CAPM Series 2: CAPM Exam Dumps 2023 For CAPM Exam Takers

CAPM Series 2: CAPM Exam Dumps 2023 For CAPM Exam Takers

 

QUESTION 51
Which input to the Manage Stakeholder Engagement process provides guidance on how stakeholders can best be involved in a project?

 

A. Feedback analysis
B. Stakeholder analysis
C. Communication management plan
D. Stakeholder management plan

 

Correct Answer: D

Stakeholder Management Plan

The stakeholder management plan is a component of the project management plan (Section 4.2.3.1) and identifies the management strategies required to effectively engage stakeholders. The stakeholder management plan can be formal or informal, highly detailed or broadly framed, based on the needs of the project.
In addition to the data gathered in the stakeholder register, the stakeholder management plan often provides: Desired and current engagement levels of key stakeholders;

Scope and impact of change to stakeholders;
identified interrelationships and potential overlap between stakeholders;

Stakeholder communication requirements for the current project phase;
Information to be distributed to stakeholders, including language, format, content, and level of detail; Reason for the distribution of that information and the expected impact to stakeholder engagement; Time frame and frequency for the distribution of required information to stakeholders; and Method for updating and refining the stakeholder management plan as the project progresses and develops.

 

Project managers should be aware of the sensitive nature of the stakeholder management plan and take appropriate precautions. For example, information on stakeholders who are resistant to the project can be potentially damaging, and due consideration should be given regarding the distribution of such information.

 

When updating the stakeholder management plan, the validity of underlying assumptions should be reviewed to ensure continued accuracy and relevancy.

 

 Manage Stakeholder Engagement

Definition: The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.

Key Benefit: The key benefit of this process is that it allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success.
Inputs

 

1. Stakeholder management plan
2. Communications management plan
3. Change log
4. Organizational process assets

 

Tools & Techniques

1. Communication methods
2. Interpersonal skills
3. Management skills

Outputs

 

1. Issue log
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates

 

QUESTION 52
A method of obtaining early feedback on requirements by providing a working model of the expected product before actually building is known as:

 

A. Benchmarking.
B. Context diagrams.
C. Brainstorming.
D. Prototyping.

 

Correct Answer: D 

Explanation:

 Prototypes Prototyping is a method of obtaining early feedback on requirements by providing a working model of the expected product before actually building it. Since a prototype is tangible, it allows stakeholders to experiment with a model of the final product rather than being limited to discussing abstract representations of their requirements.

 

Prototypes support the concept of progressive elaboration in iterative cycles of mock-up creation, user experimentation, feedback generation, and prototype revision. When enough feedback cycles have been performed, the requirements obtained from the prototype are sufficiently complete to move to a design or build phase. Storyboarding is a prototyping technique showing sequence or navigation through a series of images or illustrations.

 

Storyboards are used on a variety of projects in a variety of industries, such as film, advertising, instructional design, and on agile and other software development projects. In software development, storyboards use mock-ups to show navigation paths through webpages, screens, or other user interfaces.

 

QUESTION 53
Which stakeholder classification model groups stakeholders based on their level of authority and their active involvement in the project?

A. Power/influence grid
B. Power/interest grid
C. Influence/impact grid
D. Salience model

Correct Answer: A 

Stakeholder Analysis

Stakeholder analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and influence of the stakeholders and relates them to the purpose of the project. It also helps to identify stakeholder relationships (with the project and with other stakeholders) that can be leveraged to build coalitions and potential partnerships to enhance the project’s chance of success, along with stakeholder relationships that need to be influenced differently at different stages of the project or phase.

 

Stakeholder analysis generally follows the steps described below:

Identify all potential project stakeholders and relevant information, such as their roles, departments, interests, knowledge, expectations, and influence levels. Key stakeholders are usually easy to identify. They include anyone in a decision-making or management role who is impacted by the project outcome, such as the sponsor, the project manager, and the primary customer.

 

 

Identifying other stakeholders is usually done by interviewing identified stakeholders and expanding the list until all potential stakeholders are included.

 

Analyze the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. In large stakeholder communities, it is important to prioritize the stakeholders to ensure the efficient use of effort to communicate and manage their expectations.

 

Assess how key stakeholders are likely to react or respond in various situations, in order to plan how to influence them to enhance their support and mitigate potential negative impacts.
There are multiple classification models used for stakeholders analysis, such as:

 

Power/interest grid, grouping the stakeholders based on their level of authority (“power”) and their level or concern (“interest”) regarding the project outcomes; Power/influence grid, grouping the stakeholders based on their level of authority (“power”) and their active involvement (“influence”) in the project; Influence/impact grid, grouping the stakeholders based on their active involvement (“influence”) in the project and their ability to effect changes to the project’s planning or execution (“impact”); and Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).

 

QUESTION 54

Which Plan Schedule Management tool or technique may involve choosing strategic options to estimate and schedule the project?

A. Facilitation techniques
B. Expert judgment
C. Analytical techniques
D. Variance analysis

Correct Answer: C

 Analytical Techniques
Analytical techniques are applied in project management to forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables. Examples of analytical techniques used in projects are: Regression analysis, Grouping methods, Causal analysis, Root cause analysis, Forecasting methods (e.g., time series, scenario building, simulation, etc.), Failure mode and effect analysis (FMEA), Fault tree analysis (FTA), Reserve analysis, Trend analysis, Earned value management, and Variance analysis.

 

Plan Schedule Management
Definition: The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.
Key Benefit: The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

 

Inputs
1. Project management plan
2. Project charter
3. Enterprise environmental factors
4. Organizational process assets

 

Tools & Techniques
1. Expert judgment
2. Analytical techniques
3. Meetings

Outputs
1. Schedule management plan

 

QUESTION 55
Which basic quality tool is most useful when gathering attributes data in an inspection to identify defects?

A. Control charts
B. Pareto diagrams
C. Ishikawa diagrams
D. Checksheets

Correct Answer: D 

Explanation:

Checksheets, which are also known as tally sheets and may be used as a checklist when gathering data. Checksheets are used to organize facts in a manner that will facilitate the effective collection of useful data about a potential quality problem. They are especially useful for gathering attributes data while performing inspections to identify defects. For example, data about the frequencies or consequences of defects collected in checksheets are often displayed using Pareto diagrams.

