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CAP · Question #117

Diana is the project manager of the QPS project for her company. In this project Diana and the project team have identified a pure risk. Diana and the project team decided, along with the key…

The correct answer is A. It is a risk event that only has a negative side, such as loss of life or limb. A pure risk is a risk event that has only a negative outcome - there is no possibility of a positive result or gain, only loss.

Security and Privacy Governance, Risk Management, and Compliance Program

Question

Diana is the project manager of the QPS project for her company. In this project Diana and the project team have identified a pure risk. Diana and the project team decided, along with the key stakeholders, to remove the pure risk from the project by changing the project plan altogether. What is a pure risk?

Options

  • AIt is a risk event that only has a negative side, such as loss of life or limb.
  • BIt is a risk event that cannot be avoided because of the order of the work.
  • CIt is a risk event that is created by a risk response.
  • DIt is a risk event that is generated due to errors or omission in the project work.

How the community answered

(36 responses)
  • A
    94% (34)
  • B
    3% (1)
  • C
    3% (1)

Why each option

A pure risk is a risk event that has only a negative outcome - there is no possibility of a positive result or gain, only loss.

AIt is a risk event that only has a negative side, such as loss of life or limb.Correct

A pure risk, also known as an insurable risk, is a risk that can only result in a negative outcome such as loss of life, injury, or property damage - there is no possibility of a gain or positive outcome. This contrasts with a speculative risk, which has both upside and downside possibilities. Pure risks are typically addressed through insurance or avoidance strategies.

BIt is a risk event that cannot be avoided because of the order of the work.

A risk that cannot be avoided due to the order of work describes an inherent or mandatory risk tied to project sequencing, not the definition of a pure risk.

CIt is a risk event that is created by a risk response.

A risk created by a risk response is the definition of a secondary risk, not a pure risk.

DIt is a risk event that is generated due to errors or omission in the project work.

A risk generated by errors or omissions describes a category of project execution risk, not the concept of pure versus speculative risk.

Concept tested: Definition of pure risk versus speculative risk

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Pure risk#Risk definition#Risk management#Risk types

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