PMI-RMP Exam Dumps - PMI Risk Management Professional (PMI-RMP) Exam

The first thing the risk manager should do is analyze the situation and meet with the risk owner. This will allow the risk manager to understand the challenges faced by the risk owner and work with them to find a solution. Conducting a cost-benefit analysis or changing the risk response strategy may be necessary, but it is important to first understand the situation before taking any action.

According to the PMI-RMP Exam Content Outline, one of the tasks in the domain of Risk Response Planning is to “assist the risk owners in developing and implementing risk response strategies and actions based on the agreed-upon risk response plan”. Therefore, the first thing the risk manager should do is to analyze the situation and meet with the risk owner to understand the root cause of the challenges and the cost overrun, and to discuss possible solutions or alternatives. Highlighting this situation to the project manager, conducting a cost-benefit analysis, or changing the risk response strategy are possible actions that can be taken after the analysis and meeting, but not before. References: PMI-RMP Exam Content Outline, Domain 3: Risk Response Planning, Task 31

 

When stakeholders propose removing the extra days allocated to critical activities (often referred to as padding or contingency), it is crucial first to review the risk response plan. The risk response plan is designed to address how the project will handle uncertainties that might affect the project schedule. Removing these extra days without reviewing the risk response plan could expose the project to significant risks, especially if those days were added to mitigate specific identified risks.

According to PMI's Risk Management guidelines and best practices outlined in the project risk management procedures, the risk response plan should be reviewed first to understand the implications of removing the additional time. This step ensures that the decision is informed and that the project does not inadvertently increase its risk exposure by removing contingency that was strategically placed to address potential issues.

This approach aligns with the proactive management of risks, ensuring that any changes to the project schedule are made with a full understanding of their impact on the project's risk profile​.

 

 

 

Contingency plans are predefined actions that the project team will take if an identified risk event occurs. They are designed to reduce the impact or probability of the risk, or to restore the project to its original objectives. Contingency plans are part of the risk response planning process, and they should be documented in the risk register. In this case, the risk manager should execute the contingency plans to deal with the delays caused by the weather, as they cannot be avoided or mitigated. Performing time recovery actions, executing prevention plans, or performing change management are not appropriate responses for this risk, as they are either reactive, proactive, or corrective measures that do not address the risk directly. References: = PMBOK Guide, 6th edition, page 443; The Standard for Risk Management in Portfolios, Programs, and Projects, page 75.

A risk trigger is an indication or warning sign that a risk is about to occur or has occurred. A risk trigger can be an event, a condition, or a situation that signals the onset of a risk. A risk trigger can help the project team to identify and respond to risks in a timely manner. In this case, the lack of space to install air conditioners is a risk with high impact on the project. A potential need to share the space with other machinery is an example of an early risk trigger, because it indicates that the space issue may become a problem in the future. If the project team detects this trigger, they can take proactive actions to avoid or mitigate the risk, such as finding an alternative location, modifying the design, or negotiating with the stakeholders. References: PMI, The Standard for Risk Management in Portfolios, Programs, and Projects, 2019, p. 102-103.

The risk owner should implement the secondary risk response, as it is now being tolerated, and update the project documents accordingly. They should also update and communicate the assessments of the secondary risk's impact to ensure everyone is aware of the situation.

According to the PMI-RMP Handbook1, the risk owner is responsible for implementing the risk response plan and monitoring the risk and its secondary risks. Therefore, the risk owner should take the following two actions when the secondary risk emerges:

Implement the secondary risk response and update the project documents. This action is consistent with the risk response strategy of tolerance, which means accepting the risk and its consequences. The risk owner should execute the planned response for the secondary risk, such as contingency plans or fallback plans, and update the relevant project documents, such as the risk register, the risk report, and the lessons learned register, to reflect the current status and impact of the risk.

Update and communicate assessments of the secondary risk’s impact. This action is consistent with the risk monitoring and control process, which involves tracking the identified risks, evaluating their impact and probability, and reporting the risk information to the appropriate stakeholders. The risk owner should reassess the secondary risk’s impact on the project objectives, such as scope, schedule, cost, and quality, and communicate the results to the project manager and other relevant stakeholders, such as the sponsor, the customer, and the team members.

References:

PMI-RMP Handbook1

PMBOK Guide, 6th edition, Chapter 11: Project Risk Management2

The expected outcome of developing the risk management plan is to define how risk management activities will be executed throughout the project. This includes the processes, tools, and techniques that will be used to identify, assess, and manage risks.

 The risk management plan is a document that describes how risk management activities will be structured and performed throughout the project. It provides guidance on how to identify, analyze, respond, monitor, and control risks, as well as how to communicate, document, and report them. The risk management plan also defines the roles and responsibilities of the project team and stakeholders in risk management, the risk categories and breakdown structure, the risk thresholds and appetite, the risk management tools and techniques, and the risk management budget and schedule. The risk management plan is an output of the plan risk management process, which is the first process in the project risk management knowledge area. Developing the risk management plan is essential for ensuring that the project risks are closely managed and aligned with the project objectives and stakeholder expectations. References: PMI, Project Risk Management, 2nd edition, 2019, p. 67-681

When a project experiences consistent deviations in cost performance index (CPI) and schedule performance index (SPI), it indicates underlying issues with the project's assumptions regarding schedule and resources. Analyzing these assumptions helps identify discrepancies between planned and actual performance, such as underestimated task durations or insufficient resource allocation. By revisiting and adjusting these assumptions, the risk manager can develop strategies to mitigate further overruns and align the project with its objectives.

PMI Risk Management Study Guide References:

The PMI-RMP Exam Content Outline emphasizes the importance of examining assumption and constraint analyses to identify risks arising from inaccurate or incomplete project assumptions, which can lead to performance issues.

 

When a project requires detailed and exhaustive planning to ensure the product's characteristics and quality, a predictive approach (also known as a waterfall approach) is the most appropriate. This approach involves planning out the project in detail upfront, including the scope, schedule, and costs, which aligns with the need for thorough planning mentioned in the scenario. The predictive approach is best suited for projects where requirements are well-understood and unlikely to change, allowing for careful management of risks through detailed plans​.