 

QUESTION 56
The process of estimating the type and quantity of material, human resources, equipment, or supplies required to perform each activity is known as:

A. Collect Requirements.
B. Conduct Procurements.
C. Estimate Activity Durations.
D. Estimate Activity Resources.

 

Correct Answer: D

 Estimate Activity Resources
Definition: The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

 

Key Benefit: The key benefit of this process is that it identifies the type, quantity, and characteristics of resources required to complete the activity which allows more accurate cost and duration estimates.

Inputs
1. Schedule management plan
2. Activity list
3. Activity attributes
4. Resource calendars
5. Risk register
6. Activity cost estimates
7. Enterprise environmental factors
8. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Alternative analysis
3. Published estimating data
4. Bottom-up estimating
5. Project management software

Outputs
1. Activity resource requirements
2. Resource breakdown structure
3. Project documents updates

 

QUESTION 57
Which input to the Identify Stakeholders process provides information about internal or external parties related to the project?

A. Procurement documents
B. Communications plan
C. Project charter
D. Stakeholder register

Correct Answer: C 

 

Identify Stakeholders
Definition: The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.

Key Benefit: The key benefit of this process is that it allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders.

Inputs
Project charter
Procurement documents Enterprise environmental factors Organizational process assets.

Tools & Techniques
1. Stakeholder analysis
2. Expert judgment
3. Meetings

 

Outputs
1. Stakeholder register

QUESTION 58
The Identify Stakeholders process is found in which Process Group?

A. Initiating
B. Monitoring and Controlling
C. Planning
D. Executing

Correct Answer: A 

Initiating Process Group
 Develop Project Charter
 Identify Stakeholders

 

QUESTION 59
An input to Develop Project Charter is a/an:

 

A. Business case.
B. Activity list.
C. Project management plan.
D. Cost forecast.

Correct Answer: A 

Explanation:

Develop Project Charter

Definition: The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Key Benefit: The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

Inputs
1. Project statement of work
2. Business case
3. Agreements
4. Enterprise environmental factors
5. Organizational process assets

 

Tools & Techniques
1. Expert judgment
2. Facilitation techniques

Outputs
 Project charter
Business Case

 

The business case or similar document describes the necessary information from a business standpoint to determine whether or not the project is worth the required investment. It is commonly used for decision making by managers or executives above the project level. Typically, the business need and the cost-benefit analysis are contained in the business case to justify and establish boundaries for the project, and such analysis is usually completed by a business analyst using various stakeholder inputs. The sponsor should agree to the scope and limitations of the business case. The business case is created as a result of one or more of the following:

 

Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages),
Organizational need (e.g., due to high overhead costs a company may combine staff functions and streamline processes to reduce costs.),
Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park),
Technological advance (e.g., an airline authorizing a new project to develop electronic tickets instead of
paper tickets based on technological advances),
Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials),
Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact), or
Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera).

 

Each of the examples in this list may contain elements of risk that should be addressed. In the case of multiphase projects, the business case may be periodically reviewed to ensure that the project is on track to deliver the business benefits.

 

In the early stages of the project life cycle, periodic review of the business case by the sponsoring organization also helps to confirm that the project is still aligned with the business case. The project manager is responsible for ensuring that the project effectively and efficiently meets the goals of the organization and those requirements of a broad set of stakeholders, as defined in the business case.

 

QUESTION 60
Which item is a formal proposal to modify any document, deliverable, or baseline?

A. Change request
B. Requirements documentation
C. Scope baseline
D. Risk urgency assessment

 

Correct Answer: A

Explanation:
 Change Requests
A change request is a formal proposal to modify any document, deliverable, or baseline. An approved change request will replace the associated document, deliverable, or baseline and may result in an update to other parts of the project management plan.

 

When issues are found while project work is being performed, change requests are submitted, which may modify project policies or procedures, project scope, project cost or budget, project schedule, or project quality. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project.

 

Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated, and may include:

Corrective action—An intentional activity that realigns the performance of the project work with the project management plan;
Preventive action—An intentional activity that ensures the future performance of the project work is aligned with the project management plan;
Defect repair—An intentional activity to modify a nonconforming product or product component;
Updates—Changes to formally controlled project documents, plans, etc., to reflect modified or additional ideas or content.

 

QUESTION 61
Which process determines the risks that may affect the project and documents their characteristics?

A. Control Risks
B. Plan Risk Management
C. Plan Risk Responses
D. Identify Risks

Correct Answer: D 

Explanation:

Identify Risks

Definition: The process of determining which risks may affect the project and documenting their characteristics.

Key Benefit: The key benefit of this process is the documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events.

Inputs
1. Risk management plan
2. Cost management plan
3. Schedule management plan
4. Quality management plan
5. Human resource management plan
6. Scope baseline
7. Activity cost estimates
8. Activity duration estimates
9. Stakeholder register
10. Project documents
11. Procurement documents
12. Enterprise environmental factors
13. Organizational process assets

 

Tools & Techniques
1. Documentation reviews
2. Information gathering techniques
3. Checklist analysis
4. Assumptions analysis
5. Diagramming techniques
6. SWOT analysis
7. Expert judgment

 

Outputs
Risk register

 

 Risk Register

The primary output from Identify Risks is the initial entry into the risk register. The risk register is a document in which the results of risk analysis and risk response planning are recorded. It contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time.

 

The preparation of the risk register begins in the Identify Risks process with the following information, and then becomes available to other project management and risk management processes:

 

List of identified risks. The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT.

 

In addition to the list of identified risks, the root causes of those risks may become more evident. These are the fundamental conditions or events that may give rise to one or more identified risks. They should be recorded and used to support future risk identification for this and other projects.

 

List of potential responses. Potential responses to a risk may sometimes be identified during the Identify Risks process. These responses, if identified in this process, should be used as inputs to the Plan Risk Responses process.

 

QUESTION 62
An example of a group decision-making technique is:

A. Nominal group technique.
B. Majority.
C. Affinity diagram.
D. Multi-criteria decision analysis.

 

Correct Answer: B 

QUESTION 63
A risk response strategy in which the project team shifts the impact of a threat, together with ownership of the response, to a third party is called:

A. mitigate
B. accept
C. transfer
D. avoid

 

Correct Answer: C 

 

Explanation:
Strategies for Negative Risks or Threats

Three strategies, which typically deal with threats or risks that may have negative impacts on project objectives if they occur, are: avoid, transfer, and mitigate. The fourth strategy, accept, can be used for negative risks or threats as well as positive risks or opportunities. Each of these risk response strategies have varied and unique influence on the risk condition.

 

These strategies should be chosen to match the risk’s probability and impact on the project’s overall objectives. Avoidance and mitigation strategies are usually good strategies for critical risks with high impact, while transference and acceptance are usually good strategies for threats that are less critical and with low overall impact.

