PMI Risk Management Professional (PMI-RMP) — Question 12

After a risk review meeting, three key risks are identified as likely to be realized. The project manager requests a risk scenario be calculated to establish the impact on the budget.
What is the forecasting methodology that should be utilized to calculate the impact?

Answer options

• A. Estimate to complete (ETC)
• B. Budget at completion (BAC)
• C. Estimate risk completion (ERC)
• D. Estimate at completion (EAC)

Correct answer: D

Explanation

The correct answer is D, Estimate at completion (EAC), as it provides a forecast of the total cost of the project at completion, considering the identified risks. Options A, B, and C do not specifically focus on the overall budget impact related to risks, making them less suitable for this scenario.