Indicators of Risk Priority - CRISC Exam

D.

The cost of the project is not an indicator of risk urgency.

The affect of the risk on the overall cost of the project may be considered, but it is not the best answer.

Incorrect Answers: A: Warning signs are an indicator of the risk urgency.

B: Symptoms are an indicator of the risk urgency.

C: The risk rating can be an indicator of the risk urgency.

During qualitative risk analysis, the risk urgency assessment is used to determine the priority of identified risks based on their potential impact and likelihood of occurrence. The purpose of this assessment is to help organizations focus their risk management efforts on the risks that are most significant and require immediate attention.

Among the options provided, the indicator of risk priority that is not valid is D. Cost of the project. While the cost of the project may be an important consideration for overall project management, it is not directly related to the potential impact or likelihood of occurrence of a risk. It is possible for a high-priority risk to have a relatively low cost impact, or for a low-priority risk to have a high cost impact, depending on the nature of the risk and the organization's priorities.

In contrast, warning signs and symptoms can be important indicators of potential risks, as they may provide early indications of issues that could lead to more significant problems. Risk rating, which typically involves a quantitative or qualitative assessment of the likelihood and impact of a risk, is a fundamental component of risk prioritization and is often used to determine the overall priority of identified risks.

Therefore, while all of the options listed may be important considerations in risk management, the correct answer to the question is D. Cost of the project, as it is not an indicator of risk priority during qualitative risk analysis.