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TOPIC: Need help with Risk response Question.....

Need help with Risk response Question..... 1 month 1 day ago #21417

  • Pierre Paris
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1. A project risk budget was approved by considering high impact risk/ high potential risk. During execution, a risk has occurred which is in risk register but not in the budget. PM response should be:
A. Execute the risk response plan using the available budget.
B. Conduct impact analysis and submit the CR to increase the budget if necessary.

I choose B but answer is A which doesn't make sense for me.


2. A Project initiated based on approved scope and during the implimentation of design a team mate stated a scenario when that the requirements will not me met. fixing issue will increase cost, scope and schedule, there is no money for change. What should PM do?

A. Perform a risk analysis and update the sponsor.
B. Inform the customer and negotiate for risk acceptance.
C. Conduct the PICC process.

Answer is C but i think A. we should first do the analysis and then conduct PICC. Can some one help me on this please....
Last edit: by Pierre Paris.

Need help with Risk response Question..... 3 weeks 4 days ago #21576

  • Devin
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1. A project risk budget was approved by considering high impact risk/ high potential risk. During execution, a risk has occurred which is in risk register but not in the budget. PM response should be:
A. Execute the risk response plan using the available budget.
B. Conduct impact analysis and submit the CR to increase the budget if necessary.

I choose B but answer is A which doesn't make sense for me.

This is a great question that really reflects how you have to tease out the scenario from the question. Let's rephrase the question: A project risk budget (CONTINGENCY RESERVES) was approved which included only high impact/high potential risks (only those risks got contingency reserves). During execution, another type (not high impact) of risk was triggered. This was not in the contingency reserves, however, you can use the available budget (MANAGEMENT RESERVES), this seems like answer A.

Answer B seems like it can be eliminated because a CR would more than likely be needed to move the management reserves into the cost baseline, not to increase the budget. In fact, the project budget would stay the same.

This is a great PMP exam question because the question is vague, you could argue for either answer, and you don't feel terribly comfortable picking either answer. That being said, answer A is what I would pick.

I didn't understand question #2.
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