Model Question Paper

PM0007
Part-A- 1 Mark question

Q. No Question Statement
1 Which of the following is a key consideration for outsourcing problems
and the effect of lack in funding on projects has significant impact on
a project?
a. People
b. Outsourcing
c. Money
d. Contracting
2 Documentation provides a _________ of the project
details.

a. Historic proof
b. Estimates
c. Requirement
d. Activity list
3 ______________ helps in making the plan of action to avoid the risks
from occurring.
a. Risk assessment
b. Risk transfer
c. Risk analysis
d. Risk mitigation
4 The __________ assures that the project follows the guidelines of
project management plan.
a. Preventive actions
b. Updated Risk register / databases
c. Updated Organizational Process Assets
d. Corrective actions
5 Identify the stage in process maturity model in which
you will not have clear understanding of management
process and techniques?
a. Defined
b. Repeatable
c. Initial or Ad-Hoc
d. Optimised
6 The arrangement of risk items into labelled rows and
columns within a table is called _______.

a. Work Breakdown Structure

b. Categorising
c. Matrix
d. Listings
7 Expand TRM:
a. Team Risk Management
 b. Total Resource Management
c. Total Risk Management
d. Total Resource Marketing
8
The most flexible and widely used method for determining the
performance of some task or process that involves uncertainty.
is______________.
a. Monte Carlo Simulation
b. Monte Carlo Structure
c. Monte Carlo Process
d. Monte Carlo priorities
9 The _________ should target to spot out and record the
major issues that may affect the project including
uncertainties and assumptions.

a. Documentation
b. Estimates
c. Requirement
d. Risk management
10 It is the responsibility of ____________to update project risk manager
regarding the progress of action plans implemented in the project.
a. Project team members
b. Project risk custodians
c. Project risk profile owners
d. Project risk team members
11 If a risk event has probability of _______, then we say the event is no
longer a risk.
a. > 0.85 - <= 0.95
b. > 0.95 - < 1
c. > 0.75 - <= 0.85
d. 1
12 Small common changes that impact the way individuals, groups, and
organisations accomplish tasks is _____________ .
a. Transformational changes
b. Episodic changes
c. Incremental changes
d. Unplanned change
13 The ___________ risks are beyond the control of the
project team.
a. Internal
b. External
c. Input
d. Output
14 Organisations follow a __________________ to deal with the vagaries of
new world of commerce and to sustain in the competitive market.

a. Change management plan

b. Change process
c. Change control policy
d. Change management
15 If the Probability of Occurrence of an event is between 41% and 60%
, then the event is_________.
a. Very unlikely to occur
 b. Unlikely to occur
c. May occur about half of the time
d. Likely to occur
16 The implementation of risk management process can be successful
by combining risk management with the ____________ .
a. Existing organisational processes
b. Outdated
c. Risk assessment process
d. Planned organisational processes
17 The educational institutions, government and health agencies lie
towards the______area of Risk Tolerance spectrum.
a. Risk seeking
b. Risk mitigating
c. Risk accepting
d. Risk averse
18 Which of the following covers risk events that are not accounted for in
the project baseline duration and cost estimations?

a. Risk Avoidance
b. Contingency reserve
c. Risk Mitigation
d. Risk Acceptance
19 If the old hardware fails and cannot be replaced, causing the system
to be unavailable the impact of risk is_________.
a. Catastrophic
b. Medium
c. Major
d. Minor
20 The _________ process is used to scrutinise high-level indicators like
Portfolio at Risk, for general indicators and specific key indicators
identified with all risks.

a. Risk control

b. Risk handling

c. Risk monitoring

d. Risk Acceptance
 Part-B- 2 Mark question

21 Which among the following options does the resource risks defined:
1. Inadequate skills
2. Outsourcing delays.
3. Lack of funds.
4. Attrition of resources.

a. 1, 2, 3
b. 2, 3, 4
c. 1, 3, 4
d. 1, 2, 4
22 The______ includes creating an emergency plan to execute when risk
occurs and________requires no action.
a. Risk exploitation , Risk enhancement
b. Risk enhancement , Risk exploitation
c. Passive acceptance, Active acceptance
d. Active acceptance , Passive acceptance
23 Risk management helps in risk identification and understanding, that
minimises ____________ and maximises ____________ .

a. Opportunities, threats
b. Project performance, threats
c. Threats, opportunities
d. Opportunities, project performance
24 State whether the following statements are True or False:

1. Delays occur when something (a part, a decision, or a piece of

information) expected by a project was too late.
2. Delay risks are the most severe when compared with the other
schedule risks in the PERIL database.

a. 1T, 2T
b. 1F, 2F
c. 1T, 2F
d. 1F, 2T
25 Examples of risk monitoring job supporters are_______and________
.
a. Cost-benefit analysis , Select control

b. Safeguard implementation plan, User acceptance

c. Manufacturing innovations, Cycle-time reduction

d. Templates , Examples of previously monitored risks

26 State whether the statement is true or false:

1. The shortest time path through the PERT/CPM Network is the
critical path.
 2. CPM places an emphasis on time and cost and it evaluates the
trade off between project cost and project time.

a. 1T, 2T
b. 1F, 2F
c. 1T, 2F
d. 1F, 2T
27 Which of the following can be placed under Level 2 of
RBS for a generic project?
1. Conditions of use
2. Environment
3. Customer
4. Organisational stability

a. 2, 3
b. 1, 3
c. 2, 4
d. 1, 4
28 State whether the following statements are True or
False:
1. The benchmarking is used for implementing the
project.