 

The four strategies for dealing with negative risks or threats are further described as follows:
Avoid. Risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. It usually involves changing the project management plan to eliminate the threat entirely.

 

The project manager may also isolate the project objectives from the risk’s impact or change the objective that is in jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing scope. The most radical avoidance strategy is to shut down the project entirely. Some risks that arise early in the project can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise.

 

Transfer: Risk transference is a risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response. Transferring the risk simply gives another party responsibility for its management—it does not eliminate it.

 

Transferring does not mean disowning the risk by transferring it to a later project or another person without his or her knowledge or agreement. Risk transference nearly always involves payment of a risk premium to the party taking on the risk.

 

Transferring liability for risk is most effective in dealing with financial risk exposure. Transference tools can be quite diverse and include, but are not limited to, the use of insurance, performance bonds, warranties, guarantees, etc. Contracts or agreements may be used to transfer liability for specified risks to another party. For example, when a buyer has capabilities that the seller does not possess, it may be prudent to transfer some work and its concurrent risk contractually back to the buyer. In many cases, use of a cost-plus contract may transfer the cost risk to the buyer, while a fixed-price contract may transfer risk to the seller.

 

Mitigate: Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk. It implies a reduction in the probability and/or impact of an adverse risk to be within acceptable threshold limits. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred.
Adopting less complex processes, conducting more tests, or choosing a more stable supplier are examples of
mitigation actions.

 

Mitigation may require prototype development to reduce the risk of scaling up from a bench- scale model of a process or product. Where it is not possible to reduce probability, a mitigation response might address the risk impact by targeting linkages that determine the severity. For example, designing redundancy into a system may reduce the impact from a failure of the original component.

 

Accept: Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs. This strategy is adopted where it is not possible or cost- effective to address a specific risk in any other way. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy.

 

This strategy can be either passive or active. Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risks as they occur, and to periodically review the threat to ensure that it does not change significantly. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the risks.

 

QUESTION 64
An output of the Plan Quality Management process is:

A. A process improvement plan.
B. Quality control measurements.
C. Work performance information.
D. The project management plan.

 

Correct Answer: A

Explanation:
 Plan Quality Management

Definition: The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements and/or standards.
Key Benefit: The key benefit of this process is that it provides guidance and direction on how quality will be managed and validated throughout the project.

 

Inputs
1. Project management plan
2. Stakeholder register
3. Risk register
4. Requirements documentation
5. Enterprise environmental factors
6. Organizational process assets

 

Tools & Techniques
1. Cost-benefit analysis
2. Cost of quality
3. Seven basic quality tools
4. Benchmarking
5. Design of experiments
6. Statistical sampling
7. Additional quality planning tools
8. Meetings

 

Outputs
1. Quality management plan
2. Process improvement plan
3. Quality metrics
4. Quality checklists
5. Project documents updates

QUESTION 65
A project manager should document the escalation path for unresolved project risks in the:

A. Change control plan
B. Stakeholder register
C. Risk log
D. Communications management plan

Correct Answer: D 

Explanation:
Communications Management Plan

The communications management plan is a component of the project management plan that describes how project communications will be planned, structured, monitored, and controlled. The plan contains the following information:

Stakeholder communication requirements; Information to be communicated, including language, format, content, and level of detail; Reason for the distribution of that information; Time frame and frequency for the distribution of required information and receipt of acknowledgment or response, if applicable;
Person responsible for communicating the information; Person responsible for authorizing release of confidential information; Person or groups who will receive the information; Methods or technologies used to convey the information, such as memos, e-mail, and/or press releases; Resources allocated for communication activities, including time and budget; Escalation process identifying time frames and the management chain (names) for escalation of issues that cannot be resolved at a lower staff level; Method for updating and refining the communications management plan as the project progresses and develops; Glossary of common terminology;
Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports, and meeting plans, etc.; and Communication constraints usually derived from a specific legislation or regulation, technology, and organizational policies, etc.

 

The communications management plan can also include guidelines and templates for project status meetings, project team meetings, e-meetings, and e-mail messages. The use of a project website and project management software can also be included if these are to be used in the project.

 

QUESTION 66
Which process in Project Time Management includes reserve analysis as a tool or technique?

A. Estimate Activity Resources
B. Sequence Activities
C. Estimate Activity Durations
D. Develop Schedule

 

Correct Answer: C 

Estimate Activity Durations
Definition: The process of estimating the number of work periods needed to complete individual activities with estimated resources.

Key Benefit: The key benefit of this process is that it provides the amount of time each activity will take to complete, which is a major input into the Develop Schedule process.

 

Inputs
1. Schedule management plan
2. Activity list
3. Activity attributes
4. Activity resource requirements
5. Resource calendars
6. Project scope statement
7. Risk register
8. Resource breakdown structure
9. Enterprise environmental factors
10. Organizational process assets

 

Tools & Techniques
1. Expert judgment
2. Analogous estimating
3. Parametric estimating
4. Three-point estimating
5. Group decision-making techniques
6. Reserve analysis

Outputs
1. Activity duration estimates
2. Project documents updates

 

Reserve Analysis
Duration estimates may include contingency reserves, sometimes referred to as time reserves or buffers, into the project schedule to account for schedule uncertainty. Contingency reserves are the estimated duration within the schedule baseline, which is allocated for identified risks that are accepted and for which contingent or mitigation responses are developed. Contingency reserves are associated with the “known-unknowns,” which may be estimated to account for this unknown amount of rework.

 

As more precise information about the project becomes available, the contingency reserve may be used, reduced, or eliminated. Contingency should be clearly identified in schedule documentation.

Estimates may also be produced for the amount of management reserve of time for the project. Management reserves are a specified amount of the project duration withheld for management control purposes and are reserved for unforeseen work that is within scope of the project.

 

Management reserves are intended to address the “unknown-unknowns” that can affect a project. Management reserve is not included in the schedule baseline, but it is part of the overall project duration requirements. Depending on contract terms, use of management reserves may require a change to the schedule baseline.

 

QUESTION 67
Which risk management strategy seeks to eliminate the uncertainty associated with a particular upside risk by ensuring that the opportunity is realized?

A. Enhance
B. Share
C. Exploit
D. Accept

Correct Answer: C 

Explanation:

Strategies for Positive Risks or Opportunities
Three of the four responses are suggested to deal with risks with potentially positive impacts on project objectives.

