One of the critical tasks in the PMI-RMP exam is understanding how to gather and review documents to identify risk component. Why is a candidate required to do this? This knowledge base is vital as these documents provide valuable inputs in the risk management process – they could help the candidate point out historical information, deliverables, the project’s context, and other components relevant to risk management.
For example, the application of Work Breakdown Structure (WBS) is an instrument used in gathering documents. A WBS addresses the deliverables of a project, thus helping to understand potential risks associated with these deliverables.
Project Management Plan
The project management plan is one of the core documents candidates need to familiarize with. The plan outlines the project’s course, from initiation to the closure. It provides a broad path that includes the project scope, timeframes, costs, and quality. By examining the project management plan, a candidate can identify the inherent risks in the project’s scope, schedule, or budget.
For an easy understanding, see the table below:
| Section in Project Management Plan | Potential Risks |
|---|---|
| Project Scope | Scope Creep, Inclusion of irrelevant elements |
| Schedule | Delays, Earlier completion than expected |
| Budget | Over expenditure, Underestimation of costs |
Procurement Documents
Procurement documents, usually elaborative on the agreement between a seller and a buyer, also pose an avenue for risk identification. Examine these documents for potential risks surrounding supplier reliability or potential quality concerns with sourced materials.
Stakeholder Register
This document contains vital information on all parties that have a stake in the project; hence, it is another document to review. The risk could stem from stakeholders like more demanding stakeholders, new stakeholders joining midway, or the withdrawal of crucial stakeholders.
Risk Register
Most importantly, reviewing the Risk Register helps identify and analyze potential project risks. It typically documents the results of risk identification, qualitative risk analysis, quantitative risk analysis, and risk response planning. It is a pivotal document that aids in preparing for the PMI-RMP exam as it equips candidates to understand the range of potential risks in any given project.
However, merely gathering documents isn’t sufficient. Reviewing documents involve critical analysis for the presence of potential project risks. When such risks are identified, they must be properly documented for them to be analyzed, monitored, prioritized, and treated as part of the risk management process.
In conclusion, gathering and reviewing documents forms a vital step in the PMI-RMP exam as well as an important competence of a certified risk management professional. It’s this knowledge of understanding project documents, coupled with the ability to identify potential risks within these documents and manage them effectively, that distinguishes certified PMI-RMP professionals. Therefore, before taking this exam, make sure you are seated right with this knowledge area.
Practice Test
True or False: Risk register is not necessary for project risks management.
- False
Answer: False
Explanation: A risk register is vital for managing project risks. It identifies, assesses, and prioritizes risks, predicates potential impacts, and organizes responses to risks.
Which of the following documents should not be reviewed for project risk management?
- a) Project Charter
- b) WBS
- c) Risk Register
- d) Project Schedule
- e) Baking Recipe
Answer: e) Baking Recipe
Explanation: A baking recipe is completely unrelated to project risk management. The other documents like Project Charter, WBS, Risk Register, and Project Schedule are crucial in project risk analysis and management.
True or False: Stakeholder register can help to identify risks related to stakeholders’ interests and influences.
- True
Answer: True
Explanation: Stakeholder register provides information on stakeholders’ interests, influences, and potential impacts on the project. This information can be useful in identifying and managing stakeholder-related risks.
Which of the following is not a part of reviewing documents?
- a) Examining project plans and records
- b) Discussing with stakeholders
- c) Reading the project charter
- d) Watching a movie
Answer: d) Watching a movie
Explanation: Document review in risk management includes examining project plans, records, discussing with stakeholders, and reviewing the project charter. Watching a movie doesn’t contribute to reviewing documents for risk management.
True or False: The documents review stage in risk management provides the baseline for risk identification
- True
Answer: True
Explanation: The stage of reviewing documents provides a deep understanding of the project, which forms the baseline for identifying risks.
Cost estimates may be a source of uncertainty and therefore may be included in document review for risk identification.
- a) True
- b) False
Answer: a) True
Explanation: Cost Estimates can indeed create uncertainty in the project life cycle and thus, they are considered while performing risk management.
