Get 35 contact hours online for PMP application
Project Risk Management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives.
Project Risk is an uncertain event or condition that, if occurs, has a positive or a negative effect on a project objective.

Processes

There are following six processes which are part of Project Risk Management.
•Plan Risk Management
•Identify Risks
•Perform Qualitative Risk Analysis
•Perform Quantitative Risk Analysis
•Plan Risk Responses
•Monitor and Control Risks

Few Important points
A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive impact on the project. Project risks that are negative are called threats. Project risks that are positive are called opportunities.

Insurance is an example of transferring risk.
Non-critical risks should be documented. They should be revisited and reviewed regularly.
Risks are identified in all phases
Delphi technique is most commonly used to obtain expert opinions on technical issues.

1. Plan Risk Management


2. Identify Risks


3. Perform Qualitative Risk Analysis


4. Perform Quantitative Risk Analysis


5. Plan Risk Responses


6. Monitor and Control Risks


These questions are randomly taken from TechFaq360 PMP success kit



Question - 2

Overtime associated with the execution effort of a project is estimated at 120 hours with probability 0.5, 250 hours with probability 0.6, and 300 hours with probability 0.3. What is the monetary value of the amount of overtime?
1.300 hours
2.670 hours
3.250 hours
4.100 hours

Correct Answers are : 1
Explanation :
A is the correct answer.

The Monetary Value of the amount of overtime is (120 x 0.5) + (250 x 0.6) + (300 x 0.3) = 300 hours.



Question - 5

You are a project manager of a project. You have organized a meeting to plan risk management. Who could be attendees for this meeting?
1.Stakeholders
2.Team members
3.anyone in organization who is responsible to manage risk planning
4.All of the above

Correct Answers are : 4
Explanation :
D is the correct answer.

A meeting to plan the risk management is called Planning Meeting and Analysis. Attendees could be project manager, selected team members, stakeholders, and anyone in organization who is responsible to manage risk planning.



Question - 10

Probabilistic Analysis of a project, probability of achieving cost and time objectives and trends in Quantitative Risk Analysis results are done during _______.
1.Perform Qualitative Risk Analysis
2.Perform Quantitative Risk Analysis
3.Plan Risk Management
4.Identify Risks

Correct Answers are : 2
Explanation :
B is the correct answer.

Probabilistic analysis of a project, probability of achieving cost and time objectives and trends in Quantitative Risk Analysis results are done during Quantitative Risk Analysis.



Question - 38

The risks of financial gain or loss are called _________.
1.Business Risks
2.Financial Risks
3.Organizational Risks
4.Functional Risks

Correct Answers are : 1
Explanation :
A is the correct answer.

Business gains are directly tied to the risk of the financial gains or loss.



Question - 44

You are a project manager of a project. How you determine whether it is better to make a product or buy a product?
1.Decision Tree Analysis
2.ROI Analysis
3.Ishikawa Diagram
4.All of the above

Correct Answers are : 1
Explanation :
A is the correct answer.

A Decision Tree model can separate the pros and cons of buying product versus building product. Ishikawa Diagram shows cause and effect, not pros and cons.

1600+ PMP Questions Fourth(4th) Edition



TechFAQ : Your Technology Expert