Mike is the project manager of the NNP Project for his organization. He is working with his project team to plan the risk responses for the NNP Project. Mike would like the project team to work together on establishing risk thresholds in the project. What is the purpose of establishing risk threshold?
Answer(s): D
Risk threshold helps to identify those risks for which specific responses are needed.
What should be considered while developing obscure risk scenarios? Each correct answer represents a part of the solution. Choose two.
Answer(s): A,D
The enterprise must consider risk that has not yet occurred and should develop scenarios around unlikely, obscure or non-historical events.Such scenarios can be developed by considering two things: VisibilityRecognitionFor the fulfillment of this task enterprise must:Be in a position that it can observe anything going wrongHave the capability to recognize an observed event as something wrong
Which of the following is true for risk management frameworks, standards and practices? Each correct answer represents a part of the solution. Choose three.
Answer(s): A,C,D
Frameworks, standards and practices are necessary as:They provide a systematic view of "things to be considered" that could harm clients or an enterprise. They act as a guide to focus efforts of variant teams.They save time and revenue, such as training costs, operational costs and performance improvement costs. They assist in achieving business objectives quickly and easily.
An interruption in business productivity is considered as which of the following risks?
Answer(s): B
Operation risks encompass any potential interruption in business. Operational risks are those risk that are associated with the day-to-day operations of the enterprise. They are generally more detailed as compared to strategic risks. It is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Some sub-categories of operational risks include:Organizational or management related risks Information security risksProduction, process, and productivity risks Profitability operational risksBusiness interruption risks Project activity risksContract and product liability risks Incidents and crisisIllegal or malicious actsIncorrect Answers:A: Reporting risks are those occurrences which prevent accurate and timely reporting.C: Legal risks are dealing with those events which can deteriorate the company's legal status. Legal compliance is the process or procedure to ensure that an organization follows relevant laws, regulations and business rules. The definition of legal compliance, especially in the context of corporate legal departments, has recently been expanded to include understanding and adhering to ethical codes within entire professions, as well. Hence legal and compliance risk has the potential to deteriorate company's legal or regulatory status.D: Strategic risks have potential which breaks in obtaining strategic objectives. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
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?
Answer(s): 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.
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question 44 answer is user risk
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