QUESTION 1
Which of the following is the MOST important reason to maintain key risk indicators (KRIs)?
A. In order to avoid risk
B. Complex metrics require fine-tuning
C. Risk reports need to be timely
D. Threats and vulnerabilities change over time
Answer: D
Explanation:
Threats and vulnerabilities change over time and KRI maintenance ensures that KRIs continue to
effectively capture these changes.
The risk environment is highly dynamic as the enterprise’s internal and external environments are
constantly changing. Therefore, the set of KRIs needs to be changed over time, so that they can
capture the changes in threat and vulnerability.
Answer: B is incorrect. While most key risk indicator (KRI) metrics need to be optimized in respect
to their sensitivity, the most important objective of KRI maintenance is to ensure that KRIs
continue to effectively capture the changes in threats and vulnerabilities over time. Hence the most
important reason is that because of change of threat and vulnerability overtime.
Answer: C is incorrect. Risk reporting timeliness is a business requirement, but is not a reason for
KRI maintenance.
Answer: A is incorrect. Risk avoidance is one possible risk response. Risk responses are based
on KRI reporting, but is not the reason for maintenance of KRIs.
QUESTION 2
You are the project manager of a HGT project that has recently finished the final compilation
process. The project customer has signed off on the project completion and you have to do few
administrative closure activities. In the project, there were several large risks that could have
wrecked the project but you and your project team found some new methods to resolve the risks
without affecting the project costs or project completion date. What should you do with the risk
responses that you have identified during the project’s monitoring and controlling process?
A. Include the responses in the project management plan.
B. Include the risk responses in the risk management plan.
C. Include the risk responses in the organization’s lessons learned database.
D. Nothing. The risk responses are included in the project’s risk register already.
Answer: C
Explanation:
The risk responses that do not exist up till then, should be included in the organization’s lessons
learned database so other project managers can use these responses in their project if relevant.
Answer: D is incorrect. If the new responses that were identified is only included in the project’s
risk register then it may not be shared with project managers working on some other project.
Answer: A is incorrect. The responses are not in the project management plan, but in the risk
response plan during the project and they’ll be entered into the organization’s lessons learned
database.
Answer: B is incorrect. The risk responses are included in the risk response plan, but after
completing the project, they should be entered into the organization’s lessons learned database.
QUESTION 3
You are the project manager of GHT project. You have identified a risk event on your project that
could save $100,000 in project costs if it occurs. Which of the following statements BEST
describes this risk event?
A. This risk event should be mitigated to take advantage of the savings.
B. This is a risk event that should be accepted because the rewards outweigh the threat to the
project.
C. This risk event should be avoided to take full advantage of the potential savings.
D. This risk event is an opportunity to the project and should be exploited.
Answer: D
Explanation:
This risk event has the potential to save money on project costs, so it is an opportunity, and the
appropriate strategy to use in this case is the exploit strategy. The exploit response is one of the
strategies to negate risks or threats appear in a project. This strategy may be selected for risks
with positive impacts where the organization wishes to ensure that the opportunity is realized.
Exploiting a risk event provides opportunities for positive impact on a project. Assigning more
talented resources to the project to reduce the time to completion is an example of exploit
response.
Answer: B is incorrect. To accept risk means that no action is taken relative to a particular risk;
loss is accepted if it occurs. But as this risk event bring an opportunity, it should me exploited and
not accepted.
Answer: A and C are incorrect. Mitigation and avoidance risk response is used in case of negative
risk events, and not in positive risk events. Here in this scenario, as it is stated that the event could
save $100,000, hence it is a positive risk event. Therefore should not be mitigated or avoided.
QUESTION 4
You are the project manager of a large construction project. This project will last for 18 months
and will cost $750,000 to complete. You are working with your project team, experts, and
stakeholders to identify risks within the project before the project work begins. Management wants
to know why you have scheduled so many risk identification meetings throughout the project
rather than just initially during the project planning. What is the best reason for the duplicate risk
identification sessions?
A. The iterative meetings allow all stakeholders to participate in the risk identification processes
throughout the project phases.
B. The iterative meetings allow the project manager to discuss the risk events which have passed
the project and which did not happen.
C. The iterative meetings allow the project manager and the risk identification participants to
identify newly discovered risk events throughout the project.
D. The iterative meetings allow the project manager to communicate pending risks events during
project execution.
Answer: C
Explanation:
Risk identification is an iterative process because new risks may evolve or become known as the
project progresses through its life cycle.
Answer: D is incorrect. The primary reason for iterations of risk identification is to identify new risk
events.
Answer: B is incorrect. Risk identification focuses on discovering new risk events, not the events
which did not happen.
Answer: A is incorrect. Stakeholders are encouraged to participate in the risk identification
process, but this is not the best choice for the
QUESTION 5
You are the risk official in Bluewell Inc. You are supposed to prioritize several risks. A risk has a
rating for occurrence, severity, and detection as 4, 5, and 6, respectively. What Risk Priority
Number (RPN) you would give to it?
A. 120
B. 100
C. 15
D. 30
Answer: A
Explanation:
Steps involving in calculating risk priority number are as follows:
Identify potential failure effects
Identify potential causes
Establish links between each identified potential cause
Identify potential failure modes
Assess severity, occurrence and detection
Perform score assessments by using a scale of 1 -10 (low to high rating) to score these
assessments.
Compute the RPN for a particular failure mode as Severity multiplied by occurrence and detection.
RPN = Severity * Occurrence * Detection
Hence,
RPN = 4 * 5 * 6
= 120
Answer: C, D, and B are incorrect. These are not RPN for given values of severity, occurrence,
and detection.
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