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100+ Free AACE PRMP Practice Questions

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Key Facts: AACE PRMP Exam

120 items

Total Questions (119 MCQ + 1 memo)

AACE PRMP page

5 hrs

Time Limit

AACE PRMP page

4 Domains

Per AACE Study Guide

AACE PRMP Study Guide

70%

Passing Score (overall average)

AACE handbook

8 yrs

Experience (or 4 + degree)

AACE eligibility

100+

Free Practice Questions

OpenExamPrep question bank

The PRMP exam is a 5-hour, 119-question CLOSED-BOOK multiple-choice and compound scenario test plus a written memo. Four domains (per AACE PRMP study guide): Supporting & Other Functional Skills & Knowledge (47), Overall Risk Management Terminology & Concepts (24), General & Specific Processes and Practices in Risk Management (48 - the biggest), Communication (1 memo). Pass at 70% overall (average of domains). Tests ISO 31000:2018 framework, risk definitions (two-sided: threats AND opportunities), P-I matrix qualitative analysis, EMV = P x I for discrete risks, Monte Carlo simulation for general uncertainty, decision trees, response strategies (Threats: Avoid/Transfer/Mitigate/Accept; Opportunities: Exploit/Share/Enhance/Accept), Risk Register with cause-event-effect formulation, Risk Breakdown Structure (RBS), Risk Management Plan content (AACE 60R-10), AACE recommended practices in the risk family (40R-08 principles, 41R-08 range estimating, 44R-08 EMV contingency, 57R-09 integrated cost-schedule, 65R-11 risk drivers, 75R-13 probabilistic schedule, 80R-13 risk-EVMS integration, 113R-20 hybrid), supporting skills (cost estimating, CPM scheduling, EVMS, procurement), and Reference Class Forecasting. Certification valid 3 years; renew via 12 CEUs across 2 categories or re-exam.