 

The fourth strategy, accept, can be used for negative risks or threats as well as positive risks or opportunities. These strategies, described below, are to exploit, share, enhance, and accept.

Exploit: The exploit strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by ensuring the opportunity definitely happens.

 

Examples of directly exploiting responses include assigning an organization’s most talented resources to the project to reduce the time to completion or using new technologies or technology upgrades to reduce cost and duration required to realize project objectives.

 

Enhance: The enhance strategy is used to increase the probability and/or the positive impacts of an opportunity. Identifying and maximizing key drivers of these positive-impact risks may increase the probability of their occurrence. Examples of enhancing opportunities include adding more resources to an activity to finish early.

 

Share: Sharing a positive risk involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the beneft of the project. Examples of sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures, which can be established with the express purpose of taking advantage of the opportunity so that all parties gain from their actions.

Accept: Accepting an opportunity is being willing to take advantage of the opportunity if it arises, but not actively pursuing it.

 

QUESTION 68
Payback period, return on investment, internal rate of return, discounted cash flow, and net present value are all examples of:

A. Expert judgment.
B. Analytical techniques.
C. Earned value management.
D. Group decision-making techniques.

 

Correct Answer: B 

Explanation:
Analytical Techniques

 

Developing the cost management plan may involve choosing strategic options to fund the project such as: self-funding, funding with equity, or funding with debt. The cost management plan may also detail ways to
finance project resources such as making, purchasing, renting, or leasing. These decisions, like other financial decisions affecting the project, may affect project schedule and/or risks.

 

Organizational policies and procedures may influence which financial techniques are employed in these decisions. Techniques may include (but are not limited to): payback period, return on investment, internal rate of return, discounted cash flow, and net present value.

 

QUESTION 69
The definition of when and how often the risk management processes will be performed throughout the project life cycle is included in which risk management plan component?

A. Timing
B. Methodology
C. Risk categories

D. Budgeting

Correct Answer: A 

Explanation:

 Risk Management Plan
The risk management plan is a component of the project management plan and describes how risk management activities will be structured and performed. The risk management plan includes the following:
Methodology. Defines the approaches, tools, and data sources that will be used to perform risk management on the project.

Roles and responsibilities. Defines the lead, support, and risk management team members for each type of activity in the risk management plan, and clarifes their responsibilities.

 

Budgeting: Estimates funds needed, based on assigned resources, for inclusion in the cost baseline and establishes protocols for application of contingency and management reserves.

Timing. Defines when and how often the risk management processes will be performed throughout the project life cycle, establishes protocols for application of schedule contingency reserves, and establishes risk management activities for inclusion in the project schedule.

QUESTION 70
When a backward pass is calculated from a schedule constraint that is later than the early finish date that has been calculated during a forward pass calculation, this causes which type of total float?

A. Negative
B. Zero
C. Positive
D. Free

 

Correct Answer: C

QUESTION 71
A reward can only be effective if it is:

A. Given immediately after the project is completed.
B. Something that is tangible.
C. Formally given during project performance appraisals.
D. Satisfying a need valued by the individual.

Correct Answer: D

Explanation/Reference:

QUESTION 72
Which tool or technique allows a large number of ideas to be classified into groups for review and analysis?

A. Nominal group technique
B. Idea/mind mapping
C. Affinity diagram
D. Brainstorming

 

Correct Answer: C

Explanation:

Group Creativity Techniques
Several group activities can be organized to identify project and product requirements. Some of the group creativity techniques that can be used are:

 

Brainstorming: A technique used to generate and collect multiple ideas related to project and product requirements. Although brainstorming by itself does not include voting or prioritization, it is often used with other group creativity techniques that do.

Nominal group technique: A technique that enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or for prioritization.

Idea/mind mapping: A technique in which ideas created through individual brainstorming sessions are consolidated into a single map to reflect commonality and differences in understanding, and generate new ideas.

Affinity diagram: A technique that allows large numbers of ideas to be classified into groups for review and analysis.

Multicriteria decision analysis: A technique that utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas.

QUESTION 73
Using values such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous similar project as the basis for estimating the same parameter or measurement for a current project describes which type of estimating?

A. Bottom-up
B. Parametric
C. Analogous
D. Three-point

Correct Answer: C 

QUESTION 74
Sending letters, memos, reports, emails, and faxes to share information is an example of which type of communication?

A. Direct
B. Interactive
C. Pull
D. Push

Correct Answer: D

Explanation:
Communication Methods

There are several communication methods that are used to share information among project stakeholders. These methods are broadly classifed as follows:

Interactive communication: Between two or more parties performing a multidirectional exchange of information. It is the most effcient way to ensure a common understanding by all participants on specified topics, and includes meetings, phone calls, instant messaging, video conferencing, etc.

Push communication: Sent to specific recipients who need to receive the information. This ensures that the information is distributed but does not ensure that it actually reached or was understood by the intended audience. Push communications include letters, memos, reports, emails, faxes, voice mails, blogs, press releases, etc.

Pull communication: Used for very large volumes of information, or for very large audiences, and requires the recipients to access the communication content at their own discretion. These methods include intranet sites, e-learning, lessons learned databases, knowledge repositories, etc.

The choices of communication methods that are used for a project may need to be discussed and agreed upon by the project stakeholders based on communication requirements; cost and time constraints; and familiarity and availability of the required tools and resources that may be applicable to the communications process.

QUESTION 75
Which earned value management (EVM) metric is a measure of the cost efficiency of budgeted resources expressed as a ratio of earned value (EV) to actual cost (AC) and is considered a critical EVM metric?

A. Cost variance (CV)
B. Cost performance index (CPI)
C. Budget at completion (BAC)
D. Variance at completion (VAC)

Correct Answer: B

Explanation:

CPI = EV / AC

QUESTION 76
Which process involves defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive plan?

A. Direct and Manage Project Work
B. Develop Project Management Plan
C. Plan Quality Management
D. Monitor and Control Project Work

Correct Answer: B 

Explanation:
Develop Project Management Plan

Definition: The process of defining, preparing, and coordinating all subsidiary plans and integrating
them into a comprehensive project management plan. The project’s integrated baselines and subsidiary plans may be included within the project management plan.

Key Benefit: The key benefit of this process is a central document that defines the basis of all project work.

Inputs
1. Project charter
2. Outputs from other processes
3. Enterprise environmental factors
4. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Facilitation techniques

Outputs
1. Project management plan

Project Management Plan
The project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes. Project baselines include, but are not limited to:

Scope baseline, Schedule baseline, and Cost baseline.

