Missed Question 3 Flashcards
Compliance requirements are sometimes documented as nonfunctional requirements. These include: (Choose two.)
A. Security
B. Severity
C. Availability
D. Complexity
A. Security
C. Availability
Ten years ago, a family inherited a 140-acre estate but since then have only argued about what to do with it. Now, they must act within 24 months to avoid financial penalties for dereliction.
The estate lawyer engages a development company with a project manager to find a solution. The project manager hosts a discovery and fact-finding meeting and hears the following viewpoints:
Stakeholder F wants to restore the derelict building to preserve historical value.
Stakeholders P and Q want to demolish the building, then build and sell houses.
Stakeholder B wants to split the property among the family.
The lawyer reemphasizes the time line.
Which two steps should the project manager take first? (Choose 2)
A. Continue discussing the various options with the stakeholders and listen actively to their concerns.
B. Estimate the schedule and cost of each option.
C. Examine the value gained by each of the options.
D. Give the group a deadline to decide what they want among themselves and then advise the project team.
E. Discuss the scope options with the
A. Continue discussing the various options with the stakeholders and listen actively to their concerns.
B. Estimate the schedule and cost of each option.
Feedback
We examine value and base decisions for project scope based on available data. After that, we can invest in a proof of concept (POC). These stakeholders have had enough time to collaborate, but it is clear they cannot agree and move forward without help. They have contributed enough initial ideas for you to examine the potential value, schedule, and cost of each as the first steps.
Business value is defined as the total sum of all tangible and intangible elements. Examples of intangible elements include:
A. Brand recognition and stakeholder equity
B. Brand recognition and goodwill
C. Goodwill and monetary assets
D. Stakeholder equity and fixtures
B. Brand recognition and goodwill
Feedback
Brand recognition and goodwill are both examples of intangibles. Stakeholder equity, fixtures and monetary assets are examples of tangible benefits.
You have been assigned a project to improve project management processes for your company. You report to the vice president of finance, the vice president of operations, and your project manager, who share responsibility for this project. Which organizational structure are you working in?
A. A balanced matrix organization
B. A weak organization, because shared responsibility makes a project too risky
C. A projectized organization
D. A functional organization
A. A balanced matrix organization
Feedback
The PM reporting to multiple managers
You are the project manager of the HQQ Project, and part of your requirement in this role is to create a risk management plan. Which of the following is not part of a risk management plan?
- Role and responsibilities
- Methodology
- Technical assessment board compliance
- Risk categories
Technical assessment board compliance
The technical assessment board may be used as part of the change control system. It is not relevant to risk management planning.
You are the project manager of the GHK Project. You and the manufacturer have agreed to substitute the type of plastic used in the product to a slightly thicker grade should there be more than a 7 percent error in production. The thicker plastic will cost more and require that the production slow down, but the errors should diminish. This is an example of which of the following?
- Threshold
- Tracking
- Budgeting
- JIT manufacturing
Threshold
An error value of 7 percent represents the threshold under which the project can operate. Should the number of errors increase beyond 7 percent, the current plastic will be substituted.
Hans is a project manager for his organization, and he’s working with his sponsor to identify the organization’s risk tolerance. Understanding the risk tolerance and any associated enterprise environmental factors will help Hans and the project team plan for risk responses. An organization’s risk tolerance is also known as what?
The utility function describes a person’s willingness to tolerate risk.
As a project manager, you must understand the components of an identified risk, a risk response, a risk trigger, risk thresholds, and issues. A risk trigger is also called which of the following?
- A warning sign
- A delay
- A cost increase
- An incremental advancement of risk
A warning sign
Risk triggers can also be known as warning signs. Triggers signal that a risk is about to happen or has happened.
You are the project manager of your organization, and you’re working with your project team and the project stakeholders to identify the risks within the project. Some of the risks have not yet happened and some of the risks are already issues. You tell the project team that all risks must be documented in the risk register, but they are not familiar with this document. Which one of the following best describes the risk register?
- It documents all the outcomes of the other risk management processes
- It a document that contains the initial risk identification entries
- Its a system that tracks all negative risks within a project
- Its part of the project PMIS integrated change control
It documents all the outcomes of the other risk management processes
The risk register documents all the outcomes of the other risk management processes.
You are the project manager of the HNN Project and you’re working with the project stakeholders, including the project team and the project sponsor, to identify risks within the project. You have identified an opportunity that the organization could take advantage of as an additional revenue stream. As the project manager, what’s the best risk response to choose for this risk?
- Exploit
- Enhance
- Escalate
- Share
Escalate - The best response for this positive risk event is to escalate the risk/opportunity. This risk is beyond the boundaries of the project as it is to generate an additional revenue stream for the organization, not the project.
B is incorrect because enhance would aim to attempt to make the probability increase.
D is incorrect. Sharing happens when there’s a teaming agreement or joint venture to seize the opportunity.
You are the project manager of the GLI Project for your organization. Your project sponsor has asked that you use an approach to measure the probability and impact of the risk events and then to rank the events accordingly. Which risk analysis provides the project manager with a risk ranking?
- Quantifiable
- Qualitative
- The utility function
- SWOT analysis
Qualitative
The risk ranking is based on the qualitative values of very high, high, medium, low, and very low attributes of the identified risks.
A table of risks, their probability, their impact, and a number representing the overall risk score is called a _______________.
