You work as a project manager for BlueWell Inc.
You are working with Nancy, the COO of your company, on several risks within the project.
Nancy understands that through qualitative analysis you have identified 80 risks that have a low probability and low impact as the project is currently planned.
Nancy's concern, however, is that the impact and probability of these risk events may change as conditions within the project may change.
She would like to know where will you document and record these 80 risks that have low probability and low impact for future reference.
What should you tell Nancy?
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A. B. C. D.B.
The best answer to this question is B. Risks with low probability and low impact are recorded in a watchlist for future monitoring.
Risk identification is an iterative process, which means that risks are continuously identified and assessed throughout the project life cycle. Even though a risk may be assessed as having low probability and low impact initially, it doesn't mean that the risk won't change in the future. The conditions of the project may change, which could lead to a change in the risk's impact and probability.
However, it's not necessary to record all risks, regardless of their assessed impact and probability, in the risk log. The risk log is typically used to record risks that have a moderate to high impact and probability. This is because these risks require more attention and monitoring, as they are more likely to occur and have a greater impact on the project.
The risk management plan is a document that outlines the overall approach to risk management for the project. It typically includes information on how risks will be identified, assessed, and managed throughout the project life cycle. While all risks will be considered as part of the risk management plan, it's not necessary to record every risk in this document.
Therefore, the best option is to record the risks with low probability and low impact in a watchlist for future monitoring. This way, the risks can be tracked and assessed periodically to determine whether any changes have occurred that would require a reassessment of the risk's impact and probability. This approach allows for a more focused and efficient use of resources, as it prioritizes the risks that are most likely to occur and have the greatest impact on the project.