Subsidiary plans include, but are not limited to:

Scope management plan, Requirements management plan, Schedule management plan, Cost management plan, Quality management plan, Process improvement plan,
Human resource management plan, Communications management plan, Risk management plan , Procurement management plan, and Stakeholder management plan.

Among other things, the project management plan may also include the following:

Life cycle selected for the project and the processes that will be applied to each phase; Details of the tailoring decisions specified by the project management team as follows:

○ Project management processes selected by the project management team,
○ Level of implementation for each selected process,
○ Descriptions of the tools and techniques to be used for accomplishing those processes, and
○ Description of how the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs.

Description of how work will be executed to accomplish the project objectives;

Change management plan that documents how changes will be monitored and controlled; Configuration management plan that documents how Configuration management will be performed; Description of how the integrity of the project baselines will be maintained;

Requirements and techniques for communication among stakeholders; and Key management reviews for content, the extent of, and timing to address, open issues and pending decisions.

The project management plan may be either summary level or detailed, and may be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. Once the project management plan is baselined, it may only be changed when a change request is generated and approved through the Perform Integrated Change Control process.

QUESTION 77
Inputs to the Plan Schedule Management process include:

A. Organizational process assets and the project charter,
B. Enterprise environmental factors and schedule tools.
C. Time tables and Pareto diagrams.
D. Activity attributes and resource calendars.

 

Correct Answer: A

Explanation:
 Organizational Process Assets

Organizational process assets are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization.

 

They include any artifact, practice, or knowledge from any or all of the organizations involved in the project that can be used to perform or govern the project. The process assets also include the organization’s knowledge bases such as lessons learned and historical information.

 

Organizational process assets may include completed schedules, risk data, and earned value data. Organizational process assets are inputs to most planning processes. Throughout the project, the project team members may update and add to the organizational process assets as necessary. Organizational process assets may be grouped into two categories: (1) processes and procedures, and (2) corporate knowledge base.

Plan Schedule Management
Definition: The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.
Key Benefit: The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

Inputs
1. Project management plan
2. Project charter
3. Enterprise environmental factors
4. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Analytical techniques
3. Meetings

Outputs
1. Schedule management plan

QUESTION 78
A strengths, weaknesses, opportunities, and threats (SWOT) analysis is a tool or technique used in which process?

A. Identify Risks
B. Control Risks
C. Perform Quantitative Risk Analysis
D. Perform Qualitative Risk Analysis

 

Correct Answer: A 

Explanation:

SWOT Analysis

This technique examines the project from each of the strengths, weaknesses, opportunities, and threats (SWOT) perspectives to increase the breadth of identified risks by including internally generated risks. The technique starts with identification of strengths and weaknesses of the organization, focusing on either the project, organization, or the business area in general.

 

SWOT analysis then identifies any opportunities for the project that arise from organizational strengths, and any threats arising from organizational weaknesses. The analysis also examines the degree to which organizational strengths offset threats, as well as identifying opportunities that may serve to overcome weaknesses.

 

 Identify Risks
Definition: The process of determining which risks may affect the project and documenting their characteristics. Key Benefit: The key benefit of this process is the documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events.

Inputs
1. Risk management plan
2. Cost management plan
3. Schedule management plan
4. Quality management plan
5. Human resource management plan
6. Scope baseline
7. Activity cost estimates
8. Activity duration estimates
9. Stakeholder register
10. Project documents
11. Procurement documents
12. Enterprise environmental factors
13. Organizational process assets

Tools & Techniques
1. Documentation reviews
2. Information gathering techniques
3. Checklist analysis
4. Assumptions analysis
5. Diagramming techniques
6. SWOT analysis
7. Expert judgment

Outputs
Risk register

 

Risk Register
The primary output from Identify Risks is the initial entry into the risk register. The risk register is a document in which the results of risk analysis and risk response planning are recorded. It contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time.

 

The preparation of the risk register begins in the Identify Risks process with the following information, and then becomes available to other project management and risk management processes:

 

List of identified risks: 

The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT. In addition to the list of identified risks, the root causes of those risks may become more evident.

 

These are the fundamental conditions or events that may give rise to one or more identified risks. They should be recorded and used to support future risk identification for this and other projects.
List of potential responses. Potential responses to a risk may sometimes be identified during the Identify Risks process. These responses, if identified in this process, should be used as inputs to the Plan Risk Responses process.

 

QUESTION 79
Which Knowledge Area involves identifying the people, groups, or organizations that may be impacted by or impact a project?

A. Project Risk Management
B. Project Human Resource Management
C. Project Scope Management
D. Project Stakeholder Management

Correct Answer: D 

Explanation:
PROJECT STAKEHOLDER MANAGEMENT

Project Stakeholder Management includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

 

Stakeholder management also focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities. Stakeholder satisfaction should be managed as a key project objective.

 

QUESTION 80
Which input to Collect Requirements is used to identify stakeholders who can provide information on requirements?

A. Stakeholder register
B. Scope management plan
C. Stakeholder management plan
D. Project charter

 

Correct Answer: A 

Explanation:
Stakeholder Register:  The stakeholder register is used to identify stakeholders who can provide information on the requirements. The stakeholder register also captures major requirements and main expectations stakeholders may have for the project.

Stakeholder Register
The main output of the Identify Stakeholders process is the stakeholder register. This contains all details related to the identified stakeholders including, but not limited to:

Identification information:  Name, organizational position, location, role in the project, contact information;
Assessment information. Major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest; and Stakeholder classification. Internal/external, supporter/neutral/resistor, etc.

 

The stakeholder register should be consulted and updated on a regular basis, as stakeholders may change— or new ones identified—throughout the life cycle of the project.

Collect Requirements

Definition: The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives.

Key Benefit: The key benefit of this process is that it provides the basis for defining and managing the project scope including product scope.

Inputs
1. Scope management plan
2. Requirements management plan
3. Stakeholder management plan
4. Project charter
5. Stakeholder register

Tools & Techniques
1. Interviews
2. Focus groups
3. Facilitated workshops
4. Group creativity techniques
5. Group decision-making techniques
6. Questionnaires and surveys
7. Observations
8. Prototypes
9. Benchmarking
10. Context diagrams
11. Document analysis

Outputs
1. Requirements documentation
2. Requirements traceability matrix

QUESTION 81
Which process identifies whether the needs of a project can best be met by acquiring products, services, or results outside of the organization?

A. Plan Procurement Management
B. Control Procurements
C. Collect Requirements
D. Plan Cost Management

 

Correct Answer: A 

Explanation:
Plan Procurement Management

Definition: The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Key Benefit: The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it.

 

Inputs
1. Project management plan
2. Requirements documentation
3. Risk register
4. Activity resource requirements
5. Project schedule
6. Activity cost estimates
7. Stakeholder register
8. Enterprise environmental factors
9. Organizational process assets

 

Tools & Techniques
1. Make-or-buy analysis
2. Expert judgment
3. Market research
4. Meetings

Outputs
1. Procurement management plan
2. Procurement statement of work
3. Procurement documents
4. Source selection criteria
5. Make-or-buy decisions
6. Change requests
7. Project documents updates

 

QUESTION 82
Which tool or technique is used to manage change requests and the resulting decisions?

A. Change control tools
B. Expert judgment
C. Delphi technique
D. Change log

Correct Answer: A

 

Explanation:
 Change Control Tools
In order to facilitate Configuration and change management, manual or automated tools may be used. Tool selection should be based on the needs of the project stakeholders including organizational and environmental considerations and/or constraints.

 

Tools are used to manage the change requests and the resulting decisions. Additional considerations should be made for communication to assist the CCB members in their duties as well as distribute the decisions to the appropriate stakeholders

 Change Requests
A change request is a formal proposal to modify any document, deliverable, or baseline. An approved change request will replace the associated document, deliverable, or baseline and may result in an update to other parts of the project management plan. When issues are found while project work is being performed, change requests are submitted, which may modify project policies or procedures, project scope, project cost or budget, project schedule, or project quality.

 

Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated, and may include:

 

Corrective action—An intentional activity that realigns the performance of the project work with the project management plan;
Preventive action—An intentional activity that ensures the future performance of the project work is aligned with the project management plan;
Defect repair—An intentional activity to modify a nonconforming product or product component;
Updates—Changes to formally controlled project documents, plans, etc., to reflect modified or additional ideas or content.

 

QUESTION 83
The planned work contained in the lowest level of work breakdown structure (WBS) components is known as:

A. Work packages.
B. Accepted deliverables.
C. The WBS dictionary.
D. The scope baseline.

 

Correct Answer: A 

QUESTION 84
In which Knowledge Area is the project charter developed?

A. Project Cost Management
B. Project Scope Management
C. Project Time Management
D. Project Integration Management

Correct Answer: D 

Explanation:
Knowledge Areas

4. Project Integration Management
5. Project Scope Management
6. Project Time Management
7. Project Cost Management
8. Project Quality Management
9. Project Human Resource Management

10.Project Communications Management

11.Project Risk Management
12.Project Procurement Management

13.Project Stakeholder Management

 

Develop Project Charter
Definition: The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
Key Benefit: The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

 

Inputs
1. Project statement of work
2. Business case
3. Agreements
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Facilitation techniques

Outputs
Project charter

 

QUESTION 85
The ability to influence cost is greatest during which stages of the project?

