TOPIC: Need Help on the Monitor Risk questions....

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....

It would be helpful if you could provide the source of the questions. At a high level my interpretation is:

For Q1: B is correct. If it was in the risk register but not in the budget there would be no contingency as it was likely just on a watch list. Unless there's more info missing from the question.
For Q2: C is correct. The general consensus is that a change request should always be submitted before you begin analyzing impact. It's also not clear from the way the question is worded if the situation was identified as a possibility, or of it is actively occurring. Issues are things that are actively occurring.

Hi Kyle,

Thanks for replying. Both question are from the PMP sample test at PMI site.

Q1. Not sure why PMI showing wrong answer .

Q2 . Risk has not occurred. Risk is just identified as a possibility during the execution stage of project. Are you saying if a new risk is identified then we should submit a change request instead of analyzing the probability and impact & response?

Pierre,

That's why they seemed familiar! I haven't written the full exam yet (my first attempt abruptly ended after 20 questions), but for Q1 I agree with you, and I'm not sure why PMI felt differently. Perhaps somebody else on the forum can weigh in, but I'm with you.

For Q2 perhaps I didn't read the question as closely in my first response. It seems like this risk was already analyzed (we know that it will increase scope, cost, and schedule) and that there's no contingency for the risk. So at a minimum we'd need an approved change request for those baselines.

Again, just my take.

Q2. make sense. So just to make things clear. if we find a new risk during execution we will first add it on risk register then analyze, after we will add response for the risk and finally we will submit a change request......?

Thanks for replying...

If a risk is identified in execution I would add it to the risk register, then analyze / prioritize it with the other risks (Qualitative Analysis), perform Quantitative Analysis if necessary, and plan the response / assign an owner and ensure an adequate amount of contingency is assigned (as required). If the risk occurs and we implement the response. I would only submit a change request if the impact extended beyond what the contingency would cover. The question seemed to indicate there was no contingency, so PICC is the only acceptable answer in my view.

Great Conversation!
Kyle i just want to add something in our conversation, if the risk has low probability and impact to happen we will put it in the watch list along with trigger , but if risk has high impact and good chances to happen we will submit a change request. because we don't ask for CR for the risks we have a risk response setup.

I also had issue with this question as well.
A project budget risk was approved that only considered high-impact/high-potential risks. During project execution, a risk with high impact but very low potential occurs. While it is in the risk register, it is not in the budget. What should the PM do first?"
Escalate to sponsor
Execute risk response using available risk budget
Conduct an impact analysis, and then submit a CR to increase budget if necessary
Update the Risk management plan based on risk monitoring and assessment is identified as the answer.

Please advise if it's ok to post this information, I don't mean to infringe or engage in any copyright violations. I can modify the details to give simpler context.

This is exactly what i was talking about. Option C "Conduct an impact analysis, and then submit a CR to increase budget if necessary" should be the answer as per my knowledge.
Jigar can you put the answer as well....

The only way D would be correct is if it stated Risk Register instead of Risk Management Plan. I remember this question from the PMP Practice Exam and they state the answer is to Update the Risk Management Plan. However, the Risk Register is not part of the plan, but a separate Project Document. So in short - I agree with both of you, PMI's answer doesn't make sense here.

Pierre Paris wrote: This is exactly what i was talking about. Option C "Conduct an impact analysis, and then submit a CR to increase budget if necessary" should be the answer as per my knowledge.
Jigar can you put the answer as well....

The answer listed is D.

Hi Jigar,

Their is trick in this question. If you look a the top of this forum, 2nd question of the first post is the same you asking about. if you read the following post you will understand it.

So is the consensus that PMI has the wrong answer?