Explanation:
The risk management plan, part of the comprehensive management plan, defines how risks will be identified, analyzed, monitored and controlled, and even responded to.
A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them. It also consists of the risk assessment matrix. Risks are built in with any project, and project managers evaluate risks repeatedly and build plans to address them. The risk management plan consists of analysis of possible risks with both high and low impacts, and the mitigation strategies to facilitate the project and avoid being derailed through which the common problems arise. Risk management plans should be timely reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critically, risk management plans include a risk strategy for project execution.
Incorrect Answers:
A: The project plan is not an official PMBOK project management plan.
B: The resource management plan defines the management of project resources, such as project team members, facilities, equipment, and contractors.
C: The project management plan is a comprehensive plan that communicates the intent of the project for all project management knowledge areas.

Explanation: Root node is the starting node in the decision tree.
Incorrect Answers:
A: Decision nodes represents the choice available to the decision maker, usually between a risky choice and its non-risky counterpart.
C: Event node represents the possible uncertain outcomes of a risky decision, with at least two nodes to illustrate the positive and negative range of events.
B: End node represents the outcomes of risk and decisions.

Explanation: Allocated baseline identifies the specifications that meet the approved requirements.
Incorrect Answers:
A: Functional baseline identifies the initial specifications before any changes are made.
C: Product baseline identifies the minimal specification required by the resource to meet business outcomes.
D: Developmental baseline identifies the state of the resources as it is developed to meet or exceed expectations and requirements.

Explanation: The activity cost estimates review is valuable in identifying risks as it provides a quantitative assessment of the expected cost to complete the scheduled activities and is expressed as a range, with a width of the range indicating the degrees of risk.
Incorrect Answers:
A: The activity duration estimates review is valuable in identifying risks associated to the time allowances for the activities or projects as a whole, with a width of the range indicating the degrees of risk.
B: This is the output of plan risk management process. A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them. It also consists of the risk assessment matrix.
C: The cost management plan sets how the costs on a project are managed during the project’s lifecycle. It defines the format and principles by which the project costs are measured, reported, and controlled. The cost management plan identifies the person responsible for managing costs, those who have the authority to approve changes to the project or its budget, and how cost performance is quantitatively calculated and reported upon.

Explanation:
The only two inputs for the risk response planning are the risk register and the risk management plan.
The plan risk response project management process aims to reduce the threats to the project objectives and to increase opportunities. It follows the perform qualitative risk analysis process and perform quantitative risk analysis process. Plan risk response process includes the risk response owner to take the job for each agreed-to and funded risk response. This process addresses the risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget. The inputs to the plan risk response process are as follows:

• Risk register
• Risk management plan

Incorrect Answers:
B: Kelly will not need the risk response plan until monitoring and controlling the project.
C: The results of risk analysis will help Kelly prioritize the risks, but this information will be recorded in the risk register.
D: Kelly needs the risk register and the risk management plan as the input. The power to assign risk responses is not necessarily needed by Kelly.

Explanation: Relevance risk is the risk associated with not receiving the right information to the right people (or process or systems) at the right time to allow the right action to be taken.
Incorrect Answers:
B: The risk that data cannot be relied on because they are unauthorized, incomplete or inaccurate is termed as integrity risk.
C: The risk of loss of service or that data is not available when needed is referred as availability risk.
D: The risk that confidential or private information may be disclosed or made available to those without appropriate authority is termed as access or security risk. An aspect of this risk is non-compliance with local, national and international laws related to privacy and protection of personal information.

Explanation:
As new threats are identified and prioritized in terms of impact, the first step is to evaluate the ability of existing controls to mitigate risk associated with new threats and if it does not work then in that case facilitate the:

• Modification of the technical architecture
• Deployment of a threat-specific countermeasure
• Implementation of a compensating mechanism or process until mitigating controls are developed
• Education of staff or business partners

Incorrect Answers:
D: Applying more controls is not the good solution. They usually complicate the condition.

Explanation:
Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives. It is performed on risk that have been prioritized through the qualitative risk analysis process.
Incorrect Answers:
A: While somewhat true, this statement does not completely define the quantitative risk analysis process.
B: This is actually the definition of qualitative risk analysis.
D: This is not a valid statement about the quantitative risk analysis process. Risk response planning is a separate project management process.

Explanation:
Four risk response options are there to deal with negative risks or threats on the project objectives- avoid, transfer, mitigate, and accept.

• Risk avoidance
• Risk mitigation
• Risk transfer
• Risk acceptance

Incorrect Answers: A, B ,C: These are incorrect choices as only 4 risk response are available to deal with negative risks.

Explanation:
A pure risk has only a negative effect on the project. Pure risks are activities that are dangerous to complete and manage such as construction, electrical work, or manufacturing. It is a class of risk in which loss is the only probable result and there is no positive result.
Pure risk is associated to the events that are outside the risk-taker’s control.
Incorrect Answers:
B: The risk event created by the application of risk response is called secondary risk.
C: A risk event that is generated due to errors or omission in the project work is not necessarily pure risk.
D: This in not valid definition of pure risk.