PMI-RMP · Question #106
You are the project manager of the BJA Project for your company. Management is worried about one of the identified risks in your project. The risk event has a probability of 90 percent and a cost…
The correct answer is D. Mitigation. Risk mitigation involves taking action to reduce the probability and/or impact of a risk event to an acceptable threshold - the risk is not eliminated, just made less likely or less damaging. Spending $75,000 reduces probability from 90% to 15% and impact from $85,000 to…
Question
You are the project manager of the BJA Project for your company. Management is worried about one of the identified risks in your project. The risk event has a probability of 90 percent and a cost impact of $85,000. Management and you discuss possible solutions to address the risk. You share with them that for $75,000 you can reduce the probability of the risk event to 15 percent and the impact to $25,000. This solution will add three weeks to the project schedule. Management thinks this is a good idea and they would like you to add the time and cost additions to your project plan. What type of risk response is used?
Options
- AAvoidance
- BAcceptance
- CExploit
- DMitigation
How the community answered
(20 responses)- A10% (2)
- B5% (1)
- C5% (1)
- D80% (16)
Explanation
Risk mitigation involves taking action to reduce the probability and/or impact of a risk event to an acceptable threshold - the risk is not eliminated, just made less likely or less damaging. Spending $75,000 reduces probability from 90% to 15% and impact from $85,000 to $25,000; the risk still exists but at a much lower level. Avoidance would eliminate the risk entirely. Acceptance involves no proactive action. Exploit is a response for positive risks (opportunities), not threats.
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