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Stakeholder Engagement (19-20%)
- Engaging the stakeholders on the risk prioritization process according to the stakeholder risk tolerance and different relevant standards for optimizing the consensus regarding priorities;
- Promoting risk ownership by proactively communicating responsibilities and roles as well as involving project team members in the expansion of risk responses for improving the risk response execution;
- Utilizing the interpersonal skills to develop a common understanding of the importance of risk management to foster the proper level of risk ownership, responsibility, and shared accountability;
- Training, coaching, and educating the stakeholders in risk processes and principles to create a common understanding of processes & principles, as well as foster involvement in risk management;
- Utilizing the tools and processes such as analyzing historical stakeholder behaviors and interviewing stakeholders to assess stakeholder risk tolerance for identifying the project risk thresholds;
- Utilizing useful communication methods and sharing information on project risk performance to liaise with the stakeholders of other projects to notify them about suggestions for their projects.
PMI-RMP Exam Overview
The PMI-RMP Exam is for individuals with a professional background in project risk management. The bigger and the more complex your past projects were, the more suited you are for the PMI-RMP certificate. To be eligible for such a certification, you need to meet specific prerequisites as listed below:
1. If you have a secondary degree such as a high school diploma, you also need to have:
- undergone project risk management education for at least 40 hours.
- worked as a project manager for 36 months in the past 5 years;
Career Path
Holding the PMI Risk Management Professional certification allows to boost your career in the field of risk management to another level. There is a wide range of positions that you can opt for, including a Corporate Development Transaction Services Manager, a Construction Management Professional, a General Manager, a Network Program Manager, a Nurse Manager Risk Management, a Risk Management Analyst, Senior Software Engineer, and more. Besides that, these specialists can earn an average income of $65,000 per year.
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PMI Risk Management Professional Sample Questions (Q105-Q110):
NEW QUESTION # 105
Joan is the project manager of the KYU project for her company. She is working with management on defining a contingency reserve for her project. Currently the project is scheduled to last 18 months and it has a cost budget of $2.5 million. What two areas of the project can the contingency reserve address in regard to risk management?
- A. Quality and costs
- B. Costs and schedule
- C. Cost and resource management
- D. Risk and project planning
Answer: B
NEW QUESTION # 106
Several key stakeholders approach the project manager with concerns. The stakeholders have received feedback from local businesses that have reported a reduction in customers because of construction activities at the worksite, and they plan to submit a claim to the municipality to fine the project manager's company.
How should the project manager address this concern?
- A. Evaluate the risk with the team and update the issueing
- B. Discuss the concern with the local business owners.
- C. Update the key risks and perform a quantitative risk analysis.
- D. Adjust construction work hours to after business hours.
Answer: A
Explanation:
The project manager should evaluate the risk with the team and update the issueing to address the concerns of the stakeholders and local businesses.
This concern is a potential risk that could affect the project's reputation, stakeholder satisfaction, and profitability. The project manager should evaluate the risk with the team and update the issue log, which is a tool for documenting and monitoring the resolution of issues that arise during the project. The issue log should include information such as the issue description, the priority, the owner, the status, and the actions taken. The project manager should also communicate with the stakeholders and the local businesses to address their concerns and seek a mutually beneficial solution. The project manager should not ignore the concern, as it could escalate into a bigger problem. The project manager should not discuss the concern with the local business owners alone, as this could bypass the stakeholders and create more conflicts. The project manager should not update the key risks and perform a quantitative risk analysis, as this is a time-consuming and complex process that may not be necessary for this type of risk. The project manager should not adjust the construction work hours to after business hours, as this could incur additional costs, disrupt the project schedule, and affect the workers' safety and productivity. References: PMI, 2017. A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Sixth Edition. Newtown Square, PA: Project Management Institute, Inc., pp. 115-116, 408-4091
NEW QUESTION # 107
A risk manager is reviewing documentation for a project following a risk planning workshop with project stakeholders and team members. Several items have been identified on the risk log that would be detrimental to project success, but the associated triggers cannot be managed by the organization and are unlikely to occur.
Which response should the risk manager recommend for these risk items?
- A. Exploit
- B. Mitigate
- C. Enhance
- D. Accept
Answer: D
Explanation:
According to the PMI Risk Management Professional (PMI-RMP)®Examination Content Outline1, one of the tasks in the domain of Risk Response is to recommend risk response strategies based on the risk appetite and tolerance of the organization and stakeholders1. One of the strategies for negative risks or threats is risk acceptance, which involves acknowledging the existence of a threat and making a conscious decision to accept it without taking any action2. In this scenario, the risk manager should recommend risk acceptance for the risk items that would be detrimental to project success, but the associated triggers cannot be managed by the organization and are unlikely to occur. Risk acceptance is appropriate when the risk exposure is low, the cost of other responses is high, or the risk response is outside the scope or influence of the project3. The risk manager should not recommend risk mitigation, which involves reducing the probability and/or impact of a threat2. The risk manager should not recommend risk enhancement, which is a strategy for positive risks or opportunities, not negative risks or threats2. The risk manager should not recommend risk exploitation, which is also a strategy for positive risks or opportunities, not negative risks or threats2. References: 1: PMI Risk Management Professional (PMI-RMP)®Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, page 4363: A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, page 437.
NEW QUESTION # 108
You are the project manager for GHY Project and are working to create a risk response for a negative risk. You and the project team have identified the risk that the project may not complete on time, as required by the management, due to the creation of the user guide for the software you're creating. You have elected to hire an external writer in order to satisfy the requirements and to alleviate the risk event. What type of risk response have you elected to use in this instance?
- A. Transference
- B. Exploiting
- C. Sharing
- D. Avoidance
Answer: A
NEW QUESTION # 109
A financial institution is creating a new product database tor their clients. The project sponsor of this project is concerned about failure of the digital platform that hosts the database. The risk manager states that this risk will only occur if there is a major power outage; however, the financial institution has back-up power generators in place.
What type of risk is being referred to here?
- A. Secondary risk
- B. Environment risk
- C. Residual risk
- D. Major risk
Answer: C
Explanation:
Residual risks are those that remain after implementing risk response strategies. In this scenario, the primary risk is a major power outage that could lead to the failure of the digital platform hosting the new product database. The financial institution has mitigated this risk by installing backup power generators. However, the possibility of a power outage still exists, and the effectiveness of the backup generators cannot be guaranteed with absolute certainty. Therefore, the remaining risk, despite the mitigation measures, is classified as residual risk.
PMI Risk Management Study Guide References:
The PMI-RMP Exam Content Outline defines residual risk as the risk that remains after risk responses have been implemented, highlighting the necessity of monitoring these risks throughout the project lifecycle.
NEW QUESTION # 110
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