Certify4Sure CRISC PDF

Isaca CRISC Exam
Exam Code: CRISC
Title : Certified in Risk and Information Systems Control

Exam A
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
Correct Answer: D
Explanation
Explanation/Reference:
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.
Correct 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.
Correct 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.
Correct 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
Correct 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.
QUESTION 6
Which of the following is the MOST important use of KRIs?
A. Providing a backward-looking view on risk events that have occurred

B. Providing an early warning signal
C. Providing an indication of the enterprise's risk appetite and tolerance
D. Enabling the documentation and analysis of trends
Correct Answer: B
Explanation
Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess
a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of
risk indicators to manage and report that a large enterprise may have. As KRIs are the indicators of risk, hence
its most important function is to effectively give an early warning signal that a high risk is emerging to enable
management to take proactive action before the risk actually becomes a loss.
Answer: D is incorrect. This is not as important as giving early warning. Answer: A is incorrect. This is one of
the important functions of KRIs which can help management to improve but is not as important as giving early
warning. Answer: C is incorrect. KRIs provide an indication of the enterprise's risk appetite and tolerance
through metric setting, but this is not as important as giving early warning.
QUESTION 7
Which of the following role carriers will decide the Key Risk Indicator of the enterprise?
Each answer represents a part of the solution. Choose two.
A. Business leaders
B. Senior management
C. Human resource
D. Chief financial officer
Correct Answer: AB
Explanation
An enterprise may have hundreds of risk indicators such as logs, alarms and reports. The CRISC will usually
need to work with senior management and business leaders to determine which risk indicators will be
monitored on a regular basis and be recognized as KRIs. Answer: D and C are incorrect. Chief financial officer
and human resource only overview common risk view, but are not involved in risk based decisions.
QUESTION 8
What are the requirements for creating risk scenarios? Each answer represents a part of the solution. Choose
three.
A. Determination of cause and effect

B. Determination of the value of business process at risk
C. Potential threats and vulnerabilities that could cause loss
D. Determination of the value of an asset
Correct Answer: BCD

Explanation
Creating a scenario requires determination of the value of an asset or a business process at risk and the
potential threats and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance
and realism, and then entered into the risk register if found to be relevant. In practice following steps are
involved in risk scenario development:
First determine manageable set of scenarios, which include:
Frequently occurring scenarios in the industry or product area. Scenarios representing threat sources that are
increasing in count or severity level. Scenarios involving legal and regulatory requirements applicable to the
business. After determining manageable risk scenarios, perform a validation against the business objectives of
the entity.
Based on this validation, refine the selected scenarios and then detail them to a level in line with the criticality
of the entity.
Lower down the number of scenarios to a manageable set. Manageable does not signify a fixed number, but
should be in line with the overall importance and criticality of the unit. Risk factors kept in a register so that they
can be reevaluated in the next iteration and included for detailed analysis if they have become relevant at that
time. Risk factors kept in a register so that they can be reevaluated in the next iteration and included for
detailed analysis if they have become relevant at that time. Include an unspecified event in the scenarios, that
is, address an incident not covered by other scenarios.
Answer: A is incorrect. Cause-and-effect analysis is a predictive or diagnostic analytical tool used to explore
the root causes or factors that contribute to positive or negative effects or outcomes. It is used during the
process of exposing risk factors.
QUESTION 9
You work as the project manager for Bluewell Inc. Your project has several risks that will affect several
stakeholder requirements. Which project management plan will define who will be available to share
information on the project risks?
A. Resource Management Plan

B. Risk Management Plan
C. Stakeholder management strategy
D. Communications Management Plan
Correct Answer: D
Explanation
The Communications Management Plan defines, in regard to risk management, who will be available to share
information on risks and responses throughout the project. The Communications Management Plan aims to
define the communication necessities for the project and how the information will be circulated. The
Communications Management Plan sets the communication structure for the project. This structure provides
guidance forcommunication throughout the project's life and is updated as communication needs change. The
Communication Managements Plan identifies and defines the roles of persons concerned with the project. It
includes a matrix known as the communication matrix to map the communication requirements of the project.
Answer: C is incorrect. The stakeholder management strategy does not address risk communications.
Answer: B is incorrect. The Risk Management Plan defines risk identification, analysis, response, and
monitoring.
Answer: A is incorrect. The Resource Management Plan does not define risk communications.
QUESTION 10
Which of the following controls is an example of non-technical controls?
A. Access control
B. Physical security
C. Intrusion detection system
D. Encryption
Correct Answer: B
Explanation
Physical security is an example of non-technical control. It comes under the family of operational controls.
Answer: C, A, and D are incorrect. Intrusion detection system, access control, and encryption are the
safeguards that are incorporated into computer hardware, software or firmware, hence they refer to as
technical controls.
QUESTION 11
You are the project manager of GHT project. Your project team is in the process of identifying project risks on
your current project. The team has the option to use all of the following tools and techniques to diagram some
of these potential risks EXCEPT for which one?
A. Process flowchart
B. Ishikawa diagram
C. Influence diagram
D. Decision tree diagram
Correct Answer: D
Explanation
Decision tree diagrams are used during the Quantitative risk analysis process and not in risk identification.
Answer: B, A, and C are incorrect.
All the these options are diagrammatical techniques used in the Identify risks process.
QUESTION 12
Which of the following BEST describes the utility of a risk?
A. The finance incentive behind the risk

B. The potential opportunity of the risk
C. The mechanics of how a risk works
D. The usefulness of the risk to individuals or groups
Correct Answer: D
Explanation
The utility of the risk describes the usefulness of a particular risk to an individual. Moreover, the same risk can
be utilized by two individuals in different ways. Financial outcomes are one of the methods for measuring
potential value for taking a risk. For example, if the individual's economic wealth increases, the potential utility
of the risk will decrease. Answer: C is incorrect. It is not the valid definition. Answer: A is incorrect. Determining
financial incentive is one of the method to measure the potential value for taking a risk, but it is not the valid
definition for utility of risk. Answer: B is incorrect. It is not the valid definition.
QUESTION 13
Which of the following aspect of monitoring tool ensures that the monitoring tool has the ability to keep up with
the growth of an enterprise?
A. Scalability
B. Customizability
C. Sustainability
D. Impact on performance
Correct Answer: A
Explanation
Monitoring tools have to be able to keep up with the growth of an enterprise and meet anticipated growth in
process, complexity or transaction volumes; this is ensured by the scalability criteria of the monitoring tool.
Answer: C is incorrect. It ensures that monitoring software is able to change at the same speed as technology
applications and infrastructure to be effective over time. Answer: B is incorrect. For software to be effective, it
must be customizable to the specific needs of an enterprise. Hence customizability ensures that end users can
adapt the software. Answer: D is incorrect. The impact on performance has nothing related to the ability of
monitoring tool to keep up with the growth of enterprise.
QUESTION 14
You are the project manager in your enterprise. You have identified risk that is noticeable failure threatening
the success of certain goals of your enterprise. In which of the following levels do this identified risk exists?
A. Moderate risk
B. High risk
C. Extremely high risk
D. Low risk
Correct Answer: A
Explanation
Moderate risks are noticeable failure threatening the success of certain goals. Answer: C is incorrect.
Extremely high risk are the risks that has large impact on enterprise and are most likely results in failure with
severe consequences. Answer: B is incorrect. High risk is the significant failure impacting in certain goals not
being met. Answer: D is incorrect. Low risks are the risk that results in certain unsuccessful goals.
QUESTION 15
Courtney is the project manager for her organization. She is working with the project team to complete the
qualitative risk analysis for her project. During the analysis Courtney encourages the project team to begin the
grouping of identified risks by common causes. What is the primary advantage to group risks by common
causes during qualitative risk analysis?
A. It helps the project team realize the areas of the project most laden with risks.
B. It assist in developing effective risk responses.
C. It saves time by collecting the related resources, such as project team members, to analyze the risk events.
D. It can lead to the creation of risk categories unique to each project.
Correct Answer: B
Explanation
By grouping the risks by categories the project team can develop effective risk responses. Related risk events
often have common causal factors that can be addressed with a single risk response.
QUESTION 16
Which of the following processes is described in the statement below?
"It is the process of exchanging information and views about risks among stakeholders, such as groups,
individuals, and institutions."
A. Risk governance
B. Risk identification
C. Risk response planning
D. Risk communication
Correct Answer: D
Explanation
Risk communication is the process of exchanging information and views about risks among stakeholders, such
as groups, individuals, and institutions. Risk communication is mostly concerned with the nature of risk or
expressing concerns, views, or reactions to risk managers or institutional bodies for risk management. The key
plan to consider and communicate risk is to categorize and impose priorities, and acquire suitable measures to
reduce risks. It is important throughout any crisis to put across multifaceted information in a simple and clear
manner. Risk communication helps in switching or allocating the information concerning risk among the
decision-maker and the stakeholders. Risk communication can be explained more clearly with the help of the
following definitions:
It defines the issue of what a group does, not just what it says. It must take into account the valuable element in
user's perceptions of risk. It will be more valuable if it is thought of as conversation, not instruction. Risk
communication is a fundamental and continuing element of the risk analysis exercise, and the involvement of
the stakeholder group is from the beginning. It makes the stakeholders conscious of the process at each phase
of the risk assessment. It helps to guarantee that the restrictions, outcomes, consequence, logic, and risk
assessment are undoubtedly understood by all the stakeholders.
Answer: C is incorrect. A risk response ensures that the residual risk is within the limits of the risk appetite and
tolerance of the enterprise. Risk response is process of selecting the correct, prioritized response to risk,
based on the level of risk, the enterprise's risk tolerance and the cost and benefit of the particular risk response
option.
Risk response ensures that management is providing accurate reports on:
The level of risk faced by the enterprise
The incidents' type that have occurred
Any alteration in the enterprise's risk profile based on changes in the risk environment
QUESTION 17
You are an experienced Project Manager that has been entrusted with a project to develop a machine which
produces auto components. You have scheduled meetings with the project team and the key stakeholders to
identify the risks for your project. Which of the following is a key output of this process?
A. Risk Register
B. Risk Management Plan
C. Risk Breakdown Structure
D. Risk Categories
Correct Answer: A
Explanation
The primary outputs from Identify Risks are the initial entries into the risk register. The risk register ultimately
contains the outcomes of other risk management processes as they are conducted, resulting in an increase in
the level and type of information contained in the risk register over time. Answer: B, D, and C are incorrect. All
these are outputs from the "Plan Risk Management" process, which happens prior to the starting of risk
identification.
QUESTION 18
Which of the following components of risk scenarios has the potential to generate internal or external threat on
an enterprise?
A. Timing dimension
B. Events
C. Assets
D. Actors
Correct Answer: D
Explanation
Components of risk scenario that are needed for its analysis are:
Actor: Actors are those components of risk scenario that has the potential to generate the threat that can be
internal or external, human or non-human. Internal actors are within the enterprise like staff, contractors, etc.
On the other hand, external actors include outsiders, competitors, regulators and the market.
Threat type: Threat type defines the nature of threat, that is, whether the threat is malicious, accidental, natural
or intentional.
Event: Event is an essential part of a scenario; a scenario always has to contain an event. Event describes the
happenings like whether it is a disclosure of confidential information, or interruption of a system or project, or
modification, theft, destruction, etc. Asset: Assets are the economic resources owned by business or company.
Anything tangible or intangible that one possesses, usually considered as applicable to the payment of one's
debts, is considered an asset. An asset can also be defined as a resource, process, product, computing
infrastructure, and so forth that an organization has determined must be protected. Tangible asset:
Tangible are those asset that has physical attributes and can be detected with the senses, e.g., people,
infrastructure, and finances. Intangible asset: Intangible are those asset that has no physical attributes and
cannot be detected with the senses, e.g., information, reputation and customer trust.
Timing dimension: The timing dimension is the application of the scenario to detect time to respond to or
recover from an event. It identifies if the event occur at a critical moment and its duration. It also specifies the
time lag between the event and the consequence, that is, if there an immediate consequence (e.g., network
failure, immediate downtime) or a delayed consequence (e.g., wrong IT architecture with accumulated high
costs over a long period of time).
QUESTION 19
You are the project manager of GHT project. You have planned the risk response process and now you are
about to implement various controls. What you should do before relying on any of the controls?
A. Review performance data

B. Discover risk exposure
C. Conduct pilot testing
D. Articulate risk
Correct Answer: AC
Explanation
Pilot testing and reviewing of performance data to verify operation against design are done before relying on
control.
Answer: D is incorrect. Articulating risk is the first phase in the risk response process to ensure that information
on the true state of exposures and opportunities are made available in a timely manner and to the right people
for appropriate response. But it does not play any role in identifying whether any specific control is reliable or
not. Answer: B is incorrect. Discovering risk exposure helps in identifying the severity of risk, but it does not
play any role in specifying the reliability of control.
QUESTION 20
Which of the following is NOT true for risk management capability maturity level 1?
A. There is an understanding that risk is important and needs to be managed, but it is viewed as a technical
issue and the business primarily considers the downside of IT risk
B. Decisions involving risk lack credible information
C. Risk appetite and tolerance are applied only during episodic risk assessments
D. Risk management skills exist on an ad hoc basis, but are not actively developed
Correct Answer: B
Explanation
The enterprise with risk management capability maturity level 0 makes decisions without having much
knowledge about the risk credible information. In level 1, enterprise takes decisions on the basis of risk credible
information.
Answer: A, C, and D are incorrect.
An enterprise's risk management capability maturity level is 1 when:
There is an understanding that risk is important and needs to be managed, but it is viewed as a technical issue
and the business primarily considers the downside of IT risk. Any risk identification criteria vary widely across
the enterprise. Risk appetite and tolerance are applied only during episodic risk assessments. Enterprise risk
policies and standards are incomplete and/or reflect only external requirements and lack defensible rationale
and enforcement mechanisms.
Risk management skills exist on an ad hoc basis, but are not actively developed. Ad hoc inventories of controls
that are unrelated to risk are dispersed across desktop applications.
QUESTION 21
An enterprise has identified risk events in a project. While responding to these identified risk events, which
among the following stakeholders is MOST important for reviewing risk response options to an IT risk.
A. Information security managers

B. Internal auditors
C. Incident response team members
D. Business managers
Correct Answer: D
Explanation
Business managers are accountable for managing the associated risk and will determine what actions to take
based on the information provided by others. Answer: A is incorrect. Information security managers may best
understand the technical tactical situation, but business managers are accountable for managing the
associated risk and will determine what actions to take based on the information provided by others, which
includes collaboration with, and support from, lT security managers. Answer: C is incorrect. The incident
response team must ensure open communication to management and stakeholders to ensure that business
managers understand the associatedrisk and are provided enough information to make informed risk-based
decisions. They are not responsible for reviewing risk response options.
QUESTION 22
Which of the following is a technique that provides a systematic description of the combination of unwanted
occurrences in a system?
A. Sensitivity analysis
B. Scenario analysis
C. Fault tree analysis
D. Cause and effect analysis
Correct Answer: C
Explanation
Fault tree analysis (FIA) is a technique that provides a systematic description of the combination of possible
occurrences in a system, which can result in an undesirable outcome. It combines hardware failures and
human failures.
Answer: B is incorrect. This analysis provides ability to see a range of values across several scenarios to
identify risk in specific situation. It provides ability to identify those inputs which will provide the greatest level of
uncertainty.
Answer: D is incorrect. Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for
exploring the root causes or factors that contribute to positive or negative effects or outcomes. These tools also
help in identifying potential risk. Answer: A is incorrect. Sensitivity analysis is the quantitative risk analysis
technique that:
Assist in determination of risk factors that have the most potential impact Examines the extent to which the
uncertainty of each element affects the object under consideration when all other uncertain elements are held
at their baseline values
QUESTION 23
What is the process for selecting and implementing measures to impact risk called?
A. Risk Treatment
B. Control
C. Risk Assessment
D. Risk Management
Correct Answer: A
Explanation
The process for selecting and implementing measures for impacting risk in the environment is called risk
treatment.
Answer: A is incorrect. Risk management is the coordinated activities for directing and controlling the treatment
of risk in the organization.
Answer: C is incorrect. The process of analyzing and evaluating risk is called risk assessment.
QUESTION 24
Which section of the Sarbanes-Oxley Act specifies "Periodic financial reports must be certified by CEO and
CFO"?
A. Section 302
B. Section 404
C. Section 203
D. Section 409
Correct Answer: A
Explanation
Section 302 of the Sarbanes-Oxley Act requires corporate responsibility for financial reports to be certified by
CEO, CFO, or designated representative.
Answer: C is incorrect. Section 203 of the Sarbanes-Oxley Act requires audit partners and review partners to
rotate off an assignment every five years. Answer: D is incorrect. Section 409 of the Sarbanes-Oxley Act states
that the financial reports must be distributed quickly and currently.
Answer: B is incorrect. Section 404 of the Sarbanes-Oxley Act states that annual assessments of internal
controls are the responsibility of management.
QUESTION 25
What is the PRIMARY need for effectively assessing controls?
A. Control's alignment with operating environment

B. Control's design effectiveness
C. Control's objective achievement
D. Control's operating effectiveness
Correct Answer: C
Explanation
Controls can be effectively assessed only by determining how accurately the control objective is achieved
within the environment in which they are operating. No conclusion can be reached as to the strength of the
control until the control has been adequately tested. Answer: B is incorrect. Control's design effectiveness is
also considered but is latter considered after achieving objectives.
Answer: D is incorrect. Control's operating effectiveness is considered but after its accuracy in objective
achievement.
Answer: A is incorrect. Alignment of control with the operating environment is essential but after the control's
accuracy in achieving objective. In other words, achieving objective is the top most priority in assessing
controls.
QUESTION 26
You work as the project manager for Bluewell Inc. There has been a delay in your project work that is
adversely affecting the project schedule. You decide, with your stakeholders' approval, to fast track the project
work to get the project done faster. When you fast track the project, what is likely to increase?
A. Human resource needs

B. Quality control concerns
C. Costs
D. Risks
Correct Answer: D
Explanation
Fast tracking allows entire phases of the project to overlap and generally increases risks within the project.
Fast tracking is a technique for compressing project schedule. In fast tracking, phases are overlapped that
would normally be done in sequence. It is shortening the project schedule without reducing the project scope.
Answer: B is incorrect. Quality control concerns usually are not affected by fast tracking decisions. Answer: C
is incorrect. Costs do not generally increase based on fast tracking decisions. Answer: A is incorrect. Human
resources are not affected by fast tracking in most scenarios.
QUESTION 27
David is the project manager of the HRC Project. He has identified a risk in the project, which could cause the
delay in the project. David does not want this risk event to happen so he takes few actions to ensure that the
risk event will not happen. These extra steps, however, cost the project an additional $10,000. What type of
risk response has David adopted?
A. Avoidance
B. Mitigation
C. Acceptance
D. Transfer
Correct Answer: B
Explanation
As David is taking some operational controls to reduce the likelihood and impact of the risk, hence he is
adopting risk mitigation. Risk mitigation means that actions are taken to reduce the likelihood and/or impact of
risk.
Answer: C is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is
accepted in case it occurs. As David has taken some actions in case to defend, therefore he is not accepting
risk.
Answer: A is incorrect. Risk avoidance means that activities or conditions that give rise to risk are discontinued.
But here, no such actions are taken, therefore risk in not avoided. Answer: D is incorrect. David has not hired a
vendor to manage the risk for his project; therefore he is not transferring the risk.
QUESTION 28
Which of the following is the MOST important objective of the information system control?
A. Business objectives are achieved and undesired risk events are detected and corrected
B. Ensuring effective and efficient operations
C. Developing business continuity and disaster recovery plans
D. Safeguarding assets
Correct Answer: A
Explanation
The basic purpose of Information System control in an organization is to ensure that the business objectives
are achieved and undesired risk events are detected and corrected. Some of the IS control objectives are
given below :
Safeguarding assets
Assuring integrity of sensitive and critical application system environments Assuring integrity of general
operating system
Ensuring effective and efficient operations
Fulfilling user requirements, organizational policies and procedures, and applicable laws and regulations
Changing management
Developing business continuity and disaster recovery plans Developing incident response and handling plans
Hence the most important objective is to ensure that business objectives are achieved and undesired risk
events are detected and corrected.
Answer: B, D, and C are incorrect. These are also the objectives of the information system control but are not
the best answer.
QUESTION 29
Which of the following is prepared by the business and serves as a starting point for producing the IT Service
Continuity Strategy?
A. Business Continuity Strategy

B. Index of Disaster-Relevant Information
C. Disaster Invocation Guideline
D. Availability/ ITSCM/ Security Testing Schedule
Correct Answer: A
Explanation
The Business Continuity Strategy is an outline of the approach to ensure the continuity of Vital Business
Functions in the case of disaster events. The Business Continuity Strategy is prepared by the business and
serves as a starting point for producing the IT Service Continuity Strategy. Answer: C is incorrect. Disaster
Invocation Guideline is a document produced by IT Service Continuity Management with detailed instructions
on when and how to invoke the procedure for fighting a disaster. Most importantly, the guideline defines the
first step to be taken by the Service Desk after learning that a disaster has occurred.
Answer: B is incorrect. Index of Disaster-Relevant Information is a catalogue of all information that is relevant
in the event of disasters. This document is maintained and circulated by IT Service Continuity Management to
all members of IT staff with responsibilities for fighting disasters. Answer: D is incorrect. Availability/ ITSCM/
Security Testing Schedule is a schedule for the regular testing of all availability, continuity, and security
mechanisms jointly maintained by Availability, IT Service Continuity, and IT Security Management.
QUESTION 30
For which of the following risk management capability maturity levels do the statement given below is true?
"Real-time monitoring of risk events and control exceptions exists, as does automation of policy management"
A. Level 3
B. Level 0
C. Level 5
D. Level 2
Correct Answer: C
Explanation
An enterprise's risk management capability maturity level is 5 when real-time monitoring of risk events and
control exceptions exists, as does automation of policy management. Answer: B is incorrect. In level 0 of risk
management capability maturity model, enterprise does not recognize the importance of considering the risk
management or the business impact from IT risk.
Answer: A and D are incorrect. In these levels real-time monitoring of risk events is not done.
QUESTION 31
Which of the following is true for Cost Performance Index (CPI)?
A. If the CPI > 1, it indicates better than expected performance of project

B. CPI = Earned Value (EV) * Actual Cost (AC)
C. It is used to measure performance of schedule
D. If the CPI = 1, it indicates poor performance of project
Correct Answer: A
Explanation
Cost performance index (CPI) is used to calculate performance efficiencies of project. It is used in trend
analysis to predict future performance. CPI is the ratio of earned value to actual cost. If the CPI value is greater
than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor
performance.
Answer: C is incorrect. Cost performance index (CPI) is used to calculate performance efficiencies of project
and not its schedule.
Answer: B is incorrect. CPI is the ratio of earned value to actual cost, i.e., CPI = Earned Value (EV) / Actual
Cost (AC).
Answer: D is incorrect. The CPI value of 1 indicates that the project is right on target.
QUESTION 32
Which of the following do NOT indirect information?
A. Information about the propriety of cutoff

B. Reports that show orders that were rejected for credit limitations.
C. Reports that provide information about any unusual deviations and individual product margins.
D. The lack of any significant differences between perpetual levels and actual levels of goods.
Correct Answer: A
Explanation
Information about the propriety of cutoff is a kind of direct information. Answer: C is incorrect. Reports that
provide information about any unusual deviations and individual product margins (whereby, the price of an item
sold is compared to its standard cost) provide indirect information that controls over billing and pricing are
operating. Answer: B is incorrect. Reports that show orders that were rejected for credit limitations provide
indirect information that credit checking aspects of the system are working as intended. Answer: D is incorrect.
The lack of any significant differences between perpetual levels and actual levels provides indirect information
that its billing controls are operating.
QUESTION 33
Ben works as a project manager for the MJH Project. In this project, Ben is preparing to identify stakeholders
so he can communicate project requirements, status, and risks. Ben has elected to use a salience model as
part of his stakeholder identification process. Which of the following activities best describes a salience model?
A. Describing classes of stakeholders based on their power (ability to impose their will), urgency (need for
immediate attention), and legitimacy (their involvement is appropriate).
B. Grouping the stakeholders based on their level of authority ("power") and their level or concern ("interest")
regarding the project outcomes.
C. Influence/impact grid, grouping the stakeholders based on their active involvement ("influence") in the
project and their ability to affect changes to the project's planning or execution ("impact").
D. Grouping the stakeholders based on their level of authority ("power") and their active involvement
("influence") in the project.
Correct Answer: A
Explanation
A salience model defines and charts stakeholders' power, urgency, and legitimacy in the project. The salience
model is a technique for categorizing stakeholders according to their importance. The various difficulties faced
by the project managers are as follows:
How to choose the right stakeholders?
How to prioritize competing claims of the stakeholders communication needs? Stakeholder salience is
determined by the evaluation of their power, legitimacy and urgency in the organization.
Power is defined as the ability of the stakeholder to impose their will.
Urgency is the need for immediate action.
Legitimacy shows the stakeholders participation is appropriate or not. The model allows the project manager to
decide the relative salience of a particular stakeholder. Answer: B is incorrect. This defines the power/interest
grid. Answer: D is incorrect. This defines a power/influence grid. Answer: C is incorrect. This defines an
influence/impact grid.
QUESTION 34
Which of the following is the first MOST step in the risk assessment process?
A. Identification of assets
B. Identification of threats
C. Identification of threat sources
D. Identification of vulnerabilities
Correct Answer: A
Explanation
Asset identification is the most crucial and first step in the risk assessment process. Risk identification,
assessment and evaluation (analysis) should always be clearly aligned to assets. Assets can be people,
processes, infrastructure, information or applications.
QUESTION 35
Which of the following matrices is used to specify risk thresholds?
A. Risk indicator matrix

B. Impact matrix
C. Risk scenario matrix
D. Probability matrix
Correct Answer: A
Explanation
Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is
approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and
reporting mechanisms that alert staff about the potential risks. Answer: D and B are incorrect. Estimation of
risk's consequence and priority for awareness is conducted by using probability and impact matrix. These
matrices specify the mixture of probability and impact that directs to rating the risks as low, moderate, or high
priority. Answer: C is incorrect. A risk scenario is a description of an event that can lay an impact on business,
when and if it would occur.
Some examples of risk scenario are of:
Having a major hardware failure
Failed disaster recovery planning (DRP)
Major software failure
QUESTION 36
What are the two MAJOR factors to be considered while deciding risk appetite level? Each correct answer
represents a part of the solution. Choose two.
A. The amount of loss the enterprise wants to accept

B. Alignment with risk-culture
C. Risk-aware decisions
D. The capacity of the enterprise's objective to absorb loss.
Correct Answer: AD
Explanation
Risk appetite is the amount of risk a company or other entity is willing to accept in pursuit of its mission. This is
the responsibility of the board to decide risk appetite of an enterprise. When considering the risk appetite levels
for the enterprise, the following two major factors should be taken into account:
The enterprise's objective capacity to absorb loss, e.g., financial loss, reputation damage, etc. The culture
towards risk taking-cautious or aggressive. In other words, the amount of loss the enterprise wants to accept in
pursue of its objective fulfillment. Answer: B is incorrect. Alignment with risk-culture is also one of the factors
but is not as important as these two.
Answer: C is incorrect. Risk aware decision is not the factor, but is the result which uses risk appetite
information as its input.
QUESTION 37
You are the project manager of the GHY Project for your company. You need to complete a project
management process that will be on the lookout for new risks, changing risks, and risks that are now outdated.
Which project management process is responsible for these actions?
A. Risk planning
B. Risk monitoring and controlling
C. Risk identification
D. Risk analysis
Correct Answer: B
Explanation
The risk monitoring and controlling is responsible for identifying new risks, determining the status of risks that
may have changed, and determining which risks may be outdated in the project. Answer: C is incorrect. Risk
identification is a process that identifies risk events in the project. Answer: A is incorrect. Risk planning creates
the risk management plan and determines how risks will be identified, analyzed, monitored and controlled, and
responded to. Answer: D is incorrect. Risk analysis helps determine the severity of the risk events, the risks'
priority, and the probability and impact of risks.
QUESTION 38
You are the project manager of the HGT project in Bluewell Inc. The project has an asset valued at $125,000
and is subjected to an exposure factor of 25 percent. What will be the Single Loss Expectancy of this project?
A. $ 125,025
B. $ 31,250
C. $ 5,000
D. $ 3,125,000
Correct Answer: B
Explanation
The Single Loss Expectancy (SLE) of this project will be $31,250. Single Loss Expectancy is a term related to
Quantitative Risk Assessment. It can be defined as the monetary value expected from the occurrence of a risk
on an asset. It is mathematically expressed as follows:
Single Loss Expectancy (SLE) = Asset Value (AV) * Exposure Factor (EF) where the Exposure Factor
represents the impact of the risk over the asset, or percentage of asset lost. As an example, if the Asset Value
is reduced two third, the exposure factor value is .66. If the asset is completely lost, the Exposure Factor is 1.0.
The result is a monetary value in the same unit as the Single Loss Expectancy is expressed.
Therefore,
SLE = Asset Value * Exposure Factor
= 125,000 * 0.25
= $31,250
Answer: D, C, and A are incorrect.
These are not SLEs of this project.
QUESTION 39
Which of the following are the principles of access controls?
Each answer represents a complete solution. Choose three.
A. Confidentiality
B. Availability
C. Reliability
D. Integrity
Correct Answer: ABD

Explanation
The principles of access controls focus on availability, integrity, and confidentiality, as loss or danger is directly
related to these three:
Loss of confidentiality- Someone sees a password or a company's secret formula, this is referred to as loss of
confidentiality.
Loss of integrity- An e-mail message is modified in transit, a virus infects a file, or someone makes
unauthorized changes to a Web site is referred to as loss of integrity. Loss of availability- An e-mail server is
down and no one has e-mail access, or a file server is down so data files aren't available comes under loss of
availability.
QUESTION 40
You are the project manager of GHT project. You have selected appropriate Key Risk Indicators for your
project. Now, you need to maintain those Key Risk Indicators. What is the MOST important reason to maintain
Key Risk Indicators?
A. Risk reports need to be timely

B. Complex metrics require fine-tuning
C. Threats and vulnerabilities change over time
D. They help to avoid risk
Correct Answer: C
Explanation
Since the enterprise's internal and external environments are constantly changing, the risk environment is also
highly dynamic, i.e., threats and vulnerabilities change over time. Hence KRIs need to be maintained to ensure
that KRIs continue to effectively capture these changes. Answer: A is incorrect. Timely risk reporting is one of
the business requirements, but is not the reason behind KRI maintenance.
Answer: B is incorrect. While most key risk indicator 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. Answer: D is incorrect. Avoiding risk is a type of risk response.
Risk responses are based on KRI reporting.
QUESTION 41
Which of the following controls do NOT come under technical class of control?
A. Program management control

B. System and Communications Protection control
C. Identification and Authentication control
D. Access Control
Correct Answer: A
Explanation
Program Management control comes under management class of controls, not technical. Program
Management control is driven by the Federal Information Security Management Act (FISMA). It provides
controls to ensure compliance with FISMA. These controls complement other controls. They don't replace
them.
Answer: D, C, and B are incorrect. These controls comes under technical class of control. The Technical class
of controls includes four families. These families include over 75 individual controls. Following is a list of each
of the families in the Technical class:
Access Control (AC): This family of controls helps an organization implement effective access control. They
ensure that users have the rights and permissions they need to perform their jobs, and no more. It includes
principles such as least privilege and separation ofduties. Audit and Accountability (AU): This family of controls
helps an organization implement an effective audit program. It provides details on how to determine what to
audit. It provides details on how to protect the audit logs. It also includes information on using auditlogs for non-
repudiation. Identification and Authentication (IA): These controls cover different practices to identify and
authenticate users. Each user should be uniquely identified. In other words, each user has one account. This
account is only used by one user. Similarly, device identifiers uniquely identify devices on the network.
System and Communications Protection (SC): The SC family is a large group of controls that cover many
aspects of protecting systems and communication channels. Denial of service protection and boundary
protection controls are included. Transmission integrity and confidentiality controls are also included.
QUESTION 42
Mary is a project manager in her organization. On her current project she is working with her project team and
other key stakeholders to identify the risks within the project. She is currently aiming to create a comprehensive
list of project risks so she is using a facilitator to help generate ideas about project risks. What risk identification
method is Mary likely using?
A. Delphi Techniques
B. Expert judgment
C. Brainstorming
D. Checklist analysis
Correct Answer: C
Explanation
Mary is using brainstorming in this example. Brainstorming attempts to create a comprehensive list of risks and
often is led by a moderator or facilitator to move the process along. Brainstorming is a technique to gather
general data. It can be used to identify risks, ideas, or solutions to issues by using a group of team members or
subject-matter expert. Brainstorming is a group creativity technique that also provides other benefits, such as
boosting morale, enhancing work enjoyment, and improving team work.
Answer: D is incorrect. Checklist analysis uses historical information and information from similar projects
within the organization's experience.
Answer: A is incorrect. The Delphi technique uses rounds of anonymous surveys to generate a consensus on
the identified risks.
Answer: B is incorrect. Expert judgment is not the best answer for this; projects experts generally do the risk
identification, in addition to the project team.
QUESTION 43
Which of the following is an administrative control?
A. Water detection
B. Reasonableness check
C. Data loss prevention program
D. Session timeout
Correct Answer: C
Explanation
QUESTION 44
You are the project manager of the NHH Project. You are working with the project team to create a plan to
document the procedures to manage risks throughout the project. This document will define how risks will be
identified and quantified. It will also define how contingency plans will be implemented by the project team.
What document do you and your team is creating in this scenario?
A. Project plan
B. Resource management plan
C. Project management plan
D. Risk management plan
Correct Answer: D
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.
Answer: C is incorrect. The project management plan is a comprehensive plan that communicates the intent of
the project for all project management knowledge areas. Answer: A is incorrect. The project plan is not an
official PMBOK project management plan. Answer: B is incorrect. The resource management plan defines the
management of project resources, such as project team members, facilities, equipment, and contractors.
QUESTION 45
Where are all risks and risk responses documented as the project progresses?
A. Risk management plan

B. Project management plan
C. Risk response plan
D. Risk register
Correct Answer: D
Explanation
All risks, their responses, and other characteristics are documented in the risk register. As the project
progresses and the conditions of the risk events change, the risk register should be updated to reflect the risk
conditions.
Answer: A is incorrect. The risk management plan addresses the project management's approach to risk
management, risk identification, analysis, response, and control. Answer: C is incorrect. The risk response plan
only addresses the planned risk responses for the identified risk events in the risk register.
Answer: B is incorrect. The project management plan is the overarching plan for the project, not the specifics of
the risk responses and risk identification.
QUESTION 46
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?
A. Transference
B. Mitigation
C. Avoidance
D. Exploit
Correct Answer: A
Explanation
When you are hiring a third party to own risk, it is known as transference risk response. Risk transfer means
that impact of risk is reduced by transferring or otherwise sharing a portion of the risk with an external
organization or another internal entity. Transfer of risk can occur in many forms but is most effective when
dealing with financial risks. Insurance is one form of risk transfer.
Answer: B is incorrect. The act of spending money to reduce a risk probability and impact is known as
mitigation.
Answer: D is incorrect. Exploit is a strategy that may be selected for risks with positive impacts where the
organization wishes to ensure that the opportunity is realized. Answer: C is incorrect. When extra activities are
introduced into the project to avoid the risk, this is an example of avoidance.
QUESTION 47
John works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which
of the following inputs of the identify risks process is useful 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?
A. Activity duration estimates

B. Activity cost estimates
C. Risk management plan
D. Schedule management plan
Correct Answer: A
Explanation
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.
Answer: B is incorrect. The activity cost estimates review is valuable in identifying risks as it provides a
quantitative assessment of the expected cost to complete scheduled activities and is expressed as a range,
with a width of the range indicating the degrees of risk. Answer: D is incorrect. It describes how the schedule
contingencies will be reported and assessed.
Answer: C is incorrect. 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.
QUESTION 48
Which of the following events refer to loss of integrity?
A. Someone sees company's secret formula

B. Someone makes unauthorized changes to a Web site
C. An e-mail message is modified in transit
D. A virus infects a file
Correct Answer: BCD

Explanation
Loss of integrity refers to the following types of losses :
An e-mail message is modified in transit A virus infects a file Someone makes unauthorized changes to a Web
site
Answer: A is incorrect. Someone sees company's secret formula or password comes under loss of
confidentiality.
QUESTION 49
Which of the following should be PRIMARILY considered while designing information systems controls?
A. The IT strategic plan

B. The existing IT environment
C. The organizational strategic plan
D. The present IT budget
Correct Answer: C
Explanation
Review of the enterprise's strategic plan is the first step in designing effective IS controls that would fit the
enterprise's long-term plans.
Answer: B is incorrect. Review of the existing IT environment is also useful and necessary but is not the first
step that needs to be undertaken.
Answer: D is incorrect. The present IT budget is just one of the components of the strategic plan. Answer: A is
incorrect. The IT strategic plan exists to support the enterprise's strategic plan but is not solely considered
while designing information system control.
QUESTION 50
Which of the following is the MOST effective inhibitor of relevant and efficient communication?
A. A false sense of confidence at the top on the degree of actual exposure related to IT and lack of a well-
understood direction for risk management from the top down
B. The perception that the enterprise is trying to cover up known risk from stakeholders
C. Existence of a blame culture
D. Misalignment between real risk appetite and translation into policies
Correct Answer: C
Explanation
Blame culture should be avoided. It is the most effective inhibitor of relevant and efficient communication. In a
blame culture, business units tend to point the finger at IT when projects are not delivered on time or do not
meet expectations. In doing so, they fail to realize how the business unit's involvement up front affects project
success. In extreme cases, the business unit may assign blame for a failure to meet the expectations that the
unit never clearlycommunicated. Executive leadership must identify and quickly control a blame culture if
collaboration is to be fostered throughout the enterprise.
Answer: A is incorrect. This is the consequence of poor risk communication, not the inhibitor of effective
communication.
Answer: D is incorrect. Misalignment between real risk appetite and translation into policies is an inhibitor of
effective communication, but is not a prominent as existence of blame culture. Answer: B is incorrect. . This is
the consequence of poor risk communication, not the inhibitor of effective communication.
QUESTION 51
You and your project team are identifying the risks that may exist within your project. Some of the risks are
small risks that won't affect your project much if they happen. What should you do with these identified risk
events?
A. These risks can be dismissed.

B. These risks can be accepted.
C. These risks can be added to a low priority risk watch list.
D. All risks must have a valid, documented risk response.
Correct Answer: C
Explanation
Low-impact, low-probability risks can be added to the low priority risk watch list. Answer: B is incorrect. While
these risks may be accepted, they should be documented on the low priority risk watch list. This list will be
periodically reviewed and the status of the risks may change. Answer: A is incorrect. These risks are not
dismissed; they are still documented on the low priority risk watch list.
Answer: D is incorrect. Not every risk demands a risk response, so this choice is incorrect.
QUESTION 52
You are the project manager of your enterprise. You have introduced an intrusion detection system for the
control. You have identified a warning of violation of security policies of your enterprise. What type of control is
an intrusion detection system (IDS)?
A. Detective
B. Corrective
C. Preventative
D. Recovery
Correct Answer: A
Explanation
An intrusion detection system (IDS) is a device or software application that monitors network and/or system
activities for malicious activities or policy violations and produces reports to a Management Station. Some
systems may attempt to stop an intrusion attempt but this is neither required nor expected of a monitoring
system. Intrusion detection and prevention systems (IDPS) are primarily focused on identifying possible
incidents, logging information about them, and reporting attempts. In addition, organizations use IDPS for other
purposes,such as identifying problems with security policies, documenting existing threats, and deterring
individuals from violating security policies.
As IDS detects and gives warning when the violation of security policies of the enterprise occurs, it is a
detective control.
Answer: C is incorrect. As IDS only detects the problem when it occurs and not prior of its occurrence, it is not
preventive control.
Answer: B is incorrect. These controls make effort to reduce the impact of a threat from problems discovered
by detective controls.
As IDS only detects but nt reduce the impact, hence it is not a corrective control. Answer: D is incorrect. :
These controls make efforts to overcome the impact of the incident on the business, hence IDS is not a
recovery control.
QUESTION 53
What are the functions of audit and accountability control? Each answer represents a complete solution.
Choose all that apply.
A. Provides details on how to protect the audit logs

B. Implement effective access control
C. Implement an effective audit program
D. Provides details on how to determine what to audit
Correct Answer: ACD

Explanation
Audit and accountability family of controls helps an organization implement an effective audit program. It
provides details on how to determine what to audit. It provides details on how to protect the audit logs. It also
includes information on using audit logs for non-repudiation. Answer: B is incorrect. Access Control is the
family of controls that helps an organizationimplement effective access control. They ensure that users have
the rights and permissions they need to perform their jobs, and no more. It includes principles such as least
privilege and separation of duties.
Audit and accountability family of controls do not help in implementing effective access control.
QUESTION 54
Which among the following acts as a trigger for risk response process?
A. Risk level increases above risk appetite

B. Risk level increase above risk tolerance
C. Risk level equates risk appetite
D. Risk level equates the risk tolerance
Correct Answer: B
Explanation
The risk response process is triggered when a risk exceeds the enterprise's risk tolerance level. The
acceptable variation relative to the achievement of an objective is termed as risk tolerance. In other words, risk
tolerance is the acceptable deviation from the level set by the risk appetite and business objectives.
Risk tolerance is defined at the enterprise level by the board and clearly communicated to all stakeholders. A
process should be in place to review and approve any exceptions to such standards.
Answer: C and A are incorrect. Risk appetite level is not relevant in triggering of risk response process. Risk
appetite is the amount of risk a company or other entity is willing to accept in pursuit of its mission. This is the
responsibility of the board to decide risk appetite of an enterprise. When considering the risk appetite levels for
the enterprise, the followingtwo major factors should be taken into account:
pursue of its objective fulfillment. Answer: D is incorrect. Risk response process is triggered when the risk level
increases the risk tolerance level of the enterprise, and not when it just equates the risk tolerance level.
QUESTION 55
What is the value of exposure factor if the asset is lost completely?
A. 1
B. Infinity
C. 10
D. 0
Correct Answer: A
Explanation
Exposure Factor represents the impact of the risk over the asset, or percentage of asset lost. For example, if
the Asset Value is reduced to two third, the exposure factor value is 0.66. Therefore, when the asset is
completely lost, the Exposure Factor is 1.0. Answer: B, D, and C are incorrect. These are not the values of
exposure factor for zero assets.
QUESTION 56
Your project is an agricultural-based project that deals with plant irrigation systems. You have discovered a
byproduct in your project that your organization could use to make a profit. If your organization seizes this
opportunity it would be an example of what risk response?
A. Enhancing
B. Positive
C. Opportunistic
D. Exploiting
Correct Answer: D
Explanation
This is an example of exploiting a positive risk - a by-product of a project is an excellent example of exploiting a
risk. Exploit response is one of the strategies to negate risks or threats that 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: C is incorrect. Opportunistic is not a valid risk response. Answer: B is incorrect. This is an example of
a positive risk, but positive is not a risk response. Answer: A is incorrect. Enhancing is a positive risk response
that describes actions taken to increase the odds of a risk event to happen.
QUESTION 57
Which of the following is true for Single loss expectancy (SLE), Annual rate of occurrence (ARO), and Annual
loss expectancy (ALE)?
A. ALE= ARO/SLE
B. ARO= SLE/ALE
C. ARO= ALE*SLE
D. ALE= ARO*SLE
Correct Answer: D
Explanation
A quantitative risk assessment quantifies risk in terms of numbers such as dollar values. This involves
gathering data and then entering it into standard formulas. The results can help in identifying the priority of
risks. These results are also used to determine the effectiveness of controls. Some of the terms associated
with quantitative risk assessments are :
Single loss expectancy (SLE)-It refers to the total loss expected from a single incident. This incident can occur
when vulnerability is being exploited by threat. The loss is expressed as a dollar value such as $1,000. It
includes the value of data, software, and hardware. SLE = Asset value * Exposure factor
Annual rate of occurrence (ARO)-It refers to the number of times expected for an incident to occur in a year. If
an incident occurred twice a month in the past year, the ARO is 24. Assuming nothing changes, it is likely that
it will occur 24 times next year. Annual loss expectancy (ALE)-It is the expected loss for a year. ALE is
calculated by multiplying SLE with ARO. Because SLE is a given in a dollar value, ALE is also given in a dollar
value. For example, if the SLE is $1,000 and the ARO is 24, the ALE is $24,000.
ALE = SLE * ARO Safeguard value-This is the cost of a control. Controls are used to mitigate risk. For
example, antivirus software of an average cost of $50 for each computer. If there are 50 computers, the
safeguard value is $2,500. Answer: C, A, and B are incorrect. These are wrong formulas and are not used in
quantitative risk assessment.
QUESTION 58
Which of the following statements are true for enterprise's risk management capability maturity level 3 ?
A. Workflow tools are used to accelerate risk issues and track decisions
B. The business knows how IT fits in the enterprise risk universe and the risk portfolio view
C. The enterprise formally requires continuous improvement of risk management skills, based on clearly
defined personal and enterprise goals
D. Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are
recognized
Correct Answer: ABD

Explanation
Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are recognized.
There is a selected leader for risk management, engaged with the enterprise risk committee, across the
enterprise.
The business knows how IT fits in the enterprise risk universe and the risk portfolio view.
Local tolerances drive the enterprise risk tolerance.
Risk management activities are being aligned across the enterprise. Formal risk categories are identified and
described in clear terms. Situations and scenarios are included in risk awareness training beyond specific
policy and structures and promote a common language for communicating risk. Defined requirements exist for
a centralized inventory of risk issues. Workflow tools are used to accelerate risk issues and track decisions.
Answer: C is incorrect. Enterprise having risk management capability maturity level 5 requires continuous
improvement of risk management skills, based on clearly defined personal and enterprise goals.
QUESTION 59
Which of the following role carriers is accounted for analyzing risks, maintaining risk profile, and risk-aware
decisions?
A. Business management
B. Business process owner
C. Chief information officer (CIO)
D. Chief risk officer (CRO)
Correct Answer: A
Explanation
Business management is the business individuals with roles relating to managing a program. They are typically
accountable for analyzing risks, maintaining risk profile, and risk-aware decisions. Other than this, they are also
responsible for managing risks, react to events, etc. Answer: C is incorrect. CIO is the most senior official of
the enterprise who is accountable for IT advocacy; aligning IT and business strategies; and planning,
resourcing and managing the delivery of IT services and information and the deployment of associated human
resources. CIO has some responsibility analyzing risks, maintaining risk profile, and risk-aware decisions but is
not accounted for them.
Answer: B is incorrect. Business process owner is an individual responsible for identifying process
requirements, approving process design and managing process performance. He/she is responsible for
analyzing risks, maintaining risk profile, and risk-aware decisions but is not accounted for them.
Answer: D is incorrect. CRO is the individual who oversees all aspects of risk management across the
enterprise. He/she is responsible for analyzing risks, maintaining risk profile, and risk-aware decisions but is
QUESTION 60
You are using Information system. You have chosen a poor password and also sometimes transmits data over
unprotected communication lines. What is this poor quality of password and unsafe transmission refers to?
A. Probabilities
B. Threats
C. Vulnerabilities
D. Impacts
Correct Answer: C
Explanation
Vulnerabilities represent characteristics of information resources that may be exploited by a threat. The given
scenario describes such a situation, hence it is a vulnerability. Answer: B is incorrect. Threats are
circumstances or events with the potential to cause harm to information resources. This scenario does not
describe a threat. Answer: A is incorrect. Probabilities represent the likelihood of the occurrence of a threat,
and this scenario does not describe a probability.
Answer: D is incorrect. Impacts represent the outcome or result of a threat exploiting a vulnerability. The stem
does not describe an impact.
QUESTION 61
Which of the following is the BEST way to ensure that outsourced service providers comply with the
enterprise's information security policy?
A. Penetration testing
B. Service level monitoring
C. Security awareness training
D. Periodic audits
Correct Answer: D
Explanation
As regular audits can spot gaps in information security compliance, periodic audits can ensure that outsourced
service provider comply with the enterprise's information security policy. Answer: C is incorrect. Training can
increase user awareness of the information security policy, but is less effective than periodic auditing.
Answer: A is incorrect. Penetration testing can identify security vulnerability, but cannot ensure information
compliance.
Answer: B is incorrect. Service level monitoring can only identify operational issues in the enterprise's
operational environment. It does not play any role in ensuring that outsourced service provider comply with the
enterprise's information security policy.
QUESTION 62
You are the project manager of RFT project. You have identified a risk that the enterprise's IT system and
application landscape is so complex that, within a few years, extending capacity will become difficult and
maintaining software will become very expensive. To overcome this risk the response adopted is re-
architecture of the existing system and purchase of new integrated system. In which of the following risk
prioritization options would this case be categorized?
A. Deferrals
B. Quick win
C. Business case to be made
D. Contagious risk
Correct Answer: C
Explanation
This is categorized as a Business case to be made because the project cost is very large. The response to be
implemented requires quite large investment. Therefore it comes under business case to be made.
Answer: B is incorrect. Quick win is very effective and efficient response that addresses medium to high risk.
But in this the response does not require large investments. Answer: A is incorrect. It addresses costly risk
response to a low risk. But here the response is less costly than that of business case to be made.
Answer: D is incorrect. This is not risk response prioritization option, instead it is a type of risk that happen with
the several of the enterprise's business partners within a very short time frame.
QUESTION 63
Which of the following BEST ensures that a firewall is configured in compliance with an enterprise's security
policy?
A. Interview the firewall administrator.

B. Review the actual procedures.
C. Review the device's log file for recent attacks.
D. Review the parameter settings.
Correct Answer: D
Explanation
A review of the parameter settings will provide a good basis for comparison of the actual configuration to the
security policy and will provide reliable audit evidence documentation. Answer: B is incorrect. While procedures
may provide a good understanding of how the firewall is supposed to be managed, they do not reliably confirm
that the firewall configuration complies with the enterprise's security policy.
Answer: A is incorrect. While interviewing the firewall administrator may provide a good process overview, it
does not reliably confirm that the firewall configuration complies with the enterprise's security policy.
Answer: C is incorrect. While reviewing the device's log file for recent attacks may provide indirect evidence
about the fact that logging is enabled, it does not reliably confirm that the firewall configuration complies with
the enterprise's security policy.
QUESTION 64
Which of following is NOT used for measurement of Critical Success Factors of the project?
A. Productivity
B. Quality
C. Quantity
D. Customer service
Correct Answer: C
Explanation
Answer: A, B, and D are incorrect. Productivity, quality and customer service are used for evaluating critical
service factor of any particular project.
QUESTION 65
Which of the following statements is NOT true regarding the risk management plan?
A. The risk management plan is an output of the Plan Risk Management process.
B. The risk management plan is an input to all the remaining risk-planning processes.
C. The risk management plan includes a description of the risk responses and triggers.
D. The risk management plan includes thresholds, scoring and interpretation methods, responsible parties, and
budgets.
Correct Answer: C
Explanation
The risk management plan details how risk management processes will be implemented, monitored, and
controlled throughout the life of the project. The risk management plandoes not include responses to risks or
triggers. Responses to risks are documented in the risk register as part of the Plan Risk Responses process.
Answer: A, D, and B are incorrect. These all statements are true for risk management plan. The risk
management plan details how risk management processes will be implemented, monitored, and controlled
throughout the life of the project. It includes thresholds, scoring and interpretation methods, responsible
parties, and budgets. It also act as input to all the remaining risk-planning processes.
QUESTION 66
You are the project manager of a project in Bluewell Inc. You and your project team have identified several
project risks, completed risk analysis, and are planning to apply most appropriate risk responses. Which of the
following tools would you use to choose the appropriate risk response?
A. Project network diagrams

B. Cause-and-effect analysis
C. Decision tree analysis
D. Delphi Technique
Correct Answer: C
Explanation
Decision tree analysis is a risk analysis tool that can help the project manager in determining the best risk
response. The tool can be used to measure probability, impact, and risk exposure and how the selected risk
response can affect the probability and/or impact of the selected risk event. It helps to form a balanced image
of the risks and oppourtunities connected witheach possible course of action. This makes them mostly useful
for choosing between different strategies, projects, or investment opportunities particularly when the resources
are limited. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their
possible consequences, including chance event outcomes, resource costs, and utility. Answer: D is incorrect.
Delphi technique is used for risk analysis, i.e., for identifying the most probable risks. Delphi is a group of
experts who used to rate independently the business risk of an organization. Each expert analyzes the risk
independently and then prioritizes the risk, and the result is combined into a consensus.
Answer: A is incorrect. Project network diagrams help the project manager and stakeholders visualize the flow
of the project work, but they are not used as a part of risk response planning. Answer: B is incorrect. Cause-
and-effect analysis is used for exposing risk factors and not an effective one in risk response planning.
This analysis involves the use of predictive or diagnostic analytical tool for exploring the root causes or factors
that contribute to positive or negative effects or outcomes.
QUESTION 67
You are the risk official of your enterprise. Your enterprise takes important decisions without considering risk
credential information and is also unaware of external requirements for risk management and integration with
enterprise risk management. In which of the following risk management capability maturity levels does your
enterprise exists?
A. Level 1
B. Level 0
C. Level 5
D. Level 4
Correct Answer: B
Explanation
0 nonexistent: An enterprise's risk management capability maturity level is 0 when:
The enterprise does not recognize the need to consider the risk management or the business impact from IT
risk.
Decisions involving risk lack credible information.
Awareness of external requirements for risk management and integration with enterprise risk management
(ERM) do not exists.
Answer:A, C, and D are incorrect.
These all are much higher levels of the risk management capability maturity model and in all these enterprise
do take decisions considering the risk credential information. Moreover, in these levels enterprise is aware of
external requirements for risk management and integrate with ERM.
QUESTION 68
Which of the following is the priority of data owners when establishing risk mitigation method?
A. User entitlement changes

B. Platform security
C. Intrusion detection
D. Antivirus controls
Correct Answer: A
Explanation
Data owners are responsible for assigning user entitlement changes and approving access to the systems for
which they are responsible.
Answer: C, B, and D are incorrect. Data owners are not responsible for intrusion detection, platform security or
antivirus controls.
These are the responsibilities of data custodians.
QUESTION 69
What type of policy would an organization use to forbid its employees from using organizational e- mail for
personal use?
A. Anti-harassment policy
B. Acceptable use policy
C. Intellectual property policy
D. Privacy policy
Correct Answer: B
Explanation
An acceptable use policy is a set of rules applied by the owner/manager of a network, website or large
computer system that restrict the ways in which the network site or system may be used. Acceptable Use
Policies are an integral part of the framework of information security policies. Answer: D is incorrect. Privacy
policy is a statement or a legal document (privacy law) that discloses some or all of the ways a party gathers,
uses, discloses and manages a customer or client's data.
Answer: C and A are incorrect. These two policies are not related to Information system security.
QUESTION 70
Wendy has identified a risk event in her project that has an impact of $75,000 and a 60 percent chance of
happening. Through research, her project team learns that the risk impact can actually be reduced to just
$15,000 with only a ten percent chance of occurring. The proposed solution will cost $25,000. Wendy agrees to
the $25,000 solution. What type of risk response is this?
A. Mitigation
B. Avoidance
C. Transference
D. Enhancing
Correct Answer: A
Explanation
Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to be within
acceptable threshold limits. Taking early actions to reduce the probability and/orimpact of a risk occurring on
the project is often more effective than trying to repair the damage after the risk has occurred.
Answer: B is incorrect. Avoidance changes the project plan to avoid the risk altogether. Answer: C is incorrect.
Transference requires shifting some or all of the negative impacts of a threat, along with the ownership of the
response, to a third party. Transferring the risk simply gives another party the responsibility for its
management-it does not eliminate it. Transferring the liability for a risk is most effective in dealing with financial
risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the
risk. Answer: D is incorrect. Enhancing is actually a positive risk response. This strategy is used to increase the
probability and/or the positive impact of an opportunity. Identifying and maximizing the key drivers of these
positive-impact risks may increase the probability of their occurrence.
QUESTION 71
Which of the following processes addresses the risks by their priorities, schedules the project management
plan as required, and inserts resources and activities into the budget?
A. Monitor and Control Risk

B. Plan risk response
C. Identify Risks
D. Qualitative Risk Analysis
Correct Answer: B
Explanation
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
Answer: C is incorrect. Identify Risks is the process of determining which risks may affect the project. It also
documents risks' characteristics. The Identify Risks process is part of the Project Risk Management knowledge
area. As new risks may evolve or become known as the project progresses through its life cycle, Identify Risks
is an iterative process. The process should involve the project team so that they can develop and maintain a
sense of ownership and responsibility for the risks and associated risk response actions. Risk Register is the
only output of this process. Answer: A is incorrect. Monitor and Control Risk is the process of implementing risk
response plans, tracking identified risks, monitoring residual risk, identifying new risks, and evaluating risk
process effectiveness throughout the project. It can involve choosing alternative strategies, executing a
contingency or fallback plan, taking corrective action, and modifying the project management plan.
Answer: D is incorrect. Qualitative analysis is the definition of risk factors in terms of high/medium/low or a
numeric scale (1 to 10). Hence it determines the nature of risk on a relative scale.
Some of the qualitative methods of risk analysis are:
Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time. Risk Control
Self -assessment (RCSA) - RCSA is used by enterprises (like banks) for the identification and evaluation of
operational risk exposure. It is a logical first step and assumes that business owners and managers are closest
to the issues and have the most expertise as to the source of the risk. RCSA is a constructive process in
compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of
increasing their accountability.
QUESTION 72
Out of several risk responses, which of the following risk responses is used for negative risk events?
A. Share
B. Enhance
C. Exploit
D. Accept
Correct Answer: D
Explanation
Among the given choices only Acceptance response is used for negative risk events. Risk acceptance means
that no action is taken relative to a particular risk; loss is accepted if it occurs. If an enterprise adopts a risk
acceptance, it should carefully consider who can accept the risk. Risk should be accepted only by senior
management in relationship with senior management and the board. There are two alternatives to the
acceptance strategy, passive and active. Passive acceptance means that enterprise has made no plan to avoid
or mitigate the risk but willing to accept the consequences of the risk.
Active acceptance is the second strategy and might include developing contingency plans and reserves to deal
with risks.
Answer: C, A, and B are incorrect. These all are used to deal with opportunities or positive risks, and not with
negative risks.
QUESTION 73
Which of the following risks refer to probability that an actual return on an investment will be lower than the
investor's expectations?
A. Integrity risk
B. Project ownership risk
C. Relevance risk
D. Expense risk
Correct Answer: D
Explanation
Probability that an actual return on an investment will be lower than the investor's expectations is termed as
investment risk or expense risk. All investments have some level ofrisk associated with it due to the
unpredictability of the market's direction. This includes consideration of the overall IT investment portfolio.
Answer: A is incorrect. The risk that data cannot be relied on because they are unauthorized, incomplete or
inaccurate is termed as integrity risks. Answer: C is incorrect. 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 is
termed as relevance risk.
Answer: B is incorrect. The risk of IT projects failing to meet objectives due to lack of accountability and
commitment is referring to as project risk ownership.
QUESTION 74
What are the PRIMARY requirements for developing risk scenarios?
A. Potential threats and vulnerabilities that could lead to loss events

B. Determination of the value of an asset at risk
C. Determination of actors that has potential to generate risk
D. Determination of threat type
Correct Answer: AB
Explanation
Creating a scenario requires determination of the value of an asset or a business process at risk and the
potential threats and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance
and realism, and then entered into the risk register if found to be relevant. In practice following steps are
involved in risk scenario development:
First determine manageable set of scenarios, which include:
Frequently occurring scenarios in the industry or product area. Scenarios representing threat sources that are
increasing in count or severity level. Scenarios involving legal and regulatory requirements applicable to the
business. After determining manageable risk scenarios, perform a validation against the business objectives of
the entity.
Based on this validation, refine the selected scenarios and then detail them to a level in line with the criticality
of the entity.
Lower down the number of scenarios to a manageable set. Manageable does not signify a fixed number, but
should be in line with the overall importance and criticality of the unit. Risk factors kept in a register so that they
can be reevaluated in the next iteration and included for detailed analysis if they have become relevant at that
time. Risk factors kept in a register so that they can be reevaluated in the next iteration and included for
detailed analysis if they have become relevant at that time. Include an unspecified event in the scenarios, that
is, address an incident not covered by other scenarios.
Answer: C and D are incorrect. Determination of actors and threat type are not the primary requirements for
developing risk scenarios, but are the components that are determined during risk scenario development.
QUESTION 75
What are the responsibilities of the CRO?
A. Managing the risk assessment process

B. Implement corrective actions
C. Advising Board of Directors
D. Managing the supporting risk management function
Correct Answer: ABD

Explanation
Chief Risk Officer is the executive-level manager in an organization. They provide corporate, guidance,
governance, and oversight over the enterprise's risk management activities. The main priority for the CRO is to
ensure that the organization is in full compliance with applicable regulations. They may also deal with areas
regarding insurance, internal auditing, corporate investigations, fraud, and information security.
CRO's responsibilities include:
Managing the risk assessment process
Implementation of corrective actions
Communicate risk management issues
Supporting the risk management functions
QUESTION 76
You are working with a vendor on your project. A stakeholder has requested a change for the project, which
will add value to the project deliverables. The vendor that you're working with on the project will be affected by
the change. What system can help you introduce and execute the stakeholder change request with the
vendor?
A. Contract change control system

B. Scope change control system
C. Cost change control system
D. Schedule change control system
Correct Answer: A
Explanation
The contract change control system is part of the project's change control system. It addresses changes with
the vendor that may affect the project contract. Change control system, a part of the configuration management
system, is a collection of formal documented procedures that define how project deliverables and
documentation will be controlled, changed, and approved. Answer: C is incorrect. The cost change control
system manages changes to costs in the project. Answer: D is incorrect. There is no indication that the change
could affect the project schedule. Answer: B is incorrect. The scope may change because of the stakeholder
change request. Vendor'srelationship to the project, hence this choice is not the best answer.
QUESTION 77
You are the project manager of GHT project. You are performing cost and benefit analysis of control. You
come across the result that costs of specific controls exceed the benefits of mitigating a given risk. What is the
BEST action would you choose in this scenario?
A. The enterprise may apply the appropriate control anyway.

B. The enterprise should adopt corrective control.
C. The enterprise may choose to accept the risk rather than incur the cost of mitigation.
D. The enterprise should exploit the risk.
Correct Answer: C
Explanation
If the costs of specific controls or countermeasures (control overhead) exceed the benefits of mitigating a given
risk the enterprise may choose to accept the risk rather than incur the cost of mitigation. This is done according
to the principle of proportionality described in:
Generally accepted security systems principles (GASSP) Generally accepted information security principles
(GAISP) Answer: A is incorrect. When the cost of specific controls exceed the benefits of mitigating a given
risk, then controls are not applied, rather risk is being accepted. Answer: D is incorrect. The risk is being
exploited when there is an opportunity, i.e., the risk is positive. But here in this case, negative risk exists as it
needs mitigation. So, exploitation cannot be done.
Answer: B is incorrect. As the cost of control exceeds the benefits of mitigating a given risk, hence no control
should be applied.
Corrective control is a type of control and hence it should not be adopted.
QUESTION 78
Mortality tables are based on what mathematical activity?
A. Normal distributions
B. Probabilities
C. Impact
D. Sampling
Correct Answer: ABD

Explanation
Probability identifies the chances that a particular event will happen under certain circumstances. The variables
provided are based on information gathered in real life. For situations with large numbers, a smaller set of
participants are identified to represent the larger population. This represents a sample of the population. The
points are mapped to identify their distribution. Normal distribution refers to the theoretical plotting of points
against the mathematical mean. The result of these activities provides a reasonable predictability for the
mortality of the subject. Answer: C is incorrect. Impact is used to identify the magnitude of identified risks. The
risk leads to some type of loss. However, instead of quantifying the loss as a dollar value, an impact
assessment could use words such as Low, Medium, or High. Hence it is not mathematical.
QUESTION 79
Harry is the project manager of HDW project. He has identified a risk that could injure project team members.
He does not want to accept any risk where someone could become injured on this project so he hires a
professional vendor to complete this portion of the project work. What type of risk response is Harry
implementing?
A. Transference
B. Mitigation
C. Acceptance
D. Avoidance
Correct Answer: A
Explanation
Risk transfer means that impact of risk is reduced by transferring or otherwise sharing a portion of the risk with
an external organization or another internal entity. Transfer of risk can occur in many forms but is most
effective when dealing with financial risks. Insurance is one form of risk transfer. Hence when Harry hires a
professional vendor to manage that risk, the risk event does not go away but the responsibility for the event is
transferred to the vendor. Answer:D is incorrect. Avoidance removes the risk event entirely either by adding
additional steps to avoid the event or reducing the project scope.
Answer:C is incorrect. Mitigation are actions that Harry's project team could take to reduce the probability and/
or impact of a risk event.
Answer:B is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is
accepted if it occurs. Here
Harry is not accepting this risk event; he does not want anyone of his team to become injured so he's
transferring the event to professional vendor.
QUESTION 80
The Identify Risk process determines the risks that affect the project and document their characteristics. Why
should the project team members be involved in the Identify Risk process?
A. They are the individuals that will most likely cause and respond to the risk events.
B. They are the individuals that will have the best responses for identified risks events within the project.
C. They are the individuals that are most affected by the risk events.
D. They are the individuals that will need a sense of ownership and responsibility for the risk events.
Correct Answer: D
Explanation
The project team members should be involved in the risk identification so that they will develop a sense of
ownership and responsibility for the risk events and the associated risk responses. Identify Risks is the process
of determining which risks may affect the project. It also documents risks' characteristics. The Identify Risks
process is part of the Project RiskManagement knowledge area. As new risks may evolve or become known as
the project progresses through its life cycle, Identify Risks is an iterative process. The process should involve
the project team so that they can develop and maintain a sense of ownership and responsibility for the risks
and associated risk response actions. Risk Register is the only output of this process. Answer: C, B, and A are
incorrect. These are not the valid answers for thisQUESTION NO:
QUESTION 81
What are the requirements of monitoring risk?
Each answer represents a part of the solution. Choose three.
A. Information of various stakeholders

B. Preparation of detailed monitoring plan
C. Identifying the risk to be monitored
D. Defining the project's scope
Correct Answer: BCD

Explanation
It is important to first understand the risk to be monitored, prepare a detailed plan and define the project's
scope for monitoring risk. In the case of a monitoring project, this step should involve process owners, data
owners, system custodians and other process stakeholders. Answer: A is incorrect. Data regarding
stakeholders of the project is not required in any phase of risk monitoring.
QUESTION 82
Your company is covered under a liability insurance policy, which provides various liability coverage for
information security risks, including any physical damage of assets, hacking attacks, etc. Which of the following
risk management techniques is your company using?
A. Risk transfer
B. Risk acceptance
C. Risk avoidance
D. Risk mitigation
Correct Answer: A
Explanation
Risk transfer is the practice of passing risk from one entity to another entity. In other words, if a company is
covered under a liability insurance policy providing various liability coverage for information security risks,
including any physical damage of assets, hacking attacks, etc., it means it has transferred its security risks to
the insurance company. Answer: D is incorrect. Risk mitigation is the practice of reducing the severity of the
loss or the likelihood of the loss from occurring.
Answer: C is incorrect. Risk avoidance is the practice of not performing an activity that could carry risk.
Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that
accepting (retaining) the risk may have allowed. Answer: B is incorrect. Risk acceptance is the practice of
accepting certain risk(s), typically based on a business decision that may also weigh the cost versus the benefit
of dealing with the risk in another way.
QUESTION 83
You work as a project manager for BlueWell Inc. Management has asked you to work with the key project
stakeholder to analyze the risk events you have identified in the project. They would like you to analyze the
project risks with a goal of improving the project's performance as a whole. What approach can you use to
achieve this goal of improving the project's performance through risk analysis with your project stakeholders?
A. Involve subject matter experts in the risk analysis activities

B. Involve the stakeholders for risk identification only in the phases where the project directly affects them
C. Use qualitative risk analysis to quickly assess the probability and impact of risk events
D. Focus on the high-priority risks through qualitative risk analysis
Correct Answer: D
Explanation
By focusing on the high-priority of risk events through qualitative risk analysis you can improve the project's
performance.
Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10).
Hence it determines the nature of risk on a relative scale.
increasing their accountability. Answer: A is incorrect. Subject matter experts can help the qualitative risk
assessment, but by focusing on high-priority risks the project's performance can improve by addressing these
risk events.
Answer: B is incorrect. Stakeholders should be involved throughout the project as situations within the project
demand their input to risk identification and analysis. Answer: C is incorrect. Qualitative analysis does use a
fast approach of analyzing project risks, but it's not the best answer for this
QUESTION 84
You are a project manager for your organization and you're working with four of your key stakeholders. One of
the stakeholders is confused as to why you're not discussing the current problem in the project during the risk
identification meeting. Which one of the following statements best addresses when a project risk actually
happens?
A. Project risks are uncertain as to when they will happen.

B. Risks can happen at any time in the project.
C. Project risks are always in the future.
D. Risk triggers are warning signs of when the risks will happen.
Correct Answer: C
Explanation
According to the PMBOK, a project risk is always in the future. If the risk event has already happened, then it is
an issue, not a risk.
Answer: A is incorrect. You can identify risks before they occur and not after their occurrence. Answer: D is
incorrect. Triggers are warning signs and conditions of risk events, but this answer isn't the best choice for this
option B is incorrect. Risks can only happen in the future.
QUESTION 85
Which of the following is the MOST effective method for indicating that the risk level is approaching a high or
unacceptable level of risk?
A. Risk register
B. Cause and effect diagram
C. Risk indicator
D. Return on investment
Correct Answer: C
Explanation
reporting mechanisms that alert staff about the potential risks. Answer: D is incorrect. Return On Investment
(ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency
of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the
cost of the investment; the result is expressed as a percentage or a ratio.
The return on investment formula:
ROI= (Gain from investment - Cost of investment) / Cost of investment In the above formula "gains from
investment", refers to the proceeds obtained from selling the investment of interest.
Answer: A is incorrect. A risk register is an inventory of risks and exposure associated with those risks. Risks
are commonly found in project management practices, and provide information to identify, analyze, and
manage risks. Typically a risk register contains:
A description of the risk
The impact should this event actually occur
The probability of its occurrence
Risk Score (the multiplication of Probability and Impact) A summary of the planned response should the event
occur A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the
event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.
QUESTION 86
You work as the project manager for Bluewell Inc. Your project has several risks that will affect several
stakeholder requirements. Which project management plan will define who will be available to share
information on the project risks?
A. Risk Management Plan

B. Stakeholder management strategy
C. Communications Management Plan
D. Resource Management Plan
Correct Answer: C
Explanation
guidance for communication throughout the project's life and is updated as communication needs change. The
Answer: B is incorrect. The stakeholder management strategy does not address risk communications.
Answer: A is incorrect. The Risk Management Plan defines risk identification, analysis, response, and
monitoring.
Answer: D is incorrect. The Resource Management Plan does not define risk communications.
QUESTION 87
Your project spans the entire organization. You would like to assess the risk of your project but worried about
that some of the managers involved in the project could affect the outcome of any risk identification meeting.
Your consideration is based on the fact that some employees would not want to publicly identify risk events
that could declare their supervision as poor. You would like a method that would allow participants to
anonymously identify risk events. What risk identification method could you use?
A. Delphi technique
B. Root cause analysis
C. Isolated pilot groups
D. SWOT analysis
Correct Answer: A
Explanation
The Delphi technique uses rounds of anonymous surveys to build consensus on project risks. Delphi is a
technique to identify potential risk. In this technique, the responses are gathered via aquestionand their inputs
are organized according to their contents. The collected responses are sent back to these experts for further
input, addition, and comments. The final list of risks in the project is prepared after that. The participants in this
technique are anonymous and therefore it helps prevent a person from unduly influencing the others in the
group. The Delphi technique helps in reaching the consensus quickly.
Answer: C is incorrect. Isolated pilot groups is not a valid risk identification activity. Answer: B is incorrect. Root
cause analysis is not an anonymous approach to risk identification. Answer: D is incorrect. SWOT analysis
evaluates the strengths, weaknesses, opportunities, and threats of the project.
QUESTION 88
Which of the following represents lack of adequate controls?
A. Vulnerability
B. Threat
C. Asset
D. Impact
Correct Answer: A
Explanation
Vulnerability is a weakness or lack of safeguard that can be exploited by a threat, thus causing harm to the
information systems or networks. It can exist in hardware, operating systems, firmware, applications, and
configuration files. Hence lack of adequate controls represents vulnerability and would ultimately cause threat
to the enterprise. Answer: B is incorrect. Threat is the potential cause of unwanted incident. Answer: D is
incorrect. Impact is the measure of the financial loss that the threat event may have. Answer: C is incorrect.
Assets are economic resources that are tangible or intangible, and is capable of being owned or controlled to
produce value.
QUESTION 89
The only output of qualitative risk analysis is risk register updates. When the project manager updates the risk
register he will need to include several pieces of information including all of the following except for which one?
A. Trends in qualitative risk analysis

B. Risk probability-impact matrix
C. Risks grouped by categories
D. Watchlist of low-priority risks
Correct Answer: B
Explanation
The risk matrix is not included as part of the risk register updates. There are seven things that can be updated
in the risk register as a result of qualitative risk analysis: relating ranking of project risks, risks grouped by
categories, causes of risks, list of near-term risks, risks requiring additional analysis, watchlist of low-priority
risks, trends in qualitative risk analysis. Answer: C is incorrect. Risks grouped by categories are part of the risk
register updates. Answer: D is incorrect. Watchlist of low-priority risks is part of the risk register updates.
Answer: A is incorrect. Trends in qualitative risk analysis are part of the risk register updates.
QUESTION 90
Which of the following risks is the risk that happen with an important business partner and affects a large group
of enterprises within an area or industry?
A. Contagious risk
B. Reporting risk
C. Operational risk
D. Systemic risk
Correct Answer: D
Explanation
Systemic risks are those risks that happen with an important business partner and affect a large group of
enterprises within an area or industry. An example would be a nationwide air traffic control system that goes
down for an extended period of time (six hours), which affects air traffic on a very large scale.
Answer: A is incorrect. Contagious risks are those risk events that happen with several of the enterprise's
business partners within a very short time frame. Answer: C and B are incorrect. Their scopes do not limit to
the important or general enterprise's business partners. These risks can occur with both.
Operational risks are those risks that are associated with the day-to-day operations of the enterprise. It is the
risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
Reporting risks are caused due to wrong reporting which leads to bad decision. This bad decision due to wrong
report hence causes a risk on the functionality of the organization.
QUESTION 91
You have been assigned as the Project Manager for a new project that involves development of a new
interface for your existing time management system. You have completed identifying all possible risks along
with the stakeholders and team and have calculated the probability and impact of these risks. Which of the
following would you need next to help you prioritize the risks?
A. Affinity Diagram
B. Risk rating rules
C. Project Network Diagram
D. Risk categories
Correct Answer: B
Explanation
Risk rating rules define how to prioritize risks after the related probability and impact values are calculated.
These are generally included in the organizational process assets and are refined for individual projects.
Answer: A is incorrect. Affinity Diagram is a method of group creativity technique to collect requirements which
allows large numbers of ideas to be sorted into groups for review and analysis. This is generally used in Scope
Management and not applicable to this option D is incorrect. Risk categories are an output of the Perform
Qualitative Risk Analysis process and not a tool to complete the process.
Answer: C is incorrect. A Project Network diagram shows the sequencing and linkage between various project
tasks and is not applicable to this
QUESTION 92
You are the project manager of a large networking project. During the execution phase the customer requests
for a change in the existing project plan. What will be your immediate action?
A. Update the risk register.

B. Ask for a formal change request.
C. Ignore the request as the project is in the execution phase.
D. Refuse the change request.
Correct Answer: B
Explanation
Whenever the customer or key stakeholder asks for a change in the existing plan, you should ask him/her to
submit a formal change request. Change requests may modify project policies or procedures, project scope,
project cost or budget, project schedule, or project quality. Answer: C, A, and D are incorrect. The first action
required is to create a formal change request, if a change is requested in the project.
QUESTION 93
Which of the following is described by the definition given below?
"It is the expected guaranteed value of taking a risk."
A. Certainty equivalent value

B. Risk premium
C. Risk value guarantee
D. Certain value assurance
Correct Answer: A
Explanation
The Certainty equivalent value is the expected guaranteed value of taking a risk. It is derived by the uncertainty
of the situation and the potential value of the situation's outcome. Answer: B is incorrect. The risk premium is
the difference between the larger expected value of the risk and the smaller certainty equivalent value.
Answer: and are incorrect. These are not valid answers.
QUESTION 94
You are the project manager of GHT project. Your hardware vendor left you a voicemail saying that the
delivery of the equipment you have ordered would not arrive on time. She wanted to give you a heads-up and
asked that you return the call. Which of the following statements is TRUE?
A. This is a residual risk.

B. This is a trigger.
C. This is a contingency plan.
D. This is a secondary risk.
Correct Answer: B
Explanation
Triggers are warning signs of an upcoming risk event. Here delay in delivery signifies that there may be a risk
event like delay in completion of project. Hence it is referred to as a trigger. Answer: C is incorrect. A
contingency plan is a plan devised for a specific situation when things go wrong. Contingency plans are often
devised by governments or businesses who want to be prepared for anything that could happen.
Here there are no such plans.
Answer: A is incorrect. Residual risk is the risk that remains after applying controls. But here in this scenario,
risk event has not occurred yet.
Answer: D is incorrect. Secondary risks are risks that come about as a result of implementing a risk response.
But here in this scenario, risk event has not occurred yet.
QUESTION 95
There are five inputs to the quantitative risk analysis process. Which one of the following is NOT an input to
quantitative risk analysis process?

B. Enterprise environmental factors
C. Cost management plan
D. Risk register
Correct Answer: B
Explanation
Enterprise environmental factor is not an input to the quantitative risk analysis process. The five inputs to the
perform quantitative risk analysis process are: risk register, risk management plan, cost management plan,
schedule management plan, and organizational process assets. Answer: D, A, and C are incorrect. These are
the valid inputs to the perform quantitative risk analysis process.
QUESTION 96
Stephen is the project manager of the GBB project. He has worked with two subject matter experts and his
project team to complete the risk assessment technique. There are approximately 47 risks that have a low
probability and a low impact on the project. Which of the following answers best describes what Stephen
should do with these risk events?
A. Because they are low probability and low impact, Stephen should accept the risks.
B. The low probability and low impact risks should be added to a watchlist for future monitoring.
C. Because they are low probability and low impact, the risks can be dismissed.
D. The low probability and low impact risks should be added to the risk register.
Correct Answer: B
Explanation
The low probability and low impact risks should be added to a watchlist for future monitoring. Answer: A is
incorrect. The risk response for these events may be to accept them, but the best answer is to first add them to
a watchlist.
Answer: C is incorrect. Risks are not dismissed; they are at least added to a watchlist for monitoring.
Answer: D is incorrect. While the risks may eventually be added to the register, the best answer is to first add
them to the watchlist for monitoring.
QUESTION 97
Jenny is the project manager for the NBT projects. She is working with the project team and several subject
matter experts to perform the quantitative risk analysis process. During this process she and the project team
uncover several risks events that were not previously identified.
What should Jenny do with these risk events?
A. The events should be entered into qualitative risk analysis.

