PMI-RMP · Question #189
Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan the risk responses for the NNP Project. Mike would like the project team to work…
The correct answer is A. It helps to identify those risks for which specific responses are needed. A risk threshold is the level of risk exposure above which a risk requires a specific response, and below which the risk may be accepted or monitored passively. Its purpose is to define the boundary that identifies which risks are significant enough to warrant dedicated…
Question
Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan the risk responses for the NNP Project. Mike would like the project team to work together on establishing risk thresholds in the project. What is the purpose of a risk threshold?
Options
- AIt helps to identify those risks for which specific responses are needed.
- BIt is a limit of the funds that can be assigned to risk events.
- CIt is a warning sign that a risk event is going to happen.
- DIt is a study of the organization's risk tolerance.
How the community answered
(39 responses)- A87% (34)
- B8% (3)
- C3% (1)
- D3% (1)
Explanation
A risk threshold is the level of risk exposure above which a risk requires a specific response, and below which the risk may be accepted or monitored passively. Its purpose is to define the boundary that identifies which risks are significant enough to warrant dedicated response plans. Risks below the threshold may be accepted; those above it require active mitigation, avoidance, transfer, or exploitation. Option B confuses threshold with a risk budget or reserve. Option C describes a risk trigger or warning indicator. Option D describes a risk tolerance or risk appetite assessment, which is a related but different concept used to define the threshold itself.
Topics
Community Discussion
No community discussion yet for this question.