Question 6 of 1386
Which of the following is the MOST important use of KRIs?
Correct Answer: B
The most important use of Key Risk Indicators (KRIs) is to provide an early warning signal. KRIs are designed to give advance notice of potential risk issues before they escalate into significant problems. By doing so, they enable management to take proactive measures to mitigate risks and prevent potential losses. While other uses, such as providing a backward-looking view on risk events, indicating risk appetite and tolerance, and enabling trend analysis, are valuable, the primary function of KRIs is to serve as an early warning mechanism.
Question 7 of 1386
Which of the following role carriers will decide the Key Risk Indicator of the enterprise?
Each correct answer represents a part of the solution. Choose two.
Correct Answer: AB
Deciding the Key Risk Indicators (KRIs) of an enterprise typically involves both business leaders and senior management. Business leaders have a thorough understanding of the business environment and strategic objectives, making them well-positioned to identify key risks that may impact the organization. Senior management oversees the overall performance and risk management, ensuring that identified risks align with the enterprise's goals and regulatory requirements. Therefore, both business leaders and senior management collaboratively select the KRIs to monitor.
Question 8 of 1386
You work as the project manager for Bluewell Inc. Your project has several risks that will affect several stakeholder requirements. Which project management plan will define who will be available to share information on the project risks?
Correct Answer: D
The Communications Management Plan defines who will be available to share information on the project risks. This plan sets the structure for communication throughout the project's life, identifying and defining roles, and specifying the communication methods and frequency for stakeholder engagement, especially in the context of managing and disseminating risk-related information.
Question 9 of 1386
You are the project manager of GHT project. Your project team is in the process of identifying project risks on your current project. The team has the option to use all of the following tools and techniques to diagram some of these potential risks EXCEPT for which one?
Correct Answer: D
The decision tree diagram is primarily used in the Quantitative Risk Analysis process where it helps in evaluating the implications of different decisions based on their probabilities and impacts. It is not typically utilized in the initial stage of risk identification. On the other hand, process flowcharts, Ishikawa (cause-and-effect) diagrams, and influence diagrams are commonly used tools for identifying potential risks in a project.
Question 10 of 1386
Which of the following BEST describes the utility of a risk?
Correct Answer: D
The utility of a risk describes the usefulness of a particular risk to individuals or groups. This encompasses evaluating the potential benefits, rewards, opportunities, or gains that can be achieved by taking on the risk, and it considers whether taking the risk aligns with their goals, objectives, or preferences. It balances the potential benefits against any costs or negative consequences, making it a more comprehensive interpretation of the utility of a risk than merely focusing on financial incentives, opportunities, or mechanics.