Risk Identification and Management

Identifying and Managing Project Risks

Question

A project team is identifying, rating the probability of, and determining the impact on potential problems throughout the project.

The team is also including the corresponding actions to take.

Which of the following activities does this describe?

Answers

Explanations

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A. B. C. D.

C.

The activity described in the question is risk management, which is an essential part of project management. The project team is identifying and rating the probability of potential problems (risks) that could occur during the project and determining their impact on the project. They are also including corresponding actions to take, which means they are developing a plan to mitigate the risks.

The process of risk management involves the following steps:

  1. Risk Identification: This involves identifying all possible risks that could impact the project. The project team should brainstorm and identify all possible risks and document them.

  2. Risk Quantification: This step involves assessing the probability of each identified risk occurring and determining its potential impact on the project. The team should assign a score to each risk based on its probability and impact.

  3. Risk Planning: This step involves developing a plan to manage the identified risks. The plan should include specific actions to take if a risk occurs, as well as steps to prevent the risk from occurring or reduce its impact.

  4. Risk Monitoring and Control: This involves continuously monitoring the identified risks throughout the project and implementing the risk management plan as needed. The team should also evaluate the effectiveness of the risk management plan and adjust it as necessary.

Based on the above explanation, the activity described in the question is Risk Planning (option C).