TOPIC: Free PMP® Exam Sample Question of the Week

Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator

A project team is identifying risks for a building construction project. The project will contract with several different vendors to produce the highly specialized deliverables of the project. Acquiring services from outside the organization may increase or decrease overall project risk and may introduce additional individual project risks. What should the project team review in order to develop a comprehensive list of individual project risks related to goods and services provided from outside the organization?

A. Project charter
B. Procurement documentation
C. Vendor risk register
D. Probability and impact matrix

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HINT: What documentation would serve as an input to the Identify Risks process and provide relevant procurement information?

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Answer and Explanation:
The correct answer is B.

Based on the scenario described, the project team is carrying out the Identify Risks process. One input to the Identify Risks process is procurement documentation. The initial procurement documentation should be reviewed as procuring good and services from outside the organization may increase or decrease overall project risk and may introduce additional individual project risks. Procurement documentation may include the statement of work, payment information, contractor work performance information, plans, drawings, and other correspondence.

Details for Each Option:

A. Project charter
Incorrect. The project charter is a document issued by the sponsor that formally authorizes the existence of a project. This document may contain high-level information about the project including overall project risks. However, the project charter does not contain detailed information regarding procurements that could have helped the team to develop a comprehensive list of individual risks related to goods and services provided from outside the organization.

B. Procurement documentation
Correct. The initial procurement documentation should be reviewed as procuring good and services from outside the organization may increase or decrease overall project risk and may introduce additional individual project risks. Procurement documentation may include the statement of work, payment information, contractor work performance information, plans, drawings, and other correspondence.

C. Vendor risk register
Incorrect. 'Vendor risk register' is a fake term made up for this question.

D. Probability and impact matrix
Incorrect. A probability and impact matrix is a grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs. According to the scenario described, the project team is carrying out the Identify Risks process and is looking for inputs to develop a comprehensive list of individual project risks. Risks must be identified before determining and documenting their probability of occurrence and impact in the probability and impact matrix making this choice an incorrect answer.

Reference: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017, Page(s) 413, 496

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