Certified Authorization Professional (CAP) — Question 11

Your project has several risks that may cause serious financial impact should they happen. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like for you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?

Answer options

• A. Risk response plan
• B. Quantitative analysis
• C. Risk response
• D. Contingency reserve

Correct answer: D

Explanation

The creation of a chart that details the probability and financial impact of risks will help in determining the necessary funds set aside for potential unforeseen events, known as a contingency reserve. The other options do not directly relate to identifying and reserving funds for potential financial impacts arising from risks.