- Risk table
- Probability and impact matrix
- Quantitative matrix
- Qualitative matrix
Probability and impact matrix
A table of risks, their probability, and their impact equate to a risk score in a risk matrix.
A project is being planned in a remote area with limited access to vehicles and equipment. The project manager proposes that the company use an outside vendor to deliver all heavy equipment. The project manager will take full responsibility for this activity. However, this strategy will result in a significant expense. What type of risk response is the project manager demonstrating?
- Transfer
- Mitigate
- Avoid
- Accept
Transfer
Explanation: Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs. Risk transfer often involves payment of a risk premium to the party taking on the threat.
Source: PMI®. This question was formerly on the PMP® exam.
A project risk budget was approved that only considered high-impact/high-potential risks. During project execution, a risk with high impact but very low potential occurs. While it is in the risk register, it is not in the budget.
What should the project manager do first?
- Conduct an impact analysis, and then submit a change request to increase the budget if necessary.
- Update the risk management plan based on risk monitoring and assessment.
- Immediately execute the risk response plan using the available risk budget.
- Escalate the problem to the project sponsor.
Update the risk management plan based on risk monitoring and assessment.
Explanation: Monitor Risks is the process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. The key benefit of this process is that it enables project decisions to be based on current information about overall project risk exposure and individual project risks. This process is performed throughout the project.
Source: PMI®. This question was formerly on the PMP® exam.
The project manager and the team have just documented 40 project risks. What will the most likely process/activity the team will perform next?
- Provide specific and detailed response strategies (actions) for each risk
- Analyze the risks quantitatively
- Create the risk management plan.
- Analyze the risks qualitatively
Analyze the risks qualitatively
Explanation: For most projects, relevant stakeholders will analyze the probability and severity of identified risks.
A project manager completes plans for a project and submits all documents for approval. No time is allocated for delays in approvals.
What should the project manager have done to address this potential risk?
- Started the project in advance to avoid impacting the schedule
- Shared this potential risk information with the project stakeholders to accelerate approvals
- Planned specific actions, including primary and backup strategies, and chosen a risk owner
- Selected a risk owner and incorporated owner-identified actions into the planning document
Planned specific actions, including primary and backup strategies, and chosen a risk owner
Explanation: Risk analysis tools can be used to choose the most appropriate responses. Specific actions are developed to implement that strategy, including primary and back up strategies.
Source: PMI®. This question was formerly on the PMP® exam.
A project is at the planning stage of the project. The Project Manager realizes that producing a complex multi-functional application is not feasible with the current number of resources and decides to hire more resources for the production of the application. The Project Manager identifies and contracts temporary resources.
Which risk response strategy does this scenario exemplify?
- Avoid
- Share
- Accept
- Mitigate
Avoid
Explanation: The risk to the project was posed by insufficient resources. The risk was avoided by hiring additional resources.
PMBOK® Guide Sixth Edition (2018) PMI/PMI/11.5.2.4/443
Both the project sponsor and project team assure a Project Manager that the new project has a realistic schedule and an adequate budget. The Project Manager worries that unplanned events could threaten the project’s success.
How should the Project Manager respond to this concern?
- Review the original project plan and focus on completing the plan on schedule.
- Ask for additional funding to cover project planning.
- List and assess any project risks.
- Schedule a meeting with the functional manager to address the potential impact of unplanned risks.
List and assess any project risks.
Explanation: The Project Manager needs to be proactive and work with the team to identify risks and their mitigation strategies.
The project manager and other subject matter experts have identified many project risks (both opportunities and threats), and they have determined the probability and impact for each risk. The opportunities and threats have been prioritized in lists: those with the highest ratings at the top of the list. A numerical analysis of the risks is not possible for several reasons. What should the project manager and subject matter experts do next?
- Perform a qualitative risk analysis
- Start monitoring ongoing risks
- Plan risk management
- Plan risk responses
Plan risk responses
Explanation: Once the team has completed the qualitative analysis, they should plan risk responses, assuming that the team will not or cannot perform a quantitative analysis of the most serious risks.
The project manager and the team have identified 40 project risks, analyzed them according to probability and severity, and responded to each one of them with applicable strategies. What best practice was missing from this approach?
- Including the project team (in other words, the team should not have been included in these activities/processes).
- Performing a quantitative risk analysis on all the risks.
- Obtaining the input of other relevant stakeholders.
- Analyzing the risks before (not after) identifying the risks.
Including the project team (in other words, the team should not have been included in these activities/processes).
Explanation: The project team should absolutely help with these processes, as they often have an excellent knowledge of the product, service, and/or work.
Performing a quantitative risk analysis on all the risks.
Explanation: Though it is accurate that the quantitative analysis is missing from the question, many projects lack the time, money, equipment, and/or expertise to perform a quantitative analysis. Additionally, performing a quantitative analysis on “all” risks is generally not a best practice, as risks with minimal potential impact and probability may only require a simple and efficient qualitative approach.
✓ Obtaining the input of other relevant stakeholders.
Explanation: Though the project manager and the team can generate a good list of risks, other stakeholders, such as the customer, sponsor, users, and even vendors, can provide insights into risks that can jeopardize project success.
Analyzing the risks before (not after) identifying the risks.
Explanation: The order presented in the question is correct: identifying risks precedes analyzing the risks.