A. Early
B. Middle
C. Late
D. Completion
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
QUESTION 86
Which process involves developing an approximation of the monetary resources needed to complete project activities?
A. Estimate Costs
B. Control Costs
C. Determine Budget
D. Plan Cost Management
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
Explanation:
Process: 7.2 Estimate Costs
Definition: The process of developing an approximation of the monetary resources needed to complete project activities.
Key Benefit: The key benefit of this process is that it determines the amount of cost required to complete project work.
Inputs
1. Cost management plan
2. Human resource management plan
3. Scope baseline
4. Project schedule
5. Risk register
6. Enterprise environmental factors
7. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Analogous estimating
3. Parametric estimating
4. Bottom-up estimating
5. Three-point estimating
6. Reserve analysis
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7. Cost of quality
8. Project management software
9. Vendor bid analysis
10. Group decision-making techniques
Outputs
1. Activity cost estimates
2. Basis of estimates
3. Project documents updates
QUESTION 87
Which tool or technique is used in the Develop Project Management Plan process?
A. Project management information system (PMIS)
B. Project charter
C. Quality assurance
D. Expert judgment
Correct Answer: D Section: Volume A Explanation
Explanation/Reference:
Explanation:
4.1.2.1 Expert Judgment
Expert judgment is often used to assess the inputs used to develop the project charter. Expert judgment is applied to all technical and management details during this process. Such expertise is provided by any group or individual with specialized knowledge or training and is available from many sources, including:
Other units within the organization, Consultants,
Stakeholders, including customers or sponsors, Professional and technical associations, Industry groups,
Subject matter experts (SME), and Project management office (PMO).
Process: 4.2. Develop Project Management Plan
Definition: The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. The project’s integrated baselines and subsidiary plans may be included within the project management plan.
Key Benefit: The key benefit of this process is a central document that defines the basis of all project work.
Inputs
1. Project charter
2. Outputs from other processes
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Facilitation techniques
Outputs
Project management plan
4.2.3.1 Project Management Plan
The project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes.
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Project baselines include, but are not limited to:
Scope baseline (Section 5.4.3.1), Schedule baseline (Section 6.6.3.1), and Cost baseline (Section 7.3.3.1).
Subsidiary plans include, but are not limited to:
Scope management plan (Section 5.1.3.1), Requirements management plan (Section 5.1.3.2), Schedule management plan (Section 6.1.3.1), Cost management plan (Section 7.1.3.1),
Quality management plan (Section 8.1.3.1), Process improvement plan (Section 8.1.3.2),
Human resource management plan (Section 9.1.3.1), Communications management plan (Section 10.1.3.1), Risk management plan (Section 11.1.3.1), Procurement management plan (Section 12.1.3.1), and Stakeholder management plan (Section 13.2.3.1).
Among other things, the project management plan may also include the following:
Life cycle selected for the project and the processes that will be applied to each phase; Details of the tailoring decisions specified by the project management team as follows:
○ Project management processes selected by the project management team,
○ Level of implementation for each selected process,
○ Descriptions of the tools and techniques to be used for accomplishing those processes, and
○ Description of how the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs.
Description of how work will be executed to accomplish the project objectives;
Change management plan that documents how changes will be monitored and controlled; Configuration management plan that documents how Configuration management will be performed; Description of how the integrity of the project baselines will be maintained;
Requirements and techniques for communication among stakeholders; and
Key management reviews for content, the extent of, and timing to address, open issues and pending decisions.
The project management plan may be either summary level or detailed, and may be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. Once the project management plan is baselined, it may only be changed when a change request is generated and approved through the Perform Integrated Change Control process.
QUESTION 88
Lessons learned are created and project resources are released in which Process Group?
A. Planning
B. Executing
C. Closing
D. Initiating
Correct Answer: C Section: Volume A Explanation
Explanation/Reference:
QUESTION 89
When should quality planning be performed?
A. While developing the project charter
B. In parallel with the other planning processes
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C. As part of a detailed risk analysis
D. As a separate step from the other planning processes
Correct Answer: B Section: Volume A Explanation
Explanation/Reference:
Explanation:
Quality planning should be performed in parallel with the other planning processes. For example, proposed changes in the deliverables to meet identified quality standards may require cost or schedule adjustments and a detailed risk analysis of the impact to plans.
The quality planning techniques discussed here are those used most frequently on projects. There are many others that may be useful on certain projects or in some application areas.
QUESTION 90
A key benefit of the Manage Communications process is that it enables:
A. The best use of communication methods.
B. An efficient and effective communication flow.
C. Project costs to be reduced.
D. The best use of communication technology.
Correct Answer: B Section: Volume A Explanation
Explanation/Reference:
Explanation:
Process: 10.2 Manage Communications
Definition: The process of creating, collecting, distributing, storing, retrieving and the ultimate disposition of project information in accordance with the communications management plan.
Key Benefit: The key benefit of this process is that it enables an efficient and effective communications flow between project stakeholders.
Inputs
1. Communications management plan
2. Work performance reports
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Communication technology
2. Communication models
3. Communication methods
4. Information management systems
5. Performance reporting
Outputs
1. Project communications
2. Project management plan updates
3. Project documents updates
4. Organizational process assets updates
QUESTION 91
The ways in which the roles and responsibilities, reporting relationships, and staffing management will be addressed and structured within a project is described in the:
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A. Human resource management plan.
B. Activity resource requirements.
C. Personnel assessment tools,
D. Multi-criteria decision analysis.
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
Explanation:
9.1.3.1 Human Resource Management Plan
The human resource management plan, a part of the project management plan, provides guidance on how project human resources should be defined, staffed, managed, and eventually released. The human resource management plan and any subsequent revisions are also inputs into the Develop Project Management Plan process.
Process: 9.1 Plan Human Resource Management
Definition: The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.
Key Benefit: The key benefit of this process is that it establishes project roles and responsibilities, project organization charts, and the staffing management plan including the timetable for staff acquisition and release.
Inputs
1. Project management plan
2. Activity resource requirements
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Organization charts and position descriptions
2. Networking
3. Organizational theory
4. Expert judgment
5. Meetings
Outputs
1. Human resource management plan
QUESTION 92
The process of identifying and documenting relationships among the project activities is known as:
A. Control Schedule.
B. Sequence Activities.
C. Define Activities.
D. Develop Schedule.
Correct Answer: B Section: Volume A Explanation
Explanation/Reference:
Explanation:
Process: 6.3 Sequence Activities
Definition: The process of identifying and documenting relationships among the project activities. Key Benefit: The key benefit of this process is that it defines the logical sequence of work to obtain the greatest efficiency given all project constraints.
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Inputs
1. Schedule management plan
2. Activity list
3. Activity attributes
4. Milestone list
5. Project scope statement
6. Enterprise environmental factors
7. Organizational process assets
Tools & Techniques
1. Precedence diagramming method (PDM)
2. Dependency determination
3. Leads and lags
Outputs
1. Project schedule network diagrams
2. Project documents updates
QUESTION 93
Conditions that are not under the control of the project team that influence, direct, or constrain a project are called:
A. Enterprise environmental factors
B. Work performance reports
C. Organizational process assets
D. Context diagrams
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
Explanation:
2.1.5 Enterprise Environmental Factors
Enterprise environmental factors refer to conditions, not under the control of the project team, that influence, constrain, or direct the project. Enterprise environmental factors are considered inputs to most planning processes, may enhance or constrain project management options, and may have a positive or negative influence on the outcome.
Enterprise environmental factors vary widely in type or nature. Enterprise environmental factors include, but are not limited to:
Organizational culture, structure, and governance; Geographic distribution of facilities and resources;
Government or industry standards (e.g., regulatory agency regulations, codes of conduct, product standards, quality standards, and workmanship standards);
Infrastructure (e.g., existing facilities and capital equipment);
Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, legal, contracting, and purchasing);
Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and training records, reward and overtime policy, and time tracking);
Company work authorization systems; Marketplace conditions;
Stakeholder risk tolerances; Political climate;
Organization’s established communications channels;
Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk databases); and
