You have identified several risks in your project.
You have opted for risk mitigation in order to respond to identified risk.
Which of the following ensures that risk mitigation method that you have chosen is effective?
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A. B. C. D.B.
The inherent risk of a process is a given and cannot be affected by risk reduction or risk mitigation efforts.
Hence it should be reduced as far as possible.
Incorrect Answers: A: Risk reduction efforts can focus on either avoiding the frequency of the risk or reducing the impact of a risk.
C: Risk reduction efforts can focus on either avoiding the frequency of the risk or reducing the impact of a risk.
D: The objective of risk reduction is to reduce the residual risk to levels below the enterprise's risk tolerance level.
When implementing risk mitigation methods, it is important to assess the effectiveness of the chosen method to ensure that it provides the desired outcome.
A. Reduction in the frequency of a threat: This option is focused on reducing the likelihood of a risk occurring. It is a valid approach, but it may not always be effective. For example, if the risk is associated with an external factor that is beyond the control of the project team, reducing the frequency of the threat may not be feasible.
B. Minimization of inherent risk: This approach is focused on reducing the inherent risk of the project. It is a proactive approach that seeks to address risks before they materialize. By identifying and addressing risks at an early stage, the project team can reduce the likelihood of negative outcomes.
C. Reduction in the impact of a threat: This option is focused on reducing the severity of the risk. It may involve implementing contingency plans, developing response strategies, or building redundancy into the project. This approach is particularly useful when the risk cannot be eliminated, but its impact can be reduced.
D. Minimization of residual risk: Residual risk is the risk that remains after mitigation measures have been implemented. This approach seeks to minimize the residual risk by implementing additional measures to address any remaining risks. This approach is particularly useful when the residual risk is deemed unacceptable, and additional measures are required to bring it down to an acceptable level.
In conclusion, all four options can be effective in different scenarios. However, the effectiveness of the chosen risk mitigation method should be assessed based on the specific circumstances of the project. The best approach is to apply a combination of risk mitigation methods that address the various aspects of risk, including likelihood, severity, and residual risk.