The

PMI-RMP
Professional Certification

Frank Townson, PMP, PMI-RMP

MCG/Cheetah Canada
Certification Coach/Trainer
Performance First Management
Consulting Services
franktownson@performancefirst.ca
613-866-3615

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The PMI-RMP credential recognizes demonstrated

knowledge and expertise in the specialized area of
assessing and identifying project risks while mitigating
threats and capitalizing on opportunities.

INTRODUCTION

This global credential acknowledges individuals who

strengthen and support project management by
offering knowledge specific to project risk
management.

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RISK
Combination of the probability or frequency of
occurrence of a defined threat or opportunity and
the magnitude of the consequences of the
occurrence. Alternatively, combination of the
likelihood of occurrence of a specified event and
its consequences.
Max Wideman
Comparative PM Glossary
www.maxwideman.com

DEFINITIONS

PROJECT RISK
An uncertain event or condition that, if it occurs,
has a positive or negative effect on a projects
objectives.
Project Management Institute

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In the insurance and finance industries, risk is described

and managed using statistical tools: data collection,
sampling, and data analysis. The MEAN is the principle
basis for risk analysis. It does not matter so much how
large or small the extremes are; as long as the average
results remain consistent with the business objectives, risk
is managed by allowing the high and low values to balance
each other, providing a stable and predictable overall
result.
Tom Kendrick
identifying and Managing Project Risk

Project Risk
Context

A Project Manager does not have the luxury of allowing

high and low values to balance each other out. There is
no statistical population. There is only the project. And
there will only be one outcome for each of the project
objectives: Met or Did Not Meet.

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PMI Risk Management Professional

(PMI-RMP) Examination Specification

Provides the basis for the credentialing exam

Major function is to ensure competence and
professionalism
Developed through certification industry
standard practice role delineation study
Forms the basis for content-valid, multiplechoice exam based on the knowledge and skills
necessary for competent practice in risk
management (as determined through role
delineation)
Exam content reflects the knowledge and skills
that individuals holding the credential are
expected to be able to demonstrate

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ELIGIBILITY
REQUIREMENTS

Educational

High School
Diploma or
equivalent

Experience

4,500 hours in
risk management
within last 5
consecutive years

Risk
Management
Education
40 contact
hours* of formal
education in
project risk
management

OR
Bachelors degree 3,000 hours in
or equivalent
risk management
within last 5
consecutive years

30 contact
hours* of formal
education in
project risk
management

* One contact hour equals 60 minutes of training or

instruction received.

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Pass The Exam

Fees

150 scored
questions
20 pretest
(unscored)
170 questions
total
3 hours
15 min
Tutorial
15 min Survey

Member

Nonmember

Exam

$520

$670

Retake

$335

$435

Renewal $60

$150

Notes:
1. All fees in USD
2. Assumes CBT

CERTIFICATION
REQUIREMENTS

Renewal

30 PDUs in the specialized area of

project risk management every 3
years
Anniversary date of your exam
Can apply PMI-RMP PDUs to PMP
credential (i.e., only need to earn 60
PDUs total, not 90)

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Risk Management: 6 Processes

1.
2.
3.
4.
5.
6.

Plan Risk Management

Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor & Control Risks

PMBOK
References

Other Knowledge Areas

Project
Project
Project
Project
Project
Project

Scope Risks
Schedule Risks
Quality Risks
Human Resource Risks
Communications Risks
Cost Risks

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Risk
Communication
27%

Risk
Analysis
30%

Risk Domains and

Weighting

Risk Response
Planning
26%

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Risk Governance
17%

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Lead the risk management

function by applying
interpersonal skills

Gather relevant information

to assess and communicate
the sensitivity of the
stakeholder to risk

Domain I:
Risk
Communication
Document risk-related
information to ensure a
common understanding

Create regular status

reports to update
stakeholders

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Domain II:
Risk Analysis

Identify all
relevant risks
(positive and
negative)

Evaluate the risk

attributes using
qualitative and
quantitative tools
and techniques

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Establish control
limits by
completing a risk
tolerance
assessment

Prioritize evaluated
risks based on
stakeholder
sensitivity

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Develop a risk (positive and

negative) response strategy

Domain III:
Risk Response
Planning

Develop a contingency approach

to prepare for the occurrence of
anticipated risks and
unanticipated events

Present recommendations to
stakeholders to obtain
authorization for response
plan execution

