PMI-RMP · Question #371
Which of the following demonstrates that a company's risk management process is successful?
The correct answer is C. Profitability has increased due to the risk management process. The ultimate measure of a successful risk management process is tangible business value - in this case, increased profitability. Effective risk management reduces losses from threats and exploits opportunities (positive risks), directly improving financial performance. Option A…
Question
Which of the following demonstrates that a company's risk management process is successful?
Options
- AProjects deemed too risky are given additional time.
- BThe number of identified risks has decreased.
- CProfitability has increased due to the risk management process.
- DAdditional resources were added to complete the project faster.
How the community answered
(17 responses)- B6% (1)
- C94% (16)
Explanation
The ultimate measure of a successful risk management process is tangible business value - in this case, increased profitability. Effective risk management reduces losses from threats and exploits opportunities (positive risks), directly improving financial performance. Option A (giving risky projects more time) is a reactive measure that does not indicate process success. Option B (fewer identified risks) could actually signal poor risk identification rather than improvement. Option D (adding resources) is a schedule compression technique, not evidence of a mature risk process.
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