ITPEC IP October 2024 Question 53

Prioritize risks by likelihood and consequences — that ranking decides where risk measures are planned first.

Risk analysis estimates, for each identified risk, the probability that it occurs and the size of its impact on the project. Combining the two, for example in a probability-impact matrix, ranks the risks, and responses are planned first for the highest-ranked ones.

Answer (c)

Why not others:

• •(a) — risks cannot all be known at the start; identification is repeated throughout the project as conditions change
• •(b) — avoiding every risk is impossible or too costly; depending on its priority a risk may be mitigated, transferred or accepted instead
• •(d) — waiting until a risk occurs is not planning; responses are prepared in advance, and reacting afterward usually costs more

Key rule: Risk management is continuous and proportional: identify risks throughout, rank them by likelihood and impact, and plan responses before they materialize.

Project Management · AI-written, may contain errors