PMI PMI-RMP Practice Exams
Last updated on Oct 22,2026- Exam Code: PMI-RMP
- Exam Name: PMI Risk Management Professional
- Certification Provider: PMI
- Latest update: Oct 22,2026
Question #131
A project team identified some risks in a project. Team members became interested in predicting the outcomes of their potential choices following their probability of occurrence .
Which technique should the risk manager use?
- A . Political, economic, social, technological, legal, and environmental (PESTLE) analysis
- B . Strengths, weaknesses, opportunities, and threats (SWOT) analysis
- C . Decision tree analysis
- D . Cost-benefit analysis
Correct Answer: C
Question #132
After starting a new pipeline project, a risk manager schedules an initial meeting with the project sponsor. For the meeting, the project sponsor requests a presentation of the risks that have the most impact on achieving the project objectives.
What should the risk manager do to facilitate the sponsor’s ask?
- A . Monte Carlo analysis
- B . Qualitative risk analysis
- C . Sensitivity analysis
- D . Quantitative risk analysis
Correct Answer: C
C
Explanation:
Quantitative risk analysis helps to numerically analyze the probability and impact of risks on project objectives. By performing quantitative risk analysis, the risk manager can present the risks with the most impact on achieving the project objectives to the project sponsor. (Reference: PMBOK Guide, 6th Edition, p. 423)
According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, sensitivity analysis is a type of probabilistic analysis that determines how sensitive the results of the analysis are to uncertainties in input variables. Sensitivity analysis determines which uncertainty has the greatest potential for an impact on the project objectives, such as cost, schedule, scope, or quality 1.
In this case, the risk manager should use sensitivity analysis to facilitate the sponsor’s ask, as it will help to identify and present the risks that have the most impact on achieving the project objectives. Sensitivity analysis can also show how the project objectives will vary with the changes in the input variables, such as the probability and impact of risks2. Sensitivity analysis can be performed using various tools and techniques, such as tornado diagrams, spider charts, or influence diagrams3.
Reference: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth Edition, 2017, p. 403 2: PMI, Practice Standard for Project Risk Management, 2009, p. 95 3: Quantitative Risk Analysis in Project Management – PM-Training
C
Explanation:
Quantitative risk analysis helps to numerically analyze the probability and impact of risks on project objectives. By performing quantitative risk analysis, the risk manager can present the risks with the most impact on achieving the project objectives to the project sponsor. (Reference: PMBOK Guide, 6th Edition, p. 423)
According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, sensitivity analysis is a type of probabilistic analysis that determines how sensitive the results of the analysis are to uncertainties in input variables. Sensitivity analysis determines which uncertainty has the greatest potential for an impact on the project objectives, such as cost, schedule, scope, or quality 1.
In this case, the risk manager should use sensitivity analysis to facilitate the sponsor’s ask, as it will help to identify and present the risks that have the most impact on achieving the project objectives. Sensitivity analysis can also show how the project objectives will vary with the changes in the input variables, such as the probability and impact of risks2. Sensitivity analysis can be performed using various tools and techniques, such as tornado diagrams, spider charts, or influence diagrams3.
Reference: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Sixth Edition, 2017, p. 403 2: PMI, Practice Standard for Project Risk Management, 2009, p. 95 3: Quantitative Risk Analysis in Project Management – PM-Training
Question #133
A subcontractor working on a project may cause delays in the construction schedule. The project manager records this risk in the risk register and issues a change request sponsor rejects the change request.
What should the project manager have done differently?
- A . Executed the risk strategy response and recorded it in the risk register.
- B . Performed an analysis to affirm the request is valid before submitting.
- C . Informed the client and the project sponsor that the request is being submitted.
- D . Contacted the other stakeholders so they know the request is in process.
Correct Answer: B
B
Explanation:
The project manager should have performed an analysis to ensure that the change request was valid and well-supported before submitting it to the sponsor. This would help in making a strong case for the change request and increase the chances of its approval.
The project manager should have performed an analysis to affirm the request is valid before submitting, as this would help to justify the need for the change and to demonstrate its impact on the project objectives, scope, schedule, cost, quality, and risk. The project manager should also have consulted with the project team, the subcontractor, and the risk owner to determine the best risk response strategy and to estimate the resources and time required for the change. By performing an analysis, the project manager could have increased the chances of getting the change request approved by the sponsor and avoided wasting time and effort on an invalid request.
Reference: The Standard for Risk Management in Portfolios, Programs, and Projects, page 79; PMBOK Guide, 6th edition, page 115.
B
Explanation:
The project manager should have performed an analysis to ensure that the change request was valid and well-supported before submitting it to the sponsor. This would help in making a strong case for the change request and increase the chances of its approval.
The project manager should have performed an analysis to affirm the request is valid before submitting, as this would help to justify the need for the change and to demonstrate its impact on the project objectives, scope, schedule, cost, quality, and risk. The project manager should also have consulted with the project team, the subcontractor, and the risk owner to determine the best risk response strategy and to estimate the resources and time required for the change. By performing an analysis, the project manager could have increased the chances of getting the change request approved by the sponsor and avoided wasting time and effort on an invalid request.
Reference: The Standard for Risk Management in Portfolios, Programs, and Projects, page 79; PMBOK Guide, 6th edition, page 115.
Question #134
The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin. The project manager would like the risk manager to take full advantage of opportunities.
Which response should the risk manager take?
- A . Mitigate
- B . Accept
- C . Transfer
- D . Exploit
Correct Answer: D
D
Explanation:
The risk manager should choose to exploit opportunities, as this response aims to maximize the positive effects of opportunities, which can help recover the project’s contingency reserve and profit margin.
Exploit is a positive risk response strategy that aims to ensure that the opportunity is realized 1. It involves eliminating the uncertainty associated with a particular upside risk and making it happen 2. For example, if there is an opportunity to reduce the project cost by using a cheaper supplier, the project manager can exploit it by signing a contract with the supplier and securing the savings. Exploit is the opposite of avoid, which is a negative risk response strategy that seeks to eliminate the threat or protect the project from its impact 2.
The other options are not appropriate for taking full advantage of opportunities. Mitigate is a negative risk response strategy that reduces the probability and/or impact of a threat 2. It is the opposite of enhance, which is a positive risk response strategy that increases the probability and/or impact of an opportunity 1. Accept is a risk response strategy that involves acknowledging the risk and not taking any action unless the risk occurs 2. It can be applied to both threats and opportunities, but it does not actively pursue them. Transfer is a negative risk response strategy that shifts the impact of a threat to a third party, along with ownership of the response 2. It is the opposite of share, which is a positive risk response strategy that allocates ownership of an opportunity to a third party who is best able to capture it for the benefit of the project 1.
Reference: 1: How To Exploit and Enhance Project Opportunities – Project Risk Coach 2 2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 443-4451
D
Explanation:
The risk manager should choose to exploit opportunities, as this response aims to maximize the positive effects of opportunities, which can help recover the project’s contingency reserve and profit margin.
Exploit is a positive risk response strategy that aims to ensure that the opportunity is realized 1. It involves eliminating the uncertainty associated with a particular upside risk and making it happen 2. For example, if there is an opportunity to reduce the project cost by using a cheaper supplier, the project manager can exploit it by signing a contract with the supplier and securing the savings. Exploit is the opposite of avoid, which is a negative risk response strategy that seeks to eliminate the threat or protect the project from its impact 2.
The other options are not appropriate for taking full advantage of opportunities. Mitigate is a negative risk response strategy that reduces the probability and/or impact of a threat 2. It is the opposite of enhance, which is a positive risk response strategy that increases the probability and/or impact of an opportunity 1. Accept is a risk response strategy that involves acknowledging the risk and not taking any action unless the risk occurs 2. It can be applied to both threats and opportunities, but it does not actively pursue them. Transfer is a negative risk response strategy that shifts the impact of a threat to a third party, along with ownership of the response 2. It is the opposite of share, which is a positive risk response strategy that allocates ownership of an opportunity to a third party who is best able to capture it for the benefit of the project 1.
Reference: 1: How To Exploit and Enhance Project Opportunities – Project Risk Coach 2 2: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 443-4451
Question #135
A newly assigned risk manager realizes that a project has unrealistic funding and low resources .
Which document should the risk manager review?
