L5M8 CIPS Project and Change Management Free Practice Exam Questions (2025 Updated)

Hire purchaseinvolves staged payments with anoption to ownthe asset at the end (often via afinal/balloonpayment). Finance/operating leases don’t necessarily transfer ownership.

The guide advises against diverting resources to one delayed project, as this cancreate competition and resentmentacross teams and may cause a domino effect of further delays. Balanced prioritisation is required.

AMonte Carlo Analysisis a quantitativerisk simulationtechnique. It models uncertainty by running many scenarios to estimate potential outcomes for cost, time, or other risk variables.

The guide advises definingrisk thresholds—acceptable limits of exposure—based on organisational appetite. This ensures balanced risk-taking without being reckless, maintaining strategic alignment.

TheGoal Griddistinguishes whether outcomes are good/bad and whether they already exist or not, yielding four categories:Achieve, Preserve, Avoid, Eliminate.

Open-ended changeoccurs whenoutcomes cannot be predicteddue to novelty or lack of precedent. There isno reliable datato forecast consequences, unlikecontained(partially known) orclosed(fully known) changes.

Alarge, already-occurred external eventcalls forreactiveresponse; given its magnitude, the change must betransformationalrather than incremental.

TheBoard/Steering Grouphas ultimate accountability; itauthorises initiationandapproves major decisions/deviationsduring delivery. Budgeting and staffing are typically managed via other governance routes/roles.

Alate deliveryby suppliers can directlydelay project timelines, representing asupply chain risk. The other options are internal project management risks, not supply chain-based.

Theory-Driven Evaluationseeks to understand thecausal mechanisms—how and whya project achieved (or failed to achieve) results — rather than merely measuring outputs.

This isFinish-to-Start with Lead: Activity 2 begins slightlybeforeActivity 1 ends (overlap).Lagwould indicate a delay or gap;leadindicates an early start/overlap.

The guide emphasises thatan Executive role should still be assigned and engaged even on small/simple projects, maintaining communication with the Project Manager; they are jointly the most important roles.

Push strategiesuseauthority or powerto impose change (e.g., coercion, threats, mandates).Pull strategiesrely on persuasion, involvement, and communication to encourage voluntary acceptance.

Ajoint ventureis specifically defined by forming anew legal entityowned by the participants for a defined purpose.

Freeman’s typology identifies categories such asowners,managers,employees,suppliers,customers, andlocal communityas primary stakeholders with influence. From the list provided,owners, suppliers, managersalign with that set.

Aninterchange costarises when there is inefficiency or delay between process stages in the value stream. In Lean thinking, ideal flow minimises these gaps to improve cycle time and efficiency.

The guide explains thatsoftware should only be used if it adds valueto project control and efficiency. For small, low-complexity projects, it might beunnecessary or uneconomical.

Resource allocation syndrome, as described by Engwall and Jerbrant, occurs whenmultiple projects compete for limited resourcesin multi-project environments. The shortage leads to delays and conflicts between project teams.

EvolutionandAdaptationboth representincremental change— gradual, continuous improvements. In contrast,RevolutionandReconstructionaresimultaneous or transformationalin nature.