B. The events should be determined if they need to be accepted or responded to.
C. The events should be entered into the risk register.
D. The events should continue on with quantitative risk analysis.
Correct Answer: C
Explanation
All identified risk events should be entered into the risk register. A risk register is an inventory of risks and
exposure associated with those risks. Risks are commonly found in project management practices, and provide
information to identify, analyze, and manage risks. Typically a risk register contains:
event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved. Answer: A is incorrect.
Before the risk events are analyzed they should be documented in the risk register.
Answer: D is incorrect. These risks should first be identified, documented, passed through qualitative risk
analysis and then it should be determined if they should pass through the quantitative risk analysis process.
Answer: B is incorrect. The risks should first be documented and analyzed.
QUESTION 98
You are working on a project in an enterprise. Some part of your project requires e-commerce, but your
enterprise choose not to engage in e-commerce. This scenario is demonstrating which of the following form?
A. risk avoidance
B. risk treatment
C. risk acceptance
D. risk transfer
Correct Answer: A
Explanation
Each business process involves inherent risk. Not engaging in any activity avoids the inherent risk associated
with the activity. Hence this demonstrates risk avoidance. Answer: D is incorrect. Risk transfer/sharing means
reducing either risk frequency or impact by transferring or otherwise sharing a portion of the risk. Common
techniques include insurance and outsourcing. These techniques do not relieve an enterprise of a risk, but can
involve the skills of another party in managing the risk and reducing the financial consequence if an adverse
event occurs.
Answer: B is incorrect. Risk treatment means that action is taken to reduce the frequency and impact of a risk.
Answer: C is incorrect. Acceptance means that no action is taken relative to a particular risk, and loss is
accepted when/if it occurs. This is different from being ignorant of risk; accepting risk assumes that the risk is
known, i.e., an informed decision has been made by management to accept it as such.
QUESTION 99
Which of the following are risk components of the COSO ERM framework?
A. Risk response
B. Internal environment
C. Business continuity
D. Control activities
Correct Answer: ABD
Explanation
The risk components defined by the COSO ERM are internal environment, objective settings, event
identification, risk assessment, risk response, control objectives, information and communication, and
monitoring.
Answer: C is incorrect. Business continuity is not considered as risk component within the ERM framework.
QUESTION 100
Your project team has completed the quantitative risk analysis for your project work. Based on their findings,
they need to update the risk register with several pieces of information. Which one of the following components
is likely to be updated in the risk register based on their analysis?
A. Listing of risk responses

B. Risk ranking matrix
C. Listing of prioritized risks
D. Qualitative analysis outcomes
Correct Answer: C
Explanation
The outcome of quantitative analysis can create a listing of prioritized risks that should be updated in the risk
register. The project team will create and update the risk register with fourkey components: probabilistic
analysis of the project, probability of achieving time and cost objectives, list of quantified risks, and trends in
quantitative risk analysis. Answer: D, B, and A are incorrect. These subjects are not updated in the risk register
as a result of quantitative risk analysis.
QUESTION 101
Fred is the project manager of a large project in his organization. Fred needs to begin planning the risk
management plan with the project team and key stakeholders. Which plan risk management process tool and
technique should Fred use to plan risk management?
A. Information gathering techniques

B. Data gathering and representation techniques
C. Planning meetings and analysis
D. Variance and trend analysis
Correct Answer: C
Explanation
There is only one tool and technique available for Fred to plan risk management: planning meetings and
analysis. Planning Meeting and Analysis is a tool and technique in the Plan Risk Management process.
Planning meetings are organized by the project teams to develop the risk management plan. Attendees at
these meetings include the following:
Project manager
Selected project team members
Stakeholders
Anybody in the organization with the task to manage risk planning Sophisticated plans for conducting the risk
management activities are defined in these meetings, responsibilities related to risk management are assigned,
and risk contingency reserve application approaches are established and reviewed.
Answer: A, D, and B are incorrect. These are not plan risk management tools and techniques.
QUESTION 102
Which of the following is the HIGHEST risk of a policy that inadequately defines data and system ownership?
A. User management coordination does not exists
B. Audit recommendations may not be implemented
C. Users may have unauthorized access to originate, modify or delete data
D. Specific user accountability cannot be established
Correct Answer: C
Explanation
There is an increased risk without a policy defining who has the responsibility for granting access to specific
data or systems, as one could gain system access without a justified business needs. There is better chance
that business objectives will be properly supported when there is appropriate ownership.
Answer: A, B, and D are incorrect. These risks are not such significant as compared to unauthorized access.
QUESTION 103
Marie has identified a risk event in her project that needs a mitigation response. Her response actually creates
a new risk event that must now be analyzed and planned for. What term is given to this newly created risk
event?
A. Residual risk
B. Secondary risk
C. Infinitive risk
D. Populated risk
Correct Answer: B
Explanation
Secondary risks are the risks that come about as a result of implementing a risk response. This new risk event
must be recorded, analyzed, and planned for management. Answer: A is incorrect. A residual risk event is
similar to a secondary risk, but is often small in probability and impact, so it may just be accepted.
Answer: D is incorrect. Populated risk event is not a valid project management term. Answer: C is incorrect.
Infinitive risk is not a valid project management term.
QUESTION 104
Which one of the following is the only output for the qualitative risk analysis process?
A. Project management plan

B. Risk register updates
C. Organizational process assets
D. Enterprise environmental factors
Correct Answer: B
Explanation
Risk register update is the only output of the choices presented for the qualitative risk analysis process. The
four inputs for the qualitative risk analysis process are the risk register, risk management plan, project scope
statement, and organizational process assets. The output of perform qualitative risk analysis process is Risk
Register Updates. Risk register is updated with the information from perform qualitative risk analysis and the
updated risk register is included in the project documents. Updates include the following important elements:
Relative ranking or priority list of project risks
Risks grouped by categories
Causes of risk or project areas requiring particular attention List of risks requiring response in the near-term
List of risks for additional analysis and response
Watchlist of low priority risks
Trends in qualitative risk analysis results
Answer: C, D, and A are incorrect. These are not the valid outputs for the qualitative risk analysis process.
QUESTION 105
FISMA requires federal agencies to protect IT systems and data. How often should compliance be audited by
an external organization?
A. Annually
B. Quarterly
C. Every three years
D. Never
Correct Answer: A
Explanation
Inspection of FISMA is required to be done annually. Each year, agencies must have an independent
evaluation of their program. The objective is to determine the effectiveness of the program. These evaluations
include:
Testing for effectiveness: Policies, procedures, and practices are to be tested. This evaluation does not test
every policy, procedure, and practice. Instead, a representative sample is tested. An assessment or report:
This report identifies the agency's compliance as well as lists compliance with FISMA. It also lists compliance
with other standards and guidelines. Answer: D, B, and C are incorrect. Auditing of compliance by external
organization is done annually, not quarterly or every three year.
QUESTION 106
Which of the following is the FOREMOST root cause of project risk?
Each answer represents a complete solution. Choose two.
A. New system is not meeting the user business needs

B. Delay in arrival of resources
C. Lack of discipline in managing the software development process
D. Selection of unsuitable project methodology
Correct Answer: CD
Explanation
The foremost root cause of project risk is:
A lack of discipline in managing the software development process Selection of a project methodology that is
unsuitable to the system being developed Answer: A is incorrect. The risk associated with new system is not
meeting the user business needs is business risks, not project risk.
Answer: B is incorrect. This is not direct reason of project risk.
QUESTION 107
You are the project manager of a SGT project. You have been actively communicating and working with the
project stakeholders. One of the outputs of the "manage stakeholder expectations" process can actually create
new risk events for your project. Which output of the manage stakeholder expectations process can create
risks?
A. Project management plan updates

B. An organizational process asset updates
C. Change requests
D. Project document updates
Correct Answer: C
Explanation
The manage stakeholder expectations process can create change requests for the project, which can cause
new risk events to enter into the project.
Change requests are requests to expand or reduce the project scope, modify policies, processes, plans, or
procedures, modify costs or budgets or revise schedules. These requests for a change can be direct or
indirect, externally or internally initiated, and legally or contractually imposed or optional. A Project Manager
needs to ensure that only formally documented requested changes are processed and
only approved change requests are implemented.
Answer: A is incorrect. The project management plan updates do not create new risks. Answer: D is incorrect.
The project document updates do not create new risks. Answer: B is incorrect. The organizational process
assets updates do not create new risks.
QUESTION 108
Which of the following characteristics of risk controls can be defined as under?
"The separation of controls in the production environment rather than the separation in the design and
implementation of the risk"
A. Trusted source
B. Secure
C. Distinct
D. Independent
Correct Answer: C
Explanation
A control or countermeasure which does not overlap in its performance with another control or countermeasure
is considered as distinct.
Hence the separation of controls in the production environment rather than the separation in the design and
implementation of the risk refers to distinct. Answer: D is incorrect. The separation in design, implementation,
and maintenance of controls or countermeasures are refer to as independent. Hence this answer is not valid.
Answer: B is incorrect. Secure controls refers to the activities ability to protect from exploitation or attack.
Answer: A is incorrect. Trusted source refers to the commitment of the people designing, implementing, and
maintenance of the control towards the security policy.
QUESTION 109
Shelly is the project manager of the BUF project for her company. In this project Shelly needs to establish
some rules to reduce the influence of risk bias during the qualitative risk analysis process. What method can
Shelly take to best reduce the influence of risk bias?
A. Establish risk boundaries

B. Group stakeholders according to positive and negative stakeholders and then complete the risk analysis
C. Determine the risk root cause rather than the person identifying the risk events
D. Establish definitions of the level of probability and impact of risk event
Correct Answer: D
Explanation
By establishing definitions for the level of probability and impact a project manager can reduce the influence of
bias.
Answer: A is incorrect. This is not a valid statement for reducing bias in the qualitative risk analysis.
Answer: B is incorrect. Positive and negative stakeholders are identified based on their position towards the
project goals and objectives, not necessarily risks. Answer: C is incorrect. Root cause analysis is a good
exercise, but it would not determine risk bias.
QUESTION 110
You are the IT manager in Bluewell Inc. You identify a new regulation for safeguarding the information
processed by a specific type of transaction. What would be the FIRST action you will take?
A. Assess whether existing controls meet the regulation

B. Update the existing security privacy policy
C. Meet with stakeholders to decide how to comply
D. Analyze the key risk in the compliance process
Correct Answer: A
Explanation
When a new regulation for safeguarding information processed by a specific type of transaction is being
identified by the IT manager, then the immediate step would be to understand the impact and requirements of
this new regulation. This includes assessing how the enterprise will comply with the regulation and to what
extent the existing control structure supports the compliance process. After that manager should then assess
any existing gaps. Answer: D, C, and B are incorrect. These choices are appropriate as well as important, but
are subsequent steps after understanding and gap assessment.
QUESTION 111
You are the risk official of your enterprise. You have just completed risk analysis process. You noticed that the
risk level associated with your project is less than risk tolerance level of your enterprise. Which of following is
the MOST likely action you should take?
A. Apply risk response

B. Update risk register
C. No action
D. Prioritize risk response options
Correct Answer: C
Explanation
When the risk level is less than risk tolerance level of the enterprise than no action is taken against that,
because the cost of mitigation will increase over its benefits. Answer: D is incorrect. This is not valid answer, as
no response is being applied to such low risk level.
Answer: B is incorrect. Risk register is updates after applying response, and as no response is applied to such
low risk level; hence no updating is done. Answer: A is incorrect. This is not valid answer, as no response is
being applied to such low risk level.
QUESTION 112
Which of the following operational risks ensures that the provision of a quality product is not overshadowed by
the production costs of that product?
A. Information security risks

B. Contract and product liability risks
C. Project activity risks
D. Profitability operational risks
Correct Answer: D
Explanation
Profitability operational risks focus on the financial risks which encompass providing a quality product that is
cost-effective in production. It ensures that the provision of a quality product is not overshadowed by the
production costs of that product.
Answer: A is incorrect. Information security means protecting information and information systems from
unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction.
Information security risks are the risks that are associated with the protection of these information and
information systems.
Answer: C is incorrect. Project activity risks are not associated with provision of a quality product or the
production costs of that product.
Answer: B is incorrect. These risks do not ensure that the provision of a quality product is not overshadowed by
the production costs of that product.
QUESTION 113
Which of the following is the process of numerically analyzing the effects of identified risks on the overall
enterprise's objectives?
A. Identifying Risks
B. Quantitative Risk Assessment
C. Qualitative Risk Assessment
D. Monitoring and Controlling Risks
Correct Answer: B
Explanation
includes the value of data, software, and hardware.
SLE = Asset value * Exposure factor
value. For example, if the SLE is $1,000 and the ARO is 24, the ALE is $24,000. ALE = SLE * ARO Safeguard
value-This is the cost of a control. Controls are used to mitigate risk. For example, antivirus software of an
average cost of $50 for each computer. If there are 50 computers, the safeguard value is $2,500.
Answer: C is incorrect.
Unlike the quantitative risk assessment, qualitative risk assessment does not assign dollar values. Rather, it
determines risk's level based on the probability and impact of a risk. These values are determined by gathering
the opinions of experts.
Probability- establishing the likelihood of occurrence and reoccurrence of specific risks, independently, and
combined. The risk occurs when a threat exploits vulnerability. Scaling is done to define the probability that a
risk will occur. The scale can be based on word values such as Low, Medium, or High. Percentage can also be
assigned to these words, like 10% to low and 90% to high.
Impact- Impact is used to identify the magnitude of identified risks. The risk leads to some type of loss.
However, instead of quantifying the loss as a dollar value, an impact assessment could use words such as
Low, Medium, or High. Impact is expressed as a relative value. For example, low could be 10, medium could
be 50, and high could be 100.
Risk level= Probability*Impact
Answer: A is incorrect.
The first thing we must do in risk management is to identify the areas of the project where the risks can occur.
This is termed as risk identification. Listing all the possible risks is proved to be very productive for the
enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are
considered, as both carry some level of risk with them. Answer: D is incorrect. This is the process of
implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and
evaluating risk process effectiveness through the project.
QUESTION 114
"It is the process of exchanging information and views about risks among stakeholders, such as groups,
individuals, and institutions."
A. Risk governance
B. IRGC
C. Risk response planning
D. Risk communication
Correct Answer: D
Explanation
expressing concerns, views, or reactions to risk managersor institutional bodies for risk management. The key
decision-maker and the stakeholders. Risk communication can be explained more clearly with the help of the
following definitions:
Answer: C is incorrect. Risk response is a process of deciding what measures should be taken to reduce
threats and take advantage ofthe opportunities discovered during the risk analysis processes. This process
also includes assigning departments or individual staff members the responsibility of carrying out the risk
response plans and these folks are known as risk owners. The prioritization of the risk responses and
development of the risk response plan is based on following parameters:
Cost of the response to reduce risk within tolerance levels Importance of the risk
Capability to implement the response
Effectiveness and efficiency of the response
Risk prioritization strategy is used to create a risk response plan and implementation schedule because all risk
cannot be addressed at the same time. It may take considerable investment of time and resources to address
all the risk identified in the risk analysis process. Risk with a greater likelihood and impact on the enterprise will
prioritized above other risk that is considered less likely or lay less impact.
Answer: A is incorrect. Risk governance is a systemic approach to decision making processes associated to
natural and technological risks. It is based on the principles of cooperation, participation, mitigation and
sustainability, and is adopted to achieve more effective risk management. It seeks to reduce risk exposure and
vulnerability by filling gaps in risk policy, in order to avoid or reduce human and economic costs caused by
disasters. Risk governance is a continuous life cycle that requires regular reporting and ongoing review. The
risk governance function must oversee the operations of the risk management team. Answer: B is incorrect.
The International Risk Governance Council (IRGC) is a self-governing organization whose principle is to
facilitate the understanding and managing the rising overall risks that have impacts on the economy and
society, human health and safety, the environment at large. IRGC's effort is to build and develop concepts of
risk governance, predict main risk issues and present risk governance policy recommendations for the chief
decision makers. IRGC mainly emphasizes on rising, universal risks for which governance deficits exist. Its
goal is to present recommendations for how policy makers can them. IRGC models at constructing strong,
integrative inter-disciplinary governance models for up-coming and existing risks.
QUESTION 115
Which of the following are the principles of risk management?
A. Risk management should be an integral part of the organization

B. Risk management should be a part of decision-making
C. Risk management is the responsibility of executive management
D. Risk management should be transparent and inclusive
Correct Answer: ABD

Explanation
The International Organization for Standardization (ISO) identifies the following principles of risk management.
Risk management should:
create value
be an integral part of organizational processes
be part of decision making
explicitly address uncertainty
be systematic and structured
be based on the best available information
be tailored
take into account human factors
be transparent and inclusive
be dynamic, iterative, and responsive to change
be capable of continual improvement and enhancement
QUESTION 116
Which of the following characteristics of risk controls answers the aspect about the control given below: "Will it
continue to function as expressed over the time and adopts as changes or new elements are introduced to the
environment"
A. Reliability
B. Sustainability
C. Consistency
D. Distinct
Correct Answer: B
Explanation
Sustainability ensures that the control continues to function as expressed over the time and adopts as changes
or new elements are introduced to the environment. Answer: C is incorrect. Consistent characteristic of the
control tells whether the control can be applied in the same manner across the organization.
Answer: A is incorrect. Reliability of control ensures that it will serve its purpose under multiple circumstances.
Answer: D is incorrect. A control or countermeasure which does not overlap in its performance with another
control or countermeasure is considered as distinct. Hence the separation of controls in the production
environment rather than the separation in the design and implementation of the risk refers to distinct.
QUESTION 117
Jeff works as a Project Manager for www.company.com Inc. He and his team members are involved in the
identify risk process. Which of the following
tools & techniques will Jeff use in the identify risk process?
Each answer represents a complete solution. Choose all that apply.

A. Information gathering technique
B. Documentation reviews
C. Checklist analysis
D. Risk categorization
Correct Answer: ABC

Explanation
The various tools & techniques used in the identify risk process are as follows:
Documentation reviews
Information gathering technique
Checklist analysis
Assumption analysis
Diagramming techniques
SWOT analysis
Expert judgment
QUESTION 118
Mary is the project manager for the BLB project. She has instructed the project team to assemble, to review the
risks. She has included the schedule management plan as an input for the quantitative risk analysis process.
Why is the schedule management plan needed for quantitative risk analysis?
A. Mary will schedule when the identified risks are likely to happen and affect the project schedule.
B. Mary will utilize the schedule controls and the nature of the schedule for the quantitative analysis of the
schedule.
C. Mary will use the schedule management plan to schedule the risk identification meetings throughout the
remaining project.
D. Mary will utilize the schedule controls to determine how risks may be allowed to change the project
schedule.
Correct Answer: B
Explanation
The controls within the schedule management plan can shape how quantitative risk analysis will be performed
on the schedule.
Schedule management plan also describes how the schedule contingencies will be reported and assessed.
Answer: C is incorrect. This is not a valid answer for this questionthroughout theproject, but it is not scheduled
during the quantitative risk analysis process. Answer: A is incorrect. When risks are likely to happen is
important, but it is not the best answer for thisquestionoption D is incorrect. Risks may affect the project
schedule, but this is not the best answer for thequestion.
QUESTION 119
Which of the following control detects problem before it can occur?
A. Deterrent control
B. Detective control
C. Compensation control
D. Preventative control
Correct Answer: D
Explanation
Preventative controls are the controls that detect the problem before it occurs. They attempt to predict potential
problems and make adjustments to prevent those problems to occur in near future. This prediction is being
made by monitoring both the system's operations and its inputs. Answer: A is incorrect. Deterrent controls are
similar to the preventative controls, but they diminish or reverse the attraction of the environment to prevent risk
from occurring instead of making adjustments to the environment.
Answer: C is incorrect. Compensation controls ensure that normal business operations continue by applying
appropriate resource.
Answer: B is incorrect. Detective controls simply detect and report on the occurrence of a problems. They
identify specific symptoms to potential problems.
QUESTION 120
Which of the following aspects are included in the Internal Environment Framework of COSO ERM?
A. Enterprise's integrity and ethical values

B. Enterprise's working environment
C. Enterprise's human resource standards
D. Enterprise's risk appetite
Correct Answer: ACD

Explanation
The internal environment for risk management is the foundational level of the COSO ERM framework, which
describes the philosophical basics of managing risks within the implementing enterprise. The different aspects
of the internal environment include theenterprise's:
Philosophy on risk management
Risk appetite
Attitudes of Board of Directors
Integrity and ethical values
Commitment to competence
Organizational structure
Authority and responsibility
Human resource standards
QUESTION 121
Which of the following type of risk could result in bankruptcy?
A. Marginal
B. Negligible
C. Critical
D. Catastrophic
Correct Answer: D
Explanation
Catastrophic risk causes critical financial losses that have the possibility of bankruptcy. Answer: C is incorrect.
Critical risk causes serious financial losses in more than one line of business with a loss in productivity.
Answer: A is incorrect. Marginal risk causes financial loss in a single line of business and a reduced return on
IT investment.
Answer: B is incorrect. It causes minimal impact on a single line of business affecting their ability to deliver
services or products.
QUESTION 122
Risks with low ratings of probability and impact are included for future monitoring in which of the following?
A. Risk alarm
B. Observation list
C. Watch-list
D. Risk register
Correct Answer: C
Explanation
Watch-list contains risks with low rating of probability and impact. This list is useful for future monitoring of low
risk factors.
Answer: D is incorrect. Risk register is a document that contains the results of the qualitative risk analysis,
quantitative risk analysis, and risk response planning. Description, category, cause, probability of occurring,
impact on objectives, proposed responses, owner, and the current status of all identified risks are put in the risk
register.
Answer: A and B are incorrect. No such documents as risk alarm and observation list is prepared during risk
identification process.
QUESTION 123
You are the project manager of your project. You have to analyze various project risks. You have opted for
quantitative analysis instead of qualitative risk analysis. What is the MOST significant drawback of using
quantitative analysis over qualitative risk analysis?
A. lower objectivity
B. higher cost
C. higher reliance on skilled personnel
D. lower management buy-in
Correct Answer: B
Explanation
Quantitative risk analysis is generally more complex and thus is costlier than qualitative risk analysis.
Answer: A is incorrect. Neither of the two risk analysis methods is fully objective. Qualitative method
subjectively assigns high, medium and low frequency and impact categories to a specific risk, whereas
quantitative method subjectivity expressed in mathematical "weights". Answer: C is incorrect. To be effective,
both processes require personnel who have a good understanding of the business. So there is equal
requirement of skilled personnel in both. Answer: D is incorrect. Quantitative analysis generally has a better
buy-in than qualitative analysis to the point where it can cause over-reliance on the results. Hence this option is
not correct.
QUESTION 124
You are working as the project manager of the ABS project. The project is for establishing a computer network
in a school premises. During the project execution, the school management asks to make the campus Wi-Fi
enabled. You know that this may impact the project adversely. You have discussed the change request with
other stakeholders. What will be your NEXT step?
A. Update project management plan.

B. Issue a change request.
C. Analyze the impact.
D. Update risk management plan.
Correct Answer: C
Explanation
The first step after receiving any change request in a project must be first analyzed for its impact. Changes
may be requested by any stakeholder involved with the project. Although, they may be initiated verbally, they
should always be recorded in written form and entered into the change management and/or configuration
management.
Answer: A, B, and D are incorrect. All these are the required steps depending on the change request. Any
change request must be followed by the impact analysis of the change.
QUESTION 125
Which of the following role carriers are responsible for setting up the risk governance process, establishing and
maintaining a common risk view, making risk-aware business decisions, and setting the enterprise's risk
culture?
A. Senior management
B. Chief financial officer (CFO)
C. Human resources (HR)
D. Board of directors
Correct Answer: AD
Explanation
The board of directors and senior management has the responsibility to set up the risk governance process,
establish and maintain a common risk view, make risk-aware business decisions, and set the enterprise's risk
culture.
Answer: B is incorrect. CFO is the most senior official 0f the enterprise who is accountable for financial
planning, record keeping, investor relations and financial risks. CFO is not responsible for responsible for
setting up the risk governance process, establishing and maintaining a common risk view, making risk-aware
business decisions, and setting the enterprise's risk culture. Answer: C is incorrect. Human resource is the
most senior official of an enterprise who is accountable for planning and policies with respect to all human
resources in that enterprise. HR is not responsible for risk related activities.
QUESTION 126
You are working in an enterprise. You project deals with important files that are stored on the computer. You
have identified the risk of the failure of operations. To address this risk of failure, you have guided the system
administrator sign off on the daily backup. This scenario is an example of which of the following?
A. Risk avoidance
B. Risk transference
C. Risk acceptance
D. Risk mitigation
Correct Answer: D
Explanation
Mitigation is the strategy that provides for the definition and implementation of controls to address the risk
described. Here in this scenario, you are trying to reduce the risk of operation failure by guiding administrator to
take daily backup, hence it is risk mitigation. Risk mitigation attempts to reduce the probability of a risk event
and its impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully integrated
together. The main control types are:
Managerial(e.g.,policies)
Technical (e.g., tools such as firewalls and intrusion detection systems) Operational (e.g., procedures,
separation of duties)
Preparedness activities
Answer: B is incorrect. The scenario does not describe the sharing of risk. Transference is the strategy that
provides for sharing risk with partners or taking insurance coverage. Answer: A is incorrect. The scenario does
not describe risk avoidance. Avoidance is a strategy that provides for not implementing certain activities or
processes that would incur risk. Answer: C is incorrect. The scenario does not describe risk acceptance,
Acceptance is a strategy that provides for formal acknowledgement of the existence of a risk and the
monitoring of that risk.
QUESTION 127
Risks to an organization's image are referred to as what kind of risk?
A. Operational
B. Financial
C. Information
D. Strategic
Correct Answer: D
Explanation
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the
organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of
not meeting that objective can impose a great threat on the organization. Strategic risks can be broken down
into external and internal risks:
External risks are those circumstances from outside the enterprise which will have a potentially damaging or
helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory
conditions. Some of the external risks are predictable while others are not. For instance, a recession may be
predictable and the enterprise may be able to hedge against the dangers economically; but the total market
failure may not as predictable and can be much more devastating.
Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are involved in
this are public communication, trust, and strategic agreement from stakeholders and customers.
CRISC, Contents: "Assessing Risks"
Answer: B is incorrect. Financial risks are not directly linked with organization's reputation.
Answer: C is incorrect. Risk associated with leakage of information to an unauthorized person does not affect
organization's image.
Answer: A is incorrect. Operational risks are those risk that are associated with the day-to-day operations of
the enterprise. They are generally more detailed as compared to strategic risks. It is the risk of loss resulting
from inadequate or failed internal processes, people and systems, or from external events. Some sub-
categories of operational risks include:
Organizational or management related risks
Information security risks
Production, process, and productivity risks
Profitability operational risks
Business interruption risks
Project activity risks
Contract and product liability riss
Incidents and crisis
Illegal or malicious acts
QUESTION 128
Which of the following steps ensure effective communication of the risk analysis results to relevant
stakeholders? Each answer represents a complete solution. Choose three.
A. The results should be reported in terms and formats that are useful to support business decisions
B. Provide decision makers with an understanding of worst-case and most probable scenarios,due diligence
exposures and significant reputation, legal or regulatory considerations
C. Communicate the negative impacts of the events only, it needs more consideration
D. Communicate the risk-return context clearly
Correct Answer: ABD

Explanation
The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved
in communication are:
The results should be reported in terms and formats that are useful to support business decisions. Coordinate
additional risk analysis activity as required by decision makers, like reportrejection and scope adjustment
Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and
confidence levels (if possible) that enable management to balance risk-return. Identify the negative impacts of
events that drive response decisions as well as positive impacts of events that represent opportunities which
should channel back into the strategy and objective setting process.
Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence
exposures and significant reputation, legal or regulatory considerations. Answer: C is incorrect. Communicate
the negative impacts of events that drive response decisions as well as positive impacts of events that
represent opportunities which should channel back into the strategy and objective setting process, for effective
communication. Only negative impacts are not considered alone.
QUESTION 129
You are the product manager in your enterprise. You have identified that new technologies, products and
services are introduced in your enterprise time-to-time. What should be done to prevent the efficiency and
effectiveness of controls due to these changes?
A. Receive timely feedback from risk assessments and through key risk indicators, and update controls
B. Add more controls
C. Perform Business Impact Analysis (BIA)
D. Nothing, efficiency and effectiveness of controls are not affected by these changes
Correct Answer: A
Explanation
As new technologies, products and services are introduced, compliance requirements become more complex
and strict; business processes and related information flows change over time. These changes can often affect
the efficiency and effectiveness of controls. Formerly effective controls become inefficient, redundant or
obsolete and have to be removed or replaced. Therefore, the monitoring process has to receive timely
feedback from risk assessments and through key risk indicators (KRIs) to ensure an effective control life cycle.
Answer: D is incorrect. Efficiency and effectiveness of controls are not affected by the changes in technology or
product, so some measure should be taken. Answer: B is incorrect. Most of the time, the addition of controls
results in degradation of the efficiency and profitability of a process without adding an equitable level of
corresponding risk mitigation, hence better controls are adopted in place of adding more controls. Answer: C is
incorrect. A BIA is a discovery process meant to uncover the inner workings of any process. It helps to identify
about actual procedures, shortcuts, workarounds and the types of failure that may occur. It involves
determining the purpose of the process, whoperforms the process and its output. It also involves determining
the value of the process output to the enterprise.
QUESTION 130
Which of the following are sub-categories of threat?

A. Natural and supernatural
B. Computer and user
C. Natural and man-made
D. Intentional and accidental
E. External and internal
Correct Answer: CDE

Explanation
A threat is any event which have the potential to cause a loss. In other word, it is any activity that represents a
possible danger. The loss or danger is directlyrelated to one of the following:
Loss of confidentiality- Someone sees a password or a company's secret formula, this is referred to as loss of
confidentiality. Loss of integrity- An e-mail message is modified in transit, a virus infects a file, or someone
makes unauthorized changes to a Web site is referred to as loss of integrity.
Loss of availability- An e-mail server is down and no one has e-mail access, or a file server is down so data
files aren't available comes under loss of availability. Threat identification is the process of creating a list of
threats. This list attempts to identify all the possible threats to an organization. The list can be extensive.
Threats are often sub-categorized as under:
External or internal- External threats are outside the boundary of the organization. They can also be thought of
as risks that are outside the control of the organization. While internal threats are within the boundary of the
organization. They could be related to employees or other personnel who have access to company resources.
Internal threats can be related to any hardware or software controlled by the business.
Natural or man-made- Natural threats are often related to weather such as hurricanes, tornadoes, and ice
storms. Natural disasters like earthquakes and tsunamis are also natural threats. A human or man-made threat
is any threat which is caused by a person. Any attempt to harm resources is a man-made threat. Fire could be
man-made or natural depending on how the fire is started. Intentional or accidental- An attempt to compromise
confidentiality, integrity, or availability is intentional. While employee mistakes or user errors are accidental
threats. A faulty application that corrupts data could also be considered accidental.
QUESTION 131
You work as a project manager for BlueWell Inc. Your project is using a new material to construct a large
warehouse in your city. This new material is cheaper than traditional building materials, but it takes some time
to learn how to use the material properly. You have communicated to the project stakeholders that you will be
able to save costs by using the new material, but you will need a few extra weeks to complete training to use
the materials. This risk response of learning how to use the new materials can also be known as what term?
A. Benchmarking
B. Cost-benefits analysis
C. Cost of conformance to quality
D. Team development
Correct Answer: C
Explanation
When the project team needs training to be able to complete the project work it is a cost of conformance to
quality.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the project
must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the
capital used up throughout the project to avoid failures. It consists of two types of costs:
Prevention costs: It is measured to build a quality product. It includes costs in training, document processing,
equipment , and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and
inspections.
Answer: D is incorrect. Team development describes activities the project manager uses to create a more
cohesive and responsive project team.
Answer: B is incorrect. Cost-benefit analysis is the study of the benefits in relation to the costs to receive the
benefits of a decision, a project, or other investment. Answer: A is incorrect. Benchmarking compares any two
items, such as materials, vendors, or resources.
QUESTION 132
What is the PRIMARY objective difference between an internal and an external risk management assessment
reviewer?
A. In quality of work
B. In ease of access
C. In profession
D. In independence
Correct Answer: D
Explanation
Independence is the freedom from conflict of interest and undue influence. By the mere fact that the external
auditors belong to a different entity, their independence level is higher than that of the reviewer inside the entity
for which they are performing a review. Independence is directly linked to objectivity.
Answer: C, A, and B are incorrect. These all choices vary subjectively.
QUESTION 133
You work as a Project Manager for www.company.com Inc. You have to measure the probability, impact, and
risk exposure. Then, you have to measure how the selected risk response can affect the probability and impact
of the selected risk event. Which of the following tools will help you to accomplish the task?

B. Delphi technique
D. Cause-and-effect diagrams
Correct Answer: C
Explanation
of the risks and oppourtunities connected with each possible course of action. This makes them mostly useful
possible consequences, including chance event outcomes, resource costs, and utility. Answer: D is incorrect.
Cause-and-effect diagrams are useful for identifying root causes and risk identification, but they are not the
most effective ones for risk response planning. Answer: A is incorrect. Project network diagrams help the
project manager and stakeholders visualize the flow of the project work, but they are not used as a part of risk
response planning. Answer: B is incorrect. The Delphi technique can be used in risk identification, but generally
is not used in risk response planning. The Delphi technique uses rounds of anonymous surveys to identify
risks.
QUESTION 134
Which of the following are external risk factors?
A. Geopolitical situation
B. Complexity of the enterprise
C. Market
D. Competition
Correct Answer: AD
Explanation
These three are external risk factors as they lie outside the enterprise's control. Answer: B is incorrect. This
includes geographic spread and value chain coverage (for example, in a manufacturing environment). That is
why it is internal risk factor.
QUESTION 135
Which of the following is an acceptable method for handling positive project risk?
A. Exploit
B. Avoid
C. Mitigate
D. Transfer
Correct Answer: A
Explanation
Exploit is a method for handling positive project risk. Answer: D, B, and C are incorrect. These are all
responses which is used for negative risks, and not the positive risk.
QUESTION 136
You are the project manager of GFT project. Your project involves the use of electrical motor. It was stated in
its specification that if its temperature would increase to 500 degree Fahrenheit the machine will overheat and
have to be shut down for 48 hours. If the machine overheats even once it will delay the project's arrival date.
So to prevent this you have decided while creating response that if the temperature of the machine reach 450,
the machine will be paused for at least an hour so as to normalize its temperature. This temperature of 450
degree is referred to as?
A. Risk identification
B. Risk trigger
C. Risk event
D. Risk response
Correct Answer: B
Explanation
A risk trigger is a warning sign or condition that a risk event is about to happen. Here the warning temperature
is 450 degree Fahrenheit, therefore it is referred as risk trigger. Answer: C is incorrect. Here risk event is 500
degree temperature, as when machine reaches this temperature it should have to be shut-down for 48 hours,
which in turn will laid a great impact on the working of project.
Answer: D is incorrect. Risk response here is shutting off of machine when its temperature reaches 450 degree
Fahrenheit, so as to prevent the occurring of risk event. Answer: A is incorrect. Risk identification is the
process of the identifying the risks. This process identifies the risk events that could affect the project adversely
or would act as opportunity.
QUESTION 137
Which of the following decision tree nodes have probability attached to their branches?
A. Root node
B. Event node
C. End node
D. Decision node
Correct Answer: B
Explanation
Event nodes represents the possible uncertain outcomes of a risky decision, with at least two nodes to
illustrate the positive and negative range of events. Probabilities are always attached to the branches of event
nodes.
Answer: A is incorrect. Root node is the starting node in the decision tree, and it has no branches. Answer: D is
incorrect. It represents the choice available to the decision maker, usually between a risky choice and its non-
risky counterpart. As it represents only the choices available to the decision makers, hence probability is not
attached to it. Answer: is incorrect. End node represents the outcomes of risk and decisions and probability is
not attached to it.
QUESTION 138
Which of the following IS processes provide indirect information?
A. Post-implementation reviews of program changes

B. Security log monitoring
C. Problem management
D. Recovery testing
Correct Answer: ABC

Explanation
Security log monitoring, Post-implementation reviews of program changes, and Problem management provide
indirect information. Security log monitoring provide indirect information about certain controls in the security
environment, particularly when used to analyze the source of failed access attempts.
Post-implementation reviews of program changes provide indirect information about the effectiveness of
internal controls over the development process. Problem management provide indirect information about the
effectiveness of several different IS processes that may ultimately be determined to be the source of incidents.
Answer: D is incorrect. Recovery testing is the direct evidence that the redundancy or backup controls work
effectively. It doesn't provide any indirect information.
QUESTION 139
You are the risk professional of your enterprise. You need to calculate potential revenue loss if a certain risks
occurs. Your enterprise has an electronic (e-commerce) web site that is producing US $1 million of revenue
each day, then if a denial of service (DoS) attack occurs that lasts half a day creates how much loss?
A. US $250,000 loss
B. US $500,000 loss
C. US $1 million loss
D. US $100,000 loss
Correct Answer: B
Explanation
Denial-of-service attack (DoS attack) or distributed denial-of-service attack (DDoS attack) is an attempt to
make a computer resource unavailable to its intended users. Although the means to carry out, motives for, and
targets of a DoS attack may vary, it generally consists of the concerted efforts of person or persons to prevent
an Internet site or service from functioning efficiently or at all, temporarily or indefinitely. Perpetrators of DoS
attacks typically target sites or services hosted on high-profile web servers such as banks, credit card payment
gateways, and even root name- servers. The term is generally used with regards tocomputer networks, but is
not limited to this field; for example, it is also used in reference to CPU resource managementAs the total
revenue of the website for the day is $1 million, and due to denial of service attack it is unavailable for half day.
Therefore, Revenue loss= $1,000,000/2
= $500,000
Answer: D, A, and C are incorrect. These are wrong answers.
QUESTION 140
Which of the following process ensures that extracted data are ready for analysis?
A. Data analysis
B. Data validation
C. Data gathering
D. Data access
Correct Answer: B
Explanation
Data validation ensures that extracted data are ready for analysis. One objective is to perform data quality tests
to ensure data are valid complete and free of errors. This may also involve making data from different sources
suitable for comparative analysis. Answer: C is incorrect. Data gathering is the process of collecting data on
risk to be monitored, prepare a detailed plan and define the project's scope. In the case of a monitoring project,
this step should involve process owners, data owners, system custodians and other process stakeholders.
Answer: D is incorrect. In the data access process, management identifies which data are available and how
they can be acquired in a format that can be used for analysis. There are two options for data extraction:
Extracting data directly from the source systems after system owner approval Receiving data extracts from the
system custodian (IT) after system owner approval Answer: A is incorrect. Analysis of data involves simple set
of steps or complex combination of commands and other functionality. Data analysis is designed in such a way
to achieve the stated objectives from the project plan. Although this may be applicable to any monitoring
activity, it would be beneficial to consider transferability and scalability. This may include robust documentation,
use of software development standards and naming conventions.
QUESTION 141
Which of the following vulnerability assessment software can check for weak passwords on the network?
A. Password cracker
B. Antivirus software
C. Anti-spyware software
D. Wireshark
Correct Answer: A
Explanation
A password cracker is an application program that is used to identify an unknown or forgotten password on a
computer or network resources. It can also be used to help a humancracker obtain unauthorized access to
resources. A password cracker can also check for weak passwords on the network and give notifications to put
another password. Answer: B is incorrect. Antivirus or anti-virus software is used to prevent, detect, and
remove malware. It scans the computer for viruses.
Answer: C is incorrect. Anti-spyware software is a type of program designed to prevent and detect unwanted
spyware program installations and to remove those programs if installed. Answer: D is incorrect. Wireshark is a
free and open-source protocol analyzer. It is used for network troubleshooting, analysis, software and
communications protocol development, and education.
QUESTION 142
Which of the following is NOT true for risk governance?
A. Risk governance is based on the principles of cooperation, participation, mitigation and sustainability, and is
adopted to achieve more effective risk management.
B. Risk governance requires reporting once a year.
C. Risk governance seeks to reduce risk exposure and vulnerability by filling gaps in risk policy.
D. Risk governance is a systemic approach to decision making processes associated to natural and
technological risks.
Correct Answer: B
Explanation
Risk governance is a continuous life cycle that requires regular reporting and ongoing review, not once a year.
Answer: D, A, and C are incorrect. These are true for risk governace.
QUESTION 143
You are the project manager of HGT project. You have identified project risks and applied appropriate
response for its mitigation. You noticed a risk generated as a result of applying response. What this resulting
risk is known as?
A. Pure risk
B. Secondary risk
C. Response risk
D. High risk
Correct Answer: B
Explanation
Secondary risk is a risk that is generated as the result of risk response. Answer: A is incorrect. A pure risk is a
risk that 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.
Answer: C and D are incorrect. These terms are not applied for the risk that is generated as a result of risk
response.
QUESTION 144
What are the various outputs of risk response?
A. Risk Priority Number

B. Residual risk
C. Risk register updates
D. Project management plan and Project document updates
E. Risk-related contract decisions
Correct Answer: CDE

Explanation
The outputs of the risk response planning process are:
Risk Register Updates: The risk register is written in detail so that it can be related to the priority ranking and
the planned response.
Risk Related Contract Decisions: Risk related contract decisions are the decisions to transmit risk, such as
services, agreements for insurance, and other items as required. It provides a means for sharing risks.
Project Management Plan Updates: Some of the elements of the project management plan updates are:
Schedule management plan
Cost management plan
Quality management plan
Procurement management plan
Human resource management plan
Work breakdown structure
Schedule baseline
Cost performance baseline
Project Document Updates: Some of the project documents that can be updated includes:
Assumption log updates
Technical documentation updates
Answer: B is incorrect. Residual risk is not an output of risk response. Residual risk is the risk that remains
after applying controls. It is not feasible to eliminate all risks from an organization. Instead, measures can be
taken to reduce risk to an acceptable level. The risk that is left is residual risk.
As,
Risk = Threat Vulnerabilityand
Total risk = Threat Vulnerability Asset Value
Residual risk can be calculated with the following formula:
Residual Risk = Total Risk - Controls
Senior management is responsible for any losses due to residual risk. They decide whether a risk should be
avoided, transferred, mitigated or accepted. They also decide what controls to implement. Any loss due to their
decisions falls on their sides. Residual risk assessments are conducted after mitigation to determine the impact
of the risk on the enterprise. For risk assessment, the effect and frequency is reassessed and the impact is
recalculated.
Answer: A is incorrect. Risk priority number is not an output for risk response but instead it is done before
applying response. Hence it act as one of the inputs of risk response and is not the output of it.
QUESTION 145
Which of the following is an output of risk assessment process?
A. Identification of risk
B. Identification of appropriate controls
C. Mitigated risk
D. Enterprise left with residual risk
Correct Answer: B
Explanation
The output of the risk assessment process is identification of appropriate controls for reducing or eliminating
risk during the risk mitigation process. To determine the likelihood of a future adverse event, threats to an IT
system must be analyzed in conjunction with the potential vulnerabilities and the controls in place for the IT
system.
Once risk factors have been identified, existing or new controls are designed and measured for their strength
and likelihood of effectiveness. Controls are preventive, detective or corrective; manual or programmed; and
formal or ad hoc.
Answer: A is incorrect. Risk identification acts as input of the risk assessment process. Answer: D is incorrect.
Residual risk is the latter output after appropriate control. Answer: C is incorrect. This is an output of risk
mitigation process,that is, after applying several risk responses.
QUESTION 146
What is the IMMEDIATE step after defining set of risk scenarios?
A. Risk mitigation
B. Risk monitoring
C. Risk management
D. Risk analysis
Correct Answer: D
Explanation
Once the set of risk scenarios is defined, it can be used for risk analysis. In risk analysis, likelihood and impact
of the scenarios are assessed. Important components of this assessment are the risk factors.
Answer: C is incorrect. Risk analysis comes under risk management, therefore management is a generalized
term, and is not the best answer for this B is incorrect. Risk monitoring is the latter step after risk analysis and
risk mitigation.
Answer: A is incorrect. Risk mitigation is the latter step after analyzing risk.
QUESTION 147
Which of the following statements are true for risk communication? Each answer represents a complete
solution. Choose three.
A. It requires a practical and deliberate scheduling approach to identify stakeholders, actions, and concerns.
B. It helps in allocating the information concerning risk among the decision-makers.
C. It requires investigation and interconnectivity of procedural, legal, social, political, and economic factors.
D. It defines the issue of what a stakeholders does, not just what it says.
Correct Answer: ACD

Explanation
expressing concerns, views, or reactions to risk managers or institutional bodies for risk management. The key
decision-maker and the stakeholders.
Risk communication can be explained more clearly with the help of the following definitions:
Answer: B is incorrect. It helps in allocating the information concerning risk not only among the decision-
makers but also stakeholders.
QUESTION 148
Which of the following is the most accurate definition of a project risk?
A. It is an unknown event that can affect the project scope.

