PMI Risk Management Professional (PMI-RMP) — Question 112

In the country where a project is being executed, customs procedures are complex and change frequently. During the risk identification process, the project team identifies a risk related to delays in customs on substantial equipment that will likely occur. Equipment delays on this project could lead to the project cancellation.
How should the probability and impact be characterized for this risk?

Answer options

• A. Low probability/low impact
• B. High probability/low impact
• C. Low probability/high impact
• D. High probability high impact

Correct answer: D

Explanation

The correct answer is D, as the project team has identified a risk that is likely to occur (high probability) and could significantly affect the project outcome (high impact) if delays happen. Options A and B are incorrect because they underestimate the likelihood or the effect of the risk, while option C incorrectly suggests that the probability is low despite the identified risk of potential project cancellation.