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Capture Lessons
Learned to incorporate
them in future risk
planning

Identify relevant
policies and
standards and
integrate into RMP

Refine risk policies &

practices using LL to
improve RM

Domain IV:
Risk
Governance
Monitor risk
performance and
initiate corrective
action

Examine process
performance using
established metrics
and standard tools

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Create the RMP

using relevant
policies and
standards

Establish metrics for

risk management
processes by defining
baselines

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FUN TIME

or

PUTTING IT
ALL TOGETHER

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Sample Questions
1. Schedule dependency risks:
A.

Result from duration estimates that provide insufficient

time for the completion of scheduled project activities;
Relate to unanticipated linkages or missing inputs that
primarily affect the project timeline
Occur whenever something expected, according to the
project schedule, is late
Are due to slow decisions or inaction by managers or
other stakeholders who did not act as quickly as
required to keep the project on schedule

B.
C.
D.

2. Performance reporting is a key means for keeping

stakeholders informed and up to date. All of the following tools
and techniques can be used by a Project Manager for
performance reporting except:
A.
B.
C.
D.

Variance analysis
Forecasting methods
Organizational Process Assets
Reporting systems

3. A workaround is a response to:

A.
B.
C.
D.

A residual risk
A secondary risk
An unplanned risk event
A risk that has been passively accepted

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4.

The project team has completed Risk Identification and

Analysis. Risk responses have been developed as well.
The expected monetary value of the identified risks, for
which active acceptance is the selected risk response, is
$15,000. Should these risks occur, the impact on the
project will be $55,000. How much should be placed in
the contingency reserve for the project?
A.
B.
C.
D.

5.

$55,000
$40,000
$15,000
$35,000

Risk tolerance is:

A.

A hierarchically organized depiction of the identified

project risks arranged by risk category
An identification of the various areas and causes of
potential risks
The degree, amount or volume of risk that an
organization or individual will withstand
A rapid and cost-effective means for establishing
priorities for Plan Risk Responses and lays the
foundation for Perform Quantitative Risk Analysis

B.
C.
D.

6. The Go/No Go decision on a project is normally taken during:

A.
B.
C.
D.

Initiating
Planning
Executing
Monitoring and Controlling

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7. All of the following are inputs to Identify Risks except:

A.
B.
C.
D.

Risk Management Plan, SWOT Analysis, Cost

Management Plan
Risk Management Plan, Scope Baseline, Stakeholder
Register
Activity Cost Estimates, Activity Duration Estimates,
Risk Management Plan
Stakeholder Register, Project Documents, Enterprise
Environmental Factors

8. The cost to build a new production line is $150M. There is a

70% chance of a strong demand for the new product
representing revenues of $200M. There is also a 30% chance of
weak demand producing revenues of $80M. What is the EMV of
this investment decision?
A.
B.
C.
D.

$56M
$164M
$14M
$116M

9. Project leadership involves all of the following except:

A.
B.

C.
D.

Focusing the efforts of a group of people toward a

common goal and enabling them to work as a team
Tracking team member performance, providing
feedback, resolving issues, and managing changes to
optimize project performance
The ability to get things done through others
Establishing and maintaining the vision, strategy and
communications for the project

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10. Possible responses to negative risks include:

A.
B.
C.
D.

Avoidance, Transference, Mitigation, Sharing

Avoidance, Mitigation, Active Acceptance, Passive
Acceptance, Exploitation
Avoidance, Transference, Mitigation, Active Acceptance,
Enhancing
Avoidance, Transference, Mitigation, Active Acceptance,
Passive Acceptance

11. Monte Carlo simulations are used:

A.
B.
C.
D.

To calculate deterministic estimates

To determine project cost and length if no further risk
management actions are taken
To calculate the probability of a risk event when there
is no range of probabilities for that risk event
For cost estimating purposes exclusively

12. Probability (P) is the likelihood that a risk will occur.

Impact (I) is the effect the risk will have on the project if it
occurs. The Risk Score is:
A.
B.
C.
D.

P(value)
P(value)
P(value)
P(value)

* I(value)
or I(value)
+ I(value)
I(value)

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