Sample AACE PRMP Practice Questions

Try these sample questions to test your AACE PRMP exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1The AACE Project Risk Management Professional (PRMP) certification is BEST characterized as:
A.An entry-level technician credential
B.A professional-level credential focused on practical project-level risk management process and integration with cost, schedule, and procurement
C.An expert-level decision analysis credential
D.A scheduling-only credential
Explanation: The PRMP is positioned as a professional-level (between technician and expertise) credential for senior practitioners executing project risk management. The exam covers risk management processes, supporting cost/schedule/procurement skills, and tools. Eligibility is 8 years of industry experience OR 4 years + degree. The expertise-level DRMP (Decision & Risk Management Professional) goes deeper into decision analysis and quantitative methods.
2ISO 31000:2018 'Risk management - Guidelines' positions risk management as:
A.A one-time activity at project start
B.An integrated, principles-based process that creates and protects value through structured risk management integrated with governance
C.Pure compliance
D.Optional
Explanation: ISO 31000:2018 emphasizes risk management as a value-creating, integrated, structured, customized, inclusive, dynamic, best-available-information-based, human-and-cultural-aware, and continuously-improving process. It is not a separate function — it integrates with strategy, decision-making, and governance. Used as the international risk management reference.
3A Risk in project management is BEST defined as:
A.Any negative event
B.An uncertain event or condition that, if it occurs, has an effect (positive or negative) on at least one project objective
C.A guaranteed problem
D.The opposite of opportunity
Explanation: PMI/ISO 31000 definition: Risk is an uncertain event or condition that, if it occurs, has a positive (opportunity) or negative (threat) effect on one or more project objectives. The two-sided definition is important: opportunities are risks too. Two attributes: probability of occurrence and impact if it occurs.
4The Risk Management Process per ISO 31000 / PMBOK includes which sequence?
A.Plan, Identify, Analyze (qualitative and quantitative), Plan Responses, Implement Responses, Monitor
B.Plan, Execute, Close
C.Identify, Ignore
D.Plan, Estimate, Bid
Explanation: The standard process: (1) Plan Risk Management (establish methodology, roles, P-I scales), (2) Identify Risks (brainstorming, Delphi, interviews, checklists), (3) Perform Qualitative Risk Analysis (P-I matrix scoring), (4) Perform Quantitative Risk Analysis (Monte Carlo, EMV, decision trees), (5) Plan Risk Responses (Avoid/Transfer/Mitigate/Accept), (6) Implement Risk Responses, (7) Monitor Risks. Identification through monitoring loop continuously.
5Risk identification techniques include all of the following EXCEPT:
A.Brainstorming and Delphi technique
B.SWOT analysis and root-cause analysis
C.Checklists and document reviews
D.Always ignoring expert opinion to remain objective
Explanation: Risk identification draws on multiple complementary techniques: brainstorming (group creativity), Delphi (anonymous expert consensus), interviews (deep expert dives), SWOT (strengths/weaknesses/opportunities/threats), root-cause analysis (5-whys), checklists (lessons learned), document review, and assumption analysis. Ignoring expert opinion is the OPPOSITE of best practice - expert judgment is core to most techniques.
6The Probability-Impact (P-I) Matrix is used in:
A.Risk identification
B.Qualitative risk analysis to score and rank risks by probability and impact
C.Quantitative simulation
D.Risk closure only
Explanation: P-I matrix is the workhorse of qualitative analysis. Each identified risk is scored on probability (typically 1-5) and impact (1-5); the product or matrix cell defines priority (low/medium/high/critical). Used to triage which risks merit detailed quantitative analysis (Monte Carlo) and which can be managed at qualitative level. Typically a 3x3 or 5x5 grid.
7Expected Monetary Value (EMV) for a discrete risk with probability 0.20 and impact $500,000 (threat) is:
A.$100,000
B.-$100,000
C.$500,000
D.-$500,000
Explanation: EMV = P x I = 0.20 x (-500,000) = -$100,000. Negative EMV reflects the negative impact of a threat. Sum of EMVs across all identified threats gives the EMV-based contingency reserve (per AACE 44R-08).
8Threat response strategies per the AACE/PMBOK framework are:
A.Avoid, Transfer, Mitigate, Accept
B.Exploit, Share, Enhance, Accept
C.Defer, Stage, Switch, Abandon
D.Crash, Fast-track, Level, Smooth
Explanation: Threat responses: AVOID (eliminate by changing plan), TRANSFER (shift to third party via insurance, bonds, contract type), MITIGATE (reduce probability or impact), ACCEPT (active = reserve contingency; passive = no action). Opportunity responses (parallel): Exploit, Share, Enhance, Accept.
9Opportunity response strategies are:
A.Avoid, Transfer, Mitigate, Accept
B.Exploit, Share, Enhance, Accept
C.Defer, Stage, Switch, Abandon
D.Reduce, Eliminate, Move, Ignore
Explanation: Opportunity responses: EXPLOIT (ensure it happens - eliminate uncertainty), SHARE (join partner who can better realize it), ENHANCE (increase probability/impact), ACCEPT (take advantage if it happens). Mirrors threat responses: Avoid->Exploit, Transfer->Share, Mitigate->Enhance, Accept->Accept.
10Risk Avoidance differs from Risk Mitigation in that Avoidance:
A.Reduces probability or impact
B.ELIMINATES the risk by changing the plan (e.g., descope the risky element)
C.Buys insurance
D.Adds contingency
Explanation: Avoidance ELIMINATES the risk - e.g., remove the risky scope element, choose a proven technology instead of new, change project location, extend the schedule. The risk simply no longer applies. Mitigation REDUCES probability or impact but the risk remains. Transfer shifts ownership; Accept does nothing or reserves contingency.

About the AACE PRMP Exam

The AACE Project Risk Management Professional (PRMP) is a professional-level credential for practitioners specializing in project-level risk management. The exam is closed-book, 5 hours, with 119 multiple-choice and scenario questions plus a memo writing assignment, covering four domains: Supporting & Other Functional Skills & Knowledge (47 questions covering cost engineering, scheduling, EVMS, procurement, ethics), Overall Risk Management Terminology & Concepts (24 questions on ISO 31000, framework, principles), General & Specific Processes and Practices in Risk Management (48 questions on identification, analysis, response, monitoring, AACE risk RPs), and Communication (1 memo). Eligibility requires 8 years of industry-related experience OR 4 years experience plus a 4-year degree. Aligned with AACE risk RP family and ISO 31000:2018.

Assessment

120 items total: 119 multiple-choice and compound scenario questions + 1 memo writing assignment, closed book

Time Limit

5 hours

Passing Score

70% overall (average across domains)

Exam Fee

$525 AACE members / $690 non-members (AACE International)

AACE PRMP Exam Content Outline

39.5%

Supporting & Other Functional Skills & Knowledge

47 questions covering cost engineering fundamentals (AACE 18R-97/17R-97 estimate classification, parametric methods, contingency basics), scheduling fundamentals (CPM, PERT, total/free float, lag/lead, PERT (O+4M+P)/6 mean and (P-O)/6 std dev), Earned Value Management (CPI/SPI/EAC/TCPI), procurement and contract types (FFP, CPFF, CPIF, T&M, GMP - and how each allocates cost risk), basic economics (NPV, IRR, discount rates), and AACE Canons of Ethics.

