PMI Risk Management Professional Practice Exam

Which of the following is a red flag to look for when identifying risks?

1. Activity durations that are estimated primarily using activity attributes

2. Cost estimates at a rough order of magnitude

3. Risks with responses that go unimplemented

4. Risk register that keeps getting changed without a change request

The correct answer is: Cost estimates at a rough order of magnitude

The correct answer highlights a significant concern in project risk management. When cost estimates are provided at a rough order of magnitude (ROM), it often indicates a high level of uncertainty and lack of detail in the planning phase. This level of estimation suggests that there may not be enough information to accurately assess the financial implications of potential risks, making it difficult to identify and mitigate them effectively. Rough estimates can lead to miscalculations in budgeting and resource allocation, ultimately jeopardizing project success. In contrast, the other options do not represent as clear a signal of risk management issues. For example, estimating activity durations using attributes is a common practice in project management, where historical data serves as a basis for projections and is not inherently risky. Risks with unimplemented responses indicate a gap in management effectiveness but may not be a clear red flag unless analyzed in context. Finally, a risk register that changes frequently can be a normal aspect of project evolution, reflecting the dynamic nature of project management, although it could potentially signal a lack of control if done without proper oversight. Overall, the emphasis on rough order of magnitude estimates underscores the need for accurate and reliable data when assessing risks in a project.