Situation based questions for PMP® Exam |Episode 8| Risk Management practice question for PMP® Exam

[@VimalKumarVV]

Excellent videos Amit.

[@edzest]

Thank you so much Vimal. :)

[@fariaaisrar5476]

Hi Amit! I passed 3AT today. I randomly found your videos 5 days before my exam and I sat and watched ALL of them. I hope to spread the word about your channel. I loved the way you explain things especially things like "observing" is an action, it's not something passive or the whole idea of parking each answer and seeing if your answer is justified with the information in the question. What really helped me was listening to your explanations of the wrong choices. They really try to trick you with the language.

[@scumpuppies]

What else did you do to study, aside from watching these videos?

[@edzest]

Congrats Fariaa, this is so good to know. And thank you so much for taking out time to let me know about your result. Hope you are celebrating well. 🎉🎊 -Amit.

[@rashedhassan2065]

SO HELPFUL, AWAITING YOUR NEXT VIDEO!

[@edzest]

Thank you! Coming up tomorrow. 😊

[@rizwanshahab8720]

For questione no 5. Why not C, in the question it mentioned potential budget overrun due to increase in price. This means the price is not increased. Also, they have taken historical data that means it can also help to determine the potential increase in price.

[@edzest]

Hi, option C suggests keeping a contingency reserve. And question suggests we don't know exact increase. In this case, team will not come to know how much contingency reserve to keep. A better choice is to discuss with supplier and fix a price - with this the team will eliminate the risk.

[@vikasmehta3568]

Thanks for given clarification .. .contingency reserve is alwyas for low risk ..one of the important clarification got.

[@edzest]

That's correct. 👍

[@Latesh140]

Hi Amit, I did watch your videos before appearing for PMP today and I cleared my exam with AT in all sections. I found your videos and explanations extremely helpful and strongly recommend your methodology for all the PMP aspirants. I emailed you last week for a question and you were kind enough to respond, even though I was not your student. Keep up the great work.

[@edzest]

Congratulations on your success. Very happy for you. I hope you celebrate well. - Amit.

[@edzest]

And thanks a lot for taking out time and commenting to let me know about your result as well. 🙏

[@prafulladhavale9889]

Thanks 🙏😇

[@edzest]

You're welcome! 🙂

[@AyushDubey205]

In q3? Isnt the lesson learned review done in the beginning during initiation phase? Since we are at scheduling … we should go for insurance… Please help with your views

[@edzest]

Hi, Insurance will only protect from any loss, and that too only monetary. The project's success depends on many other things as well not just cost. Hence, a better way to do it is to review the lessons learnt so that we understand the problems faced in previous projects. At the initiating level when you review the lessons learned from a previous project, you don't have a lot of information about this new project. Hence review of lessons learned from previous projects should happen at multiple levels.

[@AyushDubey205]

@@edzest thank you so much. That makes sense :)

[@edzest]

@@AyushDubey205 you're welcome! Do let me know if there're any other doubts as well. Throughout your preparation.

[@vibhor305]

Question 2- how group discussion will ensure that team members won’t fall sick? Question says, how to ensure project continuity…I am bit unclear on the selected choice. Should n’t manager accept and use contingency reserve..do we select Accept only for low risks?

[@edzest]

A group discussion will make people aware of changing weather conditions and they are expected to take better precautions after that. Contingency reserve is for low priority risks and those risks for which response cannot be planned. Which means you deal with the "effects" In all other cases it is always better to plan a response, which means dealing with the "causes"

[@atuldhaundiyal_calgary]

If we ask another company ( client) to perform transportation. What kind of response is this?

[@edzest]

It can also be considered a way to transfer risk.

[@AnirudhaPavan]

Bro Please clarify your 1st q&a As the equipment purchased from 3rd party it is their responsibility to reduce the probability of this risk occurring by seeing what could go wrong in the equipment after escalating from PM side. Instead the answer is mitigate How would a PM mitigate on himself if it’s a procured item? Request to clarify

[@edzest]

Hi, transferring the risk to supplier can not be called escalate. It will be called transfer but to be able to use transfer as a response, the supplier/vendor should also agree, which is not mentioned in the question. Hence, mitigate is better.

[@vibhor305]

At the completion of a small project, the risk manager performs a risk audit and finds that several identified risks had occurred, and the impact was significantly larger than expected. While the project remained on schedule, the project budget increased by 50%. The project met all risk response milestones and no additional, previously unidentified risks, occurred on the project. Based on this information, what risk management process improvement should the risk manager recommend for future similar projects? A. Increase frequency of risk management meetings with the project manager. B. Revise the level of accuracy of probability and impact scores. C. Document the risk audit report and capture it in the lessons learned database. D. Expand the use of risk identification techniques. --what is the right answer for this question. Please share your opinion. I believe it should be B because in current project risk impact was not analysed properly which caused addition of 50% budget

[@edzest]

Hi Vibhor, B does sound better as the issue was with estimation of budget impact, that turned out to be 50% more ...

[@vibhor305]

@@edzest Thanks for taking time and responding back.

[@stephenadjei7967]

1C

[@edzest]

👍🏻

[@stephenadjei7967]

Mitigate

[@edzest]

👍🏻