PMT 0170 RISK MANAGEMENT
EXAM REVIEW QUESTIONS AND
ANSWERS
Which of the following is an objective of risk process planning? - Answer- -*Ensures
sound risk management (RM) principles, tools, and techniques are applied to the RM
program*
-Identifies the plan for testing the Integrated Product Team (IPT) members in RM
techniques
-Answers why you must execute the risk management (RM) process
-Outlines the risk management (RM) organization to the customer
A Monte Carlo simulation has indicated a 45% chance that the prototype development
tasks of a new high-tech Navy diver's helmet will result in a 4-month delay to the
program schedule. Based on the likelihood and consequence table, which of the
following represents the appropriate location on the risk matrix?
Level Probability of Schedule Impact Cost Impact
Occurrence
1 >1% to ≤20% Minimal or no schedule <$20,000
impact ( <5 days)
2 >20% to ≤40% Able to meet key $20,000 - <$100,000
dates (1 - 4 weeks)
3 >40% to ≤60% Minor schedule slip, able $100,000-<$150,000
to meet key milestones
(≥4 weeks - 3 months)
4 >40% to ≤60% Significantly impacts ability $150,000-<$200,000
to meet key milestones
(≥3 months - 4 months)
5 >80% to ≤99% Schedule slip requires major ≥$200,000
schedule rebaselining (>4 months) - Answer- -L = 4; C = 4
-*L = 3; C = 4*
-L = 4; C = 3
-L = 2; C = 3
Your program is planning to visit a cooperating country to participate in an information-
sharing event with military counterparts. While it would be desirable to meet face to
face, it is not necessary. The host government is strategically allied with the U.S.;
however, popular opposition to U.S. policies has been growing in strength and has
, turned to increasingly violent demonstrations on the streets. Which risk mitigation
technique should you choose for this security risk? - Answer- -Transfer
-*Avoidance*
-Acceptance
-Control
Which of the following is a good example of a framing assumption (FA)? - Answer- -
Legal, diplomatic, or political issues will not delay or prevent site selection or fielding
schedule.
-The schedule buffer can account for any schedule delays.
-All requirements will be evenly distributed across multiple contracts. (WRONG
ANSWER)
-Material costs will not vary due to fluctuating market demand.
Your program requirements call for contractors to use the same customized web
development software that is used in all of the other programs within your division.
However, one of your contractors demonstrated competing off-the-shelf software with
more features that can produce the same quality of product and achieve the same
required end product specifications while cutting development time in half, and costs a
tenth of the price. Is this a risk or an opportunity? - Answer- -Not enough information
-Neither risk nor opportunity
-*Opportunity*
-Risk
Since risks should be closely tied to individual tasks and deliverables, which of the
following should be used as a cross-reference to each risk? - Answer- -Earned value
management (EVM) number
-*Work Breakdown Structure (WBS) number*
-Integrated Master Plan (IMP) number
-Schedule risk analysis number
Who may write the Program Risk Process (PRP) Document? - Answer- -The Program
Executive Officer (PEO) or the Risk Management Board (RMB)
-*The program manager (PM) or a dedicated risk manager*
-The Program Executive Officer (PEO) or the Integrated Product Team (IPT)
management board
-The Risk Working Group or the Risk Management Board (RMB)
Which of the following is a step of the Department of Defense (DoD) Risk Management
Process? - Answer- -Registration
-Sourcing
-*Mitigation*
-Tracking
Which of the following is a critical success factor to ensure effective risk management
(RM)? - Answer- -Researching best practices
EXAM REVIEW QUESTIONS AND
ANSWERS
Which of the following is an objective of risk process planning? - Answer- -*Ensures
sound risk management (RM) principles, tools, and techniques are applied to the RM
program*
-Identifies the plan for testing the Integrated Product Team (IPT) members in RM
techniques
-Answers why you must execute the risk management (RM) process
-Outlines the risk management (RM) organization to the customer
A Monte Carlo simulation has indicated a 45% chance that the prototype development
tasks of a new high-tech Navy diver's helmet will result in a 4-month delay to the
program schedule. Based on the likelihood and consequence table, which of the
following represents the appropriate location on the risk matrix?
Level Probability of Schedule Impact Cost Impact
Occurrence
1 >1% to ≤20% Minimal or no schedule <$20,000
impact ( <5 days)
2 >20% to ≤40% Able to meet key $20,000 - <$100,000
dates (1 - 4 weeks)
3 >40% to ≤60% Minor schedule slip, able $100,000-<$150,000
to meet key milestones
(≥4 weeks - 3 months)
4 >40% to ≤60% Significantly impacts ability $150,000-<$200,000
to meet key milestones
(≥3 months - 4 months)
5 >80% to ≤99% Schedule slip requires major ≥$200,000
schedule rebaselining (>4 months) - Answer- -L = 4; C = 4
-*L = 3; C = 4*
-L = 4; C = 3
-L = 2; C = 3
Your program is planning to visit a cooperating country to participate in an information-
sharing event with military counterparts. While it would be desirable to meet face to
face, it is not necessary. The host government is strategically allied with the U.S.;
however, popular opposition to U.S. policies has been growing in strength and has
, turned to increasingly violent demonstrations on the streets. Which risk mitigation
technique should you choose for this security risk? - Answer- -Transfer
-*Avoidance*
-Acceptance
-Control
Which of the following is a good example of a framing assumption (FA)? - Answer- -
Legal, diplomatic, or political issues will not delay or prevent site selection or fielding
schedule.
-The schedule buffer can account for any schedule delays.
-All requirements will be evenly distributed across multiple contracts. (WRONG
ANSWER)
-Material costs will not vary due to fluctuating market demand.
Your program requirements call for contractors to use the same customized web
development software that is used in all of the other programs within your division.
However, one of your contractors demonstrated competing off-the-shelf software with
more features that can produce the same quality of product and achieve the same
required end product specifications while cutting development time in half, and costs a
tenth of the price. Is this a risk or an opportunity? - Answer- -Not enough information
-Neither risk nor opportunity
-*Opportunity*
-Risk
Since risks should be closely tied to individual tasks and deliverables, which of the
following should be used as a cross-reference to each risk? - Answer- -Earned value
management (EVM) number
-*Work Breakdown Structure (WBS) number*
-Integrated Master Plan (IMP) number
-Schedule risk analysis number
Who may write the Program Risk Process (PRP) Document? - Answer- -The Program
Executive Officer (PEO) or the Risk Management Board (RMB)
-*The program manager (PM) or a dedicated risk manager*
-The Program Executive Officer (PEO) or the Integrated Product Team (IPT)
management board
-The Risk Working Group or the Risk Management Board (RMB)
Which of the following is a step of the Department of Defense (DoD) Risk Management
Process? - Answer- -Registration
-Sourcing
-*Mitigation*
-Tracking
Which of the following is a critical success factor to ensure effective risk management
(RM)? - Answer- -Researching best practices
