PMI-ACP Practice Questions #79
Your team is managing a project for a healthcare app. Below is the current product backlog, with expected value ratings for each feature and details for a proposed risk response:
Backlog Item
- Feature: Patient Record Search : Expected Benefit 10,000 USD
- Feature: Appointment Scheduling : Expected Benefit 5,000 USD
- Feature: Patient Report Export : : Expected Benefit 8,000 USD
- Risk Response: API Compliance Exploration: Risk Impact: 20,000 (USD), Risk Probability: 0.45
At what priority level should the Risk Response Item (API Compliance Exploration) be placed in the backlog?
A. First priority, since managing risks should always be the top concern.
B. Last priority, as it is based on probability and may not occur.
C. Second priority, based on the risk’s expected monetary value.
D. Third priority, since it will balance risk and value considerations.
Analysis
The question requires determining the priority of a risk response item within a product backlog by using Expected Monetary Value (EMV) calculation. The backlog consists of three features with assigned expected benefits and one risk response with a potential impact and probability. The best approach is to prioritize backlog items based on their value contribution, ensuring that both features and risk responses are ranked appropriately. The EMV calculation for the risk response will guide its placement relative to the other backlog items.
Analysis of Options:
A: First priority, since managing risks should always be the top concern.
This option is incorrect because prioritization should be based on value rather than a blanket assumption that risks always take precedence. While risk management is important, prioritizing a risk response without considering its financial impact relative to other backlog items is not a sound Agile practice.
B: Last priority, as it is based on probability and may not occur.
This is also incorrect because risk responses should not automatically be deprioritized just because they are probabilistic. The financial impact of the risk, when multiplied by its probability, provides a tangible expected value that should be used to determine its priority relative to other backlog items.
C: Second priority, based on the risk’s expected monetary value.
This is the correct answer. The EMV formula is:
EMV=Risk Impact×Risk ProbabilityEMV = \text{Risk Impact} \times \text{Risk Probability}EMV=Risk Impact×Risk Probability EMV=20,000×0.45=9,000EMV = 20,000 \times 0.45 = 9,000EMV=20,000×0.45=9,000
When compared with the expected benefits of the features:
- Patient Record Search = $10,000 (Highest priority)
- Risk Response (API Compliance Exploration) = $9,000 (Second priority)
- Patient Report Export = $8,000 (Third priority)
- Appointment Scheduling = $5,000 (Lowest priority)
Since $9,000 EMV places the risk response as the second highest value item, it should be ranked accordingly.
D: Third priority, since it will balance risk and value considerations.
This is incorrect because the EMV of the risk response ($9,000) is higher than the feature with an expected benefit of $8,000. Placing the risk response in third priority would not align with the correct financial ranking.
Conclusion
The best choice is Option C (Second priority, based on the risk’s expected monetary value) because it ensures a data-driven approach to backlog prioritization. Using Expected Monetary Value (EMV) provides a structured way to balance risk and feature value, leading to optimal prioritization. Options A and B apply absolute rules that ignore the actual impact of the risk, while Option D incorrectly places the risk response lower than it should be.
PMI – ACP Exam Content Outline Mapping
| Domain | Task |
| Leadership | Promote Shared Vision and Purpose |
Topics Covered:
- Prioritize backlog items based on their financial impact and expected monetary value (EMV).
- Use risk-based decision-making to balance value-driven and risk-mitigation strategies.
- Ensure alignment between product features and risk responses by considering their contribution to business value.
- Promote a shared understanding of risk impact among stakeholders to facilitate informed decision-making.
- Foster a value-driven prioritization approach that integrates risk management into Agile backlog refinement.
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