PMP Project Management Professional Exam
Risk Management Practice Questions
60 practice questions with detailed explanations — aligned to the PMP Project Management Professional Exam.
Master Risk Management to boost your score on the PMP Project Management Professional Exam. Each question below mirrors the style and difficulty of real exam questions, complete with detailed explanations so you understand the why behind every answer. Work through all 60 questions, review any that trip you up, and use the related topics below to round out your preparation.
Q1.What is the formula for Expected Monetary Value (EMV) used in risk analysis?
A.EMV = Probability × DurationB.EMV = Probability × Impact (in currency)C.EMV = Impact ÷ ProbabilityD.EMV = Total Budget × Risk ScoreB. EMV = Probability × Impact (in currency)Explanation: EMV = Probability × Impact. For example, a 30% chance of a $50,000 cost overrun has an EMV of $15,000. EMV is used in quantitative risk analysis and decision tree analysis to evaluate risk reserves and make risk-informed decisions.
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Q2.What is the difference between a risk and an issue?
A.A risk is certain to happen; an issue is uncertainB.An issue has not yet occurred; a risk has already occurredC.A risk is an uncertain future event; an issue is a risk that has occurred and requires immediate actionD.Both terms mean the same thing in project managementC. A risk is an uncertain future event; an issue is a risk that has occurred and requires immediate actionExplanation: A risk is an uncertain future event that may or may not occur. When a risk event occurs, it becomes an issue that requires immediate response. Issues are logged in the issue log and require resolution. Risks are tracked in the risk register.
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Q3.A project team decides to purchase insurance to deal with a specific project risk. This is an example of which risk response strategy?
A.AvoidB.TransferC.MitigateD.AcceptB. TransferExplanation: Transferring risk shifts the financial impact of a risk to a third party — most commonly through insurance, bonds, warranties, or fixed-price contracts. The risk still exists but the financial consequence is borne by another party.
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Q4.What is a residual risk?
A.A new risk created by a risk response actionB.A risk that remains after a risk response has been implementedC.A risk identified after project closureD.The highest-priority risk on the risk registerB. A risk that remains after a risk response has been implementedExplanation: Residual risks are risks that remain after risk responses have been applied — risks that have not been fully eliminated. For example, mitigating the probability of a server failure still leaves a residual risk of some server failure probability. Residual risks are monitored throughout the project.
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Q5.An opportunity risk response strategy in which you take action to ensure the opportunity definitely occurs is called:
A.ExploitB.EnhanceC.ShareD.AcceptA. ExploitExplanation: Exploit is the opportunity equivalent of Avoid — it eliminates uncertainty by ensuring the opportunity definitely occurs. For example, assigning the best-skilled resources to a task to guarantee a performance gain. Enhance increases the probability of the opportunity; Share brings in a partner to realize the opportunity.
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