PMI-RMP Question #553: Real Exam Question with Answer & Explanation

Question

In a large industrial business, an on-going system development project faces a previously identified risk. The risk is adequately managed by the risk manager, however there is still residual risk. What should the risk manager do?

Options

• AUpdate the risk register accordingly and review it in regular project meetings.
• BAccept the risk because residual risks are often low.
• CAsk a subject matter expert (SME) to assess the residual risk and take action.
• DAssign a risk owner and set it as high priority and high impact.

Explanation

Decision tree analysis is a technique that uses a graphical representation of various possible outcomes and consequences of different courses of action, based on their probabilities of occurrence and associated payoffs or costs. It can help the project team to compare and evaluate the alternatives and choose the optimal one. In this case, the risk manager should use decision tree analysis to help the team members predict the outcomes of their potential choices following their probability of occurrence. Political, economic, social, technological, legal, and environmental (PESTLE) analysis, strengths, weaknesses, opportunities, and threats (SWOT) analysis, and cost- benefit analysis are not techniques that can directly help the team members to predict the outcomes of their potential choices following their probability of occurrence, and are therefore not the best answer.

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