Project management information system (e.g., an automated tool, such as a scheduling software tool, a configuration management system, and
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Project management information system (e.g., an automated tool, such as a scheduling software tool, a configuration management system, an information collection and distribution system, or web interfaces to other online automated systems).
QUESTION 94
The organization’s perceived balance between risk taking and risk avoidance is reflected in the risk:
A. Responses
B. Appetite
C. Tolerance
D. Attitude
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
Explanation:
11 PROJECT RISK MANAGEMENT
[..]
Organizations perceive risk as the effect of uncertainty on projects and organizational objectives. Organizations and stakeholders are willing to accept varying degrees of risk depending on their risk attitude. The risk attitudes of both the organization and the stakeholders may be influenced by a number of factors, which are broadly classifed into three themes:
Risk appetite, which is the degree of uncertainty an entity is willing to take on in anticipation of a reward.
Risk tolerance, which is the degree, amount, or volume of risk that an organization or individual will withstand.
Risk threshold, which refers to measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.
For example, an organization’s risk attitude may include its appetite for uncertainty, its threshold for risk levels that are unacceptable, or its risk tolerance at which point the organization may select a different risk response. Positive and negative risks are commonly referred to as opportunities and threats. The project may be accepted if the risks are within tolerances and are in balance with the rewards that may be gained by taking the risks. Positive risks that offer opportunities within the limits of risk tolerances may be pursued in order to generate enhanced value. For example, adopting an aggressive resource optimization technique is a risk taken in anticipation of a reward for using fewer resources.
QUESTION 95
An output of the Manage Stakeholder Engagement process is:
A. change requests
B. enterprise environmental factors
C. the stakeholder management plan
D. the change log
Correct Answer: A Section: Volume A Explanation
Explanation/Reference:
Explanation:
13.3 Manage Stakeholder Engagement
Definition: The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.
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Key Benefit: The key benefit of this process is that it allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success.
Inputs
1. Stakeholder management plan
2. Communications management plan
3. Change log
4. Organizational process assets
Tools & Techniques
1. Communication methods
2. Interpersonal skills
3. Management skills
Outputs
1. Issue log
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates
QUESTION 96
Which process numerically analyzes the effect of identified risks on overall project objectives?
A. Plan Risk Management
B. Plan Risk Responses
C. Perform Quantitative Risk Analysis
D. Perform Qualitative Risk Analysis
Correct Answer: C Section: Volume A Explanation
Explanation/Reference:
Explanation:
Process: 11.4 Perform Quantitative Risk Analysis
Definition: The process of numerically analyzing the effect of identified risks on overall project objectives.
Key Benefit: The key benefit of this process is that it produces quantitative risk information to support decision making in order to reduce project uncertainty.
Inputs
1. Risk management plan
2. Cost management plan
3. Schedule management plan
4. Risk register
5. Enterprise environmental factors
6. Organizational process assets
Tools & Techniques
1. Data gathering and representation techniques
2. Quantitative risk analysis and modeling techniques
3. Expert judgment
Outputs
1. Project documents updates
QUESTION 97
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An input to the Plan Procurement Management process is:
A. Source selection criteria.
B. Market research.
C. A stakeholder register.
D. A records management system.
Correct Answer: C Section: Volume A Explanation
Explanation/Reference:
Explanation:
5.2.1.5 Stakeholder Register
Described in Section 13.1.3.1. The stakeholder register is used to identify stakeholders who can provide information on the requirements. The stakeholder register also captures major requirements and main expectations stakeholders may have for the project.
13.1.3.1 Stakeholder Register
The main output of the Identify Stakeholders process is the stakeholder register. This contains all details related to the identified stakeholders including, but not limited to:
Identification information. Name, organizational position, location, role in the project, contact information;
Assessment information. Major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest; and
Stakeholder classification. Internal/external, supporter/neutral/resistor, etc.
The stakeholder register should be consulted and updated on a regular basis, as stakeholders may change— or new ones identified—throughout the life cycle of the project.
Process: 12.1 Plan Procurement Management
Definition: The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.
Key Benefit: The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it.
Inputs
1. Project management plan
2. Requirements documentation
3. Risk register
4. Activity resource requirements
5. Project schedule
6. Activity cost estimates
7. Stakeholder register
8. Enterprise environmental factors
9. Organizational process assets
Tools & Techniques
1. Make-or-buy analysis
2. Expert judgment
3. Market research
4. Meetings
Outputs
1. Procurement management plan
2. Procurement statement of work
3. Procurement documents
4. Source selection criteria
5. Make-or-buy decisions
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6. Change requests
7. Project documents updates
QUESTION 98
Reserve analysis is a tool and technique used in which process?
A. Plan Risk Management
B. Plan Risk Responses
C. Identify Risks
D. Control Risks
Correct Answer: D Section: Volume A Explanation
Explanation/Reference:
Explanation:
11.6.2.5 Reserve Analysis
Throughout execution of the project, some risks may occur with positive or negative impacts on budget or schedule contingency reserves. Reserve analysis compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project in order to determine if the remaining reserve is adequate.
Process: 11.6 Control Risks
Definition: The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.
Key Benefit: The key benefit of this process is that it improves efficiency of the risk approach throughout the project life cycle to continuously optimize risk responses.
Inputs
1. Project management plan
2. Risk register
3. Work performance data
4. Work performance reports
Tools & Techniques
1. Risk reassessment
2. Risk audits
3. Variance and trend analysis
4. Technical performance measurement
5. Reserve analysis
6. Meetings
Outputs
1. Work performance information
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates
6.5.2.6 Reserve Analysis
Duration estimates may include contingency reserves, sometimes referred to as time reserves or buffers, into the project schedule to account for schedule uncertainty. Contingency reserves are the estimated duration within the schedule baseline, which is allocated for identified risks that are accepted and for which contingent or mitigation responses are developed. Contingency reserves are associated with the “known-unknowns,” which may be estimated to account for this unknown amount of rework.
As more precise information about the project becomes available, the contingency reserve may be used,
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reduced, or eliminated. Contingency should be clearly identified in schedule documentation. [..]
Estimates may also be produced for the amount of management reserve of time for the project. Management reserves are a specified amount of the project duration withheld for management control purposes and are reserved for unforeseen work that is within scope of the project. Management reserves are intended to address the “unknown-unknowns” that can affect a project. Management reserve is not included in the schedule baseline, but it is part of the overall project duration requirements. Depending on contract terms, use of management reserves may require a change to the schedule baseline.
QUESTION 99
Updates to organizational process assets such as procurement files, deliverable acceptances, and lessons learned documentation are typical outputs of which process?
A. Close Project or Phase
B. Conduct Procurements
C. Control Procurements
D. Close Procurements
Correct Answer: D Section: Volume A Explanation
Explanation/Reference:
Explanation:
12.4.3.2 Organizational Process Assets Updates
Elements of the organizational process assets that may be updated include, but are not limited to:
Procurement file. A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion with the final project fles.
Deliverable acceptance. Documentation of formal acceptance of seller-provided deliverables may be required to be retained by the organization. The Close Procurement process ensures this documentation requirement is satisfed. Requirements for formal deliverable acceptance and how to address nonconforming deliverables are usually defined in the agreement.
Lessons learned documentation. Lessons learned, what has been experienced, and process improvement recommendations, should be developed for the project fle to improve future procurements.
Process: 12.4 Close Procurements
Definition: The process of completing each project procurement.
Key Benefit: The key benefit of this process is that it documents agreements and related documentation for future reference.
Inputs
1. Project management plan
2. Procurement documents
Tools & Techniques
1. Procurement audits
2. Procurement negotiations
3. Records management system
Outputs
1. Closed procurements
2. Organizational process assets updates
QUESTION 100
Risk categorization is a tool or technique used in which process?
A. Plan Risk Responses
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B. Plan Risk Management
C. Perform Qualitative Risk Analysis
D. Perform Quantitative Risk Analysis
Correct Answer: C Section: Volume A Explanation
Explanation/Reference:
Explanation:
Process: 11.3 Perform Qualitative Risk Analysis
Definition: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
Key Benefit: The key benefit of this process is that it enables project managers to reduce the level of uncertainty and to focus on high-priority risks.
Inputs
1. Risk management plan
2. Scope baseline
3. Risk register
4. Enterprise environmental factors
5. Organizational process assets
Tools & Techniques
1. Risk probability and impact assessment
2. Probability and impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment

 

Outputs
Project documents updates.

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