Risk Management Framework Flashcards

Which process establishes the scope, criteria, and approach for managing risk on a project according to the PMI-RMP framework?

Answer: Plan Risk Management

Plan Risk Management defines how risk activities will be structured and performed, producing the risk management plan.

A project manager wants to define risk thresholds aligned to organizational risk appetite. Where are these documented?

Answer: Risk management plan

The risk management plan captures risk thresholds, appetite, and tolerance levels for the project.

Risk appetite is best described as which of the following?

Answer: The degree of uncertainty an entity is willing to take on in anticipation of reward

Risk appetite is the general level of uncertainty an organization is willing to accept in pursuit of value.

Within the risk management framework, the EEFs (Enterprise Environmental Factors) most relevant to Plan Risk Management include which item?

Answer: Organizational risk attitudes and thresholds

Risk attitudes, appetites, and thresholds are key enterprise environmental factors influencing risk planning.

A framework component defines categories used to group risks systematically. What tool documents these categories?

Answer: Risk breakdown structure (RBS)

The risk breakdown structure hierarchically organizes potential sources of risk by category.

Which document provides definitions of probability and impact levels to ensure consistent risk assessment across the project?

Answer: Probability and impact definitions in the risk management plan

The risk management plan specifies standardized probability and impact scales for uniform analysis.

When tailoring the risk management framework for a small, low-complexity project, the appropriate action is to:

Answer: Scale the processes to fit project size and complexity

Risk processes should be tailored and scaled to match the project's size, complexity, and importance.