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PMI-RMP · Question #432

A risk management professional is currently facilitating the risk planning process with the project team. To increase the breadth of considered risks, the team wants to include high-level and strategi

The correct answer is C. Conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is specifically designed to surface strategic and high-level risks by examining internal organizational factors (strengths and weaknesses) and external environmental factors (opportunities and threats). It is the most

Risk Strategy and Planning

Question

A risk management professional is currently facilitating the risk planning process with the project team. To increase the breadth of considered risks, the team wants to include high-level and strategic project risks. What should the risk management professional do next?

Options

  • APerform a sensitivity analysis to the higher-level aggregate activities
  • BDevelop a risk breakdown structure (RBS) identifying the potential risk categories
  • CConduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis
  • DPerform a base line Monte Carlo simul-ation to address overall threats to project objectives

How the community answered

(19 responses)
  • A
    16% (3)
  • B
    5% (1)
  • C
    74% (14)
  • D
    5% (1)

Explanation

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is specifically designed to surface strategic and high-level risks by examining internal organizational factors (strengths and weaknesses) and external environmental factors (opportunities and threats). It is the most appropriate tool when the goal is to broaden risk identification to include strategic-level concerns. Sensitivity analysis (A) and Monte Carlo simulation (D) are quantitative analysis techniques used after risks are identified, not for identification itself. An RBS (B) categorizes risks but does not generate strategic-level risks the way SWOT does.

Topics

#Risk Identification#Strategic Risk#SWOT Analysis#Risk Planning

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