A project team has completed the risk response plan for a newly identified major project risk. Some team members argue the plan does not totally eliminate the risk, considering the effort required to

Question

Options

• AAccept the response because there are no secondary risks were identified.
• BThe response plan should be discontinued and the risk should be accepted and dealt with if it
• CAccept the residual risk as it is compatible with the organization's risk appetite.
• DAll identified risks must be addressed because they might significantly impact the project if they

• A
  5% (3)
• B
  16% (9)
• C
  75% (43)
• D
  4% (2)

Explanation

Very few risk responses completely eliminate a risk; after implementing a response, a residual risk-the remaining risk that persists-typically remains. Residual risk is a normal and expected outcome of risk response planning. The key criterion for acceptability is whether the residual risk falls within the organization's risk appetite (i.e., the level of risk the organization is willing to accept). If the residual risk is compatible with that appetite, the response plan is adequate and should be accepted-not discarded. Discarding a valid response plan because it doesn't achieve zero risk is unrealistic and contrary to sound risk management principles.

No community discussion yet for this question.