20.2%

Overall Risk Management Terminology & Concepts

24 questions on ISO 31000:2018 framework (principles, structured framework, integrated process, value creation/protection purpose), risk definitions (uncertain event or condition with positive OR negative effect - two-sided risk including opportunities), risk attitude / risk appetite / risk thresholds, risk maturity, governance integration, and the core terminology distinguishing risks from issues, threats from opportunities, and inherent from residual risk.

40.3%

General & Specific Processes and Practices in Risk Management

48 questions (the largest domain) on the risk management process: Plan Risk Management (AACE 60R-10 RMP development), Identify Risks (brainstorming, Delphi, interviews, checklists, SWOT, assumption analysis, root-cause analysis, document review, Reference Class Forecasting), Perform Qualitative Risk Analysis (P-I matrix 5x5 or 3x3, priority ranking critical/high/medium/low), Perform Quantitative Risk Analysis (Monte Carlo simulation, AACE 41R-08 range estimating, AACE 44R-08 EMV, AACE 113R-20 hybrid, decision trees, EMV = P x I, sensitivity tornado), Plan Risk Responses (Threats: Avoid eliminate/Transfer insurance and bonds/Mitigate reduce P or I/Accept active or passive; Opportunities: Exploit ensure occurrence/Share partner/Enhance increase/Accept), Implement Responses, Monitor Risks (continuous register updates, trigger watch, residual tracking), Risk Audits, Risk Closure with disposition documented. Supporting concepts: RBS (Risk Breakdown Structure), secondary risk, contingency vs management reserve, cause-event-effect risk formulation, integrated cost-schedule risk (AACE 57R-09), schedule risk drivers (AACE 65R-11), risk-EVMS integration (AACE 80R-13).

1%

Communication

1 memo writing assignment requiring the candidate to compose a structured business memo to a decision-maker (e.g., project sponsor or executive) addressing a risk analysis scenario. Tests ability to translate technical risk analysis into management-actionable narrative with clear recommendations, residual risks, and limitations acknowledged.

How to Pass the AACE PRMP Exam

What You Need to Know

  • Passing score: 70% overall (average across domains)
  • Assessment: 120 items total: 119 multiple-choice and compound scenario questions + 1 memo writing assignment, closed book
  • Time limit: 5 hours
  • Exam fee: $525 AACE members / $690 non-members

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

AACE PRMP Study Tips from Top Performers

1Master the four PRMP domains and their proportions: Supporting Skills (47 questions - nearly 40%), Overall Risk Management Terminology (24), Risk Management Processes (48 - the largest), Communication (1 memo). The Supporting Skills domain is large because PRMPs need cost engineering, scheduling, EVMS, and procurement foundations.
2Master ISO 31000:2018 framework: principles (value creation/protection, integrated, structured, customized, inclusive, dynamic, best information, human/cultural, continuous improvement), structured framework (leadership/commitment, integration, design, implementation, evaluation, improvement), and the process (establish context, identify, analyze, evaluate, treat, monitor, communicate).
3Memorize the four-by-four response strategies. Threats: AVOID (eliminate by changing plan), TRANSFER (shift to third party - insurance, bonds, contract type), MITIGATE (reduce probability or impact), ACCEPT (active = contingency reserved; passive = no action). Opportunities (parallel): EXPLOIT (ensure occurrence), SHARE (partner who can realize), ENHANCE (increase probability or impact), ACCEPT (take advantage if it happens).
4Drill EMV cold: EMV = P x I. Threats produce negative EMV. Sum across the register for total exposure (covers identified discrete risks; doesn't cover general uncertainty - that's range estimating). EMV-based contingency (per AACE 44R-08) sets reserves at the sum of identified threat EMVs.
5Know the AACE risk RP family: 17R-97 (cost estimate accuracy ranges), 18R-97 (process industry estimate classes), 40R-08 (contingency general principles), 41R-08 (range estimating), 42R-08 (parametric contingency), 44R-08 (EMV contingency), 57R-09 (integrated cost-schedule), 60R-10 (RMP development), 65R-11 (risk drivers), 75R-13 (probabilistic schedule), 80R-13 (risk-EVMS integration), 113R-20 (hybrid parametric + EMV).
6Master the cause-event-effect risk formulation: 'Due to <cause>, the <event> may occur, resulting in <effect>.' Example: 'Due to dependence on a single-source supplier for pumps, a 12-week delivery delay may occur, resulting in 4-week project finish slippage.' This format supports root cause analysis, scoring, response selection, and communication.
7Understand contingency vs management reserve: Contingency = known-unknowns, INSIDE the cost baseline (PMB), PM-controlled. Management Reserve = unknown-unknowns, OUTSIDE the baseline, program-controlled. Together they fund risk responses. AACE 80R-13 governs alignment with EVMS structure.
8Drill Monte Carlo simulation concepts: Latin Hypercube Sampling for efficient coverage, convergence testing (statistics stabilize at 10,000+ iterations for tail estimates), correlation modeling between inputs (positive correlation compounds risk; ignoring it understates risk), S-curve output, P50/P80/P90 percentile interpretation, contingency = Pxx - deterministic.
9Practice memo writing on multiple scenarios. Standard structure: BLUF opening (purpose, audience, bottom line), structured body (data presented, scenarios analyzed, key assumptions, sensitivity), conclusion (specific recommendations with rationale, residual risks, options). Tests both technical content and management-ready communication.
10Schedule 2-3 full 5-hour timed mock exams in the final month. PRMP scenarios often combine multiple concepts (e.g., a risk identification + qualitative scoring + Monte Carlo + response selection in one compound question). Speed comes from familiarity with the toolkit; aim for ~2.5 minutes average per question with time reserved for the memo.

