You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to…

Question

Options

• ARisk Identification, Risk Assessment, Response Planning, Risk Response
• BRisk Planning, Risk Assessment, Risk Response
• CResponse Planning, Risk Identification, Risk Assessment, Risk Response
• DRisk Identification, Response Planning, Risk Assessment, Risk Response

• A
  8% (3)
• B
  73% (29)
• C
  15% (6)
• D
  5% (2)

Explanation

According to PMI's Standard for Portfolio Management, portfolio risk management follows three high-level steps: (1) Risk Planning - establishing the approach, roles, responsibilities, and thresholds for managing risk; (2) Risk Assessment - identifying and analyzing risks (both qualitatively and quantitatively); and (3) Risk Response - developing and implementing responses to address identified risks. Options A and D include 'Risk Identification' as a separate step, but in the portfolio management framework, identification is incorporated within the assessment phase. Option C incorrectly places Response Planning before Risk Identification and Assessment.

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