You are a risk auditor for your company. You are reviewing the contract types a project manager has used in her project. Of the following, which contract type has the most risk for the project manager as a buyer?

1. A. Cost plus percentage of costs
2. B. Time and material
3. C. Cost plus incentive fee
4. D. Fixed-price, incentive fee

Correct Answer: A

You are completing the qualitative risk analysis process with your project team and are relying on the risk management plan to help you determine the budget, schedule for risk management, and risk categories. You discover that the risk categories have not been created. When should the risk categories have been created?

1. A. Create work breakdown structure process
2. B. Plan risk management process
3. C. Risk identification process
4. D. Define scope process

Correct Answer: B

Joan is a project management consultant and she has been hired by a firm to help them identify risk events within the project. Joan would first like to examine the project documents including the plans, assumptions lists, project files, and contracts. What key thing will help Joan to discover risks within the review of the project documents?

1. A. The project documents will help the project manager, or Joan, to identify what risk identification approach is best to pursue.
2. B. Lack of consistency between the plans and the project requirements and assumptions can be the indicators of risk in the project.
3. C. Poorly written requirements will reveal inconsistencies in the project plans and documents.
4. D. Plans that have loose definitions of terms and disconnected approaches will reveal risks.

Correct Answer: B

Joan is the project manager of the KYU project for her company. She is working with management on defining a contingency reserve for her project. Currently the project is scheduled to last 18 months and it has a cost budget of $2.5 million. What two areas of the project can the contingency reserve address in regard to risk management?

1. A. Quality and costs
2. B. Cost and resource management
3. C. Risk and project planning
4. D. Costs and schedule

Correct Answer: D

A part of a project deals with the hardware work. As a project manager, you have decided to hire a company to deal with all hardware work on the project. Which type of risk
response is this?

1. A. Exploit
2. B. Mitigation
3. C. Transference
4. D. Avoidance

Correct Answer: C