Pure Risk: Definition and Mitigation Strategies
Question
You are the project manager of the QPS project.
You and your project team have identified a pure risk.
You along with the key stakeholders, decided to remove the pure risk from the project by changing the project plan altogether.
What is a pure risk?
Answers
Explanations
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A. B. C. D.A.
A pure risk has only a negative effect on the project.
Pure risks are activities that are dangerous to complete and manage such as construction, electrical work, or manufacturing.
It is a class of risk in which loss is the only probable result and there is no positive result.
Pure risk is associated to the events that are outside the risk-taker's control.
Incorrect Answers: B: The risk event created by the application of risk response is called secondary risk.
C: A risk event that is generated due to errors or omission in the project work is not necessarily pure risk.
D: This in not valid definition of pure risk.
Sure, I'd be happy to provide you with a detailed explanation of what a pure risk is.
A pure risk is a type of risk that involves only the possibility of a negative outcome or loss, without any possibility of a positive outcome or gain. In other words, it is a risk event that has no potential for a desirable outcome, only the potential for an undesirable one.
Pure risks are typically associated with events that are beyond the control of the project team, such as natural disasters, accidents, or unforeseeable market changes. For example, the risk of a hurricane destroying a construction site is a pure risk, as there is no potential benefit to the occurrence of the hurricane.
Pure risks are often managed through risk avoidance, which involves changing the project plan or approach to eliminate the risk altogether. This is different from risk mitigation or risk transfer, which seek to reduce the impact of a risk event or shift the risk to another party. In the case of the QPS project, the decision to change the project plan altogether is an example of risk avoidance.
To summarize, pure risks are risks that involve only the possibility of a negative outcome, without any potential for a positive outcome. They are often managed through risk avoidance, which involves changing the project plan to eliminate the risk altogether.
