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PMI-RMP · Question #629

A financial institution is creating a new product database tor their clients. The project sponsor of this project is concerned about failure of the digital platform that hosts the database. The risk m

The correct answer is B. Residual risk. A residual risk is the risk that remains after a risk response has been implemented. In this scenario, the original risk is digital platform failure caused by a major power outage. The financial institution has already implemented a risk response-back-up power generators-to addre

Risk Monitoring and Reporting

Question

A financial institution is creating a new product database tor their clients. The project sponsor of this project is concerned about failure of the digital platform that hosts the database. The risk manager states that this risk will only occur if there is a major power outage; however, the financial institution has back-up power generators in place. What type of risk is being referred to here?

Options

  • AMajor risk
  • BResidual risk
  • CSecondary risk
  • DEnvironment risk

How the community answered

(31 responses)
  • A
    10% (3)
  • B
    81% (25)
  • C
    3% (1)
  • D
    6% (2)

Explanation

A residual risk is the risk that remains after a risk response has been implemented. In this scenario, the original risk is digital platform failure caused by a major power outage. The financial institution has already implemented a risk response-back-up power generators-to address the power outage threat. However, even with generators in place, some level of risk remains (the generators could fail, fuel could run out, etc.). That remaining exposure is the residual risk. It is not a secondary risk (which is a new risk created as a direct result of implementing a risk response), not a major risk (which is a severity classification), and not specifically an environmental risk.

Topics

#Residual Risk#Risk Responses#Risk Monitoring#Risk Identification

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