PMI Risk Management Professional (PMI-RMP) — Question 59

A risk manager manages risks in a construction project. A stakeholder mentions that if there is less than a 50% chance of rain, construction should continue. Another stakeholder says that if there is less than a 60% chance of rain, construction should continue.

What should the risk manager do next to find out the correct limit?

Answer options

• A. Use industry standard risk thresholds
• B. Find out the stakeholders’ risk appetite
• C. Review the agreed-upon risk tolerance
• D. Perform a sensitivity analysis of the risk

Correct answer: C

Explanation

The correct answer is C because reviewing the agreed-upon risk tolerance will provide clarity on the acceptable levels of risk that all stakeholders are comfortable with. Options A and B may not directly address the specific limits set for this project, while D would not resolve the immediate question of establishing the correct threshold.