Which of these are not typically reviewed in the gathering and reviewing documents phase of risk management?
- a) Risk Register
- b) Project charter
- c) Stakeholder register
- d) Employee promotion letters
Answer: d) Employee promotion letters
Explanation: Employee promotion letters are personnel related and not typically related to project risks.
True or False: Gather and review documents stage in risk management only addresses negative risks.
- False
Answer: False
Explanation: Risk is either positive (opportunities) or negative (threats). Both types of risks should be considered during the gather and review process.
A project schedule is not crucial in Gather and Review Documents phase in Risk Management?
- a) True
- b) False
Answer: b) False
Explanation: A project schedule is a crucial document as it shows the timeline, dependencies, and sequences of project tasks.
True or False: All risks can be identified by reviewing project documents.
- False
Answer: False
Explanation: While document review is essential and can help identify several risks, not all risks can be predicted. There are always uncertain elements and unknown risks in any project.
Which of these documents would not typically be examined in the gather and review documents phase?
- a) Contracts
- b) Business case
- c) Company vision statement
- d) Assumption log
Answer: c) Company vision statement
Explanation: Company vision statement is a general document and does not necessarily provide insight into specific project risks unlike business case, contracts and the assumption log.
Interview Questions
What is the main objective of gathering and reviewing documents in PMI Risk Management?
The main objective is to assimilate information pertinent to the project, its background, objectives, deliverables, and inherent risks. This helps in developing an effective risk management plan.
Which documents are critical for gathering and reviewing during risk management planning?
Critical documents include the project charter, project management plan, scope statement, work breakdown structure (WBS), and cost and schedule estimates.
What is the importance of a ‘Work Breakdown Structure’ in risk management planning?
A ‘Work Breakdown Structure’ offers a detailed breakdown of the project’s deliverables and work involved. It aids in investigating where potential risks may occur in the scope of the project.
How does the project charter contribute to effective risk management?
The Project Charter defines the project’s purpose and its high-level requirements. It serves as an essential reference document for identifying and analyzing project-related risks.
How is a risk register used in the process of gathering and reviewing documents?
A risk register is used to document potential risks, their impacts, and contingency plans. It’s an essential document to review to understand the project’s risk landscape and to update based on the gathered data.
Why are stakeholder registers important in the process of gathering and reviewing documents for risk management?
Stakeholder registers contain information about project stakeholders, their interests, and concerns. This information can identify potential risks, as stakeholders could affect the execution and overall success of the project.
How is a project schedule used in risk management planning?
Project schedules are important as they highlight key dates, deadlines, and milestones. Reviewing these can shed light on timing-related risks for project tasks or dependencies.
How does the cost management plan contribute to gathering and reviewing documents in risk management?
The cost management plan provides information about budget constraints and stipulations, which can unveil potential risks related to project costs, budgets, and funding.
How is the review of the procurement plan relevant for risk Management?
The procurement plan review helps identify contractual risks and issues related to vendors or suppliers. It aids in building risk response plans for procurement-related challenges.
What is the purpose of reviewing ‘Assumption Logs’ in gathering and reviewing stage?
Assumption logs contain assumptions made during project planning. Reviewing these can reveal risks that might arise if certain assumptions turn out to be incorrect.
How do communication management plans contribute to risk management planning?
Communication management plans determine how project information is exchanged. By reviewing these, potential communication breakdowns or misinterpretations that could cause project risks can be identified.
Why is it important to review quality management plans for effective risk management planning?
Quality management plans outline quality standards for the project. Reviewing these plans can unveil potential risks to achieving such standards.
How are resource management plans significant in evaluating risks?
Resource management plans detail how resources will be utilized and managed. This can reveal potential risks associated with resource availability, allocation, and management.
How does the review of a change management plan contribute to the understanding of potential project risks?
A change management plan outlines how changes will be managed in the project. Reviewing this can help identify risks associated with project changes and how they can affect the project’s outcome.
How does a risk management plan help in the process of gathering and reviewing documents?
The risk management plan outlines how risks will be managed throughout the project. Reviewing this document allows assessing the validity and adequacy of the planned risk management procedures and enables adjustments as needed.
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