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| Section | Objectives |
|---|---|
| Risk Identification | - Identifying Individual Risks - Overall Project Risk Identification |
| Risk Strategy and Planning | - Risk Management Planning - Stakeholder Engagement in Risk |
| Risk Analysis | - Quantitative Risk Analysis - Qualitative Risk Analysis |
| Risk Monitoring and Control | - Risk Audits and Reviews - Risk Reporting and Communication |
| Risk Response Planning | - Opportunity Response Strategies - Threat Response Strategies |
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NEW QUESTION # 305
Fill in the blank with an appropriate phrase. The _________ is the risk or danger of an action or an event, a method or a (technical) process that still conceives these dangers even if all theoretically possible safety measures would be applied.
Answer: A
NEW QUESTION # 306
A project has a significant impact on an organization. Multiple stakeholders expressed concerns regarding the overall project risk during construction of the risk management plan, and they agreed that the risk appetite is low.
What should the project risk manager monitor closely?
Answer: D
Explanation:
Explanation
The project risk manager should monitor risk thresholds closely, as they represent the organization's risk appetite. In a project with a low risk appetite, it is essential to ensure that risks are managed within the defined thresholds to address stakeholders' concerns and maintain their confidence in the project's success.
According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, risk thresholds are the measure of acceptable variation around an objective that reflects the risk appetite of the organization1. Risk appetite is the degree of uncertainty an entity is willing to take on in anticipation of a reward2. In this case, the project has a significant impact on the organization and the stakeholders have a low risk appetite, meaning they are not willing to accept much deviation from the project objectives. Therefore, the project risk manager should monitor the risk thresholds closely to ensure that the project risks do not exceed the acceptable level of variation and impact the project performance negatively. By monitoring the risk thresholds, the project risk manager can also identify when risk responses are needed and evaluate their effectiveness.
References: 1: PMI, Practice Standard for Project Risk Management, 2009, p. 20 2: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 720
NEW QUESTION # 307
What best describes the job of a risk owner?
Answer: B
NEW QUESTION # 308
Which of the following are parts of SWOT Analysis? Each correct answer represents a complete solution. Choose all that apply.
Answer: B,C,D,F
NEW QUESTION # 309
A risk manager is implementing a risk-response plan for a manufacturing project. The plan includes adding another supplier to reduce supply-chain disruption risks. Despite this measure, both suppliers frequently experience logistics disruptions because of increased traffic conditions.
What should the risk manager do?
Answer: D
Explanation:
The logistics disruption is no longer merely an uncertain future event. The scenario states that both suppliers are frequently experiencing disruptions. Therefore, the risk has materialized and should be treated as a current issue.
When an identified or previously unplanned risk occurs, the project team should:
* Record the condition in the issue log.
* Assess its immediate effect on project objectives.
* Assign an issue owner.
* Develop and implement corrective action.
* Create a workaround when no suitable planned response exists.
* Update the risk register and risk report.
* Determine whether residual or secondary risks remain.
* Escalate the matter if it exceeds project authority or thresholds.
A workaround is an unplanned response developed to manage a threat that has occurred when the existing response is inadequate or no suitable contingency response is available.
Option A is not the best answer because a residual risk is the exposure that remains after a response has been implemented. Although the traffic exposure may represent residual risk, the repeated disruptions have already occurred and now require issue management and corrective action.
Option C is incorrect because management reserves should not automatically be used. Reserve use requires proper authorization and should be based on the organization's governance procedures and the nature of the unknown or emergent work.
Option D is incorrect because acceptance is a deliberate risk-response strategy selected after analysis. The risk manager should not passively accept an active disruption that is affecting project delivery.
References:
PMI, PMBOK Guide-Sixth Edition, Section 11.6, Implement Risk Responses.
PMI, PMBOK Guide-Sixth Edition, Section 11.7, Monitor Risks.
PMI, Practice Standard for Project Risk Management, guidance concerning materialized risks, issues, residual risks, and workarounds.
NEW QUESTION # 310
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