A risk manager creates a survey for project stakeholders to obtain their opinions on high levels of risk. Key questions in the survey address acceptable levels of cost increases and schedule delays. W

The correct answer is C. Risk threshold. Risk threshold is the quantified boundary of acceptable risk exposure - the point beyond which stakeholders are no longer willing to tolerate the impact of a risk. By surveying stakeholders on acceptable cost increases and schedule delays, the risk manager is directly measuring w

Risk Strategy and Planning

Question

A risk manager creates a survey for project stakeholders to obtain their opinions on high levels of risk. Key questions in the survey address acceptable levels of cost increases and schedule delays. What is the risk manager trying to determine?

Options

ARisk urgency
BRisk exposure
CRisk threshold
DRisk attitude

How the community answered

(46 responses)

A
2% (1)
B
4% (2)
C
91% (42)
D
2% (1)

Explanation

Risk threshold is the quantified boundary of acceptable risk exposure - the point beyond which stakeholders are no longer willing to tolerate the impact of a risk. By surveying stakeholders on acceptable cost increases and schedule delays, the risk manager is directly measuring where that threshold lies. Risk attitude (D) describes a stakeholder's general disposition toward risk (averse, neutral, seeking), while risk exposure (B) measures the overall probability-weighted impact of a risk. Risk urgency (A) relates to how quickly a risk needs a response. The survey's focus on acceptable limits of impact makes threshold the correct answer.

Topics

#Risk Thresholds#Stakeholder Input#Risk Planning

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