Free APM Project Risk Management Single Subject Certificate Level 1 Practice Questions

Sample Practice Questions

Try these 10 sample questions from the APM Project Risk Management Single Subject Certificate Level 1 practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1What makes a situation a risk in a project?

   1. A.Its potential to affect a specific objectiveCorrect answer: A
   2. B.Its inclusion in an approved work package
   3. C.Its occurrence before the project starts
   4. D.Its allocation to the project sponsor

   Explanation: APM states: "The potential of a situation or event to impact on the achievement of specific objectives." A risk is defined through its potential effect on objectives. Work-package approval, timing before start and sponsor allocation do not define risk.

   Reference: APM Project Management Glossary — Risk

2. 2Which outcome is a soft benefit of proactive risk management?

   1. A.A team that feels less stressed and more confidentCorrect answer: A
   2. B.A reduction in the contingency allowed in a bid
   3. C.A more competitive price for a project proposal
   4. D.A contract type that better fits the project risks

   Explanation: APM states: "the project team is less stressed, more confident and is better able to apply its skills." Reduced stress and greater confidence are soft human benefits. Contingency, bid price and contract fit are commercial or planning benefits.

   Reference: Project Risk Analysis and Management Guide – publisher sample — p. 2, Approaches to risk management in projects

3. 3Which event is a threat to a project objective?

   1. A.A possible supplier delay that would postpone completionCorrect answer: A
   2. B.An approved deliverable that meets acceptance criteria
   3. C.A confirmed saving already included in the final accounts
   4. D.A planned meeting used to discuss possible responses

   Explanation: APM defines the term as: "A negative risk event; a risk event that if it occurs will have a downside/ detrimental effect on one or more objectives." The possible delay has a detrimental objective impact. A completed saving, accepted deliverable and planned meeting do not constitute that uncertain negative event.

   Reference: APM Project Management Glossary — Threat

4. 4In the initiation of risk management, what are project objectives?

   1. A.Predetermined results towards which effort is directedCorrect answer: A
   2. B.The current contents of the risk action log
   3. C.The uncertainties accepted without further action
   4. D.The methods used to rank threats by importance

   Explanation: APM states: "A generic term for predetermined results towards which effort is directed. Objectives may be defined in terms of outputs, outcomes and/or benefits." Objectives state intended results, rather than records, uncertainties or ranking methods.

   Reference: APM Project Management Glossary — Objectives

5. 5What does a risk management plan define for a project?

   1. A.The final financial result after all risks have closed
   2. B.The hierarchy of deliverables to be handed over
   3. C.How risk management will be implemented for the projectCorrect answer: C
   4. D.The supplier's standard price for responding to all threats

   Explanation: APM states: "A document defining how risk management is to be implemented in the context of the particular project concerned." The plan specifies the project's approach to implementing risk management, not final accounts, deliverables or prices.

   Reference: APM Project Management Glossary — Risk management plan

6. 6An organisation is introducing PRAM but staff are unfamiliar with quantitative models. What introduction does the mini guide recommend?

   1. A.Begin by requiring the same quantitative model on every pilot project
   2. B.Begin gradually while developing organisational acceptabilityCorrect answer: B
   3. C.Choose the software platform before agreeing the risk process
   4. D.Use a full quantitative report as the prerequisite for initial training

   Explanation: APM states: "It is recommended that new practitioners start slowly, perhaps even ignoring this ‘sub-stage’, until a climate of acceptability has been developed for project risk analysis and management in the organisation." Gradual adoption builds acceptance. Uniform full modelling, software-first selection and a modelling-report prerequisite put sophistication ahead of the recommended introduction.

   Reference: APM Project Risk Analysis and Management Mini Guide – web edition — 3. What is involved? – Quantitative analysis

7. 7Which technique examines strengths, weaknesses, opportunities and threats?

   1. A.SWOT analysisCorrect answer: A
   2. B.Delphi technique
   3. C.Monte Carlo simulation
   4. D.Sensitivity analysis

   Explanation: APM states: "A technique used to identify the strengths, weaknesses, opportunities and threats inherent in a project." SWOT is the four-part examination. Delphi develops expert consensus; Monte Carlo combines uncertainty; sensitivity examines changed inputs.

   Reference: APM Project Management Glossary — SWOT (analysis)

8. 8A supplier has not qualified a component; qualification might fail and delay delivery. Which description correctly separates cause, risk event and effect?

   1. A.Cause: delayed delivery; event: unqualified component; effect: possible failure
   2. B.Cause: unqualified component; event: possible qualification failure; effect: delayed deliveryCorrect answer: B
   3. C.Cause: possible failure; event: delayed delivery; effect: unqualified component
   4. D.Cause: possible qualification failure; event: unqualified component; effect: delayed delivery

   Explanation: APM states: "separating causes (facts now), from risk events (situations that may occur), from effects (that have an impact on one or more of the project measures)." The present unqualified state is the cause, possible future failure the event and delayed delivery the objective effect. A reverses cause/effect, C moves the future event into cause and the current state into effect, and D swaps cause and event.

   Reference: APM What Is Risk Management? — What is risk analysis?

9. 9A modeller changes one input and observes how the project outcome changes. Which technique is being used?

   1. A.Sensitivity analysisCorrect answer: A
   2. B.Delphi technique
   3. C.SWOT analysis
   4. D.Risk interviewing

   Explanation: APM states: "An investigation of the effect on the outcome of changing parameters or data in procedures or models." Sensitivity analysis examines outcome changes when inputs vary. Consensus, SWOT and interviews serve different purposes.

   Reference: APM Project Management Glossary — Sensitivity analysis

10. 10A team changes the design so a particular threat can no longer affect the project. Which response is this?

    1. A.Reduce
    2. B.Accept
    3. C.Fallback
    4. D.AvoidCorrect answer: D

    Explanation: APM states: "A response to a threat that eliminates its probability or impact on the project." Avoidance eliminates the threat's probability or impact. Reduction lowers exposure without necessarily eliminating it; acceptance and fallback do not remove it now.

    Reference: APM Project Management Glossary — Avoid