Frequently Asked Questions

What is the AACE PRMP certification?

The Project Risk Management Professional (PRMP) is AACE International's professional-level credential for project risk management practitioners. It validates expertise in ISO 31000-aligned risk management process: identification, qualitative and quantitative analysis (P-I matrix, EMV, Monte Carlo), response planning (Avoid/Transfer/Mitigate/Accept for threats; Exploit/Share/Enhance/Accept for opportunities), monitoring, and integration with cost engineering, scheduling, EVMS, and procurement.

What are the PRMP eligibility requirements?

Candidates need 8 years of industry-related experience OR 4 years of experience plus a 4-year industry-related degree. They must adhere to AACE's Canons of Ethics and submit a completed application. The PRMP does not require recent risk-specific experience (unlike the DRMP, which requires 18 months recent decision/risk-specific experience).

How is the PRMP exam structured?

The PRMP exam is a closed-book 5-hour computer-based test with 119 multiple-choice and compound scenario questions plus 1 memo writing assignment. Content covers four domains: Supporting & Other Functional Skills & Knowledge (47 questions), Overall Risk Management Terminology & Concepts (24), General & Specific Processes and Practices in Risk Management (48 - the largest), and Communication (1 memo). A battery-operated calculator is permitted (candidate-provided).

What is the PRMP passing score?

AACE requires an overall average score of 70% or higher across the four domains. Both the MCQ score and the memo writing score factor into the overall result. Detailed scoring breakdown is generally Pass/Fail without per-domain disclosure.

How much does the PRMP exam cost?

The PRMP application/exam fee is $525 for AACE members and $690 for non-members. A resit fee of $260 applies if you need to retake. All fees are non-refundable and due upon application. AACE membership is approximately $185 annually for full members. Costs are subject to change; verify on aacei.org.

How does the PRMP differ from the AACE DRMP?

PRMP is professional-level - broader project-level risk management practice, eligibility is 8 years experience or 4 + degree. DRMP is expertise-level - deeper quantitative/analytical depth (Monte Carlo, decision trees, real options, utility theory), requires 4 years general + 4 years decision/risk-specific experience with 18 months recent. Many senior practitioners earn PRMP first, then DRMP. DRMP covers more advanced topics like real options, utility theory, Bayesian updating, and integrated cost-schedule simulation.

How long should I study for the PRMP?

Most candidates dedicate 120-200 hours over 4-7 months. Primary study resources: AACE PRMP Study Guide (the official guide), AACE Recommended Practices in the risk family (40R-08, 41R-08, 44R-08, 57R-09, 60R-10, 65R-11, 75R-13, 80R-13, 113R-20), ISO 31000:2018, AACE Skills & Knowledge of Cost Engineering. Practice questions on EMV calculations, Monte Carlo concepts, response strategies, and AACE RPs are essential.

How do I maintain the PRMP certification?

PRMP certification is valid for 3 years. Recertification requires accumulating 12 Continuing Education Units (CEUs) across a minimum of two categories, or re-examination. AACE accepts coursework, conference attendance, teaching, publishing, and professional service for CEU credit. Track CEUs throughout the 3-year cycle to avoid late-cycle scrambles.