B. Discuss with other project managers if they had to address similar complaints in their projects. C. Negotiate with the team to find a new way to distribute the work of each iteration scope. D. Interview these members to identify, assess, and manage their feelings about the situation. correct answer D A project manager of a large team notices that team members are not interacting together, which is impacting project performance and the quality of the project's outcome. The project manager tries to increase team morale by inviting team members to an after-work event, but only a few team members attend.

What should the project manager do next? A. Identify a supplier that can provide the component within the amount of the reserve. B. Order the component from another supplier and submit a change request to the change control board (CCB). C. Review the risk response plan and the statement of work for the next steps and a penalty clause for late delivery. D. Update the project schedule and the lessons learned repository. correct answer A What key elements are required to create a risk management plan? (Choose 3) A. Risk strategy B. Risk severity C. Roles and responsibilities D. Risks' expected monetary value E. Timing correct answer A, C, E A project manager learns that insufficient resources are available in-house to produce a critical component of a deliverable. The project manager outsources the production of this component by contracting a vendor. Which threat response strategy did the project manager use? A. Mitigate B. Transfer C. Enhance D. Escalate correct answer B

A project is in the execution phase, and product testing is almost complete. A team member proposes that the testing can be fast-tracked by removing some of the tests. The team member believes this will help to finish the job earlier and give the project more float. What should the project manager do? A. Request more information from the team member. B. Reject the team member's proposal. C. Discuss this proposal with the project team. D. Ask the quality manager to consider the proposal. correct answer B During the development phase of a construction project, key stakeholders approved a project budget. The team identified risks and appropriate risk responses. However, during project execution, an unexpected local health emergency halted and delayed work on the project. This event type was not identified as a risk or listed in the risk register. The team decides that this issue must be mitigated, which would incur additional costs. How should the project manager address this unforeseen budgetary overrun? A. Use the management reserve to cover the cost. B. Identify potential ways to exploit the risk. C. Use the contingency reserve to cover the cost. D. Develop cost and performance baselines. correct answer A Which are the outputs of the Identify Risks process? A. Risk report and risk register B. Risk report, risk register and project documents updates C. Risk management plan, risk register and risk responses D. Risk report, probability and impact matrix correct answer B

A. When starting the project and as each risk is closed. B. While organizing, preparing, and carrying out the work. C. During weekly meetings as new risks are identified and added. D. Regularly and throughout the project. correct answer D A project is depends on the reliability of one component. The project manager proposes designing redundancy into the system to reduce the impact that failure of this component would have on the success of the project. What type of risk response is the project manager demonstrating? A. Transfer B. Mitigate C. Accept D. Avoid correct answer B Due to a budget issue, the project team decides to use low-cost equipment with higher testing uncertainty to reduce cost. However, the test results are unstable and are creating discrepancies. One of the team members is aware of the situation and proposes to use high- resolution equipment with lower test uncertainty to increase the testing quality. How should the project manager respond to this proposal? A. Reject the proposal due to budget constraints and follow the quality management plan. B. Accept the proposal because the high-resolution equipment produces precise test results with lower test uncertainty. C. Evaluate the proposal to determine if the high-resolution equipment produces precise test results with lower test uncertainty. D. Accept the proposal because budget is not an issue when quality assurance is taken into consideration. correct answer C

During a retrospective meeting, the team realizes that all deliverables were completed according to the specifications provided in the product backlog. However, the number of errors found during testing increased dramatically. What should the project manager do? A. Meet with quality assurance specialists to clarify the issue and seek resolutions. B. Review the risk management plan to determine the mitigation strategy. C. Perform a Monte Carlo analysis to identify possible scenarios and actions. D. Register the risk in the risk register and monitor it during the next iteration. correct answer A When managing a strategic project for their organization, what four tools should a project manager use for risk analysis? (Choose four) A. Brainstorming B. Inspection C. Risk checklists D. Product evaluation E. Interviewing F. Decision tree analysis correct answer A, C, E, F A project manager has been moved to a new division and is in charge of an existing project in an unfamiliar domain. When attempting to gain an understanding of the risks for this agile project, what is the primary tool the project manager should employ? A. Interview with the project champion B. Collaborative discussions C. Probability assessments D. Workshops for risk avoidance correct answer B

A. Update the risk register based on the identified risks. B. Perform a qualitative risk analysis for the identified risks. C. Update the project sponsors about the identified risks. D. Plan for additional budget to cover the identified risks. correct answer A In a critical project to the organization, one of the contractors complains that approvals are lengthy and difficult to handle. The contractor mentioned this as it may affect the project schedule. What should the project manager do next? A. Hire additional resources for the team to mitigate this risk. B. Add this risk to the risk register to be monitored and reviewed. C. Escalate the risk to upper management as critical for timely delivery. D. Discuss this with the team to find options to mitigate the risk. correct answer D A project team implements a change that was approved by the change control board (CCB). The change was intended to minimize a risk but it had the opposite effect. What should the project manager have done to avoid this outcome? A. Confirmed the effectiveness of the risk response and monitored progress. B. Updated the assumption log with details concerning the risk. C. Performed a risk analysis to quantify project risk exposure. D. Developed a probability and impact matrix to determine the risk's priority level. correct answer A The project team members are dispersed across different countries. Suddenly, travel restrictions do not allow team members to collocate.

When analyzing project risks, which risk analysis tools should the project manager use? (Choose two). A. Risk checklist B. Context diagram C. Meetings D. Data representation E. Diagramming techniques correct answer A, E A project manager decided to involve a third party to manage project risk given that they had more experience than the current project team. What kind of response strategy did the project manager apply to address overall project risk? A. Avoid B. Exploit C. Transfer D. Reduce correct answer C The risk register is a document that records details of all identified individual risks to a project. What is the minimal content of this document? A. Identified risks, risk categories and effects on objectives B. Risks owners, potential risks responses and risks triggers C. Identified risks, risks owners and potential risks responses D. Issues log, metrics & trends and distribution of risks across risk categories correct answer C A project manager calls a meeting to identify risks for a complicated project. Several functional managers are invited to this meeting along with the project team. Why has the project manager invited the functional managers?

