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Free CRISC Exam Braindumps (page: 96)

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You are the project manager of GHT project. Your project utilizes a machine for production of goods. This machine has the specification that if its temperature would rise above 450 degree Fahrenheit then it may result in burning of windings. So, there is an alarm which blows when machine's temperature reaches 430 degree Fahrenheit and the machine is shut off for 1 hour. What role does alarm contribute here?

  1. Of risk indicator
  2. Of risk identification
  3. Of risk trigger
  4. Of risk response

Answer(s): A

Explanation:

Here in this scenario alarm indicates the potential risk that the rising temperature of machine can cause, hence it is enacting as a risk indicator.

Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.

Incorrect Answers:
B: The first thing we must do in risk management is to identify the areas of the project where the risks can occur. This is termed as risk identification. Listing all the possible risks is proved to be very productive for the enterprise as we can cure them before it can occur. In risk identification both threats and opportunities are considered, as both carry some level of risk with them.

C: The temperature 430 degrees in scenario is the risk trigger. A risk trigger is a warning sign or condition that a risk event is about to happen. As in this scenario the 430-degree temperature is the indication of upcoming risks, hence 430 degree temperature is a risk trigger.

D: Risk response is the action taken to reduce the risk event occurrence. Hence here risk response is shutting off of machine.



When does the Identify Risks process take place in a project?

  1. At the Planning stage.
  2. At the Executing stage.
  3. At the Initiating stage.
  4. Throughout the project life-cycle.

Answer(s): D

Explanation:

Identify Risks is the process of determining which risks may affect the project. It also documents risks' characteristics. The Identify Risks process is part of the Project Risk Management knowledge area. As new risks may evolve or become known as the project progresses through its life cycle, Identify Risks is an iterative process. The process should involve the project team so that they can develop and maintain a sense of ownership and responsibility for the risks and associated risk response actions. Risk Register is the only output of this process.

Incorrect Answers:
A, B, C: Identify Risks process takes place at all the stages of a project, because risk changes over time.



In the project initiation phase of System Development Life Cycle, there is information on project initiated by which of the following role carriers?

  1. CRO
  2. Sponsor
  3. Business management
  4. CIO

Answer(s): B

Explanation:

Project initiation section of SDLC contains information on projects initiated by sponsors who gather the information required to gain approval for the project to be created.



Which of the following are the responsibilities of Enterprise risk committee? Each correct answer represents a complete solution. Choose three.

  1. React to risk events
  2. Analyze risk
  3. Risk aware decision
  4. Articulate risk

Answer(s): B,C,D

Explanation:

Risk aware decision, analyzing risk, and articulating risk are the responsibilities of Enterprise risk committee. They are the executives who are accountable for the enterprise level collaboration and consensus required to support enterprise risk management (ERM) activities and decisions. An IT risk council may be established to consider IT risk in more detail and advise the enterprise risk committee. ERC ensure that these activities are completed successfully.

Incorrect Answers:
A: ERM is not responsible for reaction over risk events. Business process owners are accounted for this task.






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