B. It is an uncertain event or condition within the project execution.
C. It is an uncertain event that can affect the project costs.
D. It is an uncertain event that can affect at least one project objective.
Correct Answer: D
Explanation
Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective.
Project risk is concerned with the expected value of one or more results of one or more future events in a
project. It is an uncertain condition that, if it occurs, has an effect on at least one project objective. Objectives
can be scope, schedule, cost, and quality. Project risk is always in the future.
Answer: A is incorrect. Risk is not unknown, it is uncertain; in addition, the event can affect at least one project
objective - not just the project scope.
Answer: B is incorrect. This statement is almost true, but the event does not have to happen within project
execution.
Answer: C is incorrect. Risks can affect time, costs, or scope, rather affecting only cost.
QUESTION 149
Which of the following considerations should be taken into account while selecting risk indicators that ensures
greater buy-in and ownership?
A. Lag indicator
B. Lead indicator
C. Root cause
D. Stakeholder
Correct Answer: D
Explanation
To ensure greater buy-in and ownership, risk indicators should be selected with the involvement of relevant
stakeholders. Risk indicators should be identified for all stakeholders and should not focus solely on the more
operational or strategic side of risk. Answer: B is incorrect. Lead indicators indicate which capabilities are in
place to prevent events from occurring. They do not play any role in ensuring greater buy-in and ownership.
Answer: A is incorrect. Role of lag indicators is to ensure that risk after events have occurred is being
indicated.
Answer: C is incorrect. Root cause is considered while selecting risk indicator but it does not ensure greater
buy-in or ownership.
QUESTION 150
Suppose you are working in Techmart Inc. which sells various products through its website. Due to some
recent losses, you are trying to identify the most important risks to the Website. Based on feedback from
several experts, you have come up with a list. You now want to prioritize these risks. Now in which category
you would put the risk concerning the modification of the Website by unauthorized parties.
A. Ping Flooding Attack

B. Web defacing
C. Denial of service attack
D. FTP Bounce Attack
Correct Answer: B
Explanation
Website defacing is an attack on a website by unauthorized party that changes the visual appearance of the
site or a webpage. These are typically the work of system crackers, who break into a web server and replace
the hosted website with one of their own. Answer: D is incorrect. The FTP bounce attack is attack which slips
past application-based firewalls. In this hacker uploads a file to the FTP server and then requests this file be
sent to an internal server. This file may contain malicious software or a simple script that occupies the internal
server and uses up all the memory and CPU resources. Answer: A is incorrect. Ping Flooding is the extreme of
sending thousands or millions of pings per second. Ping Flooding attack can make system slow or even shut
down an entire site. Answer: C is incorrect. A denial-of-service attack (DoS attack) is an attempt to make a
computer or network resource unavailable to its intended users. One common method of attack involves
saturating the target machine with external communications requests, such that it cannot respond to legitimate
traffic, or responds so slowly as to be rendered effectively unavailable.
QUESTION 151
Which of the following is true for risk evaluation?
A. Risk evaluation is done only when there is significant change.
B. Risk evaluation is done once a year for every business processes.
C. Risk evaluation is done annually or when there is significant change.
D. Risk evaluation is done every four to six months for critical business processes.
Correct Answer: C
Explanation
Due to the reason that risk is constantly changing, it is being evaluated annually or when there is significant
change. This gives best alternative as it takes into consideration a reasonable time frame of one year, and
meanwhile it also addresses significant changes (if any). Answer: A is incorrect. Evaluating risk only when
there is significant changes do not take into consideration the effect of time. As the risk is changing constantly,
small changes do occur with time that would affect the overall risk. Hence risk evaluation should be done
annually too. Answer: D is incorrect. Risk evaluation need not to be done every four to six months for critical
processes, as it does not addresses important changes in timely manner. Answer: B is incorrect. Evaluating
risk once a year is not sufficient in the case when some significant change takes place. This significant change
should be taken into account as it affects the overall risk.
QUESTION 152
You work as a project manager for Bluewell Inc. You have identified a project risk. You have then implemented
the risk action plan and it turn out to be non-effective. What type of plan you should implement in such case?
A. Risk mitigation
B. Risk fallback plan
C. Risk avoidance
D. Risk response plan
Correct Answer: B
Explanation
A risk fallback plan is a proper plan devised to identify definite action to be taken if the risk action plan (Risk
Mitigation Plan) is not helpful. Fallback plan is important in Risk Response Planning. If the contingency plan for
a risk is not successful, then the project team implements the fallback plan. Fall-back planning is intended for a
known and specific activity that may perhaps fail to produce desired outcome. It is related with technical
procedures and with the responsibility of the technical lead.
Answer: D, A, and C are incorrect. These all choices itself comes under risk action plan. As in the described
scenario, risk action plan is not turned to be effective, these should not be implemented again.
QUESTION 153
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 the risk categories should have been created?
A. Define scope process

B. Risk identification process
C. Plan risk management process
D. Create work breakdown structure process
Correct Answer: C
Explanation
The plan risk management process is when risk categories were to be defined. If they were not defined, as in
this scenario, it is acceptable to define the categories as part of the qualitative risk analysis process.
Plan risk management is the process of defining the way to conduct the risk management activities. Planning is
essential for providing sufficient resources and time for risk management activities, and to establish a agreed-
upon basis of evaluating risks. This process should start as soon as project is conceived and should be
completed early during project planning. Answer: A is incorrect. Risk categories are not defined through the
define scope process. Answer: D is incorrect. Risk categories are not defined through the create work
breakdown structure process.
Answer: B is incorrect. Risk categories are not defined through the risk identification process.
QUESTION 154
You work as a project manager for BlueWell Inc. You have declined a proposed change request because of
the risk associated with the proposed change request. Where should the declined change request be
documented and stored?
A. Change request log

B. Project archives
C. Lessons learned
Correct Answer: A
Explanation
The change request log records the status of all change requests, approved or declined. The change request
log is used as an account for change requests and as a means of tracking their disposition on a current basis.
The change request log develops a measure of consistency into the change management process. It
encourages common inputs into the process and is a common estimation approach for all change requests. As
the log is an important component of project requirements, it should be readily available to the project team
members responsible for project delivery. It should be maintained in a file with read-only access to those who
are not responsible for approving or disapproving project change requests. Answer: C is incorrect. Lessons
learned are not the place to document the status of a declined, or approved, change request.
Answer: B is incorrect. The project archive includes all project documentation and is created through the close
project or phase process. It is not the best choice for this option D is incorrect. The project document updates
is not the best choice for thisQUESTION NO:be placed into the project documents, but the declined changes
are part of the change request log.
QUESTION 155
Capability maturity models are the models that are used by the enterprise to rate itself in terms of the least
mature level to the most mature level. Which of the following capability maturity levels shows that the
enterprise does not recognize the need to consider the risk management or the business impact from IT risk?
A. Level 2
B. Level 0
C. Level 3
D. Level 1
Correct Answer: B
Explanation
0 nonexistent: An enterprise's risk management capability maturity level is 0 when:
The enterprise does not recognize the need to consider the risk management or the business impact from IT
risk.
Decisions involving risk lack credible information.
Awareness of external requirements for risk management and integration with enterprise risk management
(ERM) do not exists.
Answer: D, A, and C are incorrect. These all are higher levels of capability maturity model and in this enterprise
is mature enough to recognize the importance of risk management.
QUESTION 156
Using which of the following one can produce comprehensive result while performing qualitative risk analysis?
A. Scenarios with threats and impacts

B. Cost-benefit analysis
C. Value of information assets.
D. Vulnerability assessment
Correct Answer: A
Explanation
Using list of possible scenarios with threats and impacts will better frame the range of risk and hence can
frame more informative result of qualitative analysis. Answer: B is incorrect. Cost and benefit analysis is used
for taking financial decisions that can be formal or informal, such as appraisal of any project or proposal. The
approach weighs the total cost against the benefits expected, and then identifies the most profitable option. It
only decides what type of control should be applied for effective risk management. Answer: D and C are
incorrect. These are not sufficient for producing detailed result.
QUESTION 157
Which of the following is the BEST method for discovering high-impact risk types?
A. Qualitative risk analysis

B. Delphi technique
C. Failure modes and effects analysis
D. Quantitative risk analysis
Correct Answer: C
Explanation
Failure modes and effects analysis is used in discovering high-impact risk types.
FMEA:
Is one of the tools used within the Six Sigma methodology to design and implement a robust process to:
Identify failure modes
Establish a risk priority so that corrective actions can be put in place to address and reduce the risk
Helps in identifying and documenting where in the process the source of the failure impacts the (internal or
external) customer
Is used to determine failure modes and assess risk posed by the process and thus, to theenterprise as a
whole'
Answer: D and A are incorrect. These two are the methods of analyzing risk, but not specifically for high-impact
risk types. Hence is not the best answer. Answer: B is incorrect. Delphi is a technique to identify potential risk.
In this technique, the responses are gathered via aquestion:and their inputs are organized according to their
contents. The collected responses are sent back to these experts for further input, addition, and comments.
The final list of risks in the project is prepared after that. The participants in this technique are anonymous and
therefore it helps prevent a person from unduly influencing the others in the group. The Delphi technique helps
in reaching the consensus quickly.
QUESTION 158
Which of the following is MOST appropriate method to evaluate the potential impact of legal, regulatory, and
contractual requirements on business objectives?
A. Communication with business process stakeholders

B. Compliance-oriented business impact analysis
C. Compliance-oriented gap analysis
D. Mapping of compliance requirements to policies and procedures
Correct Answer: B
Explanation
A compliance-oriented BIA will identify all the compliance requirements to which the enterprise has to align and
their impacts on business objectives and activities. It is a discovery process meant to uncover the inner
workings of any process. Hence it will also evaluate the potential impact of legal, regulatory, and contractual
requirements on business objectives. Answer: D is incorrect. Mapping of compliance requirements to policies
and procedures will identify only the way the compliance is achieved but not the business impact. Answer: A is
incorrect. Communication with business process stakeholders is done so as to identify the business objectives,
but it does not help in identifying impacts. Answer: C is incorrect. Compliance-oriented gap analysis will only
identify the gaps in compliance to current requirements and will not identify impacts to business objectives.
QUESTION 159
Wendy is about to perform qualitative risk analysis on the identified risks within her project. Which one of the
following will NOT help Wendy to perform this project management activity?

B. Project scope statement
C. Risk register
D. Stakeholder register
Correct Answer: D
Explanation
The stakeholder register is not an input to the qualitative risk analysis process. The four inputs are the risk
register, risk management plan, project scope statement, and organizational process assets.
Answer: C is incorrect. The risk register can help Wendy to perform qualitative risk analysis. Answer: B is
incorrect. The project scope statement is needed to help with qualitative risk analysis. Answer: A is incorrect.
The Risk management plan is an input to the risk qualitative analysis process.
QUESTION 160
There are four inputs to the Monitoring and Controlling Project Risks process. Which one of the following will
NOT help you, the project manager, to prepare for risk monitoring and controlling?
A. Risk register
B. Work Performance Information
D. Change requests
Correct Answer: D
Explanation
Change requests are not one of the four inputs to the Risk Monitoring and Controlling Process. The four inputs
are the risk register, the project management plan, work performance information, and performance reports.
Answer: A, C, and B are incorrect. These are the valid inputs to the Risk Monitoring and Controlling Process.
QUESTION 161
You are the project manager of HWD project. It requires installation of some electrical machines. You and the
project team decided to hire an electrician as electrical work can be too dangerous to perform. What type of
risk response are you following?
A. Avoidance
B. Transference
C. Mitigation
D. Acceptance
Correct Answer: B
Explanation
As the risk is transferred to the third party (electrician), hence this type of risk response is transference.
Answer: A is incorrect. Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or
change the project plan to protect the project objectives from the risk event. Risk avoidance is applied when
the level of risk, even after the applying controls, would be greater than the risk tolerance level of the
enterprise.
Answer: D is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is
accepted if it occurs.
Answer: C is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its impacts to an
acceptable level. Risk mitigation can utilize various forms of control carefully integrated together.
QUESTION 162
You are the project manager of GHT project. You have implemented an automated tool to analyze and report
on access control logs based on severity. This tool generates excessively large amounts of results. You
perform a risk assessment and decide to configure the monitoring tool to report only when the alerts are
marked "critical". What you should do in order to fulfill that?
A. Apply risk response

B. Optimize Key Risk Indicator
C. Update risk register
D. Perform quantitative risk analysis
Correct Answer: B
Explanation
As the sensitivity of the monitoring tool has to be changed, therefore it requires optimization of Key Risk
Indicator. The monitoring tool which is giving alerts is itself acting as a risk indicator. Hence to change the
sensitivity of the monitoring tool to give alert only for critical situations requires optimization of the KRI.
Answer: A, C, and D are incorrect. These options are not relevant to the change of sensitivity of the monitoring
tools.
QUESTION 163
One of the risk events you've identified is classified as force majeure. What risk response is likely to be used?
A. Acceptance
B. Transference
C. Enhance
D. Mitigation
Correct Answer: A
Explanation
Force majeure describes acts of God (Natural disaster), such as tornados and fires, and are usually accepted
because there's little than can be done to mitigate these risks. Answer: D is incorrect. Mitigation isn't the best
choice, as this lowers the probability and/or impact of the risk event.
Answer: C is incorrect. Enhance is used for a positive risk event, not for force majeure. Answer: B is incorrect.
Transference transfers the risk ownership to a third party, usually for a fee.
QUESTION 164
You are the project manager of GHT project. You have applied certain control to prevent the unauthorized
changes in your project. Which of the following control you would have applied for this purpose?
A. Personnel security control

B. Access control
C. Configuration management control
D. Physical and environment protection control
Correct Answer: C
Explanation
Configuration management control is a family of controls that addresses both configuration management and
change management. Change control practices prevent unauthorized changes. They include goals such as
configuring systems for least functionality as a primary method of hardening systems.
Answer: D is incorrect. Physical and environment protection control are the family that provides an extensive
number of controls related to physical security. Answer: A is incorrect. The Personal security control is family of
controls that includes aspects of personnel security. It includes personnel screening, termination, and transfer.
Answer: B is incorrect. Access control is the family of controls that helps an organizationimplement effective
access control. They ensure that users have the rights and permissions they need to perform their jobs, and no
more. It includes principles such as least privilege and separation of duties.
QUESTION 165
You are the project manager for BlueWell Inc. You have noticed that the risk level in your project increases
above the risk tolerance level of your enterprise. You have applied several risk response. Now you have to
update the risk register in accordance to risk response process. All of the following are included in the risk
register except for which item?
A. Risk triggers
B. Agreed-upon response strategies
C. Network diagram analysis of critical path activities
D. Risk owners and their responsibility
Correct Answer: C
Explanation
The risk register does not examine the network diagram and the critical path. There may be risks associated
with the activities on the network diagram, but it does not address the network diagram directly.
The risk register is updated at the end of the plan risk response process with the information that was
discovered during the process. The response plans are recorded in the risk register. In the risk register, risk is
stated in order of priority, i.e., those with the highest potential for threat or opportunity first. Some risks might
not require response plans at all, but then too they should be put on a watch list and monitored throughout the
project. Following elements should appear in the risk register:
List of identified risks, including their descriptions, root causes, and how the risks impact the project objectives
Risk owners and their responsibility
Outputs from the Perform Qualitative Analysis process
Agreed-upon response strategies
Risk triggers
Cost and schedule activities needed to implement risk responses Contingency plans
Fallback plans, which are risk response plans that are executed when the initial risk response plan proves to
be ineffective
Contingency reserves
Residual risk, which is a leftover risk that remains after the risk response strategy has been implemented
Secondary risks, which are risks that come about as a result of implementing a risk response
QUESTION 166
Ben is the project manager of the CMH Project for his organization. He has identified a risk that has a low
probability of happening, but the impact of the risk event could save the project and the organization with a
significant amount of capital. Ben assigns Laura to the risk event and instructs her to research the time, cost,
and method to improve the probability of the positive risk event. Ben then communicates the risk event and
response to management. What risk response has been used here?
A. Transference
B. Enhance
C. Exploit
D. Sharing
Correct Answer: B
Explanation
Enhance is a risk response to improve the conditions to ensure the risk event occurs. Risk enhancement raises
the probability of an opportunity to take place by focusing on the trigger conditions of the opportunity and
optimizing the chances. Identifying and maximizing input drivers of these positive-impact risks may raise the
probability of their occurrence. Answer: A is incorrect. Transference is a strategy to mitigate negative risks or
threats. In this strategy, consequences and the ownership of a risk is transferred to a third party. This strategy
does not eliminate the risk but transfers responsibility of managing the risk to another party.
Insurance is an example of transference.
Answer: C is incorrect. Exploit response is one of the strategies to negate risks or threats that 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: D is incorrect. Sharing happens through partnerships, joint ventures, and teaming
agreements. Sharing response is where two or more entities share a positive risk. Teaming agreements are
good example of sharing the reward that comes from the risk of the opportunity.
QUESTION 167
Which of the following techniques examines the degree to which organizational strengths offset threats and
opportunities that may serve to overcome weaknesses?
A. SWOT Analysis
B. Delphi
C. Brainstorming
D. Expert Judgment
Correct Answer: A
Explanation
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a project or in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. Answer: C and B are incorrect. Brainstorming and Delphi techniques are used to
identify risks in a project through consensus. Delphi differs in that as the members of the team do not know
each other.
Answer: D is incorrect. In this technique, risks can be identified directly by experts with relevant experience of
similar projects or business areas.
QUESTION 168
You are the project manager for your company and a new change request has been approved for your project.
This change request, however, has introduced several new risks to the project. You have communicated these
risk events and the project stakeholders understand the possible effects these risks could have on your project.
You elect to create a mitigation response for the identified risk events. Where will you record the mitigation
response?
A. Risk register
B. Risk log
Correct Answer: A
Explanation
The Identified risks and potential responses are documented in the risk register. A risk register is an inventory
of risks and exposure associated with those risks. Risks are commonlyfound in project management practices,
and provide information to identify, analyze, and manage risks.
Typically a risk register contains:
event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved. Answer: D is incorrect.
The risk management plan is an input to the risk response planning, but it is not the best choice for
thisquestionoption B is incorrect. This is not a valid choice for thequestionoption C is incorrect. The project
management plan is the parent of the risk management plan, but the best choice is the risk register.
QUESTION 169
Which of the following actions assures management that the organization's objectives are protected from the
occurrence of risk events?
A. Internal control
B. Risk management
C. Hedging
D. Risk assessment
Correct Answer: A
Explanation
Internal controls are the actions taken by the organization to help to assure management that the
organization's objectives are protected from the occurrence of risk events. Internal control objectives are
applicable to all manual or automated areas. Internal control objectives include:
Internal accounting controls- They control accounting operations, including safeguarding assets and financial
records.
Operational controls- They focus on day-to-day operations, functions, and activities. They ensure that all the
organization's objectives are being accomplished. Administrative controls- They focus on operational efficiency
in a functional area and stick to management policies.
Answer: D is incorrect. Risk assessment is a process of analyzing the identified risk, both quantitatively and
qualitatively. Quantitative risk assessment requires calculations of two components of risk, the magnitude of
the potential loss, and the probability that the loss will occur. While qualitatively risk assessment checks the
severity of risk. The assessment attempts to determine the likelihood of the risk being realized and the impact
of the risk on the operation. This provides several conclusions:
Probability-establishing the likelihood of occurrence and reoccurrence of specific risks, independently and
combined.
Interdependencies-the relationship between different types of risk. For instance, one risk may have greater
potential of occurring if another risk has occurred. Or probability or impact of a situation may increase with
combined risk.
Answer: B is incorrect. Risk management is the identification, assessment, and prioritization of risks followed
by coordinated and economical application of resources. It is done tominimize, monitor, and control the
probability and impact of unfortunate events or to maximize the realization of opportunities.
Answer: C is incorrect. Hedging is the process of managing the risk of price changes in physical material by
offsetting that risk in the futures market. In other words, it is the avoidance of risk. So, it only avoids risk but can
not assure protection against risk.
QUESTION 170
You are working as a project manager in Bluewell Inc.. You are nearing the final stages of project execution
and looking towards the final risk monitoring and controlling activities. For your project archives, which one of
the following is an output of risk monitoring and control?
A. Qualitative risk analysis

B. Risk audits
C. Quantitative risk analysis
D. Requested changes
Correct Answer: D
Explanation
Of all the choices given, only requested changes is an output of the monitor and control risks process. You
might also have risk register updates, recommended corrective and preventive actions, organizational process
assets, and updates to the project management plan. Answer: A and C are incorrect. These are the plan risk
management processes. Answer: B is incorrect. Risk audit is a risk monitoring and control technique.
QUESTION 171
You are the project manager of HGT project. You are in the first phase of the risk response process and are
doing following tasks :
Communicating risk analysis results

Reporting risk management activities and the state of compliance
Interpreting independent risk assessment findings
Identifying business opportunities
Which of the following process are you performing?
A. Articulating risk
B. Mitigating risk
C. Tracking risk
D. Reporting risk
Correct Answer: A
Explanation
Articulating risk is the first phase in the risk response process to ensure that information on the true state of
exposures and opportunities are made available in a timely manner and to the right people for appropriate
response. Following are the tasks that are involved in articulating risk:
Communicate risk analysis results.
Report risk management activities and the state of compliance.
Interpret independent risk assessment findings.
Identify business opportunities.
Answer: B is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its impacts to an
acceptable level. Risk mitigation can utilize various forms of control carefully integrated together. This comes
under risk response process and is latter stage after articulating risk.
Answer: D is incorrect. This is not related to risk response process. It is a type of risk. Reporting risks are the
risks that are caused due to wrong reporting which leads to bad decision. Answer: C is incorrect. Tracking risk
is the process of tracking the ongoing status of risk mitigation processes. This tracking ensures that the risk
response strategy remains active and that proposed controls are implemented according to schedule.
QUESTION 172
Which of the following BEST measures the operational effectiveness of risk management capabilities?
A. Capability maturity models (CMMs)

B. Metric thresholds
C. Key risk indicators (KRIs)
D. Key performance indicators (KPIs)
Correct Answer: D
Explanation
Key performance indicators (KPIs) provide insights into the operational effectiveness of the concept or
capability that they monitor. Key Performance Indicators is a set of measures that a company or industry uses
to measure and/or compare performance in terms of meeting their strategic and operational goals. KPIs vary
with company to company, depending on their priorities or performance criteria.
A company must establish its strategic and operational goals and then choose their KPIs which can best reflect
those goals. For example, if a software company's goal is to have the fastest growth in its industry, its main
performance indicator may be the measure of its annualrevenue growth.
Answer: C is incorrect. Key risk indicators (KRIs) only provide insights into potential risks that may exist or be
realized within a concept or capability that they monitor. Key Risk Indicators are the prime monitoring indicators
of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important
risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large
enterprise may have. Answer: A is incorrect. Capability maturity models (CMMs) assess the maturity of a
concept or capability and do not provide insights into operational effectiveness. Answer: B is incorrect. Metric
thresholds are decision or action points that are enacted when a KPI or KRI reports a specific value or set of
values. It odes not provide any insights into operational effectiveness.
QUESTION 173
You are the project manager of GHT project. You have initiated the project and conducted the feasibility study.
What result would you get after conducting feasibility study?
A. Recommend alternatives and course of action

B. Risk response plan
D. Results of criteria analyzed, like costs, benefits, risk, resources required and organizational impact
Correct Answer: AD
Explanation
The completed feasibility study results should include a cost/benefit analysis report that:
Provides the results of criteria analyzed (e.g., costs, benefits, risk, resources required and organizational
impact)
Recommends one of the alternatives and a course of action Answer: C and B are incorrect. Project
management plan and risk response plan are the results of plan project management and plan risk response,
respectively. They are not the result of feasibility study.
QUESTION 174
Your project change control board has approved several scope changes that will drastically alter your project
plan. You and the project team set about updating the project scope, the WBS, the WBS dictionary, the activity
list, and the project network diagram. There are also some changes caused to the project risks,
communication, and vendors. What also should the project manager update based on these scope changes?
A. Stakeholder identification
B. Vendor selection process
C. Quality baseline
D. Process improvement plan
Correct Answer: C
Explanation
When changes enter the project scope, the quality baseline is also updated. The quality baseline records the
quality objectives of the project and is based on the project requirements. Answer: D is incorrect. The process
improvement plan aims to improve the project's processes regardless of scope changes.
Answer: B is incorrect. The vendor selection process likely will not change because of added scope changes.
The vendors in the project may, but the selection process will not. Answer: A is incorrect. The stakeholder
identification process will not change because of scope additions. The number of stakeholders may change but
how they are identified will not be affected by the scope addition.
QUESTION 175
You are the risk control professional of your enterprise. You have implemented a tool that correlates
information from multiple sources. To which of the following do this monitoring tool focuses?
A. Transaction data
B. Process integrity
C. Configuration settings
D. System changes
Correct Answer: A
Explanation
Monitoring tools that focuses on transaction data generally correlate information from one system to another,
such as employee data from the human resources (HR) system with spending information from the expense
system or the payroll system. Answer: B is incorrect. Process integrity is confirmed within the system, it dose
not need monitoring.
Answer: D is incorrect. System changes are compared from a previous state to the current state, it dose not
correlate information from multiple sources.
Answer: C is incorrect. Configuration settings are generally compared against predefined values and not based
on the correlation between multiple souces.
QUESTION 176
Which of the following are the security plans adopted by the organization?
A. Business continuity plan

B. Backup plan
C. Disaster recovery plan
D. Project management plan
Correct Answer: ABC

Explanation
Organizations create different security plans to address different scenarios. Many of the security plans are
common to most organizations.
Most used security plans found in many organizations are:
Business continuity plan
Disaster recovery plan
Backup plan
Incident response plan
Answer: D is incorrect. Project management plan is not a security plan, but a plan which describes the
implementation of the project.
QUESTION 177
Which of the following guidelines should be followed for effective risk management?
A. Promote and support consistent performance in risk management

B. Promote fair and open communication
C. Focus on enterprise's objective
D. Balance the costs and benefits of managing risk
Correct Answer: BCD

Explanation
The primary function of the enterprise is to meet its objective. Each business activity for fulfilling enterprise's
objective carries both risk and opportunity, therefore objective should be considered while managing risk.
Open and fair communication should me there for effective risk management. Open, accurate, timely and
transparent information on lT risk is exchanged and serves as the basis for all risk- related decisions.
Cost-benefit analysis should be done for proper weighing the total costs expected against the total benefits
expected, which is the major aspect of risk management. Answer: A is incorrect. For effective risk
management, there should be continuous improvement, not consistent. Because of the dynamic nature of risk,
risk management is an iterative, perpetual and ongoing process; that's why, continuous improvement is
required.
QUESTION 178
According to the Section-302 of the Sarbanes-Oxley Act of 2002, what does certification of reports implies?
A. The signing officer has evaluated the effectiveness of the issuer's internal controls as of a date at the time to
report.
B. The financial statement does not contain any materially untrue or misleading information.
C. The signing officer has reviewed the report.
D. The signing officer has presented in the report their conclusions about the effectiveness of their internal
controls based on their evaluation as of that date.
Correct Answer: BCD

Explanation
Section 302 of Sarbanes-Oxley act has the tremendous impact on the risk management solution adopted by
corporations. This section specifies that the reports must be certified by the CEO, CFO, or other senior officer
performing similar functions.
Certification of reports establishes:
QUESTION 179
Thomas is a key stakeholder in your project. Thomas has requested several changes to the project scope for
the project you are managing.
Upon review of the proposed changes, you have discovered that these new requirements are laden with risks
and you recommend to the change control board that the changes be excluded from the project scope. The
change control board agrees with you. What component of the change control system communicates the
approval or denial of a proposed change request?
A. Configuration management system

B. Integrated change control
C. Change log
D. Scope change control system
Correct Answer: B
Explanation
Integrated change control is responsible for facilitating, documenting, and dispersing information on a proposed
change to the project scope.
Integrated change control is a way to manage the changes incurred during a project. It is a method that
manages reviewing the suggestions for changes and utilizing the tools and techniques to evaluate whether the
change should be approved or rejected. Integrated change control is a primary component of the project's
change control system that examines the affect of a proposed change on the entire project.
Answer: D is incorrect. The scope change control system controls changes that are permitted to the project
scope.
Answer: A is incorrect. The configuration management system controls and documents changes to the
project's product
Answer: C is incorrect. The change log documents approved changes in the project scope.
QUESTION 180
Which of the following process ensures that the risk response strategy remains active and that proposed
controls are implemented according to schedule?
A. Risk management
B. Risk response integration
C. Risk response implementation
D. Risk response tracking
Correct Answer: D
Explanation
Risk response tracking tracks the ongoing status of risk mitigation processes as part of risk response process.
This tracking ensures that the risk response strategy remains active and that proposed controls are
implemented according to schedule. When an enterprise is conscious of a risk, but does not have an
appropriate risk response strategy, then it lead to the increase of the liability of the organization to adverse
publicity or even civil or criminal penalties. Answer: C is incorrect. Implementation of risk response ensures that
the risks analyzed in risk analysis process are being lowered to level that the enterprise can accept, by
applying appropriate controls.
Answer: B is incorrect. Integrating risk response options to address more than one risk together, help in
achieving greater efficiency.
The use of techniques that are versatile and enterprise-wide, rather than individual solutions provides better
justification for risk response strategies and related costs. Answer: A is incorrect. Risk management provides
an approach for individuals and groups to make a decision on how to deal with potentially harmful situations
QUESTION 181
Which of the following individuals is responsible for identifying process requirements, approving process design
and managing process performance?
A. Business process owner

B. Risk owner
C. Chief financial officer
D. Chief information officer
Correct Answer: A
Explanation
Business process owners are the individuals responsible for identifying process requirements, approving
process design and managing process performance. In general, a business process owner must be at an
appropriately high level in the enterprise and have authority to commit resources to process-specific risk
management activities. Answer: B is incorrect. Risk owner for each risk should be the person who has the most
influence over its outcome. Selecting the risk owner thus usually involves considering the source of risk and
identifying the person who is best placed to understand and implement what needs to be done. Answer: C is
incorrect. Chief financial officer is the most senior official of the enterprise who is accountable for financial
planning, record keeping, investor relations and financial risks. Answer: D is incorrect. Chief information officer
is the most senior official of the enterprise who is accountable for IT advocacy; aligning IT and business
strategies; and planning, resourcing and managing the delivery of IT services and information and the
deployment of associated human resources.
QUESTION 182
Which of the following should be considered to ensure that risk responses that are adopted are cost-effective
and are aligned with business objectives?

A. Identify the risk in business terms
B. Recognize the business risk appetite
C. Adopt only pre-defined risk responses of business
D. Follow an integrated approach in business
Correct Answer: ABD

Explanation
Risk responses require a formal approach to issues, opportunities and events to ensure that solutions are cost-
effective and are aligned with business objectives. The following should be considered:
While preparing the risk response, identify the risk in business terms like loss of productivity, disclosure of
confidential information, lost opportunity costs, etc.
Recognize the business risk appetite.
Follow an integrated approach in business.
Risk responses requiring an investment should be supported by a carefully planned business case that justifies
the expenditure outlines alternatives and describes the justification for the alternative selected.
Answer: C is incorrect. There is no such requirement to follow the pre-defined risk responses. If some new risk
responses are discovered during the risk management of a particular project, they should be noted down in
lesson leaned document so that project manager working on some other project could also utilize them.
QUESTION 183
Walter is the project manager of a large construction project. He'll be working with several vendors on the
project. Vendors will be providing materials and labor for several parts of the project. Some of the works in the
project are very dangerous so Walter has implemented safety requirements for all of the vendors and his own
project team. Stakeholders for the project have added new requirements, which have caused new risks in the
project. A vendor has identified a new risk that could affect the project if it comes into fruition. Walter agrees
with the vendor and has updated the risk register and created potential risk responses to mitigate the risk.
What should Walter also update in this scenario considering the risk event?
A. Project management plan

B. Project communications plan
C. Project contractual relationship with the vendor
D. Project scope statement
Correct Answer: A
Explanation
When new risks are identified as part of the scope additions, Walter should update the risk register and the
project management plan to reflect the responses to the risk event. Answer: D is incorrect. The project scope
statement is changed as part of the scope approval that has already happened.
Answer: C is incorrect. The contractual relationship won't change with the vendor as far as project risks are
concerned.
Answer: B is incorrect. The project communications management plan may be updated if there's a
communication need but the related to the risk event, not the communication of the risks.
QUESTION 184
What are the three PRIMARY steps to be taken to initialize the project?
A. Conduct a feasibility study

B. Define requirements
C. Acquire software
D. Plan risk management
Correct Answer: ABC
Explanation
Projects are initiated by sponsors who gather the information required to gain approval for the project to be
created. Information often compiled into the terms of a project charter includes the objective of the project,
business case and problem statement, stakeholders in the system to be produced, and project manager and
sponsor.
Following are the steps to initiate the project:
Conduct a feasibility study: Feasibility study starts once initial approval has been given to move forward with a
project, and includes an analysis to clearly define the need and to identify alternatives for addressing the need.
A feasibility study involves:
Analyzing the benefits and solutions for the identified problem area Development of a business case that states
the strategic benefits of implementing the system cither in productivity gains or in future cost avoidance and
identifies and quantifies the cost savings of the new system.
Estimation of a payback schedule for the cost incurred in implementing the system or shows the projected
return on investment (ROI)
Define requirements: Requirements include:
Business requirements containing descriptions of what a system should do Functional requirements and use
case models describing how users will interact with a system Technical requirements and design specifications
and coding specifications describing how the system will interact, conditions under which the system will
operate and the information criteria the system should meet.
Acquire software: Acquiring software involves building new or modifying existing hardware or software after
final approval by the stakeholder, which is not a phase in the standard SDLC process. If a decision was
reached to acquire rather than develop software, this task should occur after defining requirements.
Answer: D is incorrect. Risk management is planned latter in project development process, and not during
initialization.
QUESTION 185
You are the risk official in Techmart Inc. You are asked to perform risk assessment on the impact of losing a
network connectivity for 1 day. Which of the following factors would you include?
A. Aggregate compensation of all affected business users.

B. Hourly billing rate charged by the carrier
C. Value that enterprise get on transferring data over the network
D. Financial losses incurred by affected business units
Correct Answer: D
Explanation
The impact of network unavailability is the cost it incurs to the enterprise. As the network is unavailable for 1
day, it can be considered as the failure of some business units that rely on this network. Hence financial losses
incurred by this affected business unit should be considered. Answer: B, C, and A are incorrect. These factors
in combination contribute to the overall financial impact, i.e., financial losses incurred by affected business
units.
QUESTION 186
Beth is a project team member on the JHG Project. Beth has added extra features to the project and this has
introduced new risks to the project work. The project manager of the JHG project elects to remove the features
Beth has added. The process of removing the extra features to remove the risks is called what?
A. Detective control
B. Preventive control
C. Corrective control
D. Scope creep
Correct Answer: B
Explanation
This is an example of a preventive control as the problem is not yet occurred, only it is detected and are
accounted for. By removing the scope items from the project work, the project manager is aiming to remove the
added risk events, hence it is a preventive control. Preventive control is a type of internal control that is used to
avoid undesirable events, errors and other occurrences, which an organization has determined could have a
negative material effect on a process or end product.
Answer: C is incorrect. Corrective actions are steps to bring the future performance of the project work in line
with the project management plan. These controls make effort to reduce the impact of a threat from problems
discovered by detective controls. They first identify thecause of the problems, then take corrective measures
and modify the systems to minimize the future occurrences of the problem. Hence an incident should take
place before corrective controls come in action.
Answer: A is incorrect. Detective controls simply detect and report on the occurrence of problems. They identify
specific symptoms to potential problems. Answer: D is incorrect. Scope creep refers to small undocumented
changes to the project scope.
QUESTION 187
You are the project manager of the GHT project. This project will last for 18 months and has a project budget of
$567,000. Robert, one of your stakeholders, has introduced a scope change request that will likely have an
impact on the project costs and schedule. Robert assures you that he will pay for the extra time and costs
associated with the risk event. You have identified that change request may also affect other areas of the
project other than just time and cost. What project management component is responsible for evaluating a
change request and its impact on all of the project management knowledge areas?
A. Configuration management
B. Integrated change control
C. Risk analysis
D. Project change control system
Correct Answer: B
Explanation
Integrated change control is responsible for evaluating a proposed change and determining its impact on all
areas of the project: scope, time, cost, quality, human resources, communication, risk, and procurement.
Answer: D is incorrect. The project change control system defines the workflow and approval process for
proposed changes to the project scope, time, cost, and contracts. Answer: A is incorrect. Configuration
management defines the management, control, and documentation of the features and functions of the
project's product. Answer: C is incorrect. Risk analysis is not responsible for reviewing the change aspects for
the entire project.
QUESTION 188
While developing obscure risk scenarios, what are the requirements of the enterprise?
A. Have capability to cure the risk events

B. Have capability to recognize an observed event as something wrong
C. Have sufficient number of analyst
D. Be in a position that it can observe anything going wrong
Correct Answer: BD
Explanation
The enterprise must consider risk that has not yet occurred and should develop scenarios around unlikely,
obscure or non-historical events.
Such scenarios can be developed by considering two things:
Visibility
Recognition
For the fulfillment of this task enterprise must:
Be in a position that it can observe anything going wrong Have the capability to recognize an observed event
as something wrong Answer: C and A are incorrect. These are not the direct requirements for developing
obscure risk scenarios, like curing risk events comes under process of risk management. Hence capability of
curing risk event does not lay any impact on the process of development of risk scenarios.
QUESTION 189
You are the project manager of GHT project. During the data extraction process you evaluated the total
number of transactions per year by multiplying the monthly average by twelve. This process of evaluating total
number of transactions is known as?
A. Duplicates test
B. Controls total
C. Simplistic and ineffective
D. Reasonableness test
Correct Answer: D
Explanation
Reasonableness tests make certain assumptions about the information as the basis for more elaborate data
validation tests.
Answer: A is incorrect. The duplicate test does not identify duplicate transactions; rather it identifies and
confirms the validity of duplicates.
Answer: C is incorrect. As compared to simplistic, the reasonableness test is a valid foundation for more
elaborate data validation tests.
Answer: B is incorrect. The control total test does not ensure that all transactions have been extracted, but only
ensures that the data are complete.
QUESTION 190
You are the project manager of the KJH Project and are working with your project team to plan the risk
responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the
KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of $350,000.
When it comes to creating a risk response for this event what is the risk exposure of the
event that must be considered for the cost of the risk response?
A. The risk exposure of the event is $350,000.

B. The risk exposure of the event is $500,000.
C. The risk exposure of the event is $850,000.
D. The risk exposure of the event is $245,000.
Correct Answer: D
Explanation
The risk exposure for this event is found by multiplying the risk impact by the risk probability. Risk Exposure is
a straightforward estimate that gives a numeric value to a risk, enabling different risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event = 0.70 * 350,000
= 245,000
Answer: A is incorrect. $350,000 is the impact of the risk event. Answer: B is incorrect. $500,000 is the
project's budget. Answer: C is incorrect. $850,000 is the project's budget and the risk's impact.
QUESTION 191
Jane, the Director of Sales, contacts you and demands that you add a new feature to the software your project
team is creating for the organization. In the meeting she tells you how important the scope change would be.
You explain to her that the software is almost finished and adding a change now could cause the deliverable to
be late, cost additional funds, and would probably introduce new risks to the project. Jane stands up and says
to you, "I am the Director of Sales and this change will happen in the project." And then she leaves the room.
What should you do with this verbal demand for a change in the project?
A. Include the change in the project scope immediately.

B. Direct your project team to include the change if they have time.
C. Do not implement the verbal change request.
D. Report Jane to your project sponsor and then include the change.
Correct Answer: C
Explanation
This is a verbal change request, and verbal change requests are never implemented. They introduce risk and
cannot be tracked in the project scope. Change requests are requests to expand or reduce the project scope,
modify policies, processes, plans, or procedures, modify costs or budgets or revise schedules. These requests
for a change can be direct or indirect, externally or internally initiated, and legally or contractually imposed or
optional. A Project Manager needs to ensure that only formally documented requested changes are processed
and only approved change requests are implemented.
Answer: A is incorrect. Including the verbal change request circumvents the project's change control system.
Answer: D is incorrect. You may want to report Jane to the project sponsor, but you are not obligated to include
the verbal change request.
Answer: B is incorrect. Directing the project team to include the change request if they have time is not a valid
option. The project manager and the project team will have all of the project team already accounted for so
there is no extra time for undocumented, unapproved change requests.
QUESTION 192
You are the risk professional in Bluewell Inc. A risk is identified and enterprise wants to quickly implement
control by applying technical solution that deviates from the company's policies. What you should do?
A. Recommend against implementation because it violates the company's policies

B. Recommend revision of the current policy
C. Recommend a risk assessment and subsequent implementation only if residual risk is accepted
D. Conduct a risk assessment and allow or disallow based on the outcome
Correct Answer: C
Explanation
If it is necessary to quickly implement control by applying technical solution that deviates from the company's
policies, then risk assessment should be conducted to clarify the risk. It is up to the management to accept the
risk or to mitigate it.
Answer: D is incorrect. Risk professional can only recommend the risk assessment if the company's policies is
violating, but it can only be conducted when the management allows. Answer: A is incorrect. As in this case it
is important to mitigate the risk, hence risk professional should once recommend a risk assessment. Though
the decision for the conduction of risk assessment in case of violation of company's policy, is taken by
management. Answer: B is incorrect. The recommendation to revise the current policy should not be triggered
by a single request.
QUESTION 193
Jane is the project manager of the NHJ Project for his company. He has identified several positive risk events
within his project and he thinks these events can save the project time and money. Positive risk events, such
as these within the NHJ Project are referred to as?
A. Contingency risks
B. Benefits
C. Residual risk
D. Opportunities
Correct Answer: D
Explanation
A positive risk event is also known as an opportunity. Opportunities within the project to save time and money
must be evaluated, analyzed, and responded to. Answer: A is incorrect. A contingency risk is not a valid risk
management term. Answer: B is incorrect. Benefits are the good outcomes of a project endeavor. Benefits
usually have a cost factor associated with them.
Answer: C is incorrect. Residual risk is the risk that remains after applying controls. It is not feasible to
eliminate all risks from an organization. Instead, measures can be taken to reduce risk to an acceptable level.
The risk that is left is residual risk.
QUESTION 194
During qualitative risk analysis you want to define the risk urgency assessment. All of the following are
indicators of risk priority except for which one?
A. Warning signs
B. Symptoms
C. Risk rating
D. Cost of the project
Correct Answer: D
Explanation
The cost of the project is not an indicator of risk urgency. The affect of the risk on the overall cost of the project
may be considered, but it is not the best answer. Answer:B is incorrect. Symptoms are an indicator of the risk
urgency. Answer:A is incorrect. Warning signs are an indicator of the risk urgency. Answer:C is incorrect. The
risk rating can be an indicator of the risk urgency.
QUESTION 195
Which of the following phases is involved in the Data Extraction, Validation, Aggregation and Analysis?
A. Risk response and Risk monitoring

B. Requirements gathering, Data access, Data validation, Data analysis, and Reporting and corrective action
C. Data access and Data validation
D. Risk identification, Risk assessment, Risk response and Risk monitoring
Correct Answer: B
Explanation
The basic concepts related to data extraction, validation, aggregation and analysis is important as KRIs often
rely on digital information from diverse sources. The phases which are involved in this are:
Requirements gathering: Detailed plan and project's scope is required for monitoring risks. In the case of a
monitoring project, this step should involve process owners, data owners, system custodians and other
process stakeholders.
Data access: In the data access process, management identifies which data are available and how they can be
acquired in a format that can be used for analysis. There are two options for data extraction:
Extracting data directly from the source systems after system owner approval Receiving data extracts from the
system custodian (IT) after system owner approval Direct extraction is preferred, especially since this involves
management monitoring its own controls, instead of auditors/third parties monitoring management's controls. If
it is not feasible to get direct access, a data access request form should be submitted to the data owners that
detail the appropriate data fields to be extracted. The request should specify the method of delivery for the file.
Data validation: Data validation ensures that extracted data are ready for analysis. One of its important
objective is to perform tests examining the data quality to ensure data are valid complete and free of errors.
This may also involve making data from different sources suitable for comparative analysis. Following concepts
should be considered while validating data:
Ensure the validity, i.e., data match definitions in the table layout Ensure that the data are complete
Ensure that extracted data contain only the data requested Identify missing data, such as gaps in sequence or
blank records Identify and confirm the validity of duplicates
Identify the derived values
Check if the data given is reasonable or not
Identify the relationship between table fields
Record, in a transaction or detail table, that the record has no match in a master table Data analysis: Analysis
of data involves simple set of steps or complex combination of commands and other functionality. Data
analysis is designed in such a way to achieve the stated objectives from the project plan. Although this may be
applicable to any monitoring activity, it would be beneficial to consider transferability and scalability. This may
include robust documentation, use of software development standards and naming conventions. Reporting and
corrective action: According to the requirements of the monitoring objectives and the technology being used,
reporting structure and distribution are decided. Reporting procedures indicate to whom outputs from the
automated monitoring process are distributed so that they are directed to the right people, in the right format,
etc. Similar to the data analysis stage, reporting may also identify areas in which changes to the sensitivity of
the reporting parameters or the timing and frequency of the monitoring activity may be required. Answer: D is
incorrect. These are the phases that are involved in risk management.
QUESTION 196
Which of the following items is considered as an objective of the three dimensional model within the framework
described in COSO ERM?
A. Risk assessment
B. Financial reporting
C. Control environment
D. Monitoring
Correct Answer: B
Explanation
The COSO ERM (Enterprise Risk Management) frame work is a 3-dimentional model. The dimensions and
their components include:
Strategic Objectives - includes strategic, operations, reporting, and compliance. Risk Components - includes
Internal Environment, Objectives settings, Event identification, Risk assessment, Risk response, Control
activities, Information and communication, and monitoring. Organizational Levels - include subsidiary, business
unit, division, and entity-level. The COSO ERM framework contains eight risk components:
Internal Environment
Objective Settings
Event Identification
Risk Assessment
Risk Response
Control Activities
Information and Communication
Monitoring
Section 404 of the Sarbanes-Oley act specifies a three dimensional model- COSO ERM, comprised of Internal
control components, Internal control objectives, and organization entities. All the items listed are components
except Financial reporting which is an internal control objective. Answer: C, A, and D are incorrect. They are
the Internal control components, not the Internal control objectives.
QUESTION 197
NIST SP 800-53 identifies controls in three primary classes. What are they?
A. Technical, Administrative, and Environmental

B. Preventative, Detective, and Corrective
C. Technical, Operational, and Management
D. Administrative, Technical, and Operational
Correct Answer: C
Explanation
NIST SP 800-53 is used to review security in any organization, that is, in reviewing physical security. The
Physical and Environmental Protection family includes 19 different controls. Organizations use these controls
for better physical security. These controls are reviewed to determine if they are relevant to a particular
organization or not. Many of the controls described include additional references that provide more details on
how to implement them. The National Institute of Standards and Technology (NIST) SP 800-53 rev 3 identifies
18 families of controls. It groups these controls into three classes:
Technical
Operational
Management
QUESTION 198
While defining the risk management strategies, what are the major parts to be determined first? Each answer
represents a part of the solution. Choose two.
A. IT architecture complexity
B. Organizational objectives
C. Risk tolerance
D. Risk assessment criteria
Correct Answer: BC
Explanation
While defining the risk management strategies, risk professional should first identify and analyze the objectives
of the organization and the risk tolerance. Once the objectives of enterprise are known, risk professional can
detect the possible risks which can occur in accomplishing those objectives. Analyzing the risk tolerance would
help in identifying the priorities of risk which is the latter steps in risk management. Hence these two do the
basic framework in risk management. Answer: A is incorrect. IT architecture complexity is related to the risk
assessment and not the risk management, as it does much help in evaluating each significant risk identified.
Answer: D is incorrect. Risk assessment is one of the various phases that occur while managing risks, which
uses quantitative and qualitative approach to evaluate risks. Hence riskassessmentcriteria is only a part of this
framework.
QUESTION 199
Which of the following are true for quantitative analysis?
A. Determines risk factors in terms of high/medium/low.