- A . Risk assessment criteria
- B . Project management plan
- C . Project assumptions
- D . Risk management plan
Correct Answer: B
Question #136
The project manager leading a company’s digital signature initiative for engineering drawings has identified threats and opportunities using a strengths, weaknesses, opportunities, and threats (SWOT) analysis.
What are two potential threats or opportunities under the SWOT analysis? (Choose two.)
- A . The management team agreeing to include more resource for the digital signature initiative.
- B . The organization’s professional engineers having reservations about possible information tampering.
- C . A growing number of competitors with digital signatures.
- D . An elimination of manual steps associated with recording wet signatures
- E . The growing adoption of mobile communications in the industry.
Correct Answer: BC
BC
Explanation:
SWOT analysis identifies strengths, weaknesses, opportunities, and threats. In this case, B and C are potential threats or opportunities. B is a threat as engineers’ reservations may hinder the initiative, and C is an opportunity as growing competition may drive the company to improve its digital signature capabilities.
A SWOT analysis is a technique used to identify the strengths, weaknesses, opportunities, and threats of a project, organization, or option. It helps to evaluate the internal and external factors that can affect the project’s success or failure. In this question, the project manager has used a SWOT analysis to identify the threats and opportunities for the digital signature initiative. A threat is an external factor that can negatively impact the project’s objectives, while an opportunity is an external factor that can positively impact the project’s objectives.
Therefore, two potential threats or opportunities under the SWOT analysis are:
B. The organization’s professional engineers having reservations about possible information tampering. This is a threat because it can reduce the acceptance and adoption of the digital signature initiative by the key stakeholders, who are the professional engineers. They may have concerns about the security, reliability, and validity of the digital signatures, and may prefer to use the traditional wet signatures. This can affect the project’s scope, quality, and stakeholder satisfaction.
C. A growing number of competitors with digital signatures. This is an opportunity because it can create a competitive advantage for the organization, as it can offer faster, cheaper, and more efficient services to its clients. The digital signature initiative can also help the organization to comply with the industry standards and regulations, and to enhance its reputation and brand image. This can affect the project’s schedule, cost, and profitability.
The other options are not threats or opportunities under the SWOT analysis, because they are either internal factors or not relevant to the project’s objectives.
They are:
BC
Explanation:
SWOT analysis identifies strengths, weaknesses, opportunities, and threats. In this case, B and C are potential threats or opportunities. B is a threat as engineers’ reservations may hinder the initiative, and C is an opportunity as growing competition may drive the company to improve its digital signature capabilities.
A SWOT analysis is a technique used to identify the strengths, weaknesses, opportunities, and threats of a project, organization, or option. It helps to evaluate the internal and external factors that can affect the project’s success or failure. In this question, the project manager has used a SWOT analysis to identify the threats and opportunities for the digital signature initiative. A threat is an external factor that can negatively impact the project’s objectives, while an opportunity is an external factor that can positively impact the project’s objectives.
Therefore, two potential threats or opportunities under the SWOT analysis are:
B. The organization’s professional engineers having reservations about possible information tampering. This is a threat because it can reduce the acceptance and adoption of the digital signature initiative by the key stakeholders, who are the professional engineers. They may have concerns about the security, reliability, and validity of the digital signatures, and may prefer to use the traditional wet signatures. This can affect the project’s scope, quality, and stakeholder satisfaction.
C. A growing number of competitors with digital signatures. This is an opportunity because it can create a competitive advantage for the organization, as it can offer faster, cheaper, and more efficient services to its clients. The digital signature initiative can also help the organization to comply with the industry standards and regulations, and to enhance its reputation and brand image. This can affect the project’s schedule, cost, and profitability.
The other options are not threats or opportunities under the SWOT analysis, because they are either internal factors or not relevant to the project’s objectives.
They are:
Question #137
When selecting strategies as an activity of Plan Risk Response, what is the overall goal?
- A . Select the strategies with the least overall impact to resources.
- B . Select the strategies with the least financial impact.
- C . Select the strategies with the greatest overall positive influence.
- D . Select the strategies with the greatest benefit to stakeholders.
Correct Answer: C
C
Explanation:
The overall goal of selecting strategies during the Plan Risk Response activity is to choose those strategies that have the greatest overall positive influence on the project, considering factors such as cost, schedule, and resources.