2. The benchmarking satisfies the audit and the

regulatory requirements.

a. 1T, 2F
b. 1T, 2T
c. 1F, 2T
d. 1F, 2F
29 State whether the following statements are true or false:

1. Identifying risk allows a proactive risk management

plan to be put in place.

2. The project objectives are a critical reference for the

project.

a. 1T, 2T
b. 1F, 2F
c. 1T, 2F
d. 1F, 2T
30 State whether the following statements are True or False.

1. Customers expect a higher cost for products, high quality, fewer failures
and good service of products or services.
2. Change management builds harmony among customers and
stakeholders on specific changes designed to meet their needs better.

a. 1T, 2T
 b. 1F, 2T
c. 1F, 2F
d. 1T, 2F
31 In change, resources are allocated in terms of ____________ and
___________.

a. Money, know how

b. Awareness, desire
c. Knowledge, ability
d. Episodic change, continuous change

Part-C- 4 Mark question

32 State whether the following statements are true or false.

1. In a project there is no need to deal with low priority risks.
2. The risk management plan must be made such that you are able
prioritise the risk.
3. The changes in the risk management plans are mainly done on the
basis of actual loss results, experience and practice.
4. Risk handling strategies may include transferring of risk to another
group, avoiding the risk and reducing the effect of risk on the project.

a. 1T, 2T, 3T, 4T

b. 1F, 2T, 3T, 4T
c. 1T, 2F, 3F, 4F
d. 1F, 2F, 3F, 4F
33 Match the following sets:

First set:
A. Outsourcing risk
B. Procurement planning
C. Negotiation
D. Resource risks

Second set:
1. ‘Make-or-buy’ analysis
2. ‘Payment for result’ contract
3. PERIL database
4. ‘Not to exceed’ limitation

a. A-2, B-4, C-1, D-3

b. A-4, B-3, C-1, D-2
c. A-2, B-3, C-4, D-1
d. A-3, B-1, C-2, D-4
34 T.P.C is a agency which helps people to get loan from some banks. It
has 20 employees and they have divided into groups A & B, each
consisting of 10 employees. They have a issue and the manager of
 the company came to know about that issue. It is expected that the
manger may solve this with 20% of judgment in favour of group A,
60% of judgment in favour of group B and 20% of judgment in favour
of the company. In this scenario identify the probability distribution.

a. Normal or bell curve

b. Uniform
c. PERT
d. Discrete
35 Suppose you are the Project Manager for a long-term project. Often
the systems of the Project members suffer hardware failure due to
insufficient memory, as the particular project needs a large memory
for running all its installed software. Which of the following method is
suitable to tackle the situation and why?

a. Risk Avoidance , since it is reducing risk to the organisation

through better management information or better controls.

b. Risk Transfer , since it is shifting the responsibility or burden for

disaster or loss to another party through legislation, contract,
insurance or other means.

c. Risk Mitigation, since it is systematic reduction in the extent of

exposure to a risk and/or the likelihood of its occurrence.

d. Risk Acceptance , since it describes an informed decision to accept

the consequences and likelihood of a particular risk.

36 Match the following:

Set A:
1. Money risk
2. People risk
3. Estimates risk
4. Delay risk

Set B:
A. Results from time difference on global projects.
B. Results from unrealistic deadline imposed on the
people working in project.
C. Results from insufficient staff.
D. Results from limited funds.

a. 1-D, 2-B, 3-C, 4-A

b. 1-A, 2-C, 3-B, 4-D
c. 1-D, 2-C, 3-B, 4-A
d. 1-A, 2-B, 3-C, 4-D
37 State which of the following are examples of Short term plans.
1. Increase in profitability.
2. Strategic sales grouping.
3. Change in location of the organisation.
 4. New product acceptance by the targeted market.

a. 1, 2, 3
b. 1, 2, 4
c. 2, 3, 4
d. 1, 3, 4
38 Match the following:
First set:
1. Schedule Risk
2. Infrastructure risk
3. Budget Risk
4. Business risk

Second set:
A. This type of risk is related to the slow network
connectivity or failure of connectivity at client as well as
customer sites.
B. It affects the project and its economy and may also
lead to project failure.
C. This risk occurs due to delay in obtaining proper inputs
from the customers
D. This risk occurs due to project scope expansion.

a. 1-C, 2-A, 3-D, 4-B

b. 1-C, 2-D, 3-B, 4-A
c. 1-D, 2-C, 3-B, 4-A
d. 1-B, 2-A, 3-D, 4-C