B. Produces statistically reliable results
C. Allows discovery of which phenomena are likely to be genuine and which are merely chance occurrences
D. Allows data to be classified and counted
Correct Answer: BCD

Explanation
As quantitative analysis is data driven, it:
Allows data classification and counting.
Allows statistical models to be constructed, which help in explaining what is being observed. Generalizes
findings for a larger population and direct comparisons between two different sets of data or observations.
Produces statistically reliable results.
Allows discovery of phenomena which are likely to be genuine and merely occurs by chance. Answer: is
incorrect. Risk factors are expressed in terms of high/medium/low in qualitative analysis, and not in quantitative
analysis.
QUESTION 200
Ned is the project manager of the HNN project for your company. Ned has asked you to help him complete
some probability distributions for his project. What portion of the project will you most likely use for probability
distributions?
A. Bias towards risk in new resources

B. Risk probability and impact matrixes
C. Uncertainty in values such as duration of schedule activities
D. Risk identification
Correct Answer: C
Explanation
Risk probability distributions are likely to be utilized in uncertain values, such as time and cost estimates for a
project.
Answer: D is incorrect. Risk probability distributions are not likely the risk identification. Answer: B is incorrect.
Risk probability distributions are not likely to be used with risk probability and impact matrices.
Answer: A is incorrect. Risk probability distributions do not typically interact with the bias towards risks in new
resources.
QUESTION 201
To which level the risk should be reduced to accomplish the objective of risk management?
A. To a level where ALE is lower than SLE

B. To a level where ARO equals SLE
C. To a level that an organization can accept
D. To a level that an organization can mitigate
Correct Answer: C
Explanation
The main objective of risk management is to reduce risk to a level that the organization or company will accept,
as the risk can never be completely eliminated. Answer:D is incorrect. Risk mitigation involves identification,
planning, and conduct of actions for reducing risk. Because the elimination of all risk is usually impractical or
close to impossible, it is aimed at reducing risk to an acceptable level with minimal adverse impact on the
organization's resources and mission.
Answer:B and A are incorrect. There are no such concepts existing in manipulating risk level.
QUESTION 202
You are the project manager of GHT project. Your hardware vendor left you a voicemail saying that the
delivery of the equipment you have ordered would not arrive on time. You identified a risk response strategy for
this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is
an example of which risk response strategy?
A. Avoid
B. Transfer
C. Acceptance
D. Mitigate
Correct Answer: D
Explanation
Mitigation attempts to reduce the impact of a risk event in case it occurs. Making plans to arrange for the
leased equipment reduces the consequences of the risk and hence this response in mitigation.
Answer:B is incorrect. Risk transfer means that impact of risk is reduced by transferring or otherwise sharing a
portion of the risk with an external organization or another internal entity. Transfer of risk can occur in many
forms but is most effective when dealing with financial risks.
Insurance is one form of risk transfer.
Here there no such action is taken, hence it is not a risk transfer. Answer:C is incorrect. Risk acceptance
means that no action is taken relative to a particular risk; loss is accepted if it occurs. If an enterprise adopts a
risk acceptance, it should carefully consider who can accept the risk. Risk should be accepted only by senior
acceptance strategy, passive and active.
Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but willing to accept
the consequences of the risk.
with risks.
Answer:A is incorrect. Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or
change the project plan to protect the project objectives from the risk event. Risk avoidance is applied when
the level of risk, even after the applying controls, would be greater than the risk tolerance level of the
enterprise. Hence this risk response is adopted when:
There is no other cost-effective response that can successfully reduce the likelihood and magnitude below the
defined thresholds for risk appetite.
The risk cannot be shared or transferred.
The risk is deemed unacceptable by management.
QUESTION 203
Who is at the BEST authority to develop the priorities and identify what risks and impacts would occur if there
were loss of the organization's private information?
A. External regulatory agencies

B. Internal auditor
C. Business process owners
D. Security management
Correct Answer: C
Explanation
Business process owners are in best position to judge the risks and impact, as they are most knowledgeable
concerning their systems. Hence they are most suitable for developing and identifying risks on business.
Answer:B, D, and A are incorrect. Internal auditors, security managers, external regulators would not
understand the impact on business to the extent that business owners could. Hence business owner is the best
authority.
QUESTION 204
You are the project manager for TTP project. You are in the Identify Risks process. You have to create the risk
register. Which of the following are included in the risk register?
A. List of potential responses

B. List of key stakeholders
C. List of mitigation techniques
D. List of identified risks
Correct Answer: AD
Explanation
Risk register primarily contains the following:
List of identified risks: A reasonable description of the identified risks is noted in the risk register. The
description includes event, cause, effect, impact related to the risks identified. In addition to the list of identified
risks, the root causes of those risks may appear in the risk register. List of potential responses: Potential
responses to a risk may be identified during the Identify Risks process. These responses are useful as inputs
to the Plan Risk Responses process. Answer:C is incorrect. Risk register do contain the summary of mitigation,
but only after the applying risk response. Here in this scenario you are in risk identification phase, hence
mitigation techniques cannot be documented at this situation.
Answer:B is incorrect. This is not valid content of risk register. A risk register is an inventory of risks and
exposure associated with those risks. Risks are commonly found in project management practices, and provide
information to identify, analyze, and manage risks. Typically a risk register contains:
event) Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.
QUESTION 205
You work as a project manager for BlueWell Inc. You are about to complete the quantitative risk analysis
process for your project. You can use three available tools and techniques to complete this process. Which one
of the following is NOT a tool or technique that is appropriate for the quantitative risk analysis process?
A. Data gathering and representation techniques

B. Expert judgment
C. Quantitative risk analysis and modeling techniques
D. Organizational process assets
Correct Answer: D
Explanation
Organizational process asset is not a tool and technique, but an input to the quantitative risk analysis process.
Quantitative Risk Analysis is a process to assess the probability of achieving particular project objectives, to
quantify the effect of risks on the whole project objective, and to prioritize the risks based on the impact to
overall project risk. Quantitative Risk Analysis process analyzes the affect of a risk event deriving a numerical
value. It also presents a quantitative approach to build decisions in the presence of uncertainty. The inputs for
Quantitative Risk Analysis are :
Organizational process assets
Project Scope Statement
Risk Management Plan
Risk Register
Project Management Plan
Answer:A is incorrect. Data gathering and representation technique is a tool and technique for the quantitative
risk analysis process.
Answer:C is incorrect. Quantitative risk analysis and modeling techniques is a tool and technique for the
quantitative risk analysis process.
Answer:B is incorrect. Expert judgment is a tool and technique for the quantitative risk analysis process.
QUESTION 206
Which of the following is the PRIMARY requirement before choosing Key performance indicators of an
enterprise?
A. Determine size and complexity of the enterprise

B. Prioritize various enterprise processes
C. Determine type of market in which the enterprise operates
D. Enterprise must establish its strategic and operational goals
Correct Answer: D
Explanation
Key Performance Indicators is a set of measures that a company or industry uses to measure and/or compare
performance in terms of meeting their strategic and operational goals. KPIs vary with company to company,
depending on their priorities or performance criteria. A company must establish its strategic and operational
goals and then choose their KPIs which can best reflect those goals. For example, if a software company's
goal is to have the fastest growth in its industry, its main performance indicator may be the measure of its
annual revenue growth.
Answer:B is incorrect. This is not the valid answer.
Answer:A is incorrect. Determination of size and complexity of the enterprise is the selection criteria of the KRI,
not KPI. KPI does not have any relevancy with size and complexity of the enterprise.
Answer:C is incorrect. Type of market in which the enterprise is operating do not affect the selection of KPIs.
QUESTION 207
You are the project manager of project for a client. The client has promised your company a bonus, if the
project is completed early. After studying the project work, you elect to crash the project in order to realize the
early end date. This is an example of what type of risk response?
A. Negative risk response, because crashing will add risks.

B. Positive risk response, as crashing is an example of enhancing.
C. Positive risk response, as crashing is an example of exploiting.
D. Negative risk response, because crashing will add costs.
Correct Answer: B
Explanation
This is a positive risk response, as crashing is an example of enhancing. You are enhancing the probability of
finishing the project early to realize the reward of bonus. Enhancing doesn't ensure positive risks, but it does
increase the likelihood of the event. Answer:D is incorrect. Crashing does add costs, but in this instance,
crashing is an example of the positive risk response of enhancing.
Answer:A is incorrect. Crashing is a positive risk response. Generally, crashing doesn't add risks and is often
confused with other predominant schedule compression techniques of fast tracking - which does add risks.
Answer:C is incorrect. This isn't an example of exploiting. Exploiting is an action to take advantage of a positive
risk response that will happen.
QUESTION 208
Judy has identified a risk event in her project that will have a high probability and a high impact. Based on the
requirements of the project, Judy has asked to change the project scope to remove the associated requirement
and the associated risk. What type of risk response is this?
A. Exploit
B. Not a risk response, but a change request
C. Avoidance
D. Transference
Correct Answer: C
Explanation
Risk avoidance involves changing the project management plan to eliminate the threat entirely. The project
manager may also isolate the project objectives from the risk's impact or change the objective that is in
jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing the scope. The
most radical avoidance strategy is to shut down the project entirely. Some risks that arise early in the project
can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring
expertise. Answer:A is incorrect. Exploit risk response is used for positive risk or opportunity, not for negative
risk.
Answer:D is incorrect. Transference allows the risk to be transferred, not removed from the project, to a third
party. Transference usually requires a contractual relationship with the third party.
Answer:B is incorrect. This risk response does require a change request, in some instances, but it's the
avoidance risk response and not just a change request.
QUESTION 209
You are the risk professional of your enterprise. You have performed cost and benefit analysis of control that
you have adopted. What are all the benefits of performing cost and benefit analysis of control? Each answer
represents a complete solution. Choose three.
A. It helps in determination of the cost of protecting what is important

B. It helps in taking risk response decisions
C. It helps in providing a monetary impact view of risk
D. It helps making smart choices based on potential risk mitigation costs and losses
Correct Answer: ACD

Explanation
QUESTION 210
You are the project manager of GHT project. You want to perform post-project review of your project. What is
the BEST time to perform post-project review by you and your project development team to access the
effectiveness of the project?
A. Project is completed and the system has been in production for a sufficient time period
B. During the project
C. Immediately after the completion of the project
D. Project is about to complete
Correct Answer: A
Explanation
The project development team and appropriate end users perform a post-project review jointly after the project
has been completed and the system has been in production for a sufficient time period to assess its
effectiveness.
Answer:C is incorrect. It is not done immediately after the completion of the project as its effectiveness cannot
be measured until the system has been in production for certain time period. Answer:B is incorrect. The post-
project review of project for accessing effectiveness cannot be done during the project as effectiveness can
only evaluated after setting the project in process of production.
Answer:D is incorrect. Post-project review for evaluating the effectiveness of the project can only be done after
the completion of the project and the project is in production phase.
QUESTION 211
What are the steps that are involved in articulating risks? Each answer represents a complete solution. Choose
three.
A. Identify business opportunities.

B. Identify the response
C. Communicate risk analysis results and report risk management activities and the state of compliance.
D. Interpret independent risk assessment findings.
Correct Answer: ACD

Explanation
Following are the tasks that are involved in articulating risk:
Communicate risk analysis results.
Report risk management activities and the state of compliance.
Interpret independent risk assessment findings.
Identify business opportunities.
QUESTION 212
What are the requirements of effectively communicating risk analysis results to the relevant stakeholders?
A. The results should be reported in terms and formats that are useful to support business decisions
B. Communicate only the negative risk impacts of events in order to drive response decisions
C. Communicate the risk-return context clearly
D. Provide decision makers with an understanding of worst-case and most probable scenarios
Correct Answer: ACD

Explanation
The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved
in communication are:
The results should be reported in terms and formats that are useful to support business decisions. Coordinate
additional risk analysis activity as required by decision makers, like report rejection and scope adjustment.
Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and
confidence levels (if possible) that enable management to balance risk- return. Identify the negative impacts of
events that drive response decisions as well as positive impacts of events that represent opportunities which
should channel back into the strategy and objective setting process. Provide decision makerswith an
understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation,
legal or regulatory considerations.
Answer:B is incorrect. Both the negative and positive risk impacts are being communicated to relevant
stakeholders. Identify the negative impacts of events that drive response decisions as well as positive impacts
of events that represent opportunities which should channel back into the strategy and objective setting
process.
QUESTION 213
Which among the following is the MOST crucial part of risk management process?
A. Risk communication
B. Auditing
C. Risk monitoring
D. Risk mitigation
Correct Answer: A
Explanation
Risk communication is a critical part in the risk management process. People are naturally uncomfortable
talking about risk and tend to put off admitting that risk is involved and communicating about issues; incidents;
and; eventually, even crises. If risk is to be managed and mitigated, it must first be discussed and effectively
communicated throughout an enterprise.
Answer:D is incorrect. Risk mitigation is one of the phases of risk management process for effective mitigation
of risk it should be first communicated throughout an enterprise. Answer:B is incorrect. Auditing is done to test
the overall risk management process and the planned risk responses. So it is the very last phase after
completion of risk management process. Answer:C is incorrect. Risk monitoring is the last phase to complete
risk management process, and for proper management of risk it should be communicated properly. Hence risk
communication is the most crucial step.
QUESTION 214
Which of the following is a key component of strong internal control environment?
A. RMIS
B. Segregation of duties
C. Manual control
D. Automated tools
Correct Answer: B
Explanation
Segregation of duties (SOD) is a key component to maintaining a strong internal control environment because
it reduces the risk of fraudulent transactions. When duties for a business process or transaction are segregated
it becomes more difficult for fraudulent activity to occur because it would involve collusion among several
employees. Answer:D is incorrect. It is not directly related in maintaining strong internal control environment.
The automated tools are typically used to address SOD and also to provide theenterprise with reporting
functionality on SOD violations (i.e., detective controls) and to put in place preventive controls.
Answer:C is incorrect. Manual controls usually not form strong internal control environment. By not automating
SOD controls, there is, potentially, the issue of these controls becoming a barrier in serving the customer. As
manual authorizations are often time consuming and require another step in any business process, this takes
time away from serving the customer. Automated compliance solutions aim to provide enterprises with timely
and efficient internal controls that do not disrupt their normal business process. Answer:A is incorrect. An RMIS
can be a very effective tool in monitoring all risk factors that impact the enterprise. The danger is that many
important classes of risk may be omitted from consideration by the system. hence it doesn't ensure strong
internal control environment.
QUESTION 215
You are the project manager of the NKJ Project for your company. The project's success or failure will have a
significant impact on your organization's profitability for the coming year. Management has asked you to
identify the risk events and communicate the event's probability and impact as early as possible in the project.
Management wants to avoid risk events and needs to analyze the cost-benefits of each risk event in this
project. What term is assigned to the low-level of stakeholder tolerance in this project?
A. Mitigation-ready project management

B. Risk avoidance
C. Risk utility function
D. Risk-reward mentality
Correct Answer: C
Explanation
Risk utility function is assigned to the low-level of stakeholder tolerance in this project. The risk utility function
describes a person's or organization's willingness to accept risk. It is synonymous with stakeholder tolerance to
risk.
Risk utility function facilitates the selection and acceptance of risk and provides opportunity to merge the
approach with setting thresholds
of risk acceptability and using utility-risk ratios if necessary. Answer:B is incorrect. Risk avoidance is a risk
response to avoid negative risk events. Answer:A is incorrect. This is not a valid project management and risk
management term. Answer:D is incorrect. Risk-reward describes the balance between accepting risks and the
expected reward for the risk event. Risk-reward mentality is not a valid project management term.
QUESTION 216
How residual risk can be determined?
A. By determining remaining vulnerabilities after countermeasures are in place.

B. By transferring all risks.
C. By threat analysis
D. By risk assessment
Correct Answer: D
Explanation
All risks are determined by risk assessment, regardless whether risks are residual or not. Answer:A is
incorrect. Determining remaining vulnerabilities after countermeasures are in place says nothing about threats,
therefore risk cannot be determined. Answer:C is incorrect. Risk cannot be determined by threat analysis
alone, regardless whether it is residual or not.
Answer:B is incorrect. Transferring all the risks in not relevant to determining residual risk. It is one of the
method of risk management.
QUESTION 217
Which of the following are the MOST important risk components that must be communicated among all the
stakeholders?
A. Various risk response used in the project

B. Expectations from risk management
C. Current risk management capability
D. Status of risk with regard to IT risk
Correct Answer: BCD

Explanation
The broad array of information and the major types of IT risk information that should be communicated are as
follows:
Expectations from risk management: They include risk strategy, policies, procedures, awareness training,
uninterrupted reinforcement of principles, etc. This essential communication drives all subsequent efforts on
risk management and sets the overall expectations from risk management. Current risk management
capability: This allows monitoring of the status of the risk management engine in the enterprise. It is a key
indicator for effective risk management and has predictive value for how well the enterprise is managing risk
and reducing exposure. Status with regard to IT risk: This describes the actual status with regard to IT risk
including information of risk profile of the enterprise, Key risk indicators (KRIs) to support management
reporting on risk, event-loss data, root cause of loss events and options to mitigate risk. Answer:A is incorrect.
Risk response is only communicated to some of the stakeholders not all, as it is irrelevant for them. It is not
communicated to the stakeholders of the project like project sponsors, etc.
QUESTION 218
You work as a project manager for BlueWell Inc. You are involved with the project team on the different risk
issues in your project. You are using the applications of IRGC model to facilitate the understanding and
managing the rising of the overall risks that have impacts on the economy and society. One of your team
members wants to know that what the need to use the IRGC is. What will be your reply?
A. IRGC models aim at building robust, integrative inter-disciplinary governance models for emerging and
existing risks.
B. IRGC is both a concept and a tool.
C. IRGC addresses the development of resilience and the capacity of organizations and people to face
unavoidable risks.
D. IRGC addresses understanding of the secondary impacts of a risk.
Correct Answer: A
Explanation
IRGC is aimed at building robust, integrative inter-disciplinary governance models for emerging and existing
risks.
The International Risk Governance Council (IRGC) is a self-governing organization whose principle is to
facilitate the understanding and managing the rising overall risks that have impacts on the economy and
society, human health and safety, the environment at large. IRGC's effort is to build and develop concepts of
risk governance, predict main risk issues and present risk governance policy recommendations for the chief
decision makers. IRGC mainly emphasizes on rising, universal risks for which governance deficits exist. Its
goal is to present recommendations for how policy makers can them. IRGC models at constructing strong,
integrative inter- disciplinary governance models for up-coming and existing risks. Answer:B is incorrect. As
IRGC is aimed at building robust, integrative inter-disciplinary governance models for emerging and existing
risks, so it is the best answer for this options D and C are incorrect. Risk governance addresses understanding
of the secondary impacts of a risk, the development of resilience and the capacity of organizations and people
to face unavoidable risks.
QUESTION 219
You are elected as the project manager of GHT project. You are in project initialization phase and are busy in
defining requirements for your project. While defining requirements you are describing how users will interact
with a system. Which of the following requirements are you defining here?
A. Technical requirement
B. Project requirement
C. Functional requirement
D. Business requirement
Correct Answer: C
Explanation
While defining requirements, there is need to define three requirements of the project- Business requirement,
Functional requirement, and
Technical requirement
Functional requirements and use case models describe how users will interact with a system. Therefore here in
this stem you are defining the functional requirement of the project. Answer:D is incorrect. Business
requirements contain descriptions of what a system should do. Answer:A is incorrect. Technical requirements
and design specifications and coding specifications describe how the system will interact, conditions under
which the system will operate and the information criteria the system should meet.
Answer:B is incorrect. Business requirement, Functional requirement, and Technical requirement come under
project requirement. In this stem it is particular defining the functional requirement, hence this is not the best
answer.
QUESTION 220
While considering entity-based risks, which dimension of the COSO ERM framework is being referred?
A. Organizational levels
B. Risk components
C. Strategic objectives
D. Risk objectives
Correct Answer: A
Explanation
The organizational levels of the COSO ERM framework describe the subsidiary, business unit, division, and
entity-levels of aspects of risk solutions. Answer:C is incorrect. Strategic objectives includes strategic,
operational, reporting, and compliance risks; and not entity-based risks.
Answer:B is incorrect. Risk components includes Internal Environment, Objectives settings, Event
identification, Risk assessment,Risk response, Control activities, Information and communication, and
monitoring.
Answer:D is incorrect. This is not valid answer.
QUESTION 221
You are the project manager for Bluewell Inc. You are studying the documentation of project plan. The
documentation states that there are twenty-five stakeholders with the project. What will be the number of
communication channel s for the project?
A. 20
B. 100
C. 50
D. 300
Correct Answer: D
Explanation
Communication channels are paths of communication with stakeholders in a project. The number of
communication channels shows the complexity of a project's communication and can be derived through the
formula shown below:
Total Number of Communication Channels = n (n-1)/2
Where n is the number of stakeholders. Hence, a project having five stakeholders will have ten communication
channels. Putting the value of the number of stakeholders in the formula will provide the number of
communication channels.
Hence,
Number of communication channel = (n (n-1)) / 2
= (25 (25-1)) / 2
= (25 x 24) / 2
= 600 / 2
= 300
Answer:A, C, and B are incorrect.
These are not valid number of communication channels for the given scenario.
QUESTION 222
Which of the following are the common mistakes while implementing KRIs?
A. Choosing KRIs that are difficult to measure

B. Choosing KRIs that has high correlation with the risk
C. Choosing KRIs that are incomplete or inaccurate due to unclear specifications
D. Choosing KRIs that are not linked to specific risk
Correct Answer: ACD

Explanation
A common mistake when implementing KRIs other than selecting too many KRIs includes choosing KRIs that
are:
Not linked to specific risk
Incomplete or inaccurate due to unclear specifications Too generic
Difficult to aggregate, compare and interpret
Difficult to measure
Answer:B is incorrect. For ensuring high reliability of the KRI, The indicator must possess a high correlation
with the risk and be a good predictor or outcome measure. Hence KRIs are chosen that has high correlation
with the risk.
QUESTION 223
Which of the following control audit is performed to assess the efficiency of the productivity in the operations
environment?
A. Operational
B. Financial
C. Administrative
D. Specialized
Correct Answer: C
Explanation
The administrative audit is used to assess the efficiency of the productivity in the operations environment.
Answer:B is incorrect. Audits that assesses the correctness of financial statements is called financial audit.
Answer:A is incorrect. It evaluates the internal control structure of process of functional area. Answer:D is
incorrect. They are the IS audits with specific intent to examine areas, such as processes, services, or
technologies, usually by third party auditors.
QUESTION 224
Billy is the project manager of the HAR Project and is in month six of the project. The project is scheduled to
last for 18 months.
Management asks Billy how often the project team is participating in risk reassessment in this project. What
should Billy tell management if he's following the best practices for risk management?
A. Project risk management has been concluded with the project planning.
B. Project risk management happens at every milestone.
C. Project risk management is scheduled for every month in the 18-month project.
D. At every status meeting the project team project risk management is an agenda item.
Correct Answer: D
Explanation
Risk management is an ongoing project activity. It should be an agenda item at every project status meeting.
Answer:B is incorrect. Milestones are good times to do reviews, but risk management should happen
frequently.
Answer:C is incorrect. This answer would only be if the project has a status meeting just once per month in the
project.
Answer:A is incorrect. Risk management happens throughout the project as does project planning.
QUESTION 225
You are the project manager of the NGQQ Project for your company. To help you communicate project status
to your stakeholders, you are going to create a stakeholder register. All of the following information should be
included in the stakeholder register except for which one?
A. Stakeholder management strategy

B. Assessment information of the stakeholders' major requirements, expectations, and potential influence
C. Identification information for each stakeholder
D. Stakeholder classification of their role in the project
Correct Answer: A
Explanation
The stakeholder management strategy is generally not included in the stakeholder registry because it may
contain sensitive information that should not be shared with project team members or certain other individuals
that could see the stakeholder register. The stakeholder register is a project management document that
contains a list of the stakeholders associated with the project. It assesses how they are involved in the project
and identifies what role they play in the organization. The information in this document can be very perceptive
and is meant for limited exchange only. It also contains relevant information about the stakeholders, such as
their requirements, expectations, and influence on the project. Answer:C, B, and D are incorrect. Stakeholder
identification, Assessment information, and Stakeholder classification should be included in the stakeholder
register.
QUESTION 226
Della works as a project manager for Tech Perfect Inc. She is studying the documentation of planning of a
project. The documentation states that there are twenty-eight stakeholders with the project. What will be the
number of communication channels for the project?
A. 250
B. 28
C. 378
D. 300
Correct Answer: C
Explanation
According to the twenty- eight stakeholders. Communication channels are paths of communication with
stakeholders in a project. The number of communication channels shows the complexity of a project's
communication and can be derived through the formula shown below:
Total Number of Communication Channels = n (n-1)/2
Where n is the number of stakeholders. Hence, a project having five stakeholders will have ten communication
channels. Putting the value of the number of stakeholders in the formula will provide the number of
communication channels. Putting the value of the number of stakeholders in the formula will provide the
number of communication channels:
Number of communication channel = (n (n-1)) / 2
= (28 (28-1)) / 2
= (28 x 27) / 2
= 756 / 2
= 378
QUESTION 227
Shawn is the project manager of the HWT project. In this project Shawn's team reports that they have found a
way to complete the project work cheaply than what was originally estimated earlier. The project team presents
a new software that will help to automate the project work. While the software and the associated training costs
$25,000 it will save the project nearly $65,000 in total costs. Shawn agrees to the software and changes the
project management plan accordingly. What type of risk response had been used by him?
A. Avoiding
B. Accepting
C. Exploiting
D. Enhancing
Correct Answer: C
Explanation
A risk event is been exploited so as to identify the opportunities for positive impacts. Exploit response is one of
the strategies to negate risks or threats that 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. Accepting is a risk response that is appropriate for positive or negative risk events. It
does not pursue the risk, but documents the event and allows the risk to happen. Often acceptance is used for
low probability and low impact risk events. Answer:A is incorrect. To avoid a risk means to evade it altogether,
eliminate the cause of the risk event, or change the project plan to protect the project objectives from the risk
event. Answer:D is incorrect. Enhancing is a positive risk response that aims to increase the probability and/or
impact of the risk event.
QUESTION 228
Which among the following is the BEST reason for defining a risk response?
A. To eliminate risk from the enterprise

B. To ensure that the residual risk is within the limits of the risk appetite and tolerance
C. To overview current status of risk
D. To mitigate risk
Correct Answer: B
Explanation
The purpose of defining a risk response is to ensure that the residual risk is within the limits of the risk appetite
and tolerance of the enterprise. Risk response is based on selecting the correct, prioritized response to risk,
based on the level of risk, the enterprise's risk tolerance and the cost or benefit of the particular risk response
option.
Answer:A is incorrect. Risk cannot be completely eliminated from the enterprise. Answer:D is incorrect.
Mitigation of risk is itself the risk response process, not the reason behind this.
Answer:C is incorrect. This is not a valid answer.
QUESTION 229
Which of the following is the BEST defense against successful phishing attacks?
A. Intrusion detection system

B. Application hardening
C. End-user awareness
D. Spam filters
Correct Answer: C
Explanation
Phishing is a way of attempting to acquire information such as usernames, passwords, and credit card details
by masquerading as a trustworthy entity in an electronic communication. Phishing attacks are a type of to
social engineering attack and are best defended by end-user awareness training.
Answer:B is incorrect. Application hardening does not protect against phishing attacks since phishing attacks
generally use e-mail as the attack vector, with the end-user as the vulnerable point, not the application.
Answer:D is incorrect. Certain highly specialized spam filters can reduce the number of phishing e- mails that
reach the inboxes of user, but they are not as effective in addressing phishing attack as end-user awareness.
Answer:A is incorrect. An intrusion detection system does not protect against phishing attacks since phishing
attacks usually do not have a particular pattern or unique signature.
QUESTION 230
Which of the following laws applies to organizations handling health care information?
A. GLBA
B. HIPAA
C. SOX
D. FISMA
Correct Answer: B
Explanation
HIPAA handles health care information of an organization. The Health Insurance Portability and Accountability
Act (HIPAA) were introduced in 1996. It ensures that health information data is protected. Before HIPAA,
personal medical information was often available to anyone. Security to protect the data was lax, and the data
was often misused. If your organization handles health information, HIPAA applies. HIPAA defines health
information as any data that is created or received by health care providers, health plans, public health
authorities, employers, life insurers, schools or universities, and health care clearinghouses. HIPAA defines
any data that is related to the health of an individual, including past/present/future health, physical/mental
health, and past/present/future payments for health care. Creating a HIPAA compliance plan involves following
phases:
Assessment: An assessment helps in identifying whether organization is covered by HIPAA. If it is, then further
requirement is to identify what data is needed to protect. Risk analysis: A risk analysis helps to identify the
risks. In this phase, analyzing method of handling data of organization is done.
Plan creation: After identifying the risks, plan is created. This plan includes methods to reduce the risk.
Plan implementation: In this plan is being implemented. Continuous monitoring: Security in depth requires
continuous monitoring. Monitor regulations for changes. Monitor risks for changes.
Monitor the plan to ensure it is still used.
Assessment: Regular reviews are conducted to ensure that the organization remains in compliance.
Answer:C is incorrect. SOX designed to hold executives and board members personally responsible for
financial data.
Answer:A is incorrect. GLBA is not used for handling health care information. Answer:D is incorrect. FISMA
ensures protection of data of federal agencies.
QUESTION 231
Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan
the risk responses for the NNP Project. Mike would like the project team to work together on establishing risk
thresholds in the project. What is the purpose of establishing risk threshold?
A. It is a study of the organization's risk tolerance.

B. It is a warning sign that a risk event is going to happen.
C. It is a limit of the funds that can be assigned to risk events.
D. It helps to identify those risks for which specific responses are needed.
Correct Answer: D
Explanation
Risk threshold helps to identify those risks for which specific responses are needed.
QUESTION 232
What should be considered while developing obscure risk scenarios?
A. Visibility
B. Controls
C. Assessment methods
D. Recognition
Correct Answer: AD
Explanation
The enterprise must consider risk that has not yet occurred and should develop scenarios around unlikely,
obscure or non-historical events.
Such scenarios can be developed by considering two things:
Visibility
Recognition
as something wrong
QUESTION 233
Which of the following is true for risk management frameworks, standards and practices?
A. They act as a guide to focus efforts of variant teams.

B. They result in increase in cost of training, operation and performance improvement.
C. They provide a systematic view of "things to be considered" that could harm clients or an enterprise.
D. They assist in achieving business objectives quickly and easily.
Correct Answer: AD
Explanation
Frameworks, standards and practices are necessary as:
They provide a systematic view of "things to be considered" that could harm clients or an enterprise.
They act as a guide to focus efforts of variant teams. They save time and revenue, such as training costs,
operational costs and performance improvement costs.
They assist in achieving business objectives quickly and easily.
QUESTION 234
An interruption in business productivity is considered as which of the following risks?
A. Reporting risk
B. Operational risk
C. Legal risk
D. Strategic risk
Correct Answer: B
Explanation
Operation risks encompass any potential interruption in business. Operational risks are those risk that are
associated with the day-to-day operations of the enterprise. They are generally more detailed as compared to
strategic risks. It is the risk of loss resulting from inadequate or failed internal processes, people and systems,
or from external events. Some sub-categories of operational risks include:
Organizational or management related risks
Information security risks
Production, process, and productivity risks
Profitability operational risks
Business interruption risks
Project activity risks
Contract and product liability riss
Incidents and crisis
Illegal or malicious acts
Answer:D is incorrect. Strategic risks have potential which breaks in obtaining strategic objectives. Since the
strategic objective will shape and impact the entire organization, the risk of not meeting that objective can
impose a great threat on the organization. Answer:A is incorrect. Reporting risks are those occurrences which
prevent accurate and timely reporting.
Answer:C is incorrect. Legal risks are dealing with those events which can deteriorate the company's legal
status. Legal compliance is the process or procedure to ensure that an organization follows relevant laws,
regulations and business rules. The definition of legal compliance, especially in the context of corporate legal
departments, has recently been expanded to include understanding and adhering to ethical codes within entire
professions, as well. Hence legal and compliance risk has the potential to deteriorate company's legal or
regulatory status.
QUESTION 235
You are the project manager of the QPS project. You and your project team have identified a pure risk. You
along with the key stakeholders, decided to remove the pure risk from the project by changing the project plan
altogether. What is a pure risk?
A. It is a risk event that only has a negative side and not any positive result.
B. It is a risk event that is created by the application of risk response.
C. It is a risk event that is generated due to errors or omission in the project work.
D. It is a risk event that cannot be avoided because of the order of the work.
Correct Answer: A
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. Answer:D is incorrect. This in not valid definition of pure risk. Answer:B is incorrect. The risk
event created by the application of risk response is called secondary risk.
Answer:C is incorrect. A risk event that is generated due to errors or omission in the project work is not
necessarily pure risk.
QUESTION 236
You work as a project manager for BlueWell Inc. You are preparing to plan risk responses for your project with
your team. How many risk response types are available for a negative risk event in the project?
A. 5
B. 7
C. 1
D. 4
Correct Answer: D
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
Answer:A, C, and B are incorrect. These are inchoices as only 4 risk response are available to deal with
negative risks.
QUESTION 237
You are the project manager for your organization. You are preparing for the quantitative risk analysis. Mark, a
project team member, wants to know why you need to do quantitative risk analysis when you just completed
qualitative risk analysis. Which one of the following statements best defines what quantitative risk analysis is?
A. Quantitative risk analysis is the review of the risk events with the high probability and the highest impact on
the project objectives.
B. Quantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing and
combining their probability of occurrence and impact.
C. Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall
project objectives.
D. Quantitative risk analysis is the planning and quantification of risk responses based on probability and
impact of each risk event.
Correct Answer: C
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.
Answer:B is incorrect. This is actually the definition of qualitative risk analysis. Answer:A is incorrect. While
somewhat true, this statement does not completely define the quantitative risk analysis process.
Answer:D is incorrect. This is not a valid statement about the quantitative risk analysis process. Risk response
planning is a separate project management process.
QUESTION 238
You are the project manager of your enterprise. You have identified new threats, and then evaluated the ability
of existing controls to mitigate risk associated with new threats. You noticed that the existing control is not
efficient in mitigating these new risks. What are the various steps you could take in this case?
A. Education of staff or business partners

B. Deployment of a threat-specific countermeasure
C. Modify of the technical architecture
D. Apply more controls
Correct Answer: ABC

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
Answer:D is incorrect. Applying more controls is not the good solution. They usually complicate the condition.
QUESTION 239
Which of the following risks is associated with not receiving the right information to the right people at the right
time to allow the right action to be taken?
A. Relevance risk
B. Integrity risk
C. Availability risk
D. Access risk
Correct Answer: A
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. Answer:D is incorrect. 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.
Answer:B is incorrect. The risk that data cannot be relied on because they are unauthorized, incomplete or
inaccurate is termed as integrity risk.
Answer:C is incorrect. The risk of loss of service or that data is not available when needed is referred as
availability risk.
QUESTION 240
Kelly is the project manager of the NNQ Project for her company. This project will last for one year and has a
budget of $350,000. Kelly is working with her project team and subject matter experts to begin the risk
response planning process. What are the two inputs that Kelly would need to begin the plan risk response
process?
A. Risk register and the results of risk analysis

B. Risk register and the risk response plan
C. Risk register and power to assign risk responses
D. Risk register and the risk management plan
Correct Answer: D
Explanation
The only two inputs for the risk response planning are the risk register and the risk management plan.
Risk register
Answer:B is incorrect. Kelly will not need the risk response plan until monitoring and controlling the project.
Answer:C is incorrect. The results of risk analysis will help Kelly prioritize the risks, but this information will be
recorded in the risk register.
Answer:D is incorrect. 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.
QUESTION 241
Tom works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which
of the following inputs of the identify risks process is useful in identifying risks, and provides a quantitative
assessment of the likely cost to complete the scheduled activities?
B. Risk management plan
D. Activity cost estimates
Correct Answer: D
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. Answer:B is incorrect. 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. Answer:A is
incorrect. 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.
Answer:C is incorrect. 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.
QUESTION 242
Which of the following baselines identifies the specifications required by the resource that meet the approved
requirements?
A. Functional baseline
B. Allocated baseline
C. Product baseline
D. Developmental baseline
Correct Answer: B
Explanation
Allocated baseline identifies the specifications that meet the approved requirements. Answer:A is incorrect.
Functional baseline identifies the initial specifications before any changes are made.
Answer:C is incorrect. Product baseline identifies the minimal specification required by the resource to meet
business outcomes.
Answer:D is incorrect. Developmental baseline identifies the state of the resources as it is developed to meet
or exceed expectations and requirements.
QUESTION 243
Which of the following nodes of the decision tree analysis represents the start point of decision tree?
A. Decision node
B. End node
C. Event node
D. Root node
Correct Answer: D
Explanation
Root node is the starting node in the decision tree.
Answer:C is incorrect. 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. Answer:A is incorrect. Decision nodes
represents the choice available to the decision maker, usually between a risky choice and its non-risky
counterpart. Answer:B is incorrect. End node represents the outcomes of risk and decisions.
QUESTION 244
You are the project manager of the NHH Project. You are working with the project team to create a plan to
document the procedures to manage risks throughout the project. This document will define how risks will be
identified and quantified. It will also define how contingency plans will be implemented by the project team.
What document do you and your team is creating in this scenario?
A. Project plan
B. Resource management plan
Correct Answer: D
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.
Answer: C is incorrect. The project management plan is a comprehensive plan that communicates the intent of
the project for all project management knowledge areas. Answer: A is incorrect. The project plan is not an
official PMBOK project management plan. Answer: B is incorrect. The resource management plan defines the
management of project resources, such as project team members, facilities, equipment, and contractors.
QUESTION 245
Where are all risks and risk responses documented as the project progresses?

