You are preparing to complete the quantitative risk analysis process with your project team and several subject matter experts. You gather the necessary inputs including the project's cost management plan.
Why is it necessary to include the project's cost management plan in the preparation for the quantitative risk analysis process?

• A.The project's cost management plan provides control that may help determine the structure for quantitative analysis of the budget.
• B.The project's cost management plan can help you to determine what the total cost of the project is allowed to be.
• C.The project's cost management plan provides direction on how costs may be changed due to identified risks.
• D.The project's cost management plan is not an input to the quantitative risk analysis process.

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You are the project manager of GHT project. You have implemented an automated tool to analyze and report on access control logs based on severity. This tool generates excessively large amounts of results. You perform a risk assessment and decide to configure the monitoring tool to report only when the alerts are marked "critical". What you should do in order to fulfill that?

• A.Apply risk response
• B.Optimize Key Risk Indicator
• C.Update risk register
• D.Perform quantitative risk analysis
• E.Explanation:
  As the sensitivity of the monitoring tool has to be changed, therefore it requires optimization of Key Risk Indicator. The monitoring tool which is giving alerts is itself acting as a risk indicator. Hence to change the sensitivity of the monitoring tool to give alert only for critical situations requires optimization of the KRI.

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You are the project manager for BlueWell Inc. You have noticed that the risk level in your project increases above the risk tolerance level of your enterprise. You have applied several risk responses. Now you have to update the risk register in accordance to risk response process. All of the following are included in the risk register except for which item?

• A.Risk triggers
• B.Agreed-upon response strategies
• C.Network diagram analysis of critical path activities
• D.Risk owners and their responsibility

Correct Answer: C

Explanation/Reference:
Explanation:
The risk register does not examine the network diagram and the critical path. There may be risks associated with the activities on the network diagram, but it does not address the network diagram directly.
The risk register is updated at the end of the plan risk response process with the information that was discovered during the process. The response plans are recorded in the risk register. In the risk register, risk is stated in order of priority, i.e., those with the highest potential for threat or opportunity first. Some risks might not require response plans at all, but then too they should be put on a watch list and monitored throughout the project. Following elements should appear in the risk register:
List of identified risks, including their descriptions, root causes, and how the risks impact the project

objectives
Risk owners and their responsibility

Outputs from the Perform Qualitative Analysis process

Agreed-upon response strategies

Risk triggers

Cost and schedule activities needed to implement risk responses

Contingency plans

Fallback plans, which are risk response plans that are executed when the initial risk response plan

proves to be ineffective
Contingency reserves

Residual risk, which is a leftover risk that remains after the risk response strategy has been

implemented
Secondary risks, which are risks that come about as a result of implementing a risk response

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Which of the following parameters would affect the prioritization of the risk responses and development of the risk response plan? Each correct answer represents a complete solution. Choose three.

• A.Importance of the risk
• B.Time required to mitigate risk.
• C.Effectiveness of the response
• D.Cost of the response to reduce risk within tolerance levels

Correct Answer: A,C,D

Explanation/Reference:
Explanation:
The prioritization of the risk responses and development of the risk response plan is influenced by several parameters:
Cost of the response to reduce risk within tolerance levels

Importance of the risk

Capability to implement the response

Effectiveness of the response

Efficiency of the response

Incorrect Answers:
B: Time required to mitigate risk does not influence the prioritization of the risk and development of the risk response plan. It affects the scheduled time of the project.

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Which of the following attributes of a key risk indicator (KRI) is MOST important?

• A.Qualitative
• B.Automated
• C.Quantitative
• D.Repeatable

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