AACE-PRMP Exam Format | Course Contents | Outline | Syllabus | Objectives

AACE-PRMP Exam Syllabus & Study Guide

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The information below reflects the 2026 syllabus defined by AACE.

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Exam Code: AACE PRMP Exam Name: AACE PRMP Project Risk Management Professional (PRMP) Number of Questions: 119 multiple-choice questions (simple and complex) + 1 written memo/essay question Time Allotted: 5 hours Passing Marks: 70% overall (averaged score from multiple-choice and written components) - Elements of Costs - Understanding cost definitions- owner/contractor perspectives- cost vs. pricing- and the influence curve (cost impact over project phases). Covers direct/indirect costs and their role in risk exposure. - Cost: Monetary value of resources consumed to achieve objectives. - Direct Cost: Traceable to a specific work package (e.g.- labor- materials). - Indirect Cost: Not directly traceable (e.g.- overhead- general conditions). - Influence Curve: Graphical representation of cost influence decreasing over project lifecycle. - Economic Cost: Includes opportunity costs beyond accounting figures. - Elements of Cost Estimating - Cost estimate classifications (AACE classes 1-5)- methodologies (parametric- analogous- bottom-up)- accuracy ranges- and integration with risk registers for contingency estimation. - Cost Estimate Classification: Matrix defining purpose- accuracy (± range)- and effort (e.g.- Class 5: conceptual- ±50-100%). - Range Estimating: Uses Monte Carlo simulation to develop probabilistic cost ranges. - Contingency: Provision for unknown risks- distinct from allowances (known uncertainties). - Expected Value (EV): Probability-weighted average outcome (EV = Probability × Impact). - Elements of Planning and Scheduling - Planning/scheduling functions- work breakdown structure (WBS) integration- critical path method (CPM)- and probabilistic scheduling for risk modeling. Includes contingency planning. - Work Breakdown Structure (WBS): Hierarchical decomposition of project scope. - Critical Path Method (CPM): Deterministic scheduling technique identifying longest path. - Probabilistic Modeling: Uses distributions (e.g.- PERT) for schedule risk analysis. - Float/Slack: Amount of time an activity can delay without impacting project completion. - Elements of Analysis - Statistical and probabilistic tools- including descriptive/inferential statistics- distribution types- and simulation techniques for cost/schedule risk. - Monte Carlo Simulation: Iterative random sampling to model uncertainty outcomes. - Probability Distribution: Mathematical function describing random variable likelihoods (e.g.- normal- triangular- beta). - Standard Deviation: Measure of dispersion in data (σ = √Variance). - Sensitivity Analysis: Assesses how changes in inputs affect outputs (e.g.- tornado diagram). - Enabling Knowledge - Cross-cutting areas like ethics- organizational structures- culture/bias- performance factors- quality- EH&S- legal/insurance- contracting- markets/economics- and stakeholder management. - RASCI Matrix: Responsibility assignment tool (Responsible- Accountable- Support- Consulted- Informed). - Risk Appetite: Degree of uncertainty an organization tolerates. - Bias: Cognitive distortions in risk assessment (e.g.- optimism bias). - Stakeholder: Individuals/groups affecting or affected by the project (e.g.- elicitation via interviews). - Overall Risk Management Terminology and Concepts - Fundamental definitions of uncertainty- risk (threat/opportunity)- accuracy vs. precision- and PRM's role in achieving objectives. Includes risk taxonomy and empiricism. - Uncertainty: Lack of knowledge about events/outcomes (aleatory/epistemic). - Risk: Effect of uncertainty on objectives (can be positive/negative; ISO 31000). - Threat: Downside risk event; Opportunity: Upside potential. - Risk Taxonomy: Hierarchical classification of risk categories (e.g.- RBS - Risk Breakdown Structure). - Specific Risk Management - Techniques for identification (brainstorming- Delphi- checklists)- causation analysis- contingency/reserve management- escalation/inflation handling- and closeout/lessons learned. - Delphi Method: Iterative anonymous expert consensus for risk identification. - Ishikawa/Fishbone Diagram: Cause-and-effect tool for root cause analysis. - Reserves: Time/cost buffers for identified risks (management/contingency reserves). - Escalation: Adjustment for future cost/time increases (e.g.- inflation- currency fluctuations). - Monte Carlo Simulation (repeated): For integrated cost-schedule risk (ICSR). - Total Cost Management (TCM) - PRM's integration with TCM phases (planning- execution- review)- including value engineering and benchmarking for holistic risk oversight. - Total Cost Management (TCM): Integrated approach to planning- costing- and controlling projects (AACE framework). - Benchmarking: Comparison against industry standards to identify risk gaps. - Value Analysis/Engineering: Systematic review to optimize function at lowest cost- reducing risks. - Procurement Planning (Including Contract Management) - Risk allocation in contracts- types (lump-sum- cost-plus)- delivery methods (EPC- design-build)- and dispute resolution. Interfaces with insurance/bonding. - Contract Types: Fixed-price (low risk to owner)- cost-reimbursable (high risk to owner). - Liquidated Damages: Pre-agreed compensation for delays/breaches. - Retainage: Portion of payment withheld until contract completion. - Bonds/Guarantees: Financial assurances (e.g.- performance bond) for risk transfer.