PMI Risk Management Professional (PMI-RMP) — Question 54

A risk manager is managing risks of a mission critical application. A subject matter expert (SME) asks the risk manager to treat every single risk identified as an extremely high priority.

What should the risk manager do?

Answer options

• A. Agree with the SME, treat every risk with equal priority, and inform all stakeholders.
• B. Perform a sensitivity analysis and determine the correct priority of every identified risk.
• C. Mark every identified risk as an extremely high priority and any future risks as a lower priority.
• D. Ask the project sponsor if every risk in the risk register can have the same priority.

Correct answer: B

Explanation

The correct approach is to perform a sensitivity analysis to accurately assess the priority of each risk based on its potential impact and likelihood. Treating all risks as equally high can lead to misallocation of resources, while marking all risks as high without analysis ignores the nuances of risk severity. Consulting the project sponsor for uniform prioritization also does not address the need for a detailed evaluation of each risk's significance.