Risk Management Professional (PMI-RMP)® Premium Edition and Practice Test

Carl Pritchard, PMI-RMP, PMP is a thought leader in the risk management community, where he has been involved for 30 years. He has written eight books and led training around the globe for the Project Management Institute, as well as for private clients.In 2019, PMI global awarded him the Eric Jenett Project Management Excellence Award, citing him as the “Best of the Best” in project management. Considered the “fun guy” of project risk management, Carl is a sought-after speaker and has presented keynote addresses for major conferences and corporate all-hands meetings.Carl is honored by his long-term relationships with PMI chapters in upstate New York, Baltimore, Pittsburgh, and the greater Washington, DC area. He resides in the mountains of western Maryland with his wife, Nancy. Additional information about Carl's current activities can be found at carlpritchard.com, and you can follow Carl on Twitter @rmpprep.

• Introduction xxivPart I: Strategic Risk and Risk PlanningChapter 1 The Risk Structure 3“Do I Know This Already?” Quiz 3Foundation Topics 6Risk Documentation Capture 6Industry Benchmarks 6Project Plans 7Lessons Learned 7Customer Agreements 8Project Assumptions 8The Project Charter 8Risk Roles and Responsibilities 9Risk Manager 9Risk Owner 10Risk Team 10Project Roles 10Risk Responsibilities 11The Risk Archive 11Risk Repository 11Risk Register 11Exam Preparation Tasks 14Chapter 2 Risk Environment and Culture 19“Do I Know This Already?” Quiz 20Foundation Topics 23Risk Attitude, Appetite, and Maturity 23Tolerance 23Threshold 23Appetite 24Attitude 25Risk Maturity 25Risk Assumptions 26Constraint-Driven Risks 27Stakeholders and Risk Culture 27Salience Model 29Stakeholder Tolerances 30Risk Owners 31Stakeholder Risk Planning 32Program Stakeholders 33Portfolio Stakeholders 33Data Processing 33Organizational Infrastructure 33Communication 34Facilities, Equipment, and Hardware 34Capacity 34Exam Preparation Tasks 35Chapter 3 Tolerance, Thresholds, and Triggers 39“Do I Know This Already?” Quiz 39Foundation Topics 43Risk Absorption 43Organizational and Project Risk Tolerance 44Organizational Risk Tolerance 44Project Risk Tolerance 45Thresholds 45Triggers 46Recognizing and Resolving Cultural Discord 46Exam Preparation Tasks 48Chapter 4 Strategic Risk 53“Do I Know This Already?” Quiz 54Foundation Topics 57Risk Process Alignment 57Risk Management Planning 57Risk Identification 57Risk Analysis 57Qualitative Analysis 58Quantitative Analysis 58Risk Response Development 59Risk Response Implementation and Control 59Risk Process Tools 59Risk Sources and Their Roles 60Risk Alliances 61Exam Preparation Tasks 62Chapter 5 The Risk Management Plan (RMP) 67“Do I Know This Already?” Quiz 68Foundation Topics 72The Three R's: RAM, RACI, and RBS 72Responsibility Assignment Matrix (RAM) 72RACI (Responsible Accountable Consult Inform) Chart 73The Risk Breakdown Structure 74Risk Responsibility and Accountability 75Risk Responsibility in the Risk Management Plan 75Risk Accountability in the Risk Management Plan 76Risk Communication Documentation 77The Author 78The Timing 78The Recipients 78Communications Modes 79Risk Education and Training 80Exam Preparation Tasks 82Chapter 6 Connecting Others in Risk 87“Do I Know This Already?” Quiz 87Foundation Topics 91Stakeholders and Their Roles 91Strategic Risk and the Stakeholders 92Team Engagement in Appetites, Attitudes, and Priorities 93Forming 93Storming 93Norming 93Performing 94Adjourning 94Team-Driven Data-Gathering Techniques 94Brainstorming 94Nominal Group Technique 95Focus Groups 95Interviews 96The Delphi Technique 96Meetings 96Rules of Engagement 98Tolerance Rules 98Trigger Rules 99Escalation