PMI Risk Management Professional (PMI-RMP) — Question 66

An IT project is 40% complete. During the initial analysis, risks A and B were identified for the project. Risk A has a probability of 0.6 and an impact of US$50,000. Risk B has a probability of 0.7 and an impact of US$60,000. After implementing the planned risk response for risk B, the probability of risk B has been reduced to 0.3.

What is the current project risk exposure?

Answer options

• A. US$30,000
• B. US$72,000
• C. US$48,000
• D. US$18,000

Correct answer: C

Explanation

To calculate the current project risk exposure, we need to assess the expected monetary value (EMV) of each risk. Risk A's EMV is calculated as 0.6 * US$50,000 = US$30,000. For risk B, after the response, the EMV is 0.3 * US$60,000 = US$18,000. Thus, the total risk exposure is US$30,000 + US$18,000 = US$48,000, making option C the correct answer, while the other options do not accurately reflect the calculations.