Various Outputs of Risk Response

CDE.

The outputs of the risk response planning process are: -> Risk Register Updates: The risk register is written in detail so that it can be related to the priority ranking and the planned response.

-> Risk Related Contract Decisions: Risk related contract decisions are the decisions to transmit risk, such as services, agreements for insurance, and other items as required.

It provides a means for sharing risks.

-> Project Management Plan Updates: Some of the elements of the project management plan updates are: - Schedule management plan - Cost management plan - Quality management plan - Procurement management plan - Human resource management plan - Work breakdown structure - Schedule baseline - Cost performance baseline -> Project Document Updates: Some of the project documents that can be updated includes: - Assumption log updates - Technical documentation updates Incorrect Answers: A: Risk priority number is not an output for risk response but instead it is done before applying response.

Hence it acts as one of the inputs of risk response and is not the output of it.

B: Residual risk is not an output of risk response.

Residual risk is the risk that remains after applying controls.

It is not feasible to eliminate all risks from an organization.

Instead, measures can be taken to reduce risk to an acceptable level.

The risk that is left is residual risk.

As, Risk = Threat Vulnerability - and Total risk = Threat Vulnerability Asset Value Residual risk can be calculated with the following formula: Residual Risk = Total Risk - Controls Senior management is responsible for any losses due to residual risk.

They decide whether a risk should be avoided, transferred, mitigated or accepted.

They also decide what controls to implement.

Any loss due to their decisions falls on their sides.

Residual risk assessments are conducted after mitigation to determine the impact of the risk on the enterprise.

For risk assessment, the effect and frequency is reassessed and the impact is recalculated.

Risk response is the process of selecting and implementing measures to reduce, transfer, accept, or avoid identified risks. The various outputs of risk response are:

A. Risk Priority Number: Risk priority number (RPN) is a numerical value used to assess the level of risk associated with a particular event. It is calculated by multiplying the probability, impact, and detection rating of a risk. The RPN is used to prioritize risks based on their severity.

B. Residual risk: Residual risk is the risk that remains after risk response measures have been implemented. It represents the level of risk that an organization is willing to accept after taking action to reduce the risk.

C. Risk register updates: The risk register is a document that records all the identified risks, their likelihood, potential impact, and the measures taken to address them. As risk response measures are implemented, the risk register is updated to reflect the changes.

D. Project management plan and project document updates: Risk response measures may impact the project management plan and other project documents, such as the schedule, budget, and scope. As a result, these documents may need to be updated to reflect the changes.

E. Risk-related contract decisions: If risks are identified that are related to a contract, risk response measures may need to be included in the contract or the contract may need to be renegotiated to account for the risks.

In summary, the various outputs of risk response are RPN, residual risk, risk register updates, project management plan and project document updates, and risk-related contract decisions.