B. Project management plan
C. Risk response plan
D. Risk register
Correct Answer: D
Explanation
All risks, their responses, and other characteristics are documented in the risk register. As the project
progresses and the conditions of the risk events change, the risk register should be updated to reflect the risk
conditions.
Answer: A is incorrect. The risk management plan addresses the project management's approach to risk
management, risk identification, analysis, response, and control. Answer: C is incorrect. The risk response plan
only addresses the planned risk responses for the identified risk events in the risk register.
Answer: B is incorrect. The project management plan is the overarching plan for the project, not the specifics of
the risk responses and risk identification.
QUESTION 246
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?
A. Transference
B. Mitigation
C. Avoidance
D. Exploit
Correct Answer: A
Explanation
When you are hiring a third party to own risk, it is known as transference risk response. Risk transfer means
that impact of risk is reduced by transferring or otherwise sharing a portion of the risk with an external
organization or another internal entity. Transfer of risk can occur in many forms but is most effective when
dealing with financial risks. Insurance is one form of risk transfer.
Answer: B is incorrect. The act of spending money to reduce a risk probability and impact is known as
mitigation.
Answer: D is incorrect. Exploit is a strategy that may be selected for risks with positive impacts where the
organization wishes to ensure that the opportunity is realized. Answer: C is incorrect. When extra activities are
introduced into the project to avoid the risk, this is an example of avoidance.
QUESTION 247
John works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which
of the following inputs of the identify risks process is useful 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. Activity cost estimates
D. Schedule management plan
Correct Answer: A
Explanation
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.
Answer: B is incorrect. The activity cost estimates review is valuable in identifying risks as it provides a
quantitative assessment of the expected cost to complete scheduled activities and is expressed as a range,
with a width of the range indicating the degrees of risk. Answer: D is incorrect. It describes how the schedule
contingencies will be reported and assessed.
Answer: C is incorrect. 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.
QUESTION 248
Which of the following events refer to loss of integrity?
A. Someone sees company's secret formula

B. Someone makes unauthorized changes to a Web site
C. An e-mail message is modified in transit
D. A virus infects a file
Correct Answer: BCD

Explanation
An e-mail message is modified in transit A virus infects a file Someone makes unauthorized changes to a Web
site
Answer: A is incorrect. Someone sees company's secret formula or password comes under loss of
confidentiality.
QUESTION 249
Which of the following should be PRIMARILY considered while designing information systems controls?
A. The IT strategic plan

B. The existing IT environment
C. The organizational strategic plan
D. The present IT budget
Correct Answer: C
Explanation
Review of the enterprise's strategic plan is the first step in designing effective IS controls that would fit the
enterprise's long-term plans.
Answer: B is incorrect. Review of the existing IT environment is also useful and necessary but is not the first
step that needs to be undertaken.
Answer: D is incorrect. The present IT budget is just one of the components of the strategic plan. Answer: A is
incorrect. The IT strategic plan exists to support the enterprise's strategic plan but is not solely considered
while designing information system control.
QUESTION 250
Which of the following is the MOST effective inhibitor of relevant and efficient communication?
A. A false sense of confidence at the top on the degree of actual exposure related to IT and lack of a well-
understood direction for risk management from the top down
B. The perception that the enterprise is trying to cover up known risk from stakeholders
C. Existence of a blame culture
D. Misalignment between real risk appetite and translation into policies
Correct Answer: C
Explanation
Blame culture should be avoided. It is the most effective inhibitor of relevant and efficient communication. In a
blame culture, business units tend to point the finger at IT when projects are not delivered on time or do not
meet expectations. In doing so, they fail to realize how the business unit's involvement up front affects project
success. In extreme cases, the business unit may assign blame for a failure to meet the expectations that the
unit never clearly communicated. Executive leadership must identify and quickly control a blame culture if
collaboration is to be fostered throughout the enterprise.
Answer: A is incorrect. This is the consequence of poor risk communication, not the inhibitor of effective
communication.
Answer: D is incorrect. Misalignment between real risk appetite and translation into policies is an inhibitor of
effective communication, but is not a prominent as existence of blame culture. Answer: B is incorrect. . This is
the consequence of poor risk communication, not the inhibitor of effective communication.
QUESTION 251
You and your project team are identifying the risks that may exist within your project. Some of the risks are
small risks that won't affect your project much if they happen. What should you do with these identified risk
events?
A. These risks can be dismissed.
B. These risks can be accepted.
C. These risks can be added to a low priority risk watch list.
D. All risks must have a valid, documented risk response.
Correct Answer: C
Explanation
Low-impact, low-probability risks can be added to the low priority risk watch list. Answer: B is incorrect. While
these risks may be accepted, they should be documented on the low priority risk watch list. This list will be
periodically reviewed and the status of the risks may change. Answer: A is incorrect. These risks are not
dismissed; they are still documented on the low priority risk watch list.
Answer: D is incorrect. Not every risk demands a risk response, so this choice is incorrect.
QUESTION 252
You are the project manager of your enterprise. You have introduced an intrusion detection system for the
control. You have identified a warning of violation of security policies of your enterprise. What type of control is
an intrusion detection system (IDS)?
A. Detective
B. Corrective
C. Preventative
D. Recovery
Correct Answer: A
Explanation
An intrusion detection system (IDS) is a device or software application that monitors network and/or system
activities for malicious activities or policy violations and produces reports to a Management Station. Some
systems may attempt to stop an intrusion attempt but this is neither required nor expected of a monitoring
system. Intrusion detection and prevention systems (IDPS) are primarily focused on identifying possible
incidents, logging information about them, and reporting attempts. In addition, organizations use IDPS for other
purposes, such as identifying problems with security policies, documenting existing threats, and deterring
individuals from violating security policies.
As IDS detects and gives warning when the violation of security policies of the enterprise occurs, it is a
detective control.
Answer: C is incorrect. As IDS only detects the problem when it occurs and not prior of its occurrence, it is not
preventive control.
Answer: B is incorrect. These controls make effort to reduce the impact of a threat from problems discovered
by detective controls.
As IDS only detects but nt reduce the impact, hence it is not a corrective control. Answer: D is incorrect. :
These controls make efforts to overcome the impact of the incident on the business, hence IDS is not a
recovery control.
QUESTION 253
What are the functions of audit and accountability control?
A. Provides details on how to protect the audit logs

B. Implement effective access control
C. Implement an effective audit program
D. Provides details on how to determine what to audit
Correct Answer: ACD

Explanation
Audit and accountability family of controls helps an organization implement an effective audit program. It
provides details on how to determine what to audit. It provides details on how to protect the audit logs. It also
includes information on using audit logs for non-repudiation. Answer: B is incorrect. Access Control is the
family of controls that helps an organizationimplement effective access control. They ensure that users have
the rights and permissionsthey need to perform their jobs, and no more. It includes principles such as least
privilege and separation of duties.
Audit and accountability family of controls do not help in implementing effective access control.
QUESTION 254
Which among the following acts as a trigger for risk response process?
A. Risk level increases above risk appetite

B. Risk level increase above risk tolerance
C. Risk level equates risk appetite
D. Risk level equates the risk tolerance
Correct Answer: B
Explanation
The risk response process is triggered when a risk exceeds the enterprise's risk tolerance level. The
acceptable variation relative to the achievement of an objective is termed as risk tolerance. In other words, risk
tolerance is the acceptable deviation from the level set by the risk appetite and business objectives.
Answer: C and A are incorrect. Risk appetite level is not relevant in triggering of risk response process. Risk
appetite is the amount of risk a company or other entity is willing to accept in pursuit of its mission. This is the
responsibility of the board to decide risk appetite of an enterprise. When considering the risk appetite levels for
the enterprise, the followingtwo major factors should be taken into account:
pursue of its objective fulfillment. Answer: D is incorrect. Risk response process is triggered when the risk level
increases the risk tolerance level of the enterprise, and not when it just equates the risk tolerance level.
QUESTION 255
What is the value of exposure factor if the asset is lost completely?
A. 1
B. Infinity
C. 10
D. 0
Correct Answer: A
Explanation
Exposure Factor represents the impact of the risk over the asset, or percentage of asset lost. For example, if
the Asset Value is reduced to two third, the exposure factor value is 0.66. Therefore, when the asset is
completely lost, the Exposure Factor is 1.0. Answer: B, D, and C are incorrect. These are not the values of
exposure factor for zero assets.
QUESTION 256
Your project is an agricultural-based project that deals with plant irrigation systems. You have discovered a
byproduct in your project that your organization could use to make a profit. If your organization seizes this
opportunity it would be an example of what risk response?
A. Enhancing
B. Positive
C. Opportunistic
D. Exploiting
Correct Answer: D
Explanation
This is an example of exploiting a positive risk - a by-product of a project is an excellent example of exploiting a
risk. Exploit response is one of the strategies to negate risks or threats that 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
Answer: C is incorrect. Opportunistic is not a valid risk response. Answer: B is incorrect. This is an example of
a positive risk, but positive is not a risk response. Answer: A is incorrect. Enhancing is a positive risk response
that describes actions taken to increase the odds of a risk event to happen.
QUESTION 257
Which of the following is true for Single loss expectancy (SLE), Annual rate of occurrence (ARO), and Annual
loss expectancy (ALE)?
A. ALE= ARO/SLE
B. ARO= SLE/ALE
C. ARO= ALE*SLE
D. ALE= ARO*SLE
Correct Answer: D
Explanation
includes the value of data, software, and hardware. SLE = Asset value * Exposure factor
value. For example, if the SLE is $1,000 and the ARO is 24, the ALE is $24,000.
ALE = SLE * ARO Safeguard value-This is the cost of a control. Controls are used to mitigate risk. For
example, antivirus software of an average cost of $50 for each computer. If there are 50 computers, the
safeguard value is $2,500. Answer: C, A, and B are incorrect. These are wrong formulas and are not used in
quantitative risk assessment.
QUESTION 258
Which of the following statements are true for enterprise's risk management capability maturity level 3?
A. Workflow tools are used to accelerate risk issues and track decisions
B. The business knows how IT fits in the enterprise risk universe and the risk portfolio view
C. The enterprise formally requires continuous improvement of risk management skills, based on clearly
defined personal and enterprise goals
D. Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are
recognized
Correct Answer: ABD

Explanation
Risk management is viewed as a business issue, and both the drawbacks and benefits of risk are recognized.
There is a selected leader for risk management, engaged with the enterprise risk committee, across the
enterprise.
The business knows how IT fits in the enterprise risk universe and the risk portfolio view.
Local tolerances drive the enterprise risk tolerance.
Risk management activities are being aligned across the enterprise. Formal risk categories are identified and
described in clear terms. Situations and scenarios are included in risk awareness training beyond specific
policy and structures and promote a common language for communicating risk. Defined requirements exist for
a centralized inventory of risk issues. Workflow tools are used to accelerate risk issues and track decisions.
Answer: C is incorrect. Enterprise having risk management capability maturity level 5 requires continuous
improvement of risk management skills, based on clearly defined personal and enterprise goals.
QUESTION 259
Which of the following role carriers is accounted for analyzing risks, maintaining risk profile, and risk-aware
decisions?
A. Business management
Correct Answer: A
Explanation
Business management is the business individuals with roles relating to managing a program. They are typically
accountable for analyzing risks, maintaining risk profile, and risk-aware decisions. Other than this, they are also
responsible for managing risks, react to events, etc. Answer: C is incorrect. CIO is the most senior official of
the enterprise who is accountable for IT advocacy; aligning IT and business strategies; and planning,
resourcing and managing the delivery of IT services and information and the deployment of associated human
resources. CIO has some responsibility analyzing risks, maintaining risk profile, and risk-aware decisions but is
Answer: B is incorrect. Business process owner is an individual responsible for identifying process
requirements, approving process design and managing process performance. He/she is responsible for
analyzing risks, maintaining risk profile, and risk-aware decisions but is not accounted for them.
Answer: D is incorrect. CRO is the individual who oversees all aspects of risk management across the
enterprise. He/she is responsible for analyzing risks, maintaining risk profile, and risk-aware decisions but is
QUESTION 260
You are using Information system. You have chosen a poor password and also sometimes transmits data over
unprotected communication lines. What is this poor quality of password and unsafe transmission refers to?
A. Probabilities
B. Threats
C. Vulnerabilities
D. Impacts
Correct Answer: C
Explanation
Vulnerabilities represent characteristics of information resources that may be exploited by a threat. The given
scenario describes such a situation, hence it is a vulnerability. Answer: B is incorrect. Threats are
circumstances or events with the potential to cause harm to information resources. This scenario does not
describe a threat. Answer: A is incorrect. Probabilities represent the likelihood of the occurrence of a threat,
and this scenario does not describe a probability.
Answer: D is incorrect. Impacts represent the outcome or result of a threat exploiting a vulnerability. The stem
does not describe an impact.
QUESTION 261
Which of the following is the BEST way to ensure that outsourced service providers comply with the
enterprise's information security policy?
A. Penetration testing
B. Service level monitoring
C. Security awareness training
D. Periodic audits
Correct Answer: D
Explanation
As regular audits can spot gaps in information security compliance, periodic audits can ensure that outsourced
service provider comply with the enterprise's information security policy. Answer: C is incorrect. Training can
increase user awareness of the information security policy, but is less effective than periodic auditing.
Answer: A is incorrect. Penetration testing can identify security vulnerability, but cannot ensure information
compliance.
Answer: B is incorrect. Service level monitoring can only identify operational issues in the enterprise's
operational environment. It does not play any role in ensuring that outsourced service provider comply with the
enterprise's information security policy.
QUESTION 262
You are the project manager of RFT project. You have identified a risk that the enterprise's IT system and
application landscape is so complex that, within a few years, extending capacity will become difficult and
maintaining software will become very expensive. To overcome this risk the response adopted is re-
architecture of the existing system and purchase of new integrated system. In which of the following risk
prioritization options would this case be categorized?
A. Deferrals
B. Quick win
C. Business case to be made
D. Contagious risk
Correct Answer: C
Explanation
This is categorized as a Business case to be made because the project cost is very large. The response to be
implemented requires quite large investment. Therefore it comes under business case to be made.
Answer: B is incorrect. Quick win is very effective and efficient response that addresses medium to high risk.
But in this the response does not require large investments. Answer: A is incorrect. It addresses costly risk
response to a low risk. But here the response is less costly than that of business case to be made.
Answer: D is incorrect. This is not risk response prioritization option, instead it is a type of risk that happen with
the several of the enterprise's business partners within a very short time frame.
QUESTION 263
Which of the following BEST ensures that a firewall is configured in compliance with an enterprise's security
policy?
A. Interview the firewall administrator.

B. Review the actual procedures.
C. Review the device's log file for recent attacks.
D. Review the parameter settings.
Correct Answer: D
Explanation
A review of the parameter settings will provide a good basis for comparison of the actual configuration to the
security policy and will provide reliable audit evidence documentation. Answer: B is incorrect. While procedures
may provide a good understanding of how the firewall is supposed to be managed, they do not reliably confirm
that the firewall configuration complies with the enterprise's security policy.
Answer: A is incorrect. While interviewing the firewall administrator may provide a good process overview, it
does not reliably confirm that the firewall configuration complies with the enterprise's security policy.
Answer: C is incorrect. While reviewing the device's log file for recent attacks may provide indirect evidence
about the fact that logging is enabled, it does not reliably confirm that the firewall configuration complies with
the enterprise's security policy.
QUESTION 264
Which of following is NOT used for measurement of Critical Success Factors of the project?
A. Productivity
B. Quality
C. Quantity
D. Customer service
Correct Answer: C
Explanation
Answer: A, B, and D are incorrect. Productivity, quality and customer service are used for evaluating critical
service factor of any particular project.
QUESTION 265
Which of the following statements is NOT true regarding the risk management plan?
A. The risk management plan is an output of the Plan Risk Management process.
B. The risk management plan is an input to all the remaining risk-planning processes.
C. The risk management plan includes a description of the risk responses and triggers.
D. The risk management plan includes thresholds, scoring and interpretation methods, responsible parties, and
budgets.
Correct Answer: C
Explanation
The risk management plan details how risk management processes will be implemented, monitored, and
controlled throughout the life of the project. The risk management plan does not include responses to risks or
triggers. Responses to risks are documented in the risk register as part of the Plan Risk Responses process.
Answer: A, D, and B are incorrect. These all statements are true for risk management plan. The risk
management plan details how risk management processes will be implemented, monitored, and controlled
throughout the life of the project. It includes thresholds, scoring and interpretation methods, responsible
parties, and budgets. It also act as input to all the remaining risk-planning processes.
QUESTION 266
You are the project manager of a project in Bluewell Inc. You and your project team have identified several
project risks, completed risk analysis, and are planning to apply most appropriate risk responses. Which of the
following tools would you use to choose the appropriate risk response?

B. Cause-and-effect analysis
D. Delphi Technique
Correct Answer: C
Explanation
of the risks and oppourtunities connected with each possible course of action. This makes them mostly useful
possible consequences, including chance
event outcomes, resource costs, and utility.
Answer: D is incorrect. Delphi technique is used for risk analysis, i.e., for identifying the most probable risks.
Delphi is a group of experts who used to rate independently the business risk of an organization. Each expert
analyzes the risk independently and then prioritizes the risk, and the result is combined into a consensus.
Answer: A is incorrect. Project network diagrams help the project manager and stakeholders visualize the flow
of the project work, but they are not used as a part of risk response planning. Answer: B is incorrect. Cause-
and-effect analysis is used for exposing risk factors and not an effective one in risk response planning.
This analysis involves the use of predictive or diagnostic analytical tool for exploring the root causes or factors
that contribute to positive or negative effects or outcomes.
QUESTION 267
What is the MAIN purpose of designing risk management programs?
A. To reduce the risk to a level that the enterprise is willing to accept

B. To reduce the risk to the point at which the benefit exceeds the expense
C. To reduce the risk to a level that is too small to be measurable
D. To reduce the risk to a rate of return that equals the current cost of capital
Correct Answer: A
Explanation
Risk cannot be removed completely from the enterprise; it can only be reduced to a level that an organization
is willing to accept. Risk management programs are hence designed to accomplish the task of reducing risks.
Answer:B is incorrect. Depending on the risk preference of an enterprise, it may or may not choose to pursue
risk mitigation to the point at which benefit equals or exceeds the expense. Hence this is not the primary
objective of designing the risk management program. Answer:C is incorrect. Reducing risk to a level too small
to measure is not practical and is often cost-prohibitive.
Answer:D is incorrect. Reducing risks to a specific return ignores the qualitative aspects of the risk which
should also be considered.
QUESTION 268
Which of the following is the priority of data owners when establishing risk mitigation method?
A. User entitlement changes
B. Platform security
C. Intrusion detection
D. Antivirus controls
Correct Answer: A
Explanation
Data owners are responsible for assigning user entitlement changes and approving access to the systems for
which they are responsible.
Answer: C, B, and D are incorrect. Data owners are not responsible for intrusion detection, platform security or
antivirus controls.
These are the responsibilities of data custodians.
QUESTION 269
What type of policy would an organization use to forbid its employees from using organizational e- mail for
personal use?
A. Anti-harassment policy
B. Acceptable use policy
C. Intellectual property policy
D. Privacy policy
Correct Answer: B
Explanation
An acceptable use policy is a set of rules applied by the owner/manager of a network, website or large
computer system that restrict the ways in which the network site or system may beused. Acceptable Use
Policies are an integral part of the framework of information security policies. Answer: D is incorrect. Privacy
policy is a statement or a legal document (privacy law) that discloses some or all of the ways a party gathers,
uses, discloses and manages a customer or client's data.
Answer: C and A are incorrect. These two policies are not related to Information system security.
QUESTION 270
Wendy has identified a risk event in her project that has an impact of $75,000 and a 60 percent chance of
happening. Through research, her project team learns that the risk impact can actually be reduced to just
$15,000 with only a ten percent chance of occurring. The proposed solution will cost $25,000. Wendy agrees to
the $25,000 solution. What type of risk response is this?
A. Mitigation
B. Avoidance
C. Transference
D. Enhancing
Correct Answer: A
Explanation
Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to be within
acceptable threshold limits. Taking early actions to reduce the probability and/or impact of a risk occurring on
the project is often more effective than trying to repair the damage after the risk has occurred.
Answer: B is incorrect. Avoidance changes the project plan to avoid the risk altogether. Answer: C is incorrect.
Transference requires shifting some or all of the negative impacts of a threat, along with the ownership of the
response, to a third party. Transferring the risk simply gives another party the responsibility for its
management-it does not eliminate it. Transferring the liability for a risk is most effective in dealing with financial
risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the
risk. Answer: D is incorrect. Enhancing is actually a positive risk response. This strategy is used to increase the
probability and/or the positive impact of an opportunity. Identifying and maximizing the key drivers of these
positive-impact risks may increase the probability of their occurrence.
QUESTION 271
Which of the following processes addresses the risks by their priorities, schedules the project management
plan as required, and inserts resources and activities into the budget?
A. Monitor and Control Risk

B. Plan risk response
C. Identify Risks
Correct Answer: B
Explanation
Risk register
Answer: C is incorrect. Identify Risks is the process of determining which risks may affect the project. It also
area. As new risks may evolve or become known as the project progresses through its life cycle, Identify Risks
only output of this process. Answer: A is incorrect. Monitor and Control Risk is the process of implementing risk
response plans, tracking identified risks, monitoring residual risk, identifying new risks, and evaluating risk
process effectiveness throughout the project. It can involve choosing alternative strategies, executing a
contingency or fallback plan, taking corrective action, and modifying the project management plan.
Answer: D is incorrect. Qualitative analysis is the definition of risk factors in terms of high/medium/low or a
numeric scale (1 to 10). Hence it determines the nature of risk on a relative scale.
QUESTION 272
Out of several risk responses, which of the following risk responses is used for negative risk events?
A. Share
B. Enhance
C. Exploit
D. Accept
Correct Answer: D
Explanation
Among the given choices only Acceptance response is used for negative risk events. Risk acceptance means
that no action is taken relative to a particular risk; loss is accepted if it occurs. If an enterprise adopts a risk
acceptance, it should carefully consider who can acceptthe risk. Risk should be accepted only by senior
acceptance strategy, passive and active. Passive acceptance means that enterprise has made no plan to avoid
or mitigate the risk but willing to accept the consequences of the risk.
with risks.
Answer: C, A, and B are incorrect. These all are used to deal with opportunities or positive risks, and not with
negative risks.
QUESTION 273
Which of the following is the MOST critical security consideration when an enterprise outsource its major part
of IT department to a third party whose servers are in foreign company?
A. A security breach notification may get delayed due to time difference

B. The enterprise could not be able to monitor the compliance with its internal security and privacy guidelines
C. Laws and regulations of the country of origin may not be enforceable in foreign country
D. Additional network intrusion detection sensors should be installed, resulting in additional cost
Correct Answer: C
Explanation
Laws and regulations of the country of origin may not be enforceable in foreign country and conversely, it is
also true that laws and regulations of the foreign outsourcer may also impact the enterprise. Hence violation of
applicable laws may not be recognized or rectified due to lack of knowledge of the local laws.
Answer:B is incorrect. Outsourcing does not remove the enterprise's responsibility regarding internal
requirements. Hence monitoring the compliance with its internal security and privacy guidelines is not a
problem.
Answer:A is incorrect. Security breach notification is not a problem and also time difference does not play any
role in 24/7 environment. Pagers, cellular phones, telephones, etc. are there to communicate the notifications.
Answer:D is incorrect. The need for additional network intrusion detection sensors is not a major problem as it
can be easily managed. It only requires addition funding, but can be addressed.
QUESTION 274
You are the Risk Official in Bluewell Inc. You have detected much vulnerability during risk assessment process.
What you should do next?
A. Prioritize vulnerabilities for remediation solely based on impact.

B. Handle vulnerabilities as a risk, even though there is no threat.
C. Analyze the effectiveness of control on the vulnerabilities' basis.
D. Evaluate vulnerabilities for threat, impact, and cost of mitigation.
Correct Answer: D
Explanation
Vulnerabilities detected during assessment should be first evaluated for threat, impact and cost of mitigation. It
should be evaluated and prioritized on the basis whether they impose credible threat or not.
Answer:A and C are incorrect. These are the further steps that are taken after evaluating vulnerabilities. So,
these are not immediate action after detecting vulnerabilities. Answer:B is incorrect. If detected vulnerabilities
impose no/negligible threat on an enterprise then it is not cost effective to address it as risk.
QUESTION 275
Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score
to each risk, and creating a list of prioritized risks describes which of the following processes?
A. Qualitative Risk Analysis
B. Plan Risk Management
C. Identify Risks
D. Quantitative Risk Analysis
Correct Answer: A
Explanation
The purpose of qualitative risk analysis is to determine what impact the identified risk events will have on the
project and the probability they'll occur. It also puts risks in priority order according to their effects on the project
objectives and assigns a risk score for the project. Answer:D is incorrect. This process does not involve
assessing the probability and consequences of identified risks.
Quantitative analysis is the use of numerical and statistical techniques rather than the analysis of verbal
material for analyzing risks. Some of the quantitative methods of risk analysis are:
Internal loss method
External data analysis
Business process modeling (BPM) and simulation
Statistical process control (SPC)
Answer:C is incorrect. It involves listing of all the possible risks so as to cure them before it can occur. In risk
identification both threats and opportunities are considered, as both carry some level of risk with them.
Answer:B is incorrect. Risk Management is used to identify, assess, and control risks. It includes analyzing the
value of assets to the business, identifying threats to those assets, and evaluating how vulnerable each asset
is to those threats.
Assessing the probability and consequences of identified risks is only the part of risk management.
QUESTION 276
You and your project team have identified a few risk events in the project and recorded the events in the risk
register. Part of the recording of the events includes the identification of a risk owner.
Who is a risk owner?
A. A risk owner is the party that will monitor the risk events.
B. A risk owner is the party that will pay for the cost of the risk event if it becomes an issue.
C. A risk owner is the party that has caused the risk event.
D. A risk owner is the party authorized to respond to the risk event.
Correct Answer: D
Explanation
Risk owner for each risk should be the person who has the most influence over its outcome. Selecting the risk
owner thus usually involves considering the source of risk and identifying the person who is best placed to
understand and implement what needs to be done. They are also responsible for responding to the event and
reporting on the risk status. Answer:C is incorrect. Risk owners are not the people who cause the risk event.
Answer:A is incorrect. A risk owner will monitor the identified risks for status changes, but all project
stakeholders should be iteratively looking to identify the risks. Answer:B is incorrect. Risk owners do not pay for
the cost of the risk event.
QUESTION 277
Suppose you are working in Company Inc. and you are using risk scenarios for estimating the likelihood and
impact of the significant risks on this organization. Which of the following assessment are you doing?
A. IT security assessment
B. IT audit
C. Threat and vulnerability assessment
D. Risk assessment
Correct Answer: C
Explanation
Threat and vulnerability assessment consider the full spectrum of risks. It identifies the likelihood of occurrence
of risks and impact of the significant risks on the organization using the risk scenarios. For example: Natural
threats can be evaluated by using historical data concerning frequency of occurrence for given natural
disasters such as tornadoes, hurricanes, floods, fire, etc. Answer:D is incorrect. Risk assessment uses
quantitative and qualitative analysis approaches to evaluate each significant risk identified.
Answer:A and B are incorrect. These use either some technical evaluation tool or assessment methodologies
to evaluate risk but do not use risk scenarios.
QUESTION 278
You are the project manager of the PFO project. You are working with your project team members and two
subject matter experts to assess the identified risk events in the project. Which of the following approaches is
the best to assess the risk events in the project?
A. Interviews or meetings
B. Determination of the true cost of the risk event
C. Probability and Impact Matrix
D. Root cause analysis
Correct Answer: A
Explanation
Risk probability and assessment is completed through interviews and meetings with the participants that are
most familiar with the risk events, the project work, or have other information that can help determine the affect
of the risk.
Answer:C is incorrect. The probability and impact matrix is a tool and technique to prioritize the risk events, but
it's not the best answer for assessing risk events within the project. Answer:B is incorrect. The true cost of the
risk event is not a qualitative risk assessment approach. It is often done during the quantitative risk analysis
process. Answer:D is incorrect. Root cause analysis is a risk identification technique, not a qualitative
assessment tool.
QUESTION 279
Which of the following is BEST described by the definition below?
"They are heavy influencers of the likelihood and impact of risk scenarios and should be taken into account
during every risk analysis, when likelihood and impact are assessed."
A. Obscure risk
B. Risk factors
C. Risk analysis
D. Risk event
Correct Answer: B
Explanation
Risk factors are those features that influence the likelihood and/or business impact of risk scenarios. They
have heavy influences on probability and impact of risk scenarios. They should be taken into account during
every risk analysis, when likelihood and impact are assessed. Answer:C is incorrect. A risk analysis involves
identifying the most probable threats to an organization and analyzing the related vulnerabilities of the
organization to these threats. A risk from an organizational perspective consists of:
Threats to various processes of organization.
Threats to physical and information assets.
Likelihood and frequency of occurrence from threat.
Impact on assets from threat and vulnerability.
Risk analysis allows the auditor to do the following tasks:
Identify threats and vulnerabilities to the enterprise and its information system. Provide information for
evaluation of controls in audit planning.
Aids in determining audit objectives.
Supporting decision based on risks.
Answer:A is incorrect. The enterprise must consider risk that has not yet occurred and should develop
scenarios around unlikely, obscure or non-historical events. Such scenarios can be developed by considering
two things:
Visibility
Recognition
as something wrong Answer:D is incorrect. A risk event represents the situation where you have a risk that
only occurs with a certain probability and where the risk itself is represented by a specified distribution.
QUESTION 280
"It is the process of implementing risk response plans, tracking identified risks, monitoring residual risk,
identifying new risks, and evaluating risk process effectiveness throughout the project."
A. Perform Quantitative Risk Analysis

B. Monitor and Control Risks
C. Identify Risks
D. Perform Qualitative Risk Analysis
Correct Answer: B
Explanation
Monitor and Control Risk is the process of implementing risk response plans, tracking identified risks,
monitoring residual risk, identifying new risks, and evaluating risk process effectiveness throughout the project.
It can involve choosing alternative strategies, executing a contingency or fallback plan, taking corrective action,
and modifying the project management plan. Answer:D is incorrect. This is the process of prioritizing risks for
further analysis or action by accessing and combining their probability of occurrence and impact. Answer:C is
incorrect. This is the process of determining which risks may affect the project and documenting their
characteristics.
Answer:B is incorrect. This is the process of numerically analyzing the effect of identified risks on overall
project objectives.
QUESTION 281
You work as a Project Manager for Company Inc. You have to conduct the risk management activities for a
project. Which of the following inputs will you use in the plan risk management process?
A. Quality management plan

B. Schedule management plan
D. Project scope statement
Correct Answer: BCD

Explanation
The inputs to the plan risk management process are as follows:
Project scope statement: It provides a clear sense of the range of possibilities associated with the project and
establishes the framework for how significant the risk management effort may become. Cost management
plan: It describes how risk budgets, contingencies, and management reserves will be reported and accessed.
Schedule management plan: It describes how the schedule contingencies will be reported and assessed.
Communication management plan: It describes the interactions, which occurs on the project and determines
who will be available to share information on various risks and responses at different times.
Enterprise environmental factors: It include, but are not limited to, risk attitudes and tolerances that describe
the degree of risk that an organization withstand. Organizational process assets: It includes, but are not limited
to, risk categories, risk statement formats, standard templates, roles and responsibilities, authority levels for
decision-making, lessons learned, and stakeholder registers.
Answer:A is incorrect. It is not an input for Plan risk management process.
QUESTION 282
Which of the following documents is described in the statement below?
"It is developed along with all processes of the risk management. It contains the results of the qualitative risk
analysis, quantitative risk analysis, and risk response planning."

B. Risk management plan
C. Risk register
D. Project charter
Correct Answer: C
Explanation
Risk register is a document that contains the results of the qualitative risk analysis, quantitative risk analysis,
and risk response planning.
Risk register is developed along with all processes of the risk management from Plan Risk Management
through Monitor and Control Risks.
Answer:A is incorrect. The quality management plan is a component of the project management plan. It
describes how the project team will implement the organization's quality policy. The quality management plan
addresses quality control (QC), quality assurance (QA), and continuous process improvement for the project.
Based on the requirement of the project, the quality management plan may be formal or informal, highly
detailed or broadly framed. Answer:B is incorrect. Risk management plan includes roles and responsibilities,
risk analysis definitions, timing for reviews, and risk threshold. The Plan Risk Responses process takes input
from risk management plan and risk register to define the risk response. Answer:D is incorrect. The project
charter is the document that formally authorizes a project. The project charter provides the project manager
with the authority to apply organizational resources to project activities.
QUESTION 283
You have identified several risks in your project. You have opted for risk mitigation in order to respond to
identified risk. Which of the following ensures that risk mitigation method that you have chosen is effective?
A. Reduction in the frequency of a threat

B. Minimization of inherent risk
C. Reduction in the impact of a threat
D. Minimization of residual risk
Correct Answer: B
Explanation
The inherent risk of a process is a given and cannot be affected by risk reduction or risk mitigation efforts.
Hence it should be reduced as far as possible. Answer:D is incorrect. The objective of risk reduction is to
reduce the residual risk to levels below the enterprise's risk tolerance level.
Answer:A is incorrect. Risk reduction efforts can focus on either avoiding the frequency of the risk or reducing
the impact of a risk.
Answer:C is incorrect. Risk reduction efforts can focus on either avoiding the frequency of the risk or reducing
the impact of a risk.
QUESTION 284
Which of the following control is used to ensure that users have the rights and permissions they need to
perform their jobs, and no more?
A. System and Communications protection control

B. Audit and Accountability control
C. Access control
D. Identification and Authentication control
Correct Answer: C
Explanation
Access control helps an organization implement effective access control. They ensure that users have the
rights and permissions they need to perform their jobs, and no more. It includes principles such as least
privilege and separation of duties. Answer:B is incorrect. Audit and Accountability control helps an organization
implement an effective audit program. It provides details on how to determine what to audit. It provides details
on how to protect the audit logs. It also includes information on using audit logs for non-repudiation. Answer:D
is incorrect. Identification and Authentication control cover different practices to identify and authenticate users.
Each user should be uniquely identified. In other words, each user has one account. This account is only used
by one user. Similarly, device identifiers uniquely identify devices on the network.
Answer:A is incorrect. System and Communications protection control is a large group of controls that cover
many aspects of protecting systems and communication channels. Denial of service protection and boundary
protection controls are included. Transmission integrity and confidentiality controls are also included.
QUESTION 285
You are working in an enterprise. Your enterprise owned various risks. Which among the following is MOST
likely to own the risk to an information system that supports a critical business process?
A. System users
B. Senior management
C. IT director
D. Risk management department
Correct Answer: B
Explanation
Senior management is responsible for the acceptance and mitigation of all risk. Hence they will also own the
risk to an information system that supports a critical business process. Answer:C is incorrect. The IT director
manages the IT systems on behalf of the business owners. Answer:D is incorrect. The risk management
department determines and reports on level of risk, but does not own the risk. Risk is owned by senior
management. Answer:A is incorrect. The system users are responsible for utilizing the system properly and
following procedures, but they do not own the risk.
QUESTION 286
Which of the following components ensures that risks are examined for all new proposed change requests in
the change control system?
B. Scope change control
C. Risk monitoring and control
D. Integrated change control
Correct Answer: D
Explanation
Integrated change control is the component that is responsible for reviewing all aspects of a change's impact
on a project - including risks that may be introduced by the new change. Integrated change control is a way to
manage the changes incurred during a project. It is a method that manages reviewing the suggestions for
changes and utilizing the tools and techniques to evaluate whether the change should be approved or rejected.
Integrated change control is a primary component of the project's change control system that examines the
affect of a proposed change on the entire project.
Answer:A is incorrect. Configuration management controls and documents changes to the features and
functions of the product scope.
Answer:B is incorrect. Scope change control focuses on the processes to allow changes to enter the project
scope.
Answer:C is incorrect. Risk monitoring and control is not part of the change control system, so this choice is not
valid.
QUESTION 287
Which of the following are true for threats?
A. They can become more imminent as time goes by, or it can diminish
B. They can result in risks from external sources
C. They are possibility
D. They are real
E. They will arise and stay in place until they are properly dealt.
Correct Answer: ABD

Explanation
Threat is an act of coercion wherein an act is proposed to elicit a negative response. Threats are real, while the
vulnerabilities are a possibility. They can result in risks from external sources, and can become imminent by
time or can diminish.
Answer:C and E are incorrect. These two are true for vulnerability, but not threat. Unlike the threat,
vulnerabilities are possibility and can result in risks from internal sources. They will arise and stay in place until
they are properly dealt.
QUESTION 288
Which of the following statements BEST describes policy?
A. A minimum threshold of information security controls that must be implemented

B. A checklist of steps that must be completed to ensure information security
C. An overall statement of information security scope and direction
D. A technology-dependent statement of best practices
Correct Answer: C
Explanation
A policy is an executive mandate which helps in identifying a topic that contains particular risks to avoid or
prevent. Policies are high-level documents signed by a person of high authority with the power to force
cooperation. The policy is a simple document stating that a particular high-level control objective is important to
the organization's success. Policies are usually only one page in length. The authority of the person mandating
a policy will determine the scope of implementation. Hence in other words, policy is an overall statement of
information security scope and direction. Answer:C, A, and D are incorrect. These are not the valid definitions
of the policy.
QUESTION 289
You are the project manager of GHT project. You have analyzed the risk and applied appropriate controls. In
turn, you got residual risk as a result of this. Residual risk can be used to determine which of the following?
A. Status of enterprise's risk

B. Appropriate controls to be applied next
C. The area that requires more control
D. Whether the benefits of such controls outweigh the costs
Correct Answer: CD
Explanation
Residual risk can be used by management to determine:
Which areas require more control Whether the benefits of such controls outweigh the costs As residual risk is
the output that comes after applying appropriate controls, so it can also estimate the area which need more
sophisticated control. If the cost of control is large that its benefits then no control is applied, hence residual
risk can determine benefits of these controls over cost. Answer:B is incorrect. Appropriate control can only be
determined as the result of risk assessment, not through residual risk.
Answer:A is incorrect. Status of enterprise's risk can be determined only after risk monitoring.
QUESTION 290
When it appears that a project risk is going to happen, what is this term called?
A. Issue
B. Contingency response
C. Trigger
D. Threshold
Correct Answer: C
Explanation
A trigger is a warning sign or a condition that a risk event is likely to occur within the project. Answer:B is
incorrect. A contingency response is a pre-planned response for a risk event, such as a rollback plan.
Answer:A is incorrect. Issues are events that come about as a result of risk events. Risks become issues only
after they have actually occurred.
Answer:D is incorrect. A threshold is a limit that the risk passes to actually become an issue in the project.
QUESTION 291
You work as a project manager for SoftTech Inc. You are working with the project stakeholders to begin the
qualitative risk analysis process. Which of the following inputs will be needed for the qualitative risk analysis
process in your project?
A. Project scope statement

B. Cost management plan
C. Risk register
D. Organizational process assets
Correct Answer: ACD

Explanation
The primary goal of qualitative risk analysis is to determine proportion of effect and theoretical response. The
inputs to the Qualitative Risk
Analysis process are:
Organizational process assets
Project Scope Statement
Risk Management Plan
Risk Register
Answer:B is incorrect. The cost management plan is the input to the perform quantitative risk analysis process.
QUESTION 292
Which of the following will significantly affect the standard information security governance model?
A. Currency with changing legislative requirements

B. Number of employees
C. Complexity of the organizational structure
D. Cultural differences between physical locations
Correct Answer: C
Explanation
Complexity of the organizational structure will have the most significant impact on the Information security
governance model. Some of the elements that impact organizational structure are multiple business units and
functions across the organization.
Answer:A is incorrect. Currency with changing legislative requirements should not have major impact once
good governance models are placed, hence, governance will help in effective management of the
organization's ongoing compliance.
Answer:B and D are incorrect. The numbers of employees and the distance between physical locations have
less impact on
Information security models as well-defined process, technology and people components together provide the
proper governance.
QUESTION 293
You are the risk professional in Bluewell Inc. You have identified a risk and want to implement a specific risk
mitigation activity. What you should PRIMARILY utilize?
A. Vulnerability assessment report

B. Business case
C. Technical evaluation report
D. Budgetary requirements
Correct Answer: B
Explanation
As business case includes business need (like new product, change in process, compliance need, etc.) and
the requirements of the enterprise (new technology, cost, etc.), risk professional should utilize this for
implementing specific risk mitigation activity. Risk professional must look at the costs of the various controls
and compare them against the benefits that the organization will receive from the
risk response. Hence he/she needs to have knowledge of business case development to illustrate the costs
and benefits of the risk response.
Answer:C, A, and D are incorrect. These all options are supplemental.
QUESTION 294
You are the project manager of the AFD project for your company. You are working with the project team to
reassess existing risk events and to identify risk events that have not happened and whose relevancy to the
project has passed. What should you do with these events that have not happened and would not happen now
in the project?
A. Add the risk to the issues log

B. Close the outdated risks
C. Add the risks to the risk register
D. Add the risks to a low-priority watch-list
Correct Answer: B
Explanation
Risks that are now outdated should be closed by the project manager, there is no need to keep record of that.
Answer:D is incorrect. Risks with low probability and low impact go on the risk watchlist. Answer:C is incorrect.
Identified risks are already in the risk register. Answer:A is incorrect. Risks do not go into the issue log, but the
risk register.
QUESTION 295
What activity should be done for effective post-implementation reviews during the project?
A. Establish the business measurements up front

B. Allow a sufficient number of business cycles to be executed in the new system
C. Identify the information collected during each stage of the project
D. Identify the information to be reviewed
Correct Answer: A
Explanation
For effective post-implementation review the business measurements up front is established during the project.
Answer:D and C are incorrect. Identifying the information to be reviewed and information collected during each
stage of project is done in pre-project phase and not during project for effective post- implementation review.
Answer:B is incorrect. Executing sufficient number of business cycles in the new system is done after the
completion of the project.
QUESTION 296
Which of the following is the best reason for performing risk assessment?
A. To determine the present state of risk

B. To analyze the effect on the business
C. To satisfy regulatory requirements
D. To budget appropriately for the application of various controls
Correct Answer: A
Explanation
Risk assessment is a process of analyzing the identified risk, both quantitatively and qualitatively. Quantitative
risk assessment requires calculations of two components of risk, the magnitude of the potential loss, and the
probability that the loss will occur. While qualitatively risk assessment checks the severity of risk. Hence risk
assessment helps in determining the present state of the risk.
Answer:D is incorrect. Budgeting appropriately is one the results of risk assessment but is not the reason for
performing the risk assessment.
Answer:B is incorrect. Analyzing the effect of risk on an enterprise is the part of the process while performing
risk assessment, but is not the reason for doing it. Answer:C is incorrect. Performing risk assessment may
satisfy the regulatory requirements, but is not the reason to perform risk assessment.
QUESTION 297
You are the project manager of GHT project. You identified a risk of noncompliance with regulations due to
missing of a number of relatively simple procedures.
The response requires creating the missing procedures and implementing them. In which of the following risk
response prioritization should this case be categorized?
A. Business case to be made

