PMI Scheduling Professional Certification (PMI-SP) Practice Exam

What tool is commonly used in the Plan Risk Management process?

1. Expert Judgement

2. Statistical Modeling

3. Monte Carlo Simulation

4. SWOT Analysis

The correct answer is: Expert Judgement

In the Plan Risk Management process, expert judgment is a vital tool because it leverages the experience and knowledge of individuals who are familiar with the project and its context. This expertise can encompass insights into potential risks, risk management strategies, and industry standards. Experts can provide valuable perspectives based on their previous experiences, helping project managers and teams anticipate risks that may not be immediately apparent and develop effective risk management plans. While tools like statistical modeling, Monte Carlo simulation, and SWOT analysis have their specific uses in risk management, they often depend on the foundational insights gained from expert judgment. For instance, statistical modeling and Monte Carlo simulation are more technical analyses that require data and assumptions that experts help to define. Similarly, while a SWOT analysis identifies strengths, weaknesses, opportunities, and threats, the depth and accuracy of that analysis rely on the insights provided by knowledgeable individuals. Therefore, expert judgment is essential in shaping the overall risk management framework for the project.