A project manager for a large product development project assigned a risk manager to perform the risk management. The project sponsor questions why this project requires a risk manager as it is simila

Question

Options

• AA risk strategy is a best practice and ensures quality in the project planning.
• BA project specific risk strategy includes enough information to respond to audits and compliance
• CA risk strategy ensures alignment of the organizational structure to the specific project.
• DA risk strategy aligns individual project risk thresholds with organizational risk appetite.

• A
  3% (1)
• B
  3% (1)
• C
  6% (2)
• D
  88% (29)

Explanation

The fundamental purpose of a project-specific risk strategy is to align that project's risk thresholds with the current organizational risk appetite. Organizational risk appetite can shift over time due to changes in market conditions, leadership, financials, or regulatory environment. A strategy built for a previous project reflects the risk appetite at that time and in that context - it cannot be assumed to still be valid. Options A and B describe secondary benefits (quality, auditability), not the core purpose. Option C conflates risk strategy with organizational structure alignment. Option D correctly identifies the primary reason: each project needs its own calibrated thresholds grounded in the organization's present risk appetite.

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