C. Create a risk item in the risk register and incorporate the thresholds according to the benchmarks. D. Discuss the probable downtime with the sponsor and obtain approval for outages. correct answer C A company is about to start a project in a remote place known for extreme weather. It was agreed to implement the project using a predicted, multiphase approach. Each phase is composed of several iterations. What should the project manager do in the event of extreme weather? A. Pause work until a specialized team arrives to assess the damage that was done to the site. B. Consult the initial plans in case of an emergency, then update and follow the corrective procedures. C. Advise management to reconsider such an investment and the continuity of the project. D. Stop the iteration, run a retrospective, and move to the next phase of the project. correct answer B The opening of a new overseas office is at risk of delay because the necessary permit has not yet been issued by the local government. The project team met to assess the response to take as indicated on the risk register. After a thorough assessment, the team decided to postpone the opening to another date. Which document should the project manager use to update the project management plan? A. Risk management plan B. Risk register C. Risk report D. Lessons learned register correct answer C A project has been closed and customer care needs to measure customer satisfaction with the deliverables.

What should be done next? A. Negotiate additional contract with customer for similar service. B. Schedule meeting with stakeholders and customer to discuss lessons learned. C. Evaluate project deliverables and review customer feedback documents. D. Audit project success by reviewing closing documentation for each project phase. correct answer C A major project deliverable is completed. What should the project manager and team do to confirm that specifications have been met? A. Check the organizational process assets. B. Validate the quality audit reports. C. Verify the scope. D. Perform quality control. correct answer D A project manager is reviewing work performance data in preparation for the Close Project process. The data reveals that one of the deliverables was not accepted. The estimated work required to complete acceptance of the deliverable will delay the project completion date by two months. What should the project manager do next? A. Allocate the contingency reserve to procure resources needed for completion. B. Update the schedule and perform the work. C. Issue a change request for review by the change control board (CCB). D. Update the watch list in the risk register. correct answer C A manufacturing company receives customer complaints that a product is defective. A project sponsor has said that these complaints might be outliers.

A project manager is working with stakeholders to identify the steps that must be completed as part of a task. The project manager needs to be able to verify that team members have completed all the steps required when performing a frequently performed task. What should the project manager use? A. Flowchart B. Checklist C. Histogram D. Facilitation correct answer B The first version delivered to the quality control team has poor performance, and the testers are complaining that they cannot complete all the test cases as planned. Which is a tool to help to monitor performance? A. Run Chart B. Data Flow Diagram C. Flow Chart D. Non-Control Chart correct answer A A project manager assigned to an existing project finds that the deliverable quality has been inconsistent. The project manager finds that the team is not adhering to the development standards. What practice should the project manager employ to ensure higher quality? A. Perform a full inspection since there is no margin for error. B. Introduce sampling as a cost-effective and time-efficient way to ensure quality. C. Implement a continuous improvement process to ensure consistent outcomes. D. Add a unit of work for a specific period of time to prove the solution is viable. correct answer C

During a periodic review with stakeholders, the project sponsor asks how the project will measure satisfactory completion of the deliverables and how those measurements are applied. Where can the project manager find this information? A. Scope management plan. B. Requirements management plan. C. Quality management plan. D. Work performance reports. correct answer B During the development of a project, the project manager noticed that results are not as good as expected. Which tool or document shows which elements are impacting the key metrics? A. Pareto chart B. Run chart C. Project charter D. Risk register correct answer A While reviewing a status report, a project manager notices that, over a period of six months, the coding quality for one developer is statistically lower than another developer assigned the same task. Which tool should the project manager use to trace the problem's source back to its actionable root cause? A. Histogram B. Control chart C. Scatter diagram D. Ishikawa diagram correct answer D

A project is being audited to ensure compliance with organizational policies. What process is being conducted? A. Audit Schedule B. Plan Quality Management C. Control Quality D. Manage Quality correct answer D A project manager discovers a significant flaw in a major project deliverable. Which project management process is being performed? A. Manage Quality B. Control Quality C. Plan Quality Management D. Statistical Sampling correct answer B Quality management is a vital aspect of any project. Which of the following quality control aspects is a component of a high functioning measurement system? A. Accuracy B. Non-precision C. Non-repeatability D. Duration correct answer A All quality controls have passed, and a project deliverable is ready to be released to the customer. However, a change request to add new quality criteria has been approved. What should the project manager do first?

A. Update the project management plan. B. Stop the release of the deliverable to the customer. C. Use the new quality criteria for future deliverables. D. Update the risk register. correct answer B A customer is concerned that the current project deliverable will not fulfill stated project requirements. What could be done to alleviate customer concerns? A. Schedule a meeting to remind the customer of requirements previously communicated to the team. B. Document the customer's concern as a risk in the risk register and plan accordingly. C. Manage the concern at the review of each deliverable with the customer. D. Ask a product owner to review the acceptance criteria previously discussed with the customer. correct answer D A company is using Lean Six Sigma methodology on a project. Midway through the project, an external Lean consultant is invited to conduct an audit to ensure that the methodology is being properly applied. Which process is being employed? A. Manage Quality B. Control Quality C. Perform Qualitative Risk Analysis D. Plan Quality Management correct answer A A project manager for a delivery project has engaged a vendor to provide the testing services for the project. Which items should the project manager ensure the vendor provides before the testing starts?