PMI Risk Management Professional (PMI-RMP) — Question 181

A risk manager is part of a software development project and has just completed the initial risk identification process. The team has compiled a lengthy list of risks, but stakeholders have emphasized the need to focus only on the most significant risks due to limited resources.

What should the risk manager do?

Answer options

• A. Transfer low-priority risks to the risk register and exclude those risks from further analysis.
• B. Focus exclusively on high-probability risks to simplify and expedite the process.
• C. Analyze risks using probability and impact criteria to prioritize the risks more effectively.
• D. Ask stakeholders to subjectively rank the risks according to the risk's perceptions of severity.

Correct answer: C

Explanation

The correct answer is C because analyzing risks based on probability and impact allows the risk manager to effectively prioritize the most significant risks, ensuring that resources are allocated appropriately. Option A is incorrect as it disregards further analysis of low-priority risks, while B oversimplifies the process by ignoring significant risks that may have lower probabilities. Option D relies too much on subjective perceptions, which may not accurately reflect the actual severity of the risks.