During the monthly executive review meeting, the project sponsor would like to understand how the project team has planned to manage risks that were identified in the last meeting. What should the pro

Question

Options

• AUtilize a Monte Carlo assessment to provide risk related impacts.
• BReact to the secondary and residual risks only if they occur.
• CInclude secondary and residual risks as part of the response.
• DTransfer secondary and residual risks to the project sponsor.

• A
  12% (3)
• B
  4% (1)
• C
  72% (18)
• D
  12% (3)

Explanation

A complete and credible risk management plan presented to executives must account for secondary risks (new risks that emerge as a result of implementing a response) and residual risks (risks that remain after a response is applied). Including these as part of the response (C) demonstrates thoroughness and shows sponsors the full risk picture. Using Monte Carlo simulation (A) is a quantitative analysis tool, not a communication strategy for how risks are managed. Reacting only if secondary and residual risks occur (B) is passive and reactive. Transferring these risks to the sponsor (D) is inappropriate and shifts accountability incorrectly.

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