B. Quick win
C. Risk avoidance
D. Deferrals
Correct Answer: B
Explanation
This is categorized as a "quick win" because the allocation of existing resources or a minor resource
investment provides measurable benefits. Quick win is very effective and efficient response that addresses
medium to high risk.
Answer:A is incorrect. "Business case to be made" requires careful analysis and management decisions on
investments that are more expensive or difficult risk responses to medium to high risk. Here in this scenario,
there is only minor investment that is why, it is not "business case to be made".
Answer:D is incorrect. Deferral addresses costly risk response to a low risk, and hence in this specified
scenario it is not used.
Answer:C is incorrect. Risk avoidance is a type of risk response and not risk response prioritization option.
QUESTION 298
What are the PRIMARY objectives of a control?
A. Detect, recover, and attack

B. Prevent, respond, and log
C. Prevent, control, and attack
D. Prevent, recover, and detect
Correct Answer: D
Explanation
Controls are the policies, procedures, practices and guidelines designed to provide appropriate assurance that
business objectives are achieved and undesired events are detected, prevented, and corrected. Controls, or
countermeasures, will reduce or neutralize threats or vulnerabilities.
Controls have three primary objectives:
Prevent
Recover
Detect
Answer:C, B, and A are incorrect. One or more objectives stated in these choices is not correct objective of
control.
QUESTION 299
You work as the project manager for Company Inc. The project on which you are working has several risks that
will affect several stakeholder requirements. Which project management plan will define who will be available
to share information on the project risks?
A. Resource Management Plan

B. Communications Management Plan
C. Risk Management Plan
D. Stakeholder management strategy
Correct Answer: B
Explanation
Answer:D is incorrect. The stakeholder management strategy does not address risk communications.
Answer:C is incorrect. The Risk Management Plan deals with risk identification, analysis, response, and
monitoring.
Answer:A is incorrect. The Resource Management Plan does not define risk communications.
QUESTION 300
You are the project manager of GHT project. You and your team have developed risk responses for those risks
with the highest threat to or best opportunity for the project objectives. What are the immediate steps you
should follow, after planning for risk response process? Each answer represents a complete solution. Choose
three.
A. Updating Project management plan and Project document

B. Applying controls
C. Updating Risk register
D. Prepare Risk-related contracts
Correct Answer: ACD

Explanation
The risk register is updated at the end of the plan risk response process with the information that was
discovered during the process. The response plans are recorded in the risk register. Project management plan
consisting of WBS, schedule baseline and cost performance baseline should be updated. After planning risk
response process, there may be requirementof updating project documents like technical documentation and
assumptions, documented in the project scope statement.
If risk response strategies include responses such as transference or sharing, it may be necessary to purchase
services or items from third parties. Contracts for those services can be prepared and discussed with the
appropriate parties.
Answer:B is incorrect. Controls are implemented in the latter stage of risk response process. It is not immediate
task after the planning of risk response process, as updating of several documents is done first.
The purpose of the Plan Risk Responses process is to develop risk responses for those risks with the highest
threat to or best opportunity for the project objectives. The Plan Risk Responses process has four outputs:
Risk register updates
Risk-related contract decisions
Project management plan updates
Project document updates
QUESTION 301
Which of the following assets are the examples of intangible assets of an enterprise?
A. Customer trust
B. Information
C. People
D. Infrastructure
Correct Answer: AB
Explanation
Assets are the economic resources owned by business or company. Anything tangible or intangible that one
possesses, usually considered as applicable to the payment of one's debts, is considered an asset. An asset
can also be defined as a resource, process, product, computing infrastructure, and so forth that an organization
has determined must be protected. Tangible asset: Tangible are those asset that has physical attributes and
can be detected with the senses, e.g., people, infrastructure, and finances.
Intangible asset: Intangible are those asset that has no physical attributes and cannot be detected with the
senses, e.g., information, reputation and customer trust.
QUESTION 302
You are the project manager of the GHY project for your company. This project has a budget of $543,000 and
is expected to last 18 months. In this project, you have identified several risk events and created risk response
plans. In what project management process group will you implement risk response plans?
A. Monitoring and Controlling

B. In any process group where the risk event resides
C. Planning
D. Executing
Correct Answer: A
Explanation
The monitor and control project risk process resides in the monitoring and controlling project management
process group. This process is responsible for implementing risk response plans, tracking identified risks,
monitoring residual risks, identifying new risks, and evaluating risk process effectiveness through the project.
Answer:C is incorrect. Risk response plans are not implemented as part of project planning. Answer:D is
incorrect. Risk response plans are not implemented as part of project execution. Answer:B is incorrect. Risk
response plans are implemented as part of the monitoring and controlling process group.
QUESTION 303
During which of the following processes, probability and impact matrix are prepared?
A. Risk response
B. Monitoring and Control Risk
C. Quantitative risk assessment
D. Qualitative risk assessment
Correct Answer: D
Explanation
The probability and impact matrix is a technique to prioritize identified risks of the project on their risk rating,
and are being prepared while performing qualitative risk analysis. Evaluation of each risk's importance and,
hence, priority for attention, is typically conducted using a look-up table or a probability and impact matrix. This
matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high
priority. Answer:C is incorrect. SLE, ARO and ALE are used in quantitative risk assessment. Answer:A and B
are incorrect. These processes are part of Risk Management. The probability and impact matrix is prepared
during the qualitative risk analysis for further quantitative analysis and response based on their risk rating.
QUESTION 304
You are the project manager of GRT project. You discovered that by bringing on more qualified resources or by
providing even better quality than originally planned, could result in reducing the amount of time required to
complete the project. If your organization seizes this opportunity it would be an example of what risk response?
A. Enhance
B. Exploit
C. Accept
D. Share
Correct Answer: B
Explanation
Exploit response is one of the strategies to negate risks or threats that 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 forpositive impact on a project. Assigning more talented
Answer:D is incorrect. - The share strategy is similar as transfer because in this a portion of the risk is shared
with an external organization or another internal entity. Answer:A is incorrect. The enhance strategy closely
watches the probability or impact of the risk event to assure that the organization realizes the benefits. The
primary point of this strategy is to attempt to increase the probability and/or impact of positiveAnswer:C is
incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it
occurs.
QUESTION 305
Your project has several risks that may cause serious financial impact if they occur. You have studied the risk
events and made some potential risk responses for the risk events but management wants you to do more.
They'd like you to create some type of a chart that identified the risk probability and impact with a financial
amount for each risk event. What is the likely outcome of creating this type of chart?
A. Risk response plan

B. Contingency reserve
C. Risk response
D. Quantitative analysis
Correct Answer: B
Explanation
This chart is a probability-impact matrix in a quantitative analysis process. The probability and financial impact
of each risk is learned through research, testing, and subject matter experts. The probability of the event is
multiplied by the financial impact to create a risk event value for each risk. The sum of the risk event values will
lead to the contingency reserve for the project. Answer:C is incorrect. The risk responses are needed but this
chart doesn't help the project manager to create them.
Answer:A is incorrect. The risk response plan is based on the risk responses, not the risk probability-impact
matrix.
Answer:D is incorrect. This chart is created as part of quantitative analysis.
QUESTION 306
Which of the following are parts of SWOT Analysis?
A. Weaknesses
B. Tools
C. Threats
D. Opportunities
E. Strengths
Correct Answer: ACDE

Explanation
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a project or in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford
University in the 1960s and 1970s using data from Fortune 500 companies.
Answer:B is incorrect. Tools are not the parts of SWOT analysis.
QUESTION 307
What is the FIRST phase of IS monitoring and maintenance process?
A. Report result
B. Prioritizing risks
C. Implement monitoring
D. Identifying controls
Correct Answer: B
Explanation
Following are the phases that are involved in Information system monitoring and maintenance:
Following are the phases that are involved in Information system monitoring and maintenance:
Prioritize risk: The first phase involves the prioritization of risk which in turn involves following task:
Analyze and prioritize risks to organizational objectives. Identify the necessary application components and
flow of information through the system. Examine and understand the functionality of the application by
reviewing the application system documentation and interviewing appropriate personnel.
Identify controls: After prioritizing risk now the controls are identified, and this involves following tasks:
Key controls are identified across the internal control system that addresses the prioritized risk.
Applications control strength is identified.
Impact of the control weaknesses is being evaluated.
Testing strategy is developed by analyzing the accumulated information. Identify information: Now the IS
control information should be identified:
Identify information that will persuasively indicate the operating effectiveness of the internal control system.
Observe and test user performing procedures .
Implement monitoring: Develop and implement cost-effective procedures to evaluate the persuasive
information.
Report results: After implementing monitoring process the results are being reported to relevant stakeholders.
Answer:D, A, and C are incorrect. These all phases occur in IS monitoring and maintenance process after
prioritizing risks.
QUESTION 308
You are the project manager for the NHH project. You are working with your project team to examine the
project from four different defined perspectives to increase the breadth of identified risks by including internally
generated risks. What risk identification approach are you using in this example?
A. Root cause analysis

B. Influence diagramming techniques
C. SWOT analysis
D. Assumptions analysis
Correct Answer: C
Explanation
This is an example of SWOT analysis. SWOT analysis examines the strengths, weaknesses, opportunities,
and threats within the project and generated from within the organization. SWOT stands for Strengths,
Weaknesses, Opportunities, and Threats. It is a part of business policy that helps an individual or a company to
make decisions. It includes the strategies to build the strength of a company and use the opportunities to make
the company successful. It also includes the strategies to overcome the weaknesses of and threats to the
company. Answer:D is incorrect. Assumptions analysis does not use four pre-defined perspectives for review.
Answer:A is incorrect. Root cause analysis examines causal factors for events within the project. Answer:B is
incorrect. Influence diagramming techniques examines the relationships between things and events within the
project.
QUESTION 309
You are working in an enterprise. Assuming that your enterprise periodically compares finished goods
inventory levels to the perpetual inventories in its ERP system. What kind of information is being provided by
the lack of any significant differences between perpetual levels and actual levels?
A. Direct information
B. Indirect information
D. Risk audit information
Correct Answer: B
Explanation
The lack of any significant differences between perpetual levels and actual levels provides indirect information
that its billing controls are operating. It does not provide any direct information. Answer A is incorrect. It does
not provide direct information as there is no information about the propriety of cutoff.
Answer:D and C are incorrect. These are not the types of information.
QUESTION 310
In which of the following risk management capability maturity levels does the enterprise takes major business
decisions considering the probability of loss and the probability of reward? Each answer represents a complete
solution. Choose two.
A. Level 0
B. Level 2
C. Level 5
D. Level 4
Correct Answer: CD
Explanation
Enterprise having risk management capability maturity level 4 and 5 takes business decisions considering the
probability of loss and the probability of reward, i.e., considering all the aspects of risk.
Answer:A is incorrect. Enterprise having risk management capability maturity level 0 takes business decisions
without considering risk credential information. Answer:B is incorrect. At this low level of risk management
capability the enterprise take decisions considering specific risk issues within functional and business silos
(e.g., security, business continuity, operations).
QUESTION 311
Henry is the project sponsor of the JQ Project and Nancy is the project manager. Henry has asked Nancy to
start the risk identification process for the project, but Nancy insists that the project team be involved in the
process. Why should the project team be involved in the risk identification?
A. So that the project team can develop a sense of ownership for the risks and associated risk responsibilities.
B. So that the project manager can identify the risk owners for the risks within the project and the needed risk
responses.
C. So that the project manager isn't the only person identifying the risk events within the project.
D. So that the project team and the project manager can work together to assign risk ownership.
Correct Answer: A
Explanation
The best answer to include the project team members is that they'll need to develop a sense of ownership for
the risks and associated risk responsibilities. Answer:C is incorrect. While the project manager shouldn't be the
only person to identify the risk events, this isn't the best answer.
Answer:D is incorrect. The reason to include the project team is that the project team needs to develop a sense
of ownership for the risks and associated risk responsibilities, not to assign risk ownership.
Answer:B is incorrect. The reason to include the project team is that the project team needs to develop a sense
of ownership for the risks and associated risk responsibilities, not to assign risk ownership and risk responses
at this point.
QUESTION 312
Which of the following establishes mandatory rules, specifications and metrics used to measure compliance
against quality, value, etc?
A. Framework
B. Legal requirements
C. Standard
D. Practices
Correct Answer: C
Explanation
Standard establishes mandatory rules, specifications and metrics used to measure compliance against quality,
value, etc. Standards are usually intended for compliance purposes and to provide assurance to others who
interact with a process or outputs of a process. Answer:A is incorrect. Frameworks are generally accepted,
business-process-oriented structures that establish a common language and enable repeatable business
processes. Answer:D is incorrect. Practices are frequent or usual actions performed as an application of
knowledge. A leading practice would be defined as an action that optimally applies knowledge in a particular
area. They are issued by a "recognized authority" that is appropriate to the subject matter. issuing bodies may
include professional associations and academic institutions or commercial entities such as software vendors.
They are generally based on a combination of research, expert insight and peer review.
Answer:B is incorrect. These are legal rules underneath which project has to be.
QUESTION 313
You are the project manager of your enterprise. While performing risk management, you are given a task to
identify where your enterprise stand in certain practice and also to suggest the priorities for improvements.
Which of the following models would you use to accomplish this task?
A. Capability maturity model

B. Decision tree model
C. Fishbone model
D. Simulation tree model
Correct Answer: A
Explanation
Capability maturity models are the models that are used by the enterprise to rate itself in terms of the least
mature level (having nonexistent or unstructured processes) to the most mature (having adopted and optimized
the use of good practices).
The levels within a capability maturity model are designed to allow an enterprise to identify descriptions of its
current and possible future states. In general, the purpose is to:
Identify, where enterprises are in relation to certain activities or practices.
Suggest how to set priorities for improvements
Answer:D is incorrect. There is no such model exists in risk management process. Answer:B is incorrect.
of the risks andopportunitiesconnected with each possible course of action. This makes them mostly useful for
choosing between different strategies, projects, or investment opportunities particularly when the resources are
limited. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their
possible consequences, including chance event outcomes, resource costs, and utility.
Answer:C is incorrect. Fishbone diagrams or Ishikawa diagrams shows the relationships between the causes
and effects of problems.
QUESTION 314
You are the risk official in Techmart Inc. You are asked to perform risk assessment on the impact of losing a
server. For this assessment you need to calculate monetary value of the server. On which of the following
bases do you calculate monetary value?
A. Cost to obtain replacement

B. Original cost to acquire
C. Annual loss expectancy
D. Cost of software stored
Correct Answer: A
Explanation
The monetary value of the server should be based on the cost of its replacement. However, the financial
impact to the enterprise may be much broader, based on the function that the server performs for the business
and the value it brings to the enterprise. Answer:C, D, and B are incorrect. Cost of software is not been
counted because it can be restored from the back-up media. On the other hand' Ale for all risk related to the
server does not represent the server's value. Lastly, the original cost may be significantly different from the
current cost and, therefore, not relevant to this.
QUESTION 315
Which of the following is the BEST way of managing risk inherent to wireless network?
A. Enabling auditing on every host that connects to a wireless network

B. Require private, key-based encryption to connect to the wireless network
C. Require that the every host that connect to this network have a well-tested recovery plan
D. Enable auditing on every connection to the wireless network
Correct Answer: B
Explanation
As preventive control and prevention is preferred over detection and recovery, therefore, private and key-based
encryption should be adopted for managing risks. Answer:A, C, and D are incorrect. As explained in above
section preventive control and prevention is preferred over detection and recovery, hence these are less
preferred way.
QUESTION 316
You are elected as the project manager of GHT project. You have to initiate the project. Your Project request
document has been approved, and now you have to start working on the project. What is the FIRST step you
should take to initialize the project?
A. Conduct a feasibility study

B. Acquire software
C. Define requirements of project
D. Plan project management
Correct Answer: A
Explanation
Conducting a feasibility study begins once initial approval has been given to move forward with a project. It
includes an analysis to clearly define the need and to identify alternatives for addressing the need.
Answer:B is incorrect. Acquiring software involves building new or modifying existing hardware or software
after final approval by the stakeholder, which is not a phase in the standard SDLC process.
If a decision was reached to acquire rather than develop software, this task should occur after feasibility study
and defining requirements.
Answer:D is incorrect. This is latter phase in project development process. Answer:C is incorrect.
Requirements of the project is being defined after conducting feasibility study.
QUESTION 317
John is the project manager of the NHQ Project for his company. His project has 75 stakeholders, some of
which are external to the organization. John needs to make certain that he communicates about risk in the
most appropriate method for the external stakeholders. Which project management plan will be the best guide
for John to communicate to the external stakeholders?
A. Risk Response Plan

B. Communications Management Plan
C. Project Management Plan
D. Risk Management Plan
Correct Answer: B
Explanation
The Communications Management Plan will direct John on the information to be communicated, when to
communicate, and how to communicate with external stakeholders. The Communications Management Plan
aims to define the communication necessities for the project and how the information will be circulated. The
Answer:D is incorrect. The Risk Management Plan defines how risks will be identified, analyzed, responded to,
and controlled throughout the project.
Answer:A is incorrect. The Risk Response Plan identifies how risks will be responded to. Answer:C is incorrect.
The Project Management Plan is the parent of all subsidiary management plans and it is not the most accurate
choice for this
QUESTION 318
Adrian is a project manager for a new project using a technology that has recently been released and there's
relatively little information about the technology. Initial testing of the technology makes the use of it look
promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to
consider the technology factors a risk for her project. Where should she document the risks associated with
this technology so she can track the risk status and responses?
A. Project scope statement
B. Project charter
C. Risk low-level watch list
D. Risk register
Correct Answer: D
Explanation
A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in
project management practices, and provide information to identify, analyze, and manage risks. Typically a risk
register contains:
event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved. It records the initial
risks, the potential responses, and tracks the status of each identified risk in the project.
Answer:B is incorrect. The project charter does not define risks. Answer:A is incorrect. The project scope
statement does document initially defined risks but it is not a place that will record risks responses and status
of risks. Answer:C is incorrect. The risk low-level watch list is for identified risks that have low impact and low
probability in the project.
QUESTION 319
You are the administrator of your enterprise. Which of the following controls would you use that BEST protects
an enterprise from unauthorized individuals gaining access to sensitive information?
A. Monitoring and recording unsuccessful logon attempts

B. Forcing periodic password changes
C. Using a challenge response system
D. Providing access on a need-to-know basis
Correct Answer: D
Explanation
Physical or logical system access should be assigned on a need-to-know basis, where there is a legitimate
business requirement based on least privilege and segregation of duties. This is done by user authentication.
Answer:C is incorrect. Challenge response system is used to verify the user's identification but does not
completely address the issue of access risk if access was not appropriately designed in the first place.
Answer:B is incorrect. Forcing users to change their passwords does not ensure that access control is
appropriately assigned.
Answer:A is incorrect. Monitoring and recording unsuccessful logon attempts does not address the risk of
appropriate access rights. In other words, it does not prevent unauthorized access.
QUESTION 320
You are the project manager of GHT project. You have identified a risk event on your current project that could
save $670,000 in project costs if it occurs. Your organization is considering hiring a vendor to help establish
proper project management techniques in order to assure it realizes these savings. Which of the following
statements is TRUE for this risk event?
A. This risk event should be accepted because the rewards outweigh the threat to the project.
B. This risk event should be mitigated to take advantage of the savings.
C. This risk event is an opportunity to the project and should be exploited.
D. This is a risk event that should be shared to take full advantage of the potential savings.
Correct Answer: D
Explanation
This risk event has the potential to save money on project costs and organization is hiring a vendor to assure
that all these saving are being realized. Hence this risk event involves sharing with a third party to help assure
that the opportunity take place. Answer:A is incorrect. This risk event is not accepted as this event has
potential to save money as well as it is shared with a vendor so that all these savings are being realized.
Answer:C is incorrect. This risk event can be exploited but as here in this scenario, it is stated that organization
is hiring vendor, therefore event is being shared not exploited. Answer:B is incorrect. The risk event is
mitigated when it has negative impacts. But here it is positive consequences (i.e., saving), therefore it is not
mitigated.
QUESTION 321
Which of the following role carriers has to account for collecting data on risk and articulating risk?
A. Enterprise risk committee

Correct Answer: D
Explanation
CRO is the individual who oversees all aspects of risk management across the enterprise. Chief risk officer has
the main accountability for collecting data and articulating risk. If there is any fault in these processes then
CRO should be answerable.
Answer:A is incorrect. Enterprise risk committee are the executives who are accountable for the enterprise
level collaboration and consensus required to support enterprise risk management (ERM). They are to some
extent responsible for articulating risk but are not accounted for it. They are neither responsible nor accounted
for collecting data on risk. Answer:C is incorrect. CIO is the most senior official of the enterprise who is
accountable for IT advocacy; aligning IT and business strategies; and planning, resourcing and managing the
delivery of IT services and information and the deployment of associated human resources. CIO has some
responsibility towards collecting data and articulating risk but is not accounted for them. Answer:B is incorrect.
Business process owner is an individual responsible for identifying process requirements, approving process
design and managing process performance. He/she is responsible for collecting data and articulating risk but is
QUESTION 322
Which of the following is NOT true for effective risk communication?
A. Risk information must be known and understood by all stakeholders.

B. Use of technical terms of risk
C. Any communication on risk must be relevant
D. For each risk, critical moments exist between its origination and its potential business consequence
Correct Answer: B
Explanation
For effective communication, information communicated should not inundate the recipients. All ground rules of
good communication apply to communication on risk. This includes the avoidance of jargon and technical
terms regarding risk because the intended audiences are generally not deeply technologically skilled.
Hence use of technical terms is avoided for effective communication Answer:A, C, and D are incorrect. These
all are true for effective risk communication. For effective risk communication the risk information should be
clear, concise, useful and timely. Risk information must be known and understood by all the stakeholders.
Information or communication should not overwhelm the recipients. This includes the avoidance of technical
terms regarding risk because the intended audiences are generally not much technologically skilled. Any
communication on risk must be relevant. Technical information that is too detailed or is sent to inappropriate
parties will hinder, rather than enable, a clear view of risk. For each risk, critical moments exist between its
origination and its potential business consequence. Information should also be aimed at the target audience
and available on need-to-know basis.
Hence for effective risk communication risk information should be:
Clear
Concise
Useful
Timely given
Aimed at the audience
Available on need-to-know basis
QUESTION 323
Which of the following interpersonal skills has been identified as one of the biggest reasons for project success
or failure?
A. Motivation
B. Influencing
C. Communication
D. Political and cultural awareness
Correct Answer: C
Explanation
Communication has been identified as one of the biggest reasons for why projects succeeds or fails. Effective
communication is essential for good project management. Communication is a process in which information is
passed from one person to another. A manager asks his subordinates to accomplish the task assigned to
them. He should successfully pass the information to his subordinates. It is a means of motivating and guiding
the employees of an enterprise.
Answer:A is incorrect. While motivation is one of the important interpersonal skill, but it is not the best answer.
Answer:B is incorrect. Influencing the project stakeholders is a needed interpersonal skill, but it is not the best
answer.
Answer:D is incorrect. Political and cultural awareness is an important part of every project, but it is not the
best answer for this
QUESTION 324
You are the project manager of the GHY project for your organization. You are working with your project team
to begin identifying risks for the project. As part of your preparation for identifying the risks within the project
you will need eleven inputs for the process. Which one of the following is NOT an input to the risk identification
process?

B. Stakeholder register
D. Procurement management plan
Correct Answer: D
Explanation
The procurement management plan is not one of the eleven inputs for the risk identification process. The
eleven inputs to this process are:
risk management plan, activity cost estimates, activity duration estimates, scope baseline, stakeholder register,
cost management plan, schedule management plan, quality management plan, project documents, enterprise
environmental factors, and organizational process assets.
QUESTION 325
Which of the following come under the phases of risk identification and evaluation? Each answer represents a
complete solution. Choose three.
A. Maintain a risk profile

B. Collecting data
C. Analyzing risk
D. Applying controls
Correct Answer: ABC

Explanation
Risk identification is the process of determining which risks may affect the project. It also documents risks'
characteristics.
Following are high-level phases that are involved in risk identification and evaluation:
Collecting data- Involves collecting data on the business environment, types of events, risk categories, risk
scenarios, etc., to identify relevant data to enable effective risk identification, analysis and reporting.
Analyzing risk- Involves analyzing risk to develop useful information which is used while taking risk-decisions.
Risk-decisions take into account the business relevance of risk factors. Maintain a risk profile- Requires
maintaining an up-to-date and complete inventory of known threats and their attributes (e.g., expected
likelihood, potential impact, and disposition), IT resources, capabilities, and controls as understood in the
context of business products, services and processes to effectively monitor risk over time.
Answer:D is incorrect. It comes under risk management process, and not in risk identification and evaluation
process.
QUESTION 326
How are the potential choices of risk based decisions are represented in decision tree analysis?
A. End node
B. Root node
C. Event node
D. Decision node
Correct Answer: D
Explanation
The potential choices of risk based decisions are represented in decision tree analysis via. Decision node, as
decision nodes refers to the available choices. Answer:B is incorrect. Root nodes represent the start of a
decision tree. Answer:A is incorrect. End nodes are the final outcomes of the entire decision tree framework,
especially in multilayered decision-making situations. Answer:C is incorrect. Event nodes represents the
possible uncertain outcomes of the decision, and not the available choices.
QUESTION 327
You are the project manager of the HJK Project for your organization. You and the project team have created
risk responses for many of the risk events in the project. Where should you document the proposed responses
and the current status of all identified risks?
A. Stakeholder management strategy

B. Lessons learned documentation
C. Risk register
Correct Answer: C
Explanation
Risks and the corresponding responses are documented in the risk register for the project. Risk register is a
document that contains the results of the qualitative risk analysis, quantitative risk analysis, and risk response
planning. Description, category, cause, probability of occurring, impact on objectives, proposed responses,
owner, and the current status of all identified risks are put in the risk register.
Answer:B is incorrect. The outcome of risk events and the corresponding risk responses may be documented
in the project's lessons learned documented, but the best answer is to document the risk responses as part of
the risk register.
Answer:D is incorrect. The risk management plan defines how risks will be identified and analyzed, the
available responses, and the monitoring and controlling of the risk events. The actual risk responses are
included in the risk register. Answer:A is incorrect. The stakeholder management strategy defines how
stakeholders and their threats, perceived threats, opinions, and influence over the project objectives will be
addressed and managed.
QUESTION 328
Which is the MOST important parameter while selecting appropriate risk response?
A. Cost of response
B. Capability to implement response
C. Importance of risk
D. Efficiency of response
Correct Answer: A
Explanation
The cost of the response, which is applied so as to reduce risk within tolerance levels, is one of the most
important parameter. By considering the cost of response, it is decided whether or not benefits of applying
response is greater than accepting the risk; and according to this analysis it is decided whether the certain
response should be applied or not. For example, if risk transfer response is applied by using insurance, then
cost would be the cost of insurance. Answer:C is incorrect. This is one of the parameters that is considered but
is not as important as considering cost of response. The importance of the risk is determined by the
combination of likelihood and magnitude levels along with its position on the risk map. Answer:B is incorrect.
This parameter is considered after analyzing the cost of response, which will further decide the level of
sophistication of risk response. The enterprise's capability to implement the response means that if the risk
management process is mature then the risk response is moreAnswer:D is incorrect. Efficiency of response
can only be analyzed after applying the response. So it is the latter stage in selection of response.
QUESTION 329
You are the project manager of HFD project. You have identified several project risks. You have adopted
alternatives to deal with these risks which do not attempt to reduce the probability of a risk event or its impacts.
Which of the following response have you implemented?
A. Acceptance
B. Mitigation
C. Avoidance
D. Contingent response
Correct Answer: D
Explanation
Contingent response strategy, also known as contingency planning, involves adopting alternatives to deal with
the risks in case of their occurrence. Unlike the mitigation planning in which mitigation looks to reduce the
probability of the risk and its impact, contingency planning doesn't necessarily attempt to reduce the probability
of a risk event or its impacts. Contingency comes into action when the risk event actually occurs.
Answer:B is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its impacts to an
acceptable level. Risk mitigation can utilize various forms of control carefully integrated together. The main
control types are:
Managerial(e.g.,policies)
Technical (e.g., tools such as firewalls and intrusion detection systems) Operational (e.g., procedures,
separation of duties)
Preparedness activities
Answer:A is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is
accepted if it occurs. If an enterprise adopts a risk acceptance, it should carefully consider who can accept the
risk. Risk should be accepted only by senior management in relationship with senior management and the
board. There are two alternatives to the acceptance strategy, passive and active.
with risks.
Answer:C is incorrect. Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or
change the project plan to protect the project objectives from the risk event.
QUESTION 330
In which of the following risk management capability maturity levels risk appetite and tolerance are applied only
during episodic risk assessments?
A. Level 3
B. Level 2
C. Level 4
D. Level 1
Correct Answer: D
Explanation
There is an understanding that risk is important and needs to be managed, but it is viewed as a technical issue
and the business primarily considers the downside of IT risk. Any risk identification criteria vary widely across
the enterprise. Risk appetite and tolerance are applied only during episodic risk assessments. Enterprise risk
policies and standards are incomplete and/or reflect only external requirements and lack defensible rationale
and enforcement mechanisms.
Risk management skills exist on an ad hoc basis, but are not actively developed. Ad hoc inventories of controls
that are unrelated to risk are dispersed across desktop applications. Answer:A is incorrect. In level 3 of risk
management capability maturity model, local tolerances drive the enterprise risk tolerance.
Answer:B is incorrect. In level 2 of risk management capability maturity model, risk tolerance is set locally and
may be difficult to aggregate.
Answer:C is incorrect. In level 4 of risk management capability maturity model, business risk tolerance is
reflected by enterprise policies and standards reflect.
QUESTION 331
A project team member has just identified a new project risk. The risk event is determined to have significant
impact but a low probability in the project. Should the risk event happen it'll cause the project to be delayed by
three weeks, which will cause new risk in the project. What should the project manager do with the risk event?
A. Add the identified risk to a quality control management chart.

B. Add the identified risk to the issues log.
C. Add the identified risk to the risk register.
D. Add the identified risk to the low-level risk watch-list.
Correct Answer: C
Explanation
All identified risks, their characteristics, responses, and their status should be added and monitored as part of
the risk register. A risk register is an inventory of risks and exposure associated with those risks. Risks are
commonly found in project management practices, and provide information to identify, analyze, and manage
risks. Typically a risk register contains:
event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved. Answer:D is incorrect.
Risks that have a low probability and a low impact may go on the low-level risk watch-list.
Answer:B is incorrect. This is a risk event and should be recorded in the risk register. Answer:A is incorrect.
Control management charts are not the place where risk events are recorded.
QUESTION 332
A teaming agreement is an example of what type of risk response?
A. Acceptance
B. Mitigation
C. Transfer
D. Share
Correct Answer: D
Explanation
Teaming agreements are often comes under sharing risk response, as they involves joint ventures to realize an
opportunity that an organization would not be able to seize otherwise. Sharing response is where two or more
entities share a positive risk. Teaming agreements are good example of sharing the reward that comes from
the risk of the opportunity. Answer:A is incorrect. Acceptance is a risk response that is appropriate for positive
or negative risk events. It does not pursue the risk, but documents the event and allows the risk to happen.
Often acceptance is used for low probability and low impact risk events. Answer:C is incorrect. Transference is
a negative risk response where the project manager hires a third party to own the risk event.
Answer:B is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its impacts to an
acceptable level. Risk mitigation can utilize various forms of control carefully integrated together.
QUESTION 333
You are the project manager of HJT project. Important confidential files of your project are stored on a
computer. Keeping the unauthorized access of this computer in mind, you have placed a hidden CCTV in the
room, even on having protection password. Which kind of control CCTV is?
A. Technical control
B. Physical control
C. Administrative control
D. Management control
Correct Answer: B
Explanation
CCTV is a physical control.
Physical controls protect the physical environment. They include basics such as locks to protect access to
secure areas. They also include environmental controls. This section presents the following examples of
physical controls:
Locked doors, guards, access logs, and closed-circuit television Fire detection and suppression
Temperature and humidity detection
Electrical grounding and circuit breakers
Water detection
Answer:C, A, and D are incorrect. CCTV is a physical control.
QUESTION 334
You are preparing to complete the quantitative risk analysis process with your project team and several subject
matter experts. You gather the necessary inputs including the project's cost management plan. Why is it
necessary to include the project's cost management plan in the preparation for the quantitative risk analysis
process?
A. The project's cost management plan provides control that may help determine the structure for quantitative
analysis of the budget.
B. The project's cost management plan can help you to determine what the total cost of the project is allowed
to be.
C. The project's cost management plan provides direction on how costs may be changed due to identified
risks.
D. The project's cost management plan is not an input to the quantitative risk analysis process.
Correct Answer: A
Explanation
The cost management plan is an input to the quantitative risk analysis process because of the cost
management control it provides.
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. Answer:D is incorrect. This is not a valid statement. The cost management plan is an input to
the quantitative risk analysis process.
Answer:B is incorrect. The cost management plan defines the estimating, budgeting, and control of the
project's cost.
Answer:C is incorrect. While the cost management plan does define the cost change control system, this is not
the best answer for this
QUESTION 335
You are the project manager for BlueWell Inc. Your current project is a high priority and high profile project
within your organization. You want to identify the project stakeholders that will have the most power in relation
to their interest on your project. This will help you plan for project risks, stakeholder management, and ongoing
communication with the key stakeholders in your project. In this process of stakeholder analysis, what type of a
grid or model should you create based on these conditions?
A. Stakeholder power/interest grid

B. Stakeholder register
C. Influence/impact grid
D. Salience model
Correct Answer: A
Explanation
The power/interest grid groups stakeholders based on their level of authority (power) and their level of interest
in your project. The power/interest grid forms a group of the stakeholders based on their level of authority
(power) and their level of interest in the project. Interest accounts to what degree the stakeholders are affected
by examining the project or policy change, and to what degree of interest or concern they have about it. Power
accounts for the influence the stakeholders have over the project or policy, and to what degree they can help to
accomplish, or block, the preferred change.
Stakeholders, who have high power and interests associated with the project, are the people or organizations
that are fully engaged with the project. When trying to generate strategic change, this community is the target
of any operation.
Answer:B is incorrect. The stakeholder register is a listing of stakeholder information and communication
requirements.
Answer:D is incorrect. The salience model groups the stakeholders based on their power, urgency, and
legitimacy in the project.
Answer:C is incorrect. The influence/impact grid charts is based on the stakeholders involvement and ability to
effect changes to the project's planning and execution.
QUESTION 336
You work as a project manager for BlueWell Inc. You have declined a proposed change request because of
the risk associated with the proposed change request. Where should the declined change request be
documented and stored?
A. Change request log

B. Project archives
C. Lessons learned
Correct Answer: A
Explanation
The change request log records the status of all change requests, approved or declined. The change request
log is used as an account for change requests and as a means of tracking their disposition on a current basis.
The change request log develops a measure of consistency into the change management process. It
encourages common inputs into the process and is a common estimation approach for all change requests. As
the log is an important component of project requirements, it should be readily available to the project team
members responsible for project delivery. It should be maintained in a file with read-only access to those who
are not responsible for approving or disapproving project change requests. Answer:C is incorrect. Lessons
learned are not the place to document the status of a declined, or approved, change request.
Answer:B is incorrect. The project archive includes all project documentation and is created through the close
project or phase process. It is not the best choice for this option D is incorrect. The project document updates
is not the best choice for thisbe fleshed into the project documents, but the declined changes are part of the
change request log.
QUESTION 337
Which of the following comes under phases of risk management?
A. Assessing risk
B. Prioritization of risk
C. Identify risk
D. Monitoring risk
E. Developing risk
Correct Answer: ABCD

Explanation
Risk management provides an approach for individuals and groups to make a decision on how to deal with
potentially harmful situations.
Following are the four phases involved in risk management:
1.Risk identification :The first thing we must do in risk management is to identify the areas of the project where
the risks can occur.
This is termed as risk identification. Listing all the possible risks is proved to be very productive for the
enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are
considered, as both carry some level of risk with them. 2.Risk Assessment and Evaluation :Risk assessment
use quantitative and qualitative analysis approaches to evaluate each significant risk identified. 3.Risk
Prioritization and Response :As many risks are being identified in an enterprise, it is best to give each risk a
score based on its likelihood and significance in form of ranking. This concludes whether the risk with high
likelihood and high significance must be given greater attention as compared to similar risk with low likelihood
and low significance. Hence, risks can be prioritized and appropriate responses to those risks are created.
4.Risk Monitoring :Risk monitoring is an activity which oversees the changes in risk assessment. Over time, the
likelihood or significance originally attributed to a risk may change. This is especially true when certain
responses, such as mitigation, have been made.
QUESTION 338
You are the project manager in your enterprise. You have identified occurrence of risk event in your enterprise.
You have pre-planned risk responses. You have monitored the risks that had occurred. What is the immediate
step after this monitoring process that has to be followed in response to risk events?
A. Initiate incident response

B. Update the risk register
C. Eliminate the risk completely
D. Communicate lessons learned from risk events
Correct Answer: A
Explanation
When the risk events occur then following tasks have to done to react to it:
Maintain incident response plans
Monitor risk
Initiate incident response
Communicate lessons learned from risk events
QUESTION 339
You are the project manager for GHT project. You need to perform the Qualitative risk analysis process. When
you have completed this process, you will produce all of the following as part of the risk register update output
except which one?
A. Probability of achieving time and cost estimates

B. Priority list of risks
C. Watch list of low-priority risks
D. Risks grouped by categories
Correct Answer: A
Explanation
Probability of achieving time and cost estimates is an update that is produced from the Quantitative risk
analysis process. In Qualitative risk analysis probability of occurrence of a specific risk is identified but not of
achieving time and cost estimates.
QUESTION 340
You have been assigned as the Project Manager for a new project that involves building of a new roadway
between the city airport to a designated point within the city. However, you notice that the transportation permit
issuing authority is taking longer than the planned time to issue the permit to begin construction. What would
you classify this as?
A. Project Risk
B. Status Update
C. Risk Update
D. Project Issue
Correct Answer: D
Explanation
This is a project issue. It is easy to confuse this as a project risk; however, a project risk is always in the future.
In this case, the delay by the permitting agency has already happened; hence this is a project issue. The
possible impact of this delay on the project cost, schedule, or performance can be classified as a project risk.
Answer:A is incorrect. It is easy to confuse this as a project risk; however, a project risk is always in the future.
In this case, the delay by the permitting agency has already happened; hence this is a project issue.
Answer:C and B are inas they are extraneous choices and are not applicable.
QUESTION 341
You are the project manager of GHT project. A stakeholder of this project requested a change request in this
project. What are your responsibilities as the project manager that you should do in order to approve this
change request?
A. Archive copies of all change requests in the project file.

