Risk Management Practice Questions
Master Risk Management for the PMP exam with comprehensive practice questions, detailed explanations, and proven study strategies.
1,800+
Practice Questions
91%
Pass Rate
75K+
Students Passed
What You'll Learn
Risk Management is a critical knowledge area in the PMP exam, as it covers the processes involved in identifying, analyzing, and responding to project risks. Understanding and properly applying risk management principles is essential for project managers to proactively mitigate potential issues and ensure project success. This topic evaluates a candidate's ability to identify, assess, and plan for various types of risks that can impact a project, as well as their understanding of risk response strategies and monitoring techniques.
Key Concepts
Risk Management Plan
A component of the project management plan that documents the risk management approach, risk identification and analysis processes, risk response planning, and risk monitoring and control activities for the project.
Risk Identification
The process of determining which risks may affect the project and documenting their characteristics. This involves identifying both internal and external risks that could impact the project.
Qualitative Risk Analysis
The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
Quantitative Risk Analysis
The process of numerically analyzing the effect of identified risks on overall project objectives, using techniques such as simulation and sensitivity analysis.
Risk Response Planning
The process of developing options and actions to enhance opportunities and reduce threats to project objectives.
Risk Monitoring and Control
The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating the effectiveness of risk response throughout the project life cycle.
Risk Register
A document that includes the identified risks, risk analysis, and risk response plans for a project.
Common Mistakes to Avoid
- Failing to identify and document all potential risks, both internal and external, that could impact the project.
- Inadequate or inaccurate risk analysis, leading to poor prioritization of risks and ineffective risk response strategies.
- Lack of a comprehensive risk management plan, resulting in ad-hoc and reactive risk management instead of a proactive approach.
- Ineffective monitoring and control of risks throughout the project life cycle, leading to unforeseen issues and missed opportunities.
- Confusing risk management with issue management, which are related but distinct processes.
Sample Risk Management Questions
Question 1
To continually optimize your risk strategies, which procedure boosts the risk approach's overall effectiveness during the entire project lifecycle?
Implement Risk Responses
(Correct)Control Quality
Control Scope
Perform Integrated Change Control
Explanation:
Correct answer: Implement Risk Responses Implement Risk Responses involves putting risk response plans into action, keeping tabs on known risks, keeping an eye on residual risks, finding new risks, and assessing how well the risk process is working throughout the project. Its main advantage is that ...
Question 2
In which Project Risk Management procedure does assumption analysis play a role?
Identify Risks
(Correct)Plan Risk Management
Plan Risk Responses
Perform Quantitative Risk Analysis
Explanation:
Correct answer: Identify Risks Assumption analysis is a component of the Identify Risks process and is a data analysis technique. If the assumptions are proven wrong during the analysis, the project management plan may need to be adjusted to account for the error. It is up to the project's sponsor, ...
Question 3
A work package is valued at $10,000 with a 25% chance of occurrence. Another work package has a 50% probability and a $50,000 value. The expected monetary value for work package 2 is:
$25,000
(Correct)$2,500
$12,500
$5,000
Explanation:
Correct answer: $25,000 Work package 2 has an expected monetary value (EMV) of $25,000. The formula for EMV is Probability x Impact. Therefore, EMV = 50% x $50,000 = $25,000.
Study Tips for Risk Management
Thoroughly review the Risk Management knowledge area in the PMBOK Guide, ensuring you understand all the key concepts, processes, and techniques.
Practice identifying and analyzing risks for different project scenarios, using tools such as risk registers, probability-impact matrices, and sensitivity analysis.
Familiarize yourself with various risk response strategies, including avoidance, mitigation, transfer, and acceptance, and understand when each is most appropriate.
Review past PMP exam questions and sample questions to become familiar with the types of risk management-related questions you may encounter.
Consider taking a risk management-focused training course or workshop to deepen your understanding of the subject matter.
Ready to Start?
Get instant access to all Risk Management practice questions with detailed explanations.
Start Free TrialNo credit card required
Related PMP Topics
PMP Question Types
Frequently Asked Questions
How many Risk Management questions are on the PMP?
Risk Management is an important component of the PMP exam. Upsero includes hundreds of practice questions covering all aspects of this topic.
How do I study for Risk Management?
Start with understanding the key concepts, then practice with realistic exam questions. Upsero's ReadyScore tracks your mastery of Risk Management so you know when you're ready for the real exam.
Are the practice questions similar to the real PMP?
Yes! Our Risk Management questions are designed to match the exact format, difficulty, and style of the actual PMP exam. Many students say our questions are even harder than the real exam.
Master Risk Management Today
Join thousands of students who passed the PMP with Upsero
Start Free Trial