Jane is the project manager of the NHJ Project for his company.
He has identified several positive risk events within his project and he thinks these events can save the project time and money.
Positive risk events, such as these within the NHJ Project are referred to as?
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A. B. C. D.D.
A positive risk event is also known as an opportunity.
Opportunities within the project to save time and money must be evaluated, analyzed, and responded to.
Incorrect Answers: A: A contingency risk is not a valid risk management term.
B: Benefits are the good outcomes of a project endeavor.
Benefits usually have a cost factor associated with them.
C: 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.
The correct answer is D. Opportunities.
In risk management, risks can be either positive or negative. Positive risks, also known as opportunities, are events or situations that could have a positive impact on the project objectives if they occur. These risks are events that can help the project team to achieve the project objectives faster, cheaper, or with a higher quality level.
In the case of Jane, the project manager of the NHJ Project, she has identified several positive risk events within her project. These events can save the project time and money. These opportunities could be things like a vendor offering a discount on materials or an unexpected increase in productivity by team members. By recognizing these opportunities, Jane can take advantage of them and plan for them to occur, which can help the project team to complete the project on time, within budget, and with a higher level of quality.
Contingency risks, on the other hand, are risks that arise from unexpected events that could have a negative impact on the project objectives. These risks are usually addressed by developing contingency plans to manage the risk if it occurs. Residual risk is the risk that remains after risk response planning. Benefits are the advantages or positive outcomes that are expected from achieving project objectives.
In conclusion, identifying positive risks, or opportunities, is an important aspect of risk management that can help the project team to achieve project objectives faster, cheaper, or with a higher level of quality.