According to the PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline1, one of the tasks in the domain of Risk Response is to select risk response strategies based on the risk appetite and tolerance of the organization and stakeholders 1. The overall goal of selecting risk response strategies is to select the strategies with the greatest overall positive influence on the project objectives, such as scope, schedule, cost, quality, etc. The risk response strategies should aim to enhance the opportunities and reduce the threats to the project, while considering the cost-benefit analysis, the feasibility, and the alignment with the project goals and stakeholder expectations2. The risk response strategies should not be selected based on the least overall impact to resources, because that may not be the most effective or efficient way to address the risks, and it may ignore the potential benefits of some strategies that may require more resources but also deliver more value3. The risk response strategies should not be selected based on the least financial impact, because that may not be the most relevant or comprehensive criterion to evaluate the risks, and it may overlook other aspects of the project, such as quality, customer satisfaction, reputation, etc. that may also be affected by the risks4. The risk response strategies should not be selected based on the greatest benefit to stakeholders, because that may not be the most realistic or achievable goal, and it may create conflicts or trade-offs among different stakeholder groups that may have different or competing interests, needs, and expectations5.
Reference: 1: PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4403: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4414: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4425: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 518.
C
Explanation:
The overall goal of selecting strategies during the Plan Risk Response activity is to choose those strategies that have the greatest overall positive influence on the project, considering factors such as cost, schedule, and resources.
According to the PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline1, one of the tasks in the domain of Risk Response is to select risk response strategies based on the risk appetite and tolerance of the organization and stakeholders 1. The overall goal of selecting risk response strategies is to select the strategies with the greatest overall positive influence on the project objectives, such as scope, schedule, cost, quality, etc. The risk response strategies should aim to enhance the opportunities and reduce the threats to the project, while considering the cost-benefit analysis, the feasibility, and the alignment with the project goals and stakeholder expectations2. The risk response strategies should not be selected based on the least overall impact to resources, because that may not be the most effective or efficient way to address the risks, and it may ignore the potential benefits of some strategies that may require more resources but also deliver more value3. The risk response strategies should not be selected based on the least financial impact, because that may not be the most relevant or comprehensive criterion to evaluate the risks, and it may overlook other aspects of the project, such as quality, customer satisfaction, reputation, etc. that may also be affected by the risks4. The risk response strategies should not be selected based on the greatest benefit to stakeholders, because that may not be the most realistic or achievable goal, and it may create conflicts or trade-offs among different stakeholder groups that may have different or competing interests, needs, and expectations5.
Reference: 1: PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline, page 102: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4403: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4414: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 4425: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 518.
11 1. An agriculture government agency faces different challenges with farmers and landlords In implementing its ambitious growth strategy. The agency decided to establish an enterprise risk management unit to identify risks, analyze risks, and provide a handbook showing how to handle the surrounding uncertainty.
What should the risk management expert recommend the agency do first to identify risks and develop the handbook?
Question #138
The risk manager conducted an updated Monte Carlo simulation for the project at the end of a phase. The simulation reveals a key activity is now on the critical path.
What recommendation should the risk manager make to the project manager?
- A . Add more float to the key activity
- B . Add more contingency to the project
- C . Review the plans for the key activity
- D . Increase the budget for the key activity
Correct Answer: C
C
Explanation:
The risk manager should recommend that the project manager review the plans for the key activity,
as this will help identify potential issues and opportunities to improve the activity’s performance and reduce its impact on the critical path.
The risk manager should recommend the project manager to review the plans for the key activity, which is now on the critical path according to the Monte Carlo simulation. The critical path is the sequence of activities that determines the minimum possible duration of the project. Any delay on the critical path will affect the project completion date. Therefore, it is important to review the plans for the key activity and identify any potential risks, issues, or opportunities that may affect its performance. The risk manager and the project manager should also evaluate the feasibility and effectiveness of any risk response strategies for the key activity, such as fast-tracking, crashing, or resource optimization. The other options are not appropriate recommendations for the risk manager to make. Adding more float to the key activity is not possible, since the critical path has zero float by definition. Adding more contingency to the project may not address the specific risks or issues related to the key activity. Increasing the budget for the key activity may not improve its duration or quality, and may also increase the project cost baseline unnecessarily.
Reference: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications, page 9 1. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, pages 215-2162. Project Critical Path Analysis Using Monte Carlo Simulation3.
C
Explanation:
The risk manager should recommend that the project manager review the plans for the key activity,
as this will help identify potential issues and opportunities to improve the activity’s performance and reduce its impact on the critical path.
The risk manager should recommend the project manager to review the plans for the key activity, which is now on the critical path according to the Monte Carlo simulation. The critical path is the sequence of activities that determines the minimum possible duration of the project. Any delay on the critical path will affect the project completion date. Therefore, it is important to review the plans for the key activity and identify any potential risks, issues, or opportunities that may affect its performance. The risk manager and the project manager should also evaluate the feasibility and effectiveness of any risk response strategies for the key activity, such as fast-tracking, crashing, or resource optimization. The other options are not appropriate recommendations for the risk manager to make. Adding more float to the key activity is not possible, since the critical path has zero float by definition. Adding more contingency to the project may not address the specific risks or issues related to the key activity. Increasing the budget for the key activity may not improve its duration or quality, and may also increase the project cost baseline unnecessarily.
Reference: PMI Risk Management Professional (PMI-RMP) Examination Content Outline and Specifications, page 9 1. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, pages 215-2162. Project Critical Path Analysis Using Monte Carlo Simulation3.
Question #139
The project manager and the risk manager of a new project to develop an application to support autonomous driving are meeting with the sponsor and key stakeholders to discuss the project. During the meeting, it is identified that the transport authority is discussing new traffic regulations for the industry that could be in place before the project ends.
How should the project manager and the risk manager handle this situation?
- A . Ensure the project complies with the current traffic regulations and laws.
- B . Send a letter to the traffic authority with the general project information.
- C . Perform inquiries on the website of the traffic authority weekly.
- D . Meet with the traffic authority staff in charge of the new regulation.
Correct Answer: D
D
Explanation:
Meeting with the traffic authority staff responsible for the new regulation allows the project manager and risk manager to understand the potential changes and their impact on the project. This will help them proactively address any potential issues and ensure the project complies with the new regulations.
According to the PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1, the project manager and the risk manager should handle this situation by meeting with the traffic authority staff in charge of the new regulation.
This is because:
The new traffic regulation is an external risk that could affect the project objectives, such as scope, schedule, cost, quality, and customer satisfaction. External risks are those that arise from outside the project boundaries and are beyond the control of the project team. Examples of external risks include changes in government policies, regulations, laws, market conditions, environmental factors, etc.
The project manager and the risk manager should proactively engage with the external stakeholders who have the power and influence to create or modify the external risks. By meeting with the traffic authority staff, they can establish a positive relationship, gain insights into the new regulation, and influence its development to align with the project needs. They can also obtain information on the probability and impact of the risk, as well as the potential response strategies.
The other options are not effective in handling this situation because:
Ensuring the project complies with the current traffic regulations and laws does not address the risk of the new regulation that could change the project requirements, scope, or deliverables. It also does not help the project team to prepare for the possible changes and mitigate their negative effects. Sending a letter to the traffic authority with the general project information does not establish a direct and timely communication channel with the external stakeholder. It also does not provide enough details or feedback to understand the nature and implications of the new regulation. Performing inquiries on the website of the traffic authority weekly does not allow the project team to influence the development of the new regulation or obtain reliable and updated information. It also does not enable the project team to build trust and rapport with the external stakeholder.
Reference: PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1 Risk Management Professional (PMI-RMP) ® Exam Cert Guide2
D
Explanation:
Meeting with the traffic authority staff responsible for the new regulation allows the project manager and risk manager to understand the potential changes and their impact on the project. This will help them proactively address any potential issues and ensure the project complies with the new regulations.
According to the PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1, the project manager and the risk manager should handle this situation by meeting with the traffic authority staff in charge of the new regulation.
This is because:
The new traffic regulation is an external risk that could affect the project objectives, such as scope, schedule, cost, quality, and customer satisfaction. External risks are those that arise from outside the project boundaries and are beyond the control of the project team. Examples of external risks include changes in government policies, regulations, laws, market conditions, environmental factors, etc.
