Addressing Risks by Priorities

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.

The "Plan Risk Response" process is a part of the project risk management knowledge area, and it is the process of developing options and actions to enhance opportunities and to reduce threats to project objectives. The primary objective of this process is to identify, evaluate, select, and implement risk responses that effectively mitigate project risks.

During this process, the risk management team identifies specific strategies and actions to address the identified risks. They evaluate the potential effectiveness of each response, considering factors such as the probability of the risk occurring, the potential impact of the risk, the cost and feasibility of the response, and the overall impact on project objectives.

The team then prioritizes the risks based on their potential impact and the level of risk tolerance of the stakeholders. They develop a risk management plan that outlines the response strategies and actions, including any necessary changes to the project schedule, budget, or resources.

Finally, the team inserts the response strategies and actions into the project budget, schedule, and other project management plans as required. They monitor and control the implementation of the risk responses throughout the project lifecycle, making adjustments as necessary to ensure the project objectives are met.

In summary, the "Plan Risk Response" process addresses risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget. It is an essential process in the project risk management knowledge area, and it helps to ensure that project risks are effectively managed throughout the project lifecycle.