Rules 99Reporting Rules 100Information–Sharing Rules 100Risk Education Beyond the Strategic 100Exam Preparation Tasks 101Part II: Risk IdentificationChapter 7 Practical, Team-Based Risk Identification 107“Do I Know This Already?” Quiz 108Foundation Topics 111Identification Approaches 111Mind Mapping 111Affinity Diagram 112Root Cause Analysis 113Checklist Analysis 115Assumptions Analysis 115SWOT Analysis 116Expert Judgment 117The Risk Questions 117Preliminary Data Analysis 118The Risk Register 119Exam Preparation Tasks 120Chapter 8 Constraints and Assumptions 125“Do I Know This Already?” Quiz 125Foundation Topics 129Constraints as Risk Drivers 129Known-Knowns 129Unknown-Knowns 130Unknown-Unknowns 130Known-Unknowns 131Pure Versus Business or Speculative Risk 131Changes in Constraints 131Assumptions as Identified Risks 132The Open Assumptions and Constraints Discussion 133Assumptions, Constraints, Tolerances, and Thresholds 133Exam Preparation Tasks 134Chapter 9 Applying Triggers and Thresholds 139“Do I Know This Already?” Quiz 139Foundation Topics 143Compliance and the Implications of Tolerance 143Tolerance- and Threshold-Driven Triggers 144Visible Triggers 144Physical Triggers 144Stakeholder-Driven Triggers 145Exam Preparation Tasks 146Chapter 10 The Risk Register 151“Do I Know This Already?” Quiz 151Foundation Topics 155Register Functionality 155Register Categories 156Risk ID 157Risk Event 157Probability 157Impact 158Urgency 158Propinquity 158Proximity 159Dormancy 159Manageability and Controllability 159Connectivity 159Detectability (FMEA) 160Strategic Impact 160Overall Risk 160Priority 161Risk Owner 161Area(s) Impacted 161Escalation 161Response Strategy Type 162Response Strategy Narrative Description 163Implementation Schedule 163Implementation Review 163Retirement Criteria 163Follow-up 164Outcome 164Archival Location 164Risk Classification 164Exam Preparation Tasks 165Part III: Risk AnalyticsChapter 11 Risk Qualification 171“Do I Know This Already?” Quiz 172Foundation Topics 176Risk Sorting 176Taxonomic Review 176Risk Management Plan Application 177Risk Ranking 181Group Risk Ranking 181Individual Risk Ranking 181Fist to Five 182Dot Voting 182Roman Voting 183Consensus 183Nominal Group Technique 183Stakeholder-Based Ranking Support 184Exam Preparation Tasks 184Chapter 12 Risk Quantification 191“Do I Know This Already?” Quiz 192Foundation Topics 197Performance Data and Its Implications 197Waterfall Performance Data 197Budget at Completion 198Planned Value 198Earned Value 198Actual Costs 199Schedule Variance and Schedule Performance Index 199Cost Variance and Cost Performance Index 199Estimate at Completion 200To-Complete Performance Index 201Agile Performance Data 201Sprint Completion 201User Stories Completion 202Story Point Completion 203General Versus Detailed Quantitative Analysis 203General Analysis 204Detailed Analysis 209Sensitivity Analysis Tools 210Monte Carlo Sensitivity Analysis 210Tornado Diagram 211Network Diagram Sensitivity Analysis (Critical Path) 211Ishikawa Diagram Analysis (Root Cause) 212Decision Tree Analysis 212Relative Risk Weight and Priority 214Exam Preparation Tasks 214Chapter 13 Risk Complexity, Assessment, and Analysis 221“Do I Know This Already?” Quiz 221Foundation Topics 226Risk Complexity 226Root Cause Analysis (Ishikawa) 226SWOT Analysis 226Tree Diagrams 227Fault Trees 228Decision Trees 229Risk Interconnectedness 231Risk at the Organizational Level 232Threat Versus Opportunity 233Exam Preparation Tasks 234Part IV: Risk Management and ResolutionChapter 14 Response Planning 239“Do I Know This Already?” Quiz 240Foundation Topics 244Opportunity Versus Threat Strategies 244Opportunity Strategies 244Passive Acceptance 244Active Acceptance 245Exploitation 