Risk Prioritization and Project Planning
Question
Which of the following processes addresses the risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget?
Answers
Explanations
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A. B. C. D.B.
The plan risk response project management process aims to reduce the threats to the project objectives and to increase opportunities.
It follows the perform qualitative risk analysis process and perform quantitative risk analysis process.
Plan risk response process includes the risk response owner to take the job for each agreed-to and funded risk response.
This process addresses the risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget.
The inputs to the plan risk response process are as follows: -> Risk register Risk management plan -
Incorrect Answers: A: Monitor and Control Risk is the process of implementing risk response plans, tracking identified risks, monitoring residual risk, identifying new risks, and evaluating risk process effectiveness throughout the project.
It can involve choosing alternative strategies, executing a contingency or fallback plan, taking corrective action, and modifying the project management plan.
C: Identify Risks is the process of determining which risks may affect the project.
It also documents risks' characteristics.
The Identify Risks process is part of the Project Risk Management knowledge area.
As new risks may evolve or become known as the project progresses through its life cycle, Identify Risks is an iterative process.
The process should involve the project team so that they can develop and maintain a sense of ownership and responsibility for the risks and associated risk response actions.
Risk Register is the only output of this process.
D: Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10)
Hence it determines the nature of risk on a relative scale.
Some of the qualitative methods of risk analysis are: -> Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time.
-> Risk Control Self -assessment (RCSA) - RCSA is used by enterprises (like banks) for the identification and evaluation of operational risk exposure.
It is a logical first step and assumes that business owners and managers are closest to the issues and have the most expertise as to the source of the risk.
RCSA is a constructive process in compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of increasing their accountability.
The process that addresses risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget is the Plan Risk Response process.
Plan Risk Response is the process of developing options and actions to enhance opportunities and reduce threats to project objectives. It is one of the processes in the Project Risk Management knowledge area, which is a part of the Project Management Body of Knowledge (PMBOK) guide.
In this process, risks are analyzed and prioritized based on their likelihood of occurrence and impact on project objectives. The objective is to develop strategies to respond to identified risks and to provide guidance to the project team on how to execute those strategies.
The process involves the following steps:
Reviewing the risk register: The risk register is reviewed to ensure that all identified risks are included and up-to-date.
Analyzing the risks: Each risk is analyzed to determine the likelihood of occurrence, the impact on project objectives, and the risk tolerance of the organization.
Developing risk response strategies: Risk response strategies are developed to address each identified risk. Strategies can be either proactive or reactive. Proactive strategies are implemented before the risk occurs, while reactive strategies are implemented after the risk has occurred.
Assigning owners: Owners are assigned to each risk response strategy to ensure that they are executed appropriately.
Documenting the risk response plan: The risk response plan is documented and communicated to the project team and stakeholders.
Updating the project management plan: The project management plan is updated with the risk response plan, including any changes to the project schedule, budget, and resources required to implement the risk response strategies.
Therefore, the correct answer is B. Plan Risk Response.