QUESTION: 325

Which of the following come under the phases of risk identification and evaluation? Each correct answer represents a complete solution. Choose three.

Maintain a risk profile
Collecting data
Analyzing risk
Applying controls

Answer(s): A,B,C

Explanation:

Risk identification is the process of determining which risks may affect the project. It also documents risks' characteristics.

Following are high-level phases that are involved in risk identification and evaluation:
Collecting data- Involves collecting data on the business environment, types of events, risk categories, risk scenarios, etc., to identify relevant data to enable effective risk identification, analysis and reporting.
Analyzing risk- Involves analyzing risk to develop useful information which is used while taking risk- decisions. Risk-decisions take into account the business relevance of risk factors.
Maintain a risk profile- Requires maintaining an up-to-date and complete inventory of known threats and their attributes (e.g., expected likelihood, potential impact, and disposition), IT resources, capabilities, and controls as understood in the context of business products, services and processes to effectively monitor risk over time.

Incorrect Answers:
D: It comes under risk management process, and not in risk identification and evaluation process.

Reveal Solution Next Question

QUESTION: 326

How are the potential choices of risk based decisions are represented in decision tree analysis?

End node
Root node
Event node
Decision node

Answer(s): D

Explanation:

The potential choices of risk based decisions are represented in decision tree analysis via. Decision node, as decision nodes refers to the available choices.

Incorrect Answers:
A: End nodes are the final outcomes of the entire decision tree framework, especially in multilayered decision- making situations.

B: Root nodes represent the start of a decision tree.

C: Event nodes represents the possible uncertain outcomes of the decision, and not the available choices.

Reveal Solution Next Question

QUESTION: 327

You are the project manager of the HJK Project for your organization. You and the project team have created risk responses for many of the risk events in the project. Where should you document the proposed responses and the current status of all identified risks?

Stakeholder management strategy
Lessons learned documentation
Risk register
Risk management plan

Answer(s): C

Explanation:

Risks and the corresponding responses are documented in the risk register for the project. Risk register is a document that contains the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning. Description, category, cause, probability of occurring, impact on objectives, proposed responses, owner, and the current status of all identified risks are put in the risk register.

Incorrect Answers:
A: The stakeholder management strategy defines how stakeholders and their threats, perceived threats, opinions, and influence over the project objectives will be addressed and managed.

B: The outcome of risk events and the corresponding risk responses may be documented in the project's lessons learned documented, but the best answer is to document the risk responses as part of the risk register.

D: The risk management plan defines how risks will be identified and analyzed, the available responses, and the monitoring and controlling of the risk events. The actual risk responses are included in the risk register.

Reveal Solution Next Question

QUESTION: 328

Which is the MOST important parameter while selecting appropriate risk response?

Cost of response
Capability to implement response
Importance of risk
Efficiency of response

Answer(s): A

Explanation:

The cost of the response, which is applied so as to reduce risk within tolerance levels, is one of the most important parameter. By considering the cost of response, it is decided whether or not benefits of applying response is greater than accepting the risk; and according to this analysis it is decided whether the certain response should be applied or not. For example, if risk transfer response is applied by using insurance, then cost would be the cost of insurance.

Incorrect Answers:
B: This parameter is considered after analyzing the cost of response, which will further decide the level of sophistication of risk response. The enterprise's capability to implement the response means that if the risk management process is mature then the risk response is more

C: This is one of the parameters that is considered but is not as important as considering cost of response. The importance of the risk is determined by the combination of likelihood and magnitude levels along with its position on the risk map.

D: Efficiency of response can only be analyzed after applying the response. So it is the latter stage in selection of response.

Reveal Solution Next Question

Free CRISC Exam Braindumps (page: 82)

QUESTION: 325

Explanation:

QUESTION: 326

Explanation:

QUESTION: 327

Explanation:

QUESTION: 328

Explanation: