PMI-RMP Leak Questions

Increasing variances during the execution phase imply that the uncertainty and risk are increasing, as the project performance is deviating from the planned values.

According to the PMBOK® Guide – Sixth Edition1, variance analysis is a technique used to compare the actual performance of the project against the planned or expected performance. It can be applied to various aspects of the project, such as scope, schedule, cost, quality, and risk. Variance analysis can help identify deviations from the baseline and determine the causes and impacts of those deviations. If the variances are shown as increasing, it means that the actual performance is deviating more and more from the planned performance, which implies that the uncertainty and risk are increasing. This could affect the project objectives and deliverables, and require corrective or preventive actions to bring the project back on track. The other options are not correct, as they are either too specific (B and D) or contradictory © to the result of the variance analysis. References: PMBOK® Guide – Sixth Edition, pages 262-263.

A risk checklist is a tool for identifying risks based on historical information and knowledge from similar projects. It is a list of potential risk sources or categories that can be used to prompt the project team to consider possible risks that may affect the project. A risk checklist should include information that is relevant and useful for identifying risks, such as lessons learned from similar completed projects and previous project risks that may be relevant to this project. These two pieces of information can help the project manager to learn from past experiences and avoid repeating the same mistakes or overlooking the same threats or opportunities. A risk checklist should not include information that is not directly related to risk identification, such as budget variance data from previously completed projects, project scope and cost management plans from previous projects, or stakeholder analysis metrics from projects with similar risk profiles. These pieces of information may be useful for other aspects of project management, such as planning, monitoring, or controlling, but they are not helpful for identifying risks on a project. References: PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Chapter 11: Project Risk Management, p. 397. 5

Lessons learned and previous project risks are valuable sources of information for creating a risk checklist. They provide insights into potential risks that may impact the current project and help the project manager develop appropriate risk responses. Budget variance data, project scope and cost management plans, and stakeholder analysis metrics, although useful, are not directly related to risk identification. (Reference: Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.2)

A risk register should be developed before submitting a formal bid response to help the company understand the project ' s risk profile and account for potential risks in their proposal. This allows the company to make informed decisions about cost, schedule, and resources. (Reference: Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Section 11.2)

A risk register is a document that is used as a risk management tool to identify potential setbacks within a project. A risk register is typically created at the start of a project (before it begins), and is regularly referenced and updated throughout the life of a project through deliberate risk monitoring and control1. A risk register is an important component of any successful risk management process and helps mitigate potential project delays that could arise. A risk register is shared with project stakeholders to ensure information is stored in one accessible place2. A risk register also helps to establish a hierarchy of risks, starting with the most impactful. The goal should be to have a path to mitigating those risks, reducing the harm they cause, or eliminating them. The register should also outline what’s considered an acceptable level of risk and how to set up insurance to help offset the impacts3. Therefore, a risk register should be developed before a formal bid response is provided to the client to gain a greater understanding of the project’s risk profile. This will help to estimate the project costs, schedule, and scope more accurately and realistically, as well as to identify the contingency plans and reserves needed to deal with the potential risks. Developing a risk register during the project execution phase, when a client project kick-off meeting is held, or after a project budget is set up with a purchase order are all too late to effectively identify and manage the risks that could affect the project success. References: 2, 3, 1, 4

When a risk has materialized and become an issue despite preventive actions, the next logical step is to implement the pre-established risk response plan. This plan is designed specifically to address the risk if it occurs, ensuring that the project can quickly and effectively manage the issue. According to PMI ' s risk management guidelines, implementing the risk response plan is a critical step once a risk has been triggered, as it provides a structured approach to resolving the issue with minimal impact on the project​.