The project manager and the risk manager should proactively engage with the external stakeholders who have the power and influence to create or modify the external risks. By meeting with the traffic authority staff, they can establish a positive relationship, gain insights into the new regulation, and influence its development to align with the project needs. They can also obtain information on the probability and impact of the risk, as well as the potential response strategies.
The other options are not effective in handling this situation because:
Ensuring the project complies with the current traffic regulations and laws does not address the risk of the new regulation that could change the project requirements, scope, or deliverables. It also does not help the project team to prepare for the possible changes and mitigate their negative effects. Sending a letter to the traffic authority with the general project information does not establish a direct and timely communication channel with the external stakeholder. It also does not provide enough details or feedback to understand the nature and implications of the new regulation. Performing inquiries on the website of the traffic authority weekly does not allow the project team to influence the development of the new regulation or obtain reliable and updated information. It also does not enable the project team to build trust and rapport with the external stakeholder.
Reference: PMBOK Guide, 6th edition, Chapter 11: Project Risk Management1 Risk Management Professional (PMI-RMP) ® Exam Cert Guide2
Question #140
When processing freight invoices for a project, the project manager notices the shipping costs exceeded the budget due to increased fuel costs. The risk manager included this risk in the project’s contingency allowance. When reviewing the project budget execution reports, the project manager notices unused budget remaining in other closed tasks of the project that could cover the additional shipping costs.
What should the project manager do?
- A . Process the freight invoices at higher shipping costs against the project’s contingency allowance.
- B . Request a formal change order from the customer to increase the project’s total budget.
- C . Process the freight invoices for the budgeted amount and hope the shipping company will forgive the difference.
- D . Ask the project sponsor to cover the additional shipping costs on the company’s reserves account.
Correct Answer: A
A
Explanation:
The project’s contingency allowance is a provision in the project budget that is intended to cover known risks that may affect the project costs. The risk of increased fuel costs was identified and included in the contingency allowance, so the project manager should use it to process the freight invoices at the actual shipping costs. This is the best way to handle the risk without affecting the project scope, schedule, or quality. Requesting a formal change order from the customer (option B) is not necessary, as the project budget already has a provision for this risk. Processing the freight invoices for the budgeted amount and hoping the shipping company will forgive the difference (option C) is unethical and unprofessional, as it violates the terms of the contract and the PMI Code of Ethics and Professional Conduct. Asking the project sponsor to cover the additional shipping costs on the company’s reserves account (option D) is also not appropriate, as the company’s reserves are meant for unknown risks that are beyond the project’s control, not for known risks that are already accounted for in the project budget.
Reference: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 72; PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 6th ed., 2017, p. 252.
The project manager should use the contingency allowance to cover the additional shipping costs, as it was specifically included in the project budget for such risks. This approach avoids requesting unnecessary changes or relying on external sources to cover the cost overrun. .
A
Explanation:
The project’s contingency allowance is a provision in the project budget that is intended to cover known risks that may affect the project costs. The risk of increased fuel costs was identified and included in the contingency allowance, so the project manager should use it to process the freight invoices at the actual shipping costs. This is the best way to handle the risk without affecting the project scope, schedule, or quality. Requesting a formal change order from the customer (option B) is not necessary, as the project budget already has a provision for this risk. Processing the freight invoices for the budgeted amount and hoping the shipping company will forgive the difference (option C) is unethical and unprofessional, as it violates the terms of the contract and the PMI Code of Ethics and Professional Conduct. Asking the project sponsor to cover the additional shipping costs on the company’s reserves account (option D) is also not appropriate, as the company’s reserves are meant for unknown risks that are beyond the project’s control, not for known risks that are already accounted for in the project budget.
Reference: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 72; PMI, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 6th ed., 2017, p. 252.
The project manager should use the contingency allowance to cover the additional shipping costs, as it was specifically included in the project budget for such risks. This approach avoids requesting unnecessary changes or relying on external sources to cover the cost overrun. .
2 1. A new risk manager has been hired on a project and meets with the project director. The project director supplies the project’s risk register and asks the risk manager for an analysis of its effectiveness.
What two actions should the risk manager do next? (Choose two.)