PMI-RMP · Question #499
A risk manager manages risks in a construction project. A stakeholder mentions that if there is less than a 50% chance of rain, construction should continue. Another stakeholder says that if there is
The correct answer is A. Review the agreed-upon risk tolerance. When two stakeholders disagree about acceptable probability thresholds for continuing work, the risk manager should refer to the agreed-upon, documented risk tolerance-not to either individual's preference. Risk tolerance is the quantified, pre-agreed boundary of acceptable risk
Question
A risk manager manages risks in a construction project. A stakeholder mentions that if there is less than a 50% chance of rain, construction should continue. Another stakeholder says that if there is less than a 60% chance of rain, construction should continue. What should the risk manager do next to find out the correct limit?
Options
- AReview the agreed-upon risk tolerance
- BPerform a sensitivity analysis of the risk
- CFind out the stakeholders' risk appetite
- DUse industry standard risk thresholds
How the community answered
(16 responses)- A75% (12)
- B13% (2)
- C6% (1)
- D6% (1)
Explanation
When two stakeholders disagree about acceptable probability thresholds for continuing work, the risk manager should refer to the agreed-upon, documented risk tolerance-not to either individual's preference. Risk tolerance is the quantified, pre-agreed boundary of acceptable risk variation, and it is recorded in the risk management plan. It resolves exactly this kind of stakeholder disagreement by providing an objective, project-level standard. Sensitivity analysis (B) measures risk impact, not thresholds. Risk appetite (C) is a broader strategic concept about willingness to pursue risk for reward, not a specific operational cutoff. Industry standards (D) are a fallback, not a substitute for project-specific documented agreements.
Topics
Community Discussion
No community discussion yet for this question.