B. Evaluate the change request on behalf of the sponsor
C. Judge the impact of each change request on project activities, schedule and budget.
D. Formally accept the updated project plan
Correct Answer: AC
Explanation
Project manager responsibilities related to the change request approval process is judging the impact of each
change request on project activities, schedule and budget, and also archiving copies of all change requests in
the project file.
Answer:B is incorrect. This is the responsibility of Change advisory board. Answer:D is incorrect. Pm has not
the authority to formally accept the updated project plan. This is done by project sponsors so as to approve the
change request.
QUESTION 342
Natural disaster is BEST associated to which of the following types of risk?
A. Short-term
B. Long-term
C. Discontinuous
D. Large impact
Correct Answer: C
Explanation
Natural disaster can be a long-term or short-term and can have large or small impact on the company.
However, as the natural disasters are unpredictable and infrequent, they are best considered as discontinuous.
Answer:A is incorrect. Natural disaster can be a short-term, but it is not the best answer. Answer:B is incorrect.
Natural disaster can be a long-term, but it is not the best answer. Answer:D is incorrect. Natural disaster can
be of large impact depending upon its nature, but it is not the best answer.
QUESTION 343
Which of the following controls focuses on operational efficiency in a functional area sticking to management
policies?
A. Internal accounting control

B. Detective control
C. Administrative control
D. Operational control
Correct Answer: C
Explanation
Administrative control is one of the objectives of internal control and is concerned with ensuring efficiency and
compliance with management policies.
Answer:B is incorrect. Detective control simply detects and reports on the occurrence of an error, omission or
malicious act.
Answer:A is incorrect. It controls accounting operations, including safeguarding assets and financial records.
Answer:D is incorrect. It focuses on day-to-day operations, functions, and activities. It also ensures that all the
organization's objectives are being accomplished.
QUESTION 344
You are the project manager of HJT project. You want to measure the operational effectiveness of risk
management capabilities. Which of the following is the BEST option to measure the operational effectiveness?
A. Key risk indicators

B. Capability maturity models
C. Key performance indicators
D. Metric thresholds
Correct Answer: C
Explanation
Key performance indicators are a set of quantifiable measures that a company or industry uses to gauge or
compare performance in terms of meeting their strategic and operational goals. Key performance indicators
(KPIs) provide insights into the operational effectiveness of the concept or capability that they monitor.
Answer:A is incorrect. Key risk Indicators (KRIs) only provide insights into potential risks that may exist or be
realized within a concept or capability that they monitor. Answer:B is incorrect. Capability maturity models
(CMMs) assess the maturity of a concept or capability and do not provide insights into operational
effectiveness. Answer:D is incorrect. Metric thresholds are decision or action points that are enacted when a
KPI or KRI reports a specific value or set of values.
QUESTION 345
What are the functions of the auditor while analyzing risk?
A. Aids in determining audit objectives

B. Identify threats and vulnerabilities to the information system
C. Provide information for evaluation of controls in audit planning
D. Supporting decision based on risks
Correct Answer: ACD

Explanation
A risk analysis involves identifying the most probable threats to an organization and analyzing the related
vulnerabilities of the organization to these threats. A risk from an organizational perspective consists of:
Risk analysis allows the auditor to do the following tasks :
Answer:B is incorrect. Auditors identify threats and vulnerability not only in the IT but the whole enterprise as
well.
QUESTION 346
Henry is the project manager of the QBG Project for his company. This project has a budget of $4,576,900 and
is expected to last 18 months to complete. The CIO, a stakeholder in the project, has introduced a scope
change request for additional deliverables as part of the project work. What component of the change control
system would review the proposed changes' impact on the features and functions of the project's product?
A. Cost change control system

B. Configuration management system
C. Scope change control system
D. Integrated change control
Correct Answer: B
Explanation
The configuration management system ensures that proposed changes to the project's scope are reviewed
and evaluated for their affect on the project's product. Configure management process is important in achieving
business objectives. Ensuring the integrity of hardware and software configurations requires the establishment
and maintenance of an accurate and complete configuration repository. This process includes collecting initial
configuration information, establishing baselines, verifying and auditing configuration information, and updating
the configuration repository as needed. Effective configuration management facilitates greater system
availability minimizes production issues and resolves issues more quickly.
Answer:C is incorrect. The scope change control system focuses on reviewing the actual changes to the
project scope. When a change to the project's scope is proposed, the configuration management system is
also invoked.
Answer:A is incorrect. The cost change control system is responsible for reviewing and controlling changes to
the project costs.
Answer:D is incorrect. Integrated change control examines the affect of a proposed change on the project as a
whole.
QUESTION 347
What are the key control activities to be done to ensure business alignment?
A. Define the business requirements for the management of data by IT

B. Conduct IT continuity tests on a regular basis or when there are major changes in the IT infrastructure
C. Periodically identify critical data that affect business operations
D. Establish an independent test task force that keeps track of all events
Correct Answer: AC
Explanation
Business alignment require following control activities:
Defining the business requirements for the management of data by IT. Periodically identifying critical data that
affect business operations, in alignment with the risk management model and IT service as well as the
business continuity plan. Answer:B is incorrect. Conducting IT continuity tests on a regular basis or when there
are major changes in the IT infrastructure is done for testing IT continuity plan. It does not ensure alignment
with business.
Answer:D is incorrect. This is not valid answer.
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QUESTION 348
Which of the following statements is true for risk analysis?
A. Risk analysis should assume an equal degree of protection for all assets.
B. Risk analysis should give more weight to the likelihood than the size of loss.
C. Risk analysis should limit the scope to a benchmark of similar companies
D. Risk analysis should address the potential size and likelihood of loss.
Correct Answer: D
Explanation
A risk analysis deals with the potential size and likelihood of loss. A risk analysis involves identifying the most
probable threats to an organization and analyzing the related vulnerabilities of the organization to these
threats. A risk from an organizational perspective consists of:
Answer:B is incorrect. Since the likelihood determines the size of the loss, hence both elements must be
considered in the calculation.
Answer:C is incorrect. A risk analysis would not normally consider the benchmark of similar companies as
providing relevant information other than for comparison purposes. Answer:A is incorrect. Assuming equal
degree of protection would only be rational in the rare event that all the assets are similar in sensitivity and
criticality. Hence this is not practiced in risk analysis.
QUESTION 349
You are working in Bluewell Inc. which make advertisement Websites. Someone had made unauthorized
changes to a your Website. Which of the following terms refers to this type of loss?
A. Loss of confidentiality
B. Loss of integrity
C. Loss of availability
D. Loss of revenue
Correct Answer: B
Explanation
An e-mail message is modified in transit
A virus infects a file
Someone makes unauthorized changes to a Web site
Answer:A is incorrect. Someone sees a password or a company's secret formula, this is referred to as loss of
confidentiality.
Answer:C is incorrect. An e-mail server is down and no one has e-mail access, or a file server is down so data
files aren't available comes under loss of availability. Answer:D is incorrect. This refers to the events which
would eventually cause loss of revenue.
QUESTION 350
Which of the following is NOT true for Key Risk Indicators?
A. They are selected as the prime monitoring indicators for the enterprise
B. They help avoid having to manage and report on an excessively large number of risk indicators
C. The complete set of KRIs should also balance indicators for risk, root causes and business impact.
D. They are monitored annually
Correct Answer: D
Explanation
They are monitored on regular basis as they indicate high probability and high impact risks. As risks change
over time, hence KRIs should also be monitored regularly for its effectiveness on these changing risks.
Answer:A, B, and C are incorrect. These all are true for KRIs. Key Risk Indicators are the prime monitoring
indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating
important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a
large enterprise may have. The complete set of KRIs should also balance indicators for risk, root causes and
business impact, so as to indicate the risk and its impact completely.
QUESTION 351
What are the responsibilities of the CRO?
A. Managing the supporting risk management function

B. Managing the risk assessment process
C. Advising Board of Directors
D. Implement corrective actions
Correct Answer: ABD

Explanation
Chief Risk Officer is the executive-level manager in an organization. They provide corporate, guidance,
governance, and oversight over the enterprise's risk management activities. The main priority for the CRO is to
ensure that the organization is in full compliance with applicable regulations. They may also deal with areas
regarding insurance, internal auditing, corporate investigations, fraud, and information security.
CRO's responsibilities include:
Managing the risk assessment process
Implementation of corrective actions
Communicate risk management issues
Supporting the risk management functions
QUESTION 352
You are the project manager of the GHT project. You are accessing data for further analysis. You have chosen
such a data extraction method in which management monitors its own controls. Which of the following data
extraction methods you are using here?
A. Extracting data directly from the source systems after system owner approval
B. Extracting data from the system custodian (IT) after system owner approval
C. Extracting data from risk register
D. Extracting data from lesson learned register
Correct Answer: A
Explanation
Direct extraction from the source system involves management monitoring its own controls, instead of auditors/
third parties monitoring management's controls. It is preferable over extraction from the system custodian.
Answer:C and D are incorrect. These are not data extraction methods. Answer:B is incorrect. Extracting data
from the system custodian (IT) after system owner approval, involves auditors or third parties monitoring
management's controls. Here, in this management does not monitors its own control.
QUESTION 353
You are the project manager for your organization to install new workstations, servers, and cabling throughout
a new building, where your company will be moving into. The vendor for the project informs you that the cost of
the cabling has increased due to the some reason. This new cost will cause the cost of your project to increase
by nearly eight percent. What change control system should the costs be entered into for review?
A. Cost change control system

B. Contract change control system
C. Scope change control system
D. Only changes to the project scope should pass through a change control system.
Correct Answer: A
Explanation
Because this change deals with the change of the deliverable, it should pass through the cost change control
system. The cost change control system reviews the reason why the change has happened, what the cost
affects, and how the project should respond. Answer:B is incorrect. This is not a contract change. According to
the evidence that a contract exists or that the cost of the materials is outside of the terms of a contract if one
existed. Considered a time and materials contract where a change of this nature could be acceptable
according to the terms of the contract. If the vendor wanted to change the terms of the contract then it would be
appropriate to enter the change into the contract change control system. Answer:C is incorrect. The scope of
the project will not change due to the cost of the materials. Answer:D is incorrect. There are four change
control systems that should always be entertained for change: schedule, cost, scope, and contract.
QUESTION 354
When a risk cannot be sufficiently mitigated through manual or automatic controls, which of the following
options will BEST protect the enterprise from the potential financial impact of the risk?
A. Updating the IT risk registry

B. Insuring against the risk
C. Outsourcing the related business process to a third party
D. Improving staff-training in the risk area
Correct Answer: B
Explanation
An insurance policy can compensate the enterprise up to 100% by transferring the risk to another company.
Hence in this stem risk is being transferred. Answer:A is incorrect. Updating the risk registry (with lower values
for impact and probability) will not actually change the risk, only management's perception of it. Answer:D is
incorrect. Staff capacity to detect or mitigate the risk may potentially reduce the financial impact, but insurance
allows for the risk to be mitigated up to 100%. Answer:C is incorrect. Outsourcing the process containing the
risk does not necessarily remove or change the risk. While on other hand, insurance will completely remove
the risk.
QUESTION 355
You are the risk official at Bluewell Inc. There are some risks that are posing threat on your enterprise. You are
measuring exposure of those risk factors, which has the highest potential, by examining the extent to which the
at their baseline values. Which type of analysis you are performing?
A. Sensitivity analysis
B. Fault tree analysis
C. Cause-and-effect analysis
D. Scenario analysis
Correct Answer: A
Explanation
Sensitivity analysis is the quantitative risk analysis technique that:
at their baseline values Answer:B is incorrect. Fault tree analysis provides a systematic description of the
combination of possible undesirable occurrences in a system. It does not measure the extent of uncertainty.
Answer:C is incorrect. Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for
exploring the root causes or factors that contribute to positive or negative effects or outcomes, and not the
extent of uncertainty.
Answer:D is incorrect. Scenario analysis provides ability to see a range of values across several scenarios to
identify risk in specific situation. It provides ability to identify those inputs which will provide the greatest level of
uncertainty. But it plays no role in determining the extent of uncertainty.
QUESTION 356
Which of the following risk responses include feedback and guidance from well-qualified risk officials and those
internal to the project?
A. Contingent response strategy

B. Risk Acceptance
C. Expert judgment
D. Risk transfer
Correct Answer: C
Explanation
Expert judgment is utilized in developing risk responses, including feedback and guidance from risk
management experts and those internal to the project qualified to provide assistance in this process. Expert
judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or
product area. It is obtained when the project manager or project team requires specialized knowledge that they
do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably,
the project team member who will be doing the task should complete the estimates. Expert judgment is applied
when performing administrative closure activities, and experts should ensure the project or phase closure is
performed to the appropriate standards.
Answer:B is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is
accepted if it occurs. If an enterprise adopts a risk acceptance, it should carefully consider who can accept the
risk. Risk should be accepted only by senior management in relationship with senior management and the
board. There are two alternatives to the acceptance strategy, passive and active.
with risks.
Answer:D is incorrect. Risk transfer means that impact of risk is reduced by transferring or otherwise sharing a
portion of the risk with an external organization or another internal entity. Transfer of risk can occur in many
forms but is most effective when dealing with financial risks.
Insurance is one form of risk transfer.
Answer:A is incorrect. Contingent response strategy, also known as contingency planning, involves adopting
alternatives to deal with
the risks in case of their occurrence. Unlike the mitigation planning in which mitigation looks to reduce the
probability of the risk and its impact, contingency planning doesn't necessarily attempt to reduce the probability
of a risk event or its impacts. Contingency comes into action when the risk event actually occurs.
QUESTION 357
You are the risk professional of your enterprise. Your enterprise has introduced new systems in many
departments. The business requirements that were to be addressed by the new system are still unfulfilled, and
the process has been a waste of resources. Even if the system is implemented, it will most likely be
underutilized and not maintained making it obsolete in a short period of time.
What kind of risk is it?
A. Inherent risk
B. Business risk
C. Project risk
D. Residual risk
Correct Answer: B
Explanation
Business risk relates to the likelihood that the new system may not meet the user business needs,
requirements and expectations. Here in this stem it is said that the business requirements that were to be
addressed by the new system are still unfulfilled, therefore it is a business risk. Answer:A is incorrect. This is
one of the components of risk. Inherent risk is the risk level or exposure without applying controls or other
management actions into account. But here in this stem no description of control is given, hence it cannot be
concluded whether it is a inherent risk or not.
Answer:C is incorrect. Project risk are related to the delay in project deliverables. The project activities to
design and develop the system exceed the limits of the financial resources set aside for the project. As a result,
the project completion will be delayed. They are not related to fulfillment of business requirements. Answer:D is
incorrect. This is one of the components of risk. Residual risk is the risk that remains after applying controls.
But here in this stem no description of control is given, hence it cannot be concluded whether it is a residual
risk or not.
QUESTION 358
Qualitative risk assessment uses which of the following terms for evaluating risk level?
A. Impact
B. Annual rate of occurrence
C. Probability
D. Single loss expectancy
Correct Answer: AC
Explanation
Unlike the quantitative risk assessment, qualitative risk assessment does not assign dollar values. Rather, it
determines risk's level based on the probability and impact of a risk. These values are determined by gathering
the opinions of experts.
Probability- establishing the likelihood of occurrence and reoccurrence of specific risks, independently, and
combined. The risk occurs when a threat exploits vulnerability. Scaling is done to define the probability that a
risk will occur. The scale can be based on word values such as Low, Medium, or High. Percentage can also be
assigned to these words, like 10% to low and 90% to high.
Impact- Impact is used to identify the magnitude of identified risks. The risk leads to some type of loss.
However, instead of quantifying the loss as a dollar value, an impact assessment could use words such as
Low, Medium, or High. Impact is expressed as a relative value. For example, low could be 10, medium could
be 50, and high could be 100.
Risk level= Probability*Impact
Answer:D and B are incorrect. These are used for calculating Annual loss expectancy (ALE) in quantitative risk
assessment. Formula is given as follows:
ALE= SLE*ARO
QUESTION 359
You are working in an enterprise. You enterprise is willing to accept a certain amount of risk. What is this risk
called?
A. Hedging
B. Aversion
C. Appetite
D. Tolerance
Correct Answer: C
Explanation
Risk appetite considers the qualitative and quantitative aspects of accepting risks in an organization. The term
refers to the type of risks the organization is willing to pursue, as well as amount of risk and the level of risk.
Risk appetite is the amount of risk a company or other entity is willing to accept in pursuit of its mission. This is
the responsibility of the board to decide risk appetite of an enterprise. When considering the risk appetite levels
for the enterprise, the following two major factors should be taken into account:
pursue of its objective fulfillment. Answer:B and A are incorrect. Aversion and hedging are related to each other
and represents the avoidance of risk within the organization.
Answer:D is incorrect. The acceptable variation relative to the achievement of an objective is termed as risk
tolerance. In other words, risk tolerance is the acceptable deviation from the level set by the risk appetite and
business objectives.
QUESTION 360
You are the project manager of the NNN Project. Stakeholders in the two-year project have requested to send
status reports to them via. email every week. You have agreed and send reports every Thursday. After six
months of the project, the stakeholders are pleased with the project progress and they would like you to reduce
the status reports to every two weeks. What process will examine the change to this project process and
implement it in the project?
B. Communications management
C. Perform integrated change control process
D. Project change control process
Correct Answer: C
Explanation
Although this appears to be a simple change the project manager must still follow the rules of the project's
change control system.
Integrated change control is a way to manage the changes incurred during a project. It is a method that
manages reviewing the suggestions for changes and utilizing the tools and techniques to evaluate whether the
change should be approved or rejected. Integrated change control is a primary component of the project's
change control system that examines the affect of a proposed change on the entire project.
Answer:B is incorrect. Communications management is the execution of the communications management
plan.
Answer:D is incorrect. The project change control process not valid as it's the parent of the integrated change
control process, which is more accurate for this option A is incorrect. Configuration management is the
documentation and control of the product's features and functions.
QUESTION 361
You are the project manager of your enterprise. You have identified several risks. Which of the following
responses to risk is considered the MOST appropriate?
A. Any of the above

B. Insuring
C. Avoiding
D. Accepting
Correct Answer: A
Explanation
The appropriate response to the risk is decided by the risk itself, the company's attitude and appetite of risk,
and the threat and opportunity combination of the risk. Answer:C, D, and B are incorrect. Depending upon the
condition, that is, the risk itself, the company's attitude and appetite of risk, and the threat and opportunity
combination of the risk, these response options can be chosen.
QUESTION 362
John is the project manager of the HGH Project for her company. He and his project team have agreed that if
the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the
order. The NBG Company can guarantee orders within three days, but the costs of their products are
significantly more expensive than the current vendor. What type of response does John adopt here?
A. Contingent response strategy

B. Risk avoidance
C. Risk mitigation
D. Expert judgment
Correct Answer: A
Explanation
As in this case John and his team mates have pre-planned the alternative if the vendor would late in placing
the order. Therefore, it is contingent response strategy. Contingent response strategy, also known as
contingency planning, involves adopting alternatives to deal with the risks in case of their occurrence. Unlike
the mitigation planning in which mitigation looks to reduce the probability of the risk and its impact, contingency
planning doesn't necessarily attempt to reduce the probability of a risk event or its impacts. Contingency comes
into action when the risk event actually occurs.
Answer:B is incorrect. Risk avoidance is the method which involves creating solutions that ensure a specific
risk in not realized.
Answer:C is incorrect. Risk mitigation attempts to eliminate or significantly decrease the level of risk present.
Here no alternatives are pre-planned.
Answer:D is incorrect. Expert judgment is utilized in developing risk responses, including feedback and
guidance from risk management experts and those internal to the project qualified to provide assistance in this
process.
QUESTION 363
You work as a project manager for BlueWell Inc. You are preparing for the risk identification process. You will
need to involve several of the project's key stakeholders to help you identify and communicate the identified
risk events. You will also need several documents to help you and the stakeholders identify the risk events.
Which one of the following is NOT a document that will help you identify and communicate risks within the
project?
A. Stakeholder registers
B. Activity duration estimates
C. Activity cost estimates
D. Risk register
Correct Answer: D
Explanation
Risk register is not an input to risk identification, but it is an output of risk identification. Answer:C, B, and A are
incorrect. These are an input to risk identification. Identify Risks is the process of determining which risks may
affect the project. It also documents risks' characteristics. The Identify Risks process is part of the Project
RiskManagement knowledge area. As new risks may evolve or become known as the project progresses
through its life cycle, Identify Risks is an iterative process. The process should involve the project team so that
they can develop and maintain a sense of ownership and responsibility for the risks and associated risk
response actions. Risk Register is the only output of this process.
QUESTION 364
You work as a project manager for TechSoft Inc. You are working with the project stakeholders on the
qualitative risk analysis process in youproject. You have used all the tools to the qualitative risk analysis
process in your project. Which of the following techniques is NOT used asa tool in qualitative risk analysis
process?
A. Risk Urgency Assessment

B. Risk Reassessment
C. Risk Data Quality Assessment
D. Risk Categorization
Correct Answer: B
Explanation
You will not need the Risk Reassessment technique to perform qualitative risk analysis. It is one of the
techniques used to monitor and control risks.
Answer:D, A, and C are incorrect.
The tools and techniques for Qualitative Risk Analysis process are as follows :
Risk Probability and Impact Assessment: Risk probability assessment investigates the chances of a particular
risk to occur.
Risk Impact Assessment investigates the possible effects on the project objectives such as cost, quality,
schedule, or performance, including positive opportunities and negative threats. Probability and Impact Matrix:
Estimation of risk's consequence and priority for awareness is conducted by using a look-up table or the
probability and impact matrix. This matrix specifies the mixture of probability and impact that directs to rating
the risks as low, moderate, or high priority. Risk Data Quality Assessment: Investigation of quality of risk data is
a technique to calculate the degree to which the data about risks are useful for risk management. Risk
Categorization: Risks to the projects can be categorized by sources of risk, the area of project affected and
other valuable types to decide the areas of the project most exposed to the effects of uncertainty.
Risk Urgency Assessment: Risks that requires near-term responses are considered more urgent to address.
Expert Judgment: It is required to categorize the probability and impact of each risk to determine its location in
the matrix.
QUESTION 365
Which of the following is the greatest risk to reporting?
A. Integrity of data
B. Availability of data
C. Confidentiality of data
D. Reliability of data
Correct Answer: D
Explanation
Reporting risks are caused due to wrong reporting which leads to bad decision. This bad decision due to wrong
report hence causes a risk on the functionality of the organization. Therefore, the greatest risk to reporting is
reliability of data. Reliability of data refers to the accuracy, robustness, and timing of the data.
Answer:A, B, and C are incorrect. Integrity, availability, and confidentiality of data are also important, but these
three in combination comes under reliability itself.
QUESTION 366
Which negative risk response usually has a contractual agreement?
A. Sharing
B. Transference
C. Mitigation
D. Exploiting
Correct Answer: B
Explanation
Transference is the risk response that transfers the risk to a third party, usually for a fee. Insurance and
subcontracting of dangerous works are two common examples of transference with a contractual obligation.
Answer:C is incorrect. Mitigation is a negative risk response used to lower the probability and/or impact of a
risk event.
Answer:A is incorrect. Sharing is a positive risk response. Note that sharing may also have contractual
obligations, sometimes called teaming agreements. Answer:D is incorrect. Exploiting is a positive risk response
and not a negative response and doesn't have contractual obligations.
QUESTION 367
Which of the following is the MOST important aspect to ensure that an accurate risk register is maintained?
A. Publish the risk register in a knowledge management platform with workflow features that periodically
contacts and polls risk assessors to ensure accuracy of content
B. Perform regular audits by audit personnel and maintain risk register
C. Submit the risk register to business process owners for review and updating
D. Monitor key risk indicators, and record the findings in the risk register
Correct Answer: A
Explanation
A knowledge management platform with workflow and polling feature will automate the process of maintaining
the risk registers. Hence this ensures that an accurate and updated risk register is maintained.
Answer:C is incorrect. Business process owners typically cannot effectively identify risk to their business
processes. They may not have the ability to be unbiased and may not have the appropriate skills or tools for
evaluating risks.
Answer:B is incorrect. Audit personnel may not have the appropriate business knowledge in risk assessment,
hence cannot properly identify risk. Regular audits may also cause hindrance to the business activities.
Answer:D is incorrect. Monitoring key risk indicators, and record the findings in the risk register will only provide
insights to known and identified risk and will not account for obscure risk, i.e. , risk that has not been identified
yet.
QUESTION 368
Which of the following test is BEST to map for confirming the effectiveness of the system access management
process?
A. user accounts to human resources (HR) records.

B. user accounts to access requests.
C. the vendor database to user accounts.
D. access requests to user accounts.
Correct Answer: B
Explanation
Tying user accounts to access requests confirms that all existing accounts have been approved. Hence, the
effectiveness of the system access management process can be accounted. Answer:D is incorrect. Tying
access requests to user accounts confirms that all access requests have been processed; however, the test
does not consider user accounts that have been established without the supporting access request.
Answer:A is incorrect. Tying user accounts to human resources (HR) records confirms whether user accounts
are uniquely tied to employees, not accounts for the effectiveness of the system access management process.
Answer:C is incorrect. Tying vendor records to user accounts may confirm valid accounts on an e- commerce
application, but it does not consider user accounts that have been established without the supporting access
request.
QUESTION 369
Which of the following is the way to verify control effectiveness?
A. The capability of providing notification of failure.

B. Whether it is preventive or detective.
C. Its reliability.
D. The test results of intended objectives.
Correct Answer: D
Explanation
Control effectiveness requires a process to verify that the control process worked as intended and meets the
intended control objectives.
Hence the test result of intended objective helps in verifying effectiveness of control. Answer:C is incorrect.
Reliability is not an indication of control strength; weak controls can be highly reliable, even if they do not meet
the control objective. Answer:B is incorrect. The type of control, like preventive or detective, does not help
determine control effectiveness.
Answer:A is incorrect. Notification of failure does not determine control strength, hence this option is not
correct.
QUESTION 370
What is the most important benefit of classifying information assets?
A. Linking security requirements to business objectives

B. Allotting risk ownership
C. Defining access rights
D. Identifying controls that should be applied
Correct Answer: D
Explanation
All of the options are directly or indirectly are the advantages of classifying information assets, but the most
important benefit amongst them is that appropriate controls can be identified. Answer:C, B, and A are incorrect.
These all are less significant than identifying controls.
QUESTION 371
You are the project manager of GHT project. A risk event has occurred in your project and you have identified
it. Which of the following tasks you would do in reaction to risk event occurrence? Each answer represents a
part of the solution. Choose three.
A. Monitor risk
B. Maintain and initiate incident response plans
C. Update risk register
D. Communicate lessons learned from risk events
Correct Answer: ABD

Explanation
When the risk events occur then following tasks have to done to react to it:
Maintain incident response plans
Monitor risk
Initiate incident response
Communicate lessons learned from risk events
Answer:C is incorrect. Risk register is updated after applying appropriate risk response and at the time of risk
event occurrence.
QUESTION 372
Which of the following parameters would affect the prioritization of the risk responses and development of the
risk response plan? Each answer represents a complete solution.
Choose three.
A. Importance of the risk

B. Time required to mitigate risk.
C. Effectiveness of the response
D. Cost of the response to reduce risk within tolerance levels
Correct Answer: ACD

Explanation
The prioritization of the risk responses and development of the risk response plan is influenced by several
parameters:
Cost of the response to reduce risk within tolerance levels Importance of the risk
Capability to implement the response
Effectiveness of the response
Efficiency of the response
Answer:B is incorrect. Time required to mitigate risk does not influence the prioritization of the risk and
development of the risk response plan. It affects the scheduled time of the project.
QUESTION 373
Which of the following come under the management class of controls?
A. Risk assessment control

B. Audit and accountability control
C. Program management control
D. Identification and authentication control
Correct Answer: AC
Explanation
The Management class of controls includes five families. These families include over 40 individual controls.
Following is a list of each of the families in the Management class:
Certification, Accreditation, and Security Assessment (CA): This family of controls addresses steps to
implement a security and assessment program. It includes controls to ensure only authorized systems are
allowed on a network. It includes details on important security concepts, such as continuous monitoring and a
plan of action and milestones. Planning (PL): The PL family focuses on security plans for systems. It also
covers Rules of Behaviour for users. Rules of Behaviour are also called an acceptable use policy. Risk
Assessment (RA): This family of controls provides details on risk assessments and vulnerability scanning.
System and Services Acquisition (SA): The SA family includes any controls related to the purchase of products
and services. It also includes controls related to software usage and user installed software.
Program Management (PM): This family is driven by the Federal Information Security Management Act
(FISMA). It provides controls to ensure compliance with FISMA. These controls complement other controls.
They don't replace them.
Answer:D and B are incorrect. Identification and authentication, and audit and accountability control are
technical class of controls.
QUESTION 374
Which of the following parameters are considered for the selection of risk indicators?
A. Size and complexity of the enterprise

B. Type of market in which the enterprise operates
C. Risk appetite and risk tolerance
D. Strategy focus of the enterprise
Correct Answer: ABD

Explanation
Risk indicators are placed at control points within the enterprise and are used to collect data. These collected
data are used to measure the risk levels at that point. They also track events or incidents that may indicate a
potentially harmful situation. Risk indicators can be in form of logs, alarms and reports. Risk indicators are
selected depending on a number of parameters in the internal and external environment, such as:
Size and complexity of the enterprise
Type of market in which the enterprise operates
Strategy focus of the enterprise
Answer:C is incorrect. Risk appetite and risk tolerance are considered when applying various risk responses.
QUESTION 375
David is the project manager of HRC project. He concluded while HRC project is in process that if he adopts e-
commerce, his project can be more fruitful. But he did not engaged in electronic commerce (e-commerce) so
that he would escape from risk associated with that line of business.
What type of risk response had he adopted?
A. Acceptance
B. Avoidance
C. Exploit
D. Enhance
Correct Answer: B
Explanation
As David did not engaged in e-commerce in order to avoid risk, hence he is following risk avoidance strategy.
QUESTION 376
Which of the following is the final step in the policy development process?
A. Management approval
B. Continued awareness activities
C. Communication to employees
D. Maintenance and review
Correct Answer: D
Explanation
Organizations should create a structured ISG document development process. A formal process gives many
areas the opportunity to comment on a policy. This is very important for high-level policies that apply to the
whole organization. A formal process also makes surethat final policies are communicated to employees. It
also provides organizations with a way to make sure that policies are reviewed regularly.
In general, a policy development process should include the following steps:
In general, a policy development process should include the following steps:
1.Development
2.Stakeholder review
3.Management approval
4.Communication to employees
5.Documentation of compliance or exceptions
6.Continued awareness activities
7.Maintenance and review
Answer:A, B, and C are incorrect. These are the earlier phases in policy development process.
QUESTION 377
You are the project manager of GHT project. Your project utilizes a machine for production of goods. This
machine has the specification that if its temperature would rise above 450 degree Fahrenheit then it may result
in burning of windings. So, there is an alarm which blows when machine's temperature reaches 430 degree
Fahrenheit and the machine is shut off for 1 hour.
What role does alarm contribute here?
A. Of risk indicator
B. Of risk identification
C. Of risk trigger
D. Of risk response
Correct Answer: A
Explanation
Here in this scenario alarm indicates the potential risk that the rising temperature of machine can cause, hence
it is enacting as a risk indicator.
reporting mechanisms that alert staff about the potential risks. Answer:C is incorrect. The temperature 430
degree in scenario is the risk trigger. A risk trigger is a warning sign or condition that a risk event is about to
happen. As in this scenario the 430 degree temperature is the indication of upcoming risks, hence 430 degree
temperature is a risk trigger. Answer:D is incorrect. Risk response is the action taken to reduce the risk event
occurrence.
Hence here risk response is shutting off of machine.
Answer:B is incorrect. The first thing we must do in risk management is to identify the areas of the project
where the risks can occur. This is termed as risk identification. Listing all the possible risks is proved to be very
productive for the enterprise as we can cure them before it can occur. In risk identification both threats and
opportunities are considered, as both carry some level of risk with them.
QUESTION 378
When does the Identify Risks process take place in a project?
A. At the Planning stage.

B. At the Executing stage.
C. At the Initiating stage.
D. Throughout the project life-cycle.
Correct Answer: D
Explanation
Identify Risks is the process of determining which risks may affect the project. It also documents risks'
characteristics. The Identify Risks process is part of the Project Risk Management knowledge area. As new
risks may evolve or become known as the project progresses through its life cycle, Identify Risks is an iterative
process. The process should involve the project team so that they can develop and maintain a sense of
ownership and responsibility for the risks and associated risk response actions. Risk Register is the only output
of this process. Answer:C, A, and B are incorrect. Identify Risks process takes place at all the stages of a
project, because risk changes over time.
QUESTION 379
In the project initiation phase of System Development Life Cycle, there is information on project initiated by
which of the following role carriers?
A. CRO
B. Sponsor
C. Business management
D. CIO
Correct Answer: B
Explanation
Project initiation section of SDLC contains information on projects initiated by sponsors who gather the
information required to gain approval for the project to be created.
QUESTION 380
Which of the following are the responsibilities of Enterprise risk committee?
A. React to risk events

B. Analyze risk
C. Risk aware decision
D. Articulate risk
Correct Answer: BCD

Explanation
Risk aware decision, analyzing risk, and articulating risk are the responsibilities of Enterprise risk committee.
They are the executives who are accountable for the enterprise level collaboration and consensus required to
support enterprise risk management (ERM) activities and decisions. An IT risk council may be established to
consider IT risk in more detail andadvise the enterprise risk committee. ERC ensure that these activities are
completed successfully. Answer:A is incorrect. ERM is not responsible for reaction over risk events. Business
process owners are accounted for this task.
QUESTION 381
Malicious code protection is which type control?
A. Configuration management control

B. System and information integrity control
C. Media protection control
D. Personal security control
Correct Answer: B
Explanation
Malware, short for malicious software, is software designed to disrupt computer operation, gather sensitive
information, or gain unauthorized access to computer systems. As malicious code protection lists steps to
protect against malware, it preserves the information integrity of the enterprise.
Hence Malicious code protection is System and information integrity control. This family of controls provides
information to maintain the integrity of systems and data. Answer:D is incorrect. Malicious code protection is
not a Personal security control. The Personal security control is a family of controls including aspects of
personnel security. It includes personnel screening, termination, and transfer. Answer:A is incorrect. Malicious
code protection is not a Configuration management control. Configuration management control is the family of
controls that addresses both configuration management and change management. Change control practices
prevent unauthorized changes. Answer:C is incorrect. Malicious code protection is not a Media protection
control. Media Protection includes removable digital media such as tapes, external hard drives, and USB flash
drives. It also includes non-digital media such as paper and film. This family of controls covers the access,
marking, storage, transport, and sanitization of media.
QUESTION 382
If one says that the particular control or monitoring tool is sustainable, then it refers to what ability?
A. The ability to adapt as new elements are added to the environment

B. The ability to ensure the control remains in place when it fails
C. The ability to protect itself from exploitation or attack
D. The ability to be applied in same manner throughout the organization
Correct Answer: A
Explanation
Sustainability of the controls or monitoring tools refers to its ability to function as expected over time or when
changes are made to the environment.
Answer:D is incorrect. This is not valid definition for defining sustainability of al tool. Answer:B is incorrect.
Sustainability ensures that controls changes with the conditions, so as not to fail in any circumstances. Hence
this in not valid answer.
Answer:C is incorrect. This in not valid answer.
QUESTION 383
You work as a Project Manager for Company Inc. You are incorporating a risk response owner to take the job
for each agreed-to and funded risk response. On which of the following processes are you working?
A. Quantitative Risk Analysis

B. Identify Risks
C. Plan risk response
Correct Answer: C
Explanation
Risk register
Answer:B is incorrect. Identify Risks is the process of determining which risks may affect the project. It also
area. As new risks may evolve or become knownas the project progresses through its life cycle, Identify Risks
only output of this process. Answer:A is incorrect. Quantitative analysis is the use of numerical and statistical
techniques rather than the analysis of verbal material for analyzing risks. Some of the quantitative methods of
risk analysis are:
Internal loss method
External data analysis
Business process modeling (BPM) and simulation
Statistical process control (SPC)
Answer:D is incorrect. Qualitative analysis is the definition of risk factors in terms of high/medium/low or a
numeric scale (1 to 10).
Hence it determines the nature of risk on a relative scale.
compelling business owners tocontemplate, and then explain, the issues at hand with the added benefit of
QUESTION 384
Which of the following is NOT the method of Qualitative risk analysis?
A. Scorecards
B. Attribute analysis
C. Likelihood-impact matrix
D. Business process modeling (BPM) and simulation
Correct Answer: D
Explanation
Business process modeling (BPM) and simulation is a method of Quantitative risk analysis and not Qualitative
risk analysis.
The BPM and simulation discipline is an effective method of identifying and quantifying the operational risk in
enterprise business processes.
It improves business process efficiency and effectiveness. Answer:A, C, and B are incorrect. These three are
the methods of Qualitative risk analysis.
QUESTION 385
You are the project manager of the NHQ project in Bluewell Inc. The project has an asset valued at $200,000
and is subjected to an exposure factor of 45 percent. If the annual rate of occurrence of loss in this project is
once a month, then what will be the Annual Loss Expectancy (ALE) of the project?
A. $ 2,160,000
B. $ 95,000
C. $ 108,000
D. $ 90,000
Correct Answer: C
Explanation
The ALE of this project will be $ 108,000.
Single Loss Expectancy is a term related to Quantitative Risk Assessment. It can be defined as the monetary
value expected from the occurrence of a risk on an asset. It is mathematically expressed as follows:
SLE = Asset value * Exposure factor
Therefore,
SLE = 200,000 * 0.45
= $ 90,000
As the loss is occurring once every month, therefore ARO is 12. Now ALE can be calculated as follows:
ALE = SLE * ARO
= 90,000 * 12
= $ 108,000
QUESTION 386
Which of the following is a performance measure that is used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments?
A. Return On Security Investment

B. Total Cost of Ownership
C. Return On Investment
D. Redundant Array of Inexpensive Disks
Correct Answer: C
Explanation
Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an
investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
The return on investment formula:
ROI= (Gain from investment - Cost of investment) / Cost of investment In the above formula "gains from
investment", refers to the proceeds obtained from selling the investment of interest.
Answer:D is incorrect. RAID is described as a redundant array of inexpensive disks. It is a technology that
allows computer users to achieve high levels of storage reliability from low-cost and less reliable PC-class disk-
drive components, via the technique of arranging the devices into arrays for redundancy.
Answer:A and B are incorrect. These options are not related to the measurement of efficiency of an
investment.
QUESTION 387
You are the program manager for your organization and you are working with Alice, a project manager in her
program. Alice calls you and insists you to add a change to program scope. You agree for that the change.
What must Alice do to move forward with her change request?
A. Add the change to the program scope herself, as she is a project manager
B. Create a change request charter justifying the change request
C. Document the change request in a change request form.
D. Add the change request to the scope and complete integrated change control
Correct Answer: C
Explanation
Change requests must be documented to be considered. Alice should create a change request form and follow
the procedures of the change control system.
QUESTION 388
Which of the following business requirements MOST relates to the need for resilient business and information
systems processes?
A. Confidentiality
B. Effectiveness
C. Integrity
D. Availability
Correct Answer: D
Explanation
Availability relates to information being available when required by the business process in present as well as
in future. Resilience is the ability to provide and maintain an acceptable level of service during disasters or
when facing operational challenges. Hence they are most closely related. Answer:B is incorrect. Confidentiality
deals with the protection of sensitive information from unauthorized disclosure. While the lack of system
resilience can in some cases affect data confidentiality, resilience is more closely linked to the business
information requirement of availability.
Answer:A is incorrect. Integrity relates to the accuracy and completeness of information as well as to its validity
in accordance with business values and expectations. While the lack of system resilience can in some cases
affect data integrity, resilience is more closely linked to the business information requirement of availability.
Answer:C is incorrect. Effectiveness deals with information being relevant and pertinent to the business
process as well as being delivered in a timely, correct, consistent and usable manner. While the lack of system
resilience can in some cases affect effectiveness, resilience is more closely linked to the business information
requirement of availability.
QUESTION 389
Which of the following serve as the authorization for a project to begin?
A. Approval of project management plan

B. Approval of a risk response document
C. Approval of risk management document
D. Approval of a project request document
Correct Answer: D
Explanation
Approval of a project initiation document (PID) or a project request document (PRD) is the authorization for a
project to begin.
Answer:C is incorrect. Risk management document is being prepared later after the project initiation, during the
risk management plan. It has no scope during project initialization. Answer:B is incorrect. Risk response
document comes under risk management process, hence the latter phase in project development process.
Answer:A is incorrect. Project management plan is being made after the project is being authorized.
QUESTION 390
In which of the following conditions business units tend to point the finger at IT when projects are not delivered
on time?
A. Threat identification in project

B. System failure
C. Misalignment between real risk appetite and translation into policies
D. Existence of a blame culture
Correct Answer: D
Explanation
In a blame culture, business units tend to point the finger at IT when projects are not delivered on time or do
not meet expectations. In doing so, they fail to realize how the business unit's involvement up front affects
project success. In extreme cases, the business unit may assign blame for a failure to meet the expectations
that the unit never clearly communicated. Answer:B, C, and A are incorrect. These are not relevant to the
pointing of finger at IT when projects are not delivered on time.
QUESTION 391
Which of the following methods involves the use of predictive or diagnostic analytical tool for exposing risk
factors?
A. Scenario analysis
B. Sensitivity analysis
C. Fault tree analysis
D. Cause and effect analysis
Correct Answer: D
Explanation
Cause-and-effect analysis involves the use of predictive or diagnostic analytical tool for exploring the root
causes or factors that contribute to positive or negative effects or outcomes. These tools also help in identifying
potential risk.
Answer:B is incorrect. Sensitivity analysis is the quantitative risk analysis technique that:
at their baseline values Answer:C is incorrect. Fault tree analysis (FIA) is a technique that provides a
systematic description of the combination of possible occurrences in a system, which can result in an
undesirable outcome. It combines hardware failures and human failures. Answer:A is incorrect. This analysis is
not a method for exposing risk factors. It is used for analyzing scenarios.
QUESTION 392
Sammy is the project manager for her organization. She would like to rate each risk based on its probability
and affect on time, cost, and scope. Harry, a project team member, has never done this before and thinks
Sammy is wrong to attempt this approach. Harry says that an accumulative risk score should be created, not
three separate risk scores. Who is in this scenario?
A. Sammy is correct, because she is the project manager.

B. Sammy is correct, because organizations can create risk scores for each objective of the project.
C. Harry is correct, the risk probability and impact matrix is the only approach to risk assessment.
D. Harry is correct, because the risk probability and impact considers all objectives of the project.
Correct Answer: B
Explanation
Sammy She certainly can create an assessment for a risk event for time cost, and scope. It is probable that a
risk event may have an effect on just one or more objectives so an assessment of the objective is acceptable.
Answer:A is incorrect. Just because Sammy is the project manager, it is not necessary that she is right.
Answer:D is incorrect. Harry's reasoning is flawed as each objective can be reviewed for the risk's impact
rather than the total project.
Answer:C is incorrect. Harry is inas there are multiple approaches to risk assessment for a project
QUESTION 393
Which of the following terms is described in the statement below? "They are the prime monitoring indicators of
the enterprise, and are highly relevant and possess a high probability of predicting or indicating important risk. "
A. Key risk indicators

B. Lag indicators
C. Lead indicators
D. Risk indicators
Correct Answer: A
Explanation
Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess
a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of
risk indicators to manage and report that a large enterprise may have. Answer:D is incorrect. Risk indicators
are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or
unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting
mechanisms that alert staff about the potential risks.
Answer:C is incorrect. Lead indicators are the risk indicators that is used to indicate which capabilities are in
place to prevent events from occurring. Answer:B is incorrect. Lag indicators are the risk indicators that is used
to indicate risk after events have occurred.

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Isaca CRISC Exam

Exam Code: CRISC

Title : Certified in Risk and Information Systems Control

A. In order to avoid risk

A. Include the responses in the project management plan.

A. Providing a backward-looking view on risk events that have occurred

Each answer represents a part of the solution. Choose two.

A. Determination of cause and effect

Correct Answer: BCD

A. Resource Management Plan

A. The finance incentive behind the risk

A. Review performance data

A. Information security managers

A. Control's alignment with operating environment

A. Human resource needs

A. Business Continuity Strategy

A. If the CPI > 1, it indicates better than expected performance of project

A. Information about the propriety of cutoff

A. Risk indicator matrix

A. The amount of loss the enterprise wants to accept

Each answer represents a complete solution. Choose three.

Correct Answer: ABD

A. Risk reports need to be timely

A. Program management control

A. Risk management plan

A. Activity duration estimates

Each answer represents a complete solution. Choose three.

A. Someone sees company's secret formula

Correct Answer: BCD

A. The IT strategic plan

A. These risks can be dismissed.

A. Provides details on how to protect the audit logs

Correct Answer: ACD

A. Risk level increases above risk appetite

Correct Answer: ABD

A. Interview the firewall administrator.

A. Project network diagrams

A. User entitlement changes

A. Monitor and Control Risk

Each answer represents a part of the solution. Choose two.

A. Potential threats and vulnerabilities that could lead to loss events

Each answer represents a complete solution. Choose three.

A. Managing the risk assessment process

Correct Answer: ABD

A. Contract change control system

A. The enterprise may apply the appropriate control anyway.

Each answer represents a complete solution. Choose three.

Correct Answer: ABD

Each answer represents a part of the solution. Choose three.

A. Information of various stakeholders

Correct Answer: BCD

A. Involve subject matter experts in the risk analysis activities

A. Project risks are uncertain as to when they will happen.

A. Risk Management Plan

A. Trends in qualitative risk analysis

A. Update the risk register.

"It is the expected guaranteed value of taking a risk."

A. Certainty equivalent value

A. This is a residual risk.

A. Risk management plan

A. The events should be entered into qualitative risk analysis.

Each answer represents a complete solution. Choose three.