QUESTION: 329

You are the project manager of HFD project. You have identified several project risks. You have adopted alternatives to deal with these risks which do not attempt to reduce the probability of a risk event or its impacts. Which of the following response have you implemented?

Acceptance
Mitigation
Avoidance
Contingent response

Answer(s): D

Explanation:

Contingent response strategy, also known as contingency planning, involves adopting alternatives to deal with the risks in case of their occurrence. Unlike the mitigation planning in which mitigation looks to reduce the probability of the risk and its impact, contingency planning doesn't necessarily attempt to reduce the probability of a risk event or its impacts. Contingency comes into action when the risk event actually occurs.

Incorrect Answers:
A: Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs. If an enterprise adopts a risk acceptance, it should carefully consider who can accept the risk. Risk should be accepted only by senior management in relationship with senior management and the board. There are two alternatives to the acceptance strategy, passive and active.
Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but willing to accept the consequences of the risk.
Active acceptance is the second strategy and might include developing contingency plans and reserves to deal with risks.

B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully integrated together. The main control types are:
Managerial(e.g.,policies)
Technical (e.g., tools such as firewalls and intrusion detection systems) Operational (e.g., procedures, separation of duties)
Preparedness activities

C: Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or change the project plan to protect the project objectives from the risk event.

Reveal Solution Next Question

QUESTION: 330

In which of the following risk management capability maturity levels risk appetite and tolerance are applied only during episodic risk assessments?

Level 3
Level 2
Level 4
Level 1

Answer(s): D

Explanation:

An enterprise's risk management capability maturity level is 1 when:
There is an understanding that risk is important and needs to be managed, but it is viewed as a technical issue and the business primarily considers the downside of IT risk.
Any risk identification criteria vary widely across the enterprise.
Risk appetite and tolerance are applied only during episodic risk assessments.

Enterprise risk policies and standards are incomplete and/or reflect only external requirements and lack defensible rationale and enforcement mechanisms.
Risk management skills exist on an ad hoc basis, but are not actively developed.
Ad hoc inventories of controls that are unrelated to risk are dispersed across desktop applications.

Incorrect Answers:
A: In level 3 of risk management capability maturity model, local tolerances drive the enterprise risk tolerance.

B: In level 2 of risk management capability maturity model, risk tolerance is set locally and may be difficult to aggregate.

C: In level 4 of risk management capability maturity model, business risk tolerance is reflected by enterprise policies and standards reflect.

Reveal Solution Next Question

QUESTION: 331

A project team member has just identified a new project risk. The risk event is determined to have significant impact but a low probability in the project. Should the risk event happen it'll cause the project to be delayed by three weeks, which will cause new risk in the project. What should the project manager do with the risk event?

Add the identified risk to a quality control management chart.
Add the identified risk to the issues log.
Add the identified risk to the risk register.
Add the identified risk to the low-level risk watch-list.

Answer(s): C

Explanation:

All identified risks, their characteristics, responses, and their status should be added and monitored as part of the risk register. A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains:
A description of the risk
The impact should this event actually occur The probability of its occurrence
Risk Score (the multiplication of Probability and Impact)
A summary of the planned response should the event occur
A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event)
Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.

Incorrect Answers:
A: Control management charts are not the place where risk events are recorded. B: This is a risk event and should be recorded in the risk register.
D: Risks that have a low probability and a low impact may go on the low-level risk watch-list.

Reveal Solution Next Question

QUESTION: 332

A teaming agreement is an example of what type of risk response?

Acceptance
Mitigation
Transfer
Share

Answer(s): D

Explanation:

Teaming agreements are often coming under sharing risk response, as they involves joint ventures to realize an opportunity that an organization would not be able to seize otherwise.

Sharing response is where two or more entities share a positive risk. Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.

Incorrect Answers:
A: Acceptance is a risk response that is appropriate for positive or negative risk events. It does not pursue the risk, but documents the event and allows the risk to happen. Often acceptance is used for low probability and low impact risk events.

B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully integrated together.

C: Transference is a negative risk response where the project manager hires a third party to own the risk event.

Reveal Solution Next Question

Free CRISC Exam Braindumps (page: 83)

QUESTION: 329

Explanation:

QUESTION: 330

Explanation:

QUESTION: 331

Explanation:

QUESTION: 332

Explanation: