Risk Effects | Foundation Project Management Certification

Understanding Risk Effects

Question

Which describes a risk effect?

Answers

Explanations

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A. B. C. D.

C.

A risk effect refers to the impact or consequences of a risk occurring. Among the given choices, option C correctly describes a risk effect.

Option A is incorrect because it describes a risk as an uncertain event that could have a negative or favourable occurrence, but does not refer to the impact or consequences of the risk event.

Option B is incorrect because it describes an issue that has resulted in a risk but does not explain the impact or consequences of the risk event.

Option D is incorrect because it describes the change in the status of a risk in response to actions taken to control it, but does not describe the impact or consequences of the risk event itself.

Therefore, the correct answer is C - the impact(s) on the project objectives should the threat or opportunity occur. When a risk occurs, it can either have a positive or negative impact on a project objective such as schedule, cost, quality, or scope. The effect of a risk can be significant or negligible depending on the nature of the risk and the project environment. A project manager must identify and assess the risks, develop strategies to mitigate or exploit the risks, and monitor the risks throughout the project lifecycle to minimize their impact on project objectives.