245Enhancement 245Sharing 246Escalation 246Threat Strategies 246Avoidance 247Mitigation 248Transfer 248Escalation 249Action Plans and Risk Owners 249Action Plans 249Agile Action Plans 250Predictive Action Plans 250Risk Owners 250Resolution Metrics and Communication 251Resolution Metrics and Evaluation 251Workarounds 253Response Communication 253Organizational Impacts 254Tolerances 254Policy 254Compliance 254Objectives 255Exam Preparation Tasks 255Chapter 15 Response Implementation 261“Do I Know This Already?” Quiz 262Foundation Topics 266Response Plans Versus Contingencies 266Stakeholder Response Reactions 267Nature of the Response 267Personal/Professional Implementation Involvement 268Personal/Professional Tolerances 269Residual Risk and Its Implications 270Secondary Risk and Its Implications 270Exam Preparation Tasks 271Part V: Tracking and Closing Out RisksChapter 16 Data Collection 277“Do I Know This Already?” Quiz 277Foundation Topics 282Gathering Information 282Data Sources 282Degrees of Accuracy 283Ranking Approach Efficacy 284High-Probability Risk Realization 284High-Impact Risk Realization 285Resilience 286Anti-fragility 286Overall Risk and Project Influence 286Contrasting Project and Organizational Risk 288Project Risks in an Organizational Context 289Organizational Risk Taking in a Project Context 289Organizational Aspects as Risk Sources/Drivers 290Rewards in Risk–Reward 290Rewards to Offset Risks 291Exam Preparation Tasks 292Chapter 17 The Leftovers and the Latecomers 299“Do I Know This Already?” Quiz 300Foundation Topics 305Residuals and Deductibles 305Deployed and Undeployed Responses 305Intended and Unintended Outcomes 306Residual Project and Organizational Risk 306Residual Financial Risk 307Residual Quality Risk 307Residual Reputational Risk 307Response-Generated Risks 308Risk Environment and Response-Generated Risk 308Specific Responses That Generate Risk 309Firm-Fixed Price Contracts 309Fixed-Price Economic Adjustment (FPEA) Contracts 309Fixed-Price Incentive Fee (FPI or FPIF) Contracts 310Cost-Plus Incentive Fee (CPIF) Contracts 310Cost-Plus Award Fee (CPAF) Contracts 311Cost-Plus Fixed Fee (CPFF) Contracts 311Time and Materials (T&M) Contracts 311Cost-Plus Percentage of Cost (CPPC) Contracts 312Contract Type Summary 312Late Risk Reporting 314Risk Register Updates 314Workaround Reporting 316Exam Preparation Tasks 317Chapter 18 Sharing Risk Information 323“Do I Know This Already?” Quiz 324Foundation Topics 329Risk Reporting 329Qualitative Data Gathering and Reporting: Predictive 329Qualitative Data Gathering and Reporting: Adaptive 330Quantitative Data Gathering and Reporting: Predictive 330Quantitative Data Gathering and Reporting: Adaptive 331Related Document Updates 332Management Plan Updates 332Lessons Learned Updates 333Change Log Updates 333Project-wide Risk Updates 334How Has the Project Gone? 334What Risks Remain? 334What's the Likelihood of Success? 335Organization-wide Risk Updates 336Organizational Impact Risks 336Personnel/Stakeholders Risk Updates 336Deliverables Organizational Risks (Quality) 337System Life Cycle Risk Updates 337Unanticipated Overuse 338Environmental/Technical/Organizational Change 338Updated Risks to the Project Management Culture 340Cultural “Get Away with It” Risk Updates 340Misapplication Risk Updates 340Tolerance Updates 341Exam Preparation Tasks 341Part VI: Final PreparationChapter 19 Final Preparation 347Suggested Plan for Final Review and Study 347Summary 348Appendix A Answers to the “Do I Know This Already?” Quizzes and Review Questions 349Appendix B PMI-RMP (Risk Management Professional) Cert Guide Exam Updates 377Glossary of Key Terms 379 ONLINE ELEMENTSAPPENDIX C Study PlannerGlossary of Key Terms 9780138108472 TOC 3/7/2023