PMI-RMP Question #592: Real Exam Question with Answer & Explanation

Question

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 implement it, and feel the planned response should be thrown out altogether. What should the risk manager do in this situation?

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

Explanation

In risk management, it is common that not all risks can be completely eliminated. Residual risk is the remaining risk after all possible mitigation efforts have been applied. If the residual risk is within the organization's risk appetite--meaning the organization is willing to accept this level of risk--it is appropriate to proceed with the plan. The PMI framework supports this approach, as risk management is about balancing effort and benefit, ensuring that mitigation efforts are commensurate with the risk involved.

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