PMI-RMP · Question #160
Your project has several risks that may cause serious financial impact should they happen. You have studied the risk events and made some potential risk responses for the risk events but management…
The correct answer is C. Contingency reserve. When you assign financial amounts to risk probability and impact (e.g., using Expected Monetary Value calculations), the result is used to determine the Contingency Reserve - a financial buffer set aside to cover the cost of identified risks should they occur. The chart…
Question
Your project has several risks that may cause serious financial impact should they happen. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like for you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?
Options
- ARisk response
- BQuantitative analysis
- CContingency reserve
- DRisk response plan
How the community answered
(30 responses)- A3% (1)
- B7% (2)
- C77% (23)
- D13% (4)
Explanation
When you assign financial amounts to risk probability and impact (e.g., using Expected Monetary Value calculations), the result is used to determine the Contingency Reserve - a financial buffer set aside to cover the cost of identified risks should they occur. The chart described is essentially a quantitative risk analysis output (like an EMV matrix), but the question asks for the 'likely outcome' of creating it, which is establishing the contingency reserve. A Risk Response Plan (D) and Risk Response (A) are actions, not financial outcomes. Quantitative Analysis (B) is the process, not the outcome. The financial result of analyzing risk probability and impact is the contingency reserve amount.
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