Stakeholder Risk Assessment

Correct Answer: Assess the risk, develop a mitigation plan and adjust the project plan if necessary.

The best answer is 'Assess the risk, develop a mitigation plan and adjust the project plan if necessary.' A good project manager doesn't ignore a risk ('Ignore the risk and continue with the current project plan.' is incorrect), shift responsibility ('Shift responsibility to the stakeholder who identified the risk.' is incorrect) or jumps to inform everyone without a plan ('Immediately inform everyone involved in the project about the risk.' is incorrect). Instead, they will first assess the risk to identify its potential impact and probability. Following this, a risk response strategy (mitigation plan) should be created to reduce the impact or likelihood of the risk. Subsequently, the project plan might need to be adjusted based on the mitigation plan. This approach is methodical and reduces the chance of causing unnecessary panic or inefficient responses.

Correct Answer: Evaluate the potential risk yourself, then update your risk management plan accordingly

The best course of action when a risk has been identified in a project, regardless of whether it was dismissed by others, is to evaluate it personally and then update the risk management plan accordingly. This is because the purpose of risk management in a project is to foresee potential risks and to plan ways to mitigate them accordingly. Ignoring the risk because the majority dismissed it, as in one of the incorrect answers, is not the best course of action because it does not account for the potential harm the risk could cause to the project if it materializes. Highlighting the risk to all stakeholders without a personal evaluation, another incorrect answer, may cause unnecessary panic and is not a responsible way to handle project risks. Asking the stakeholder who pointed out the risk to personally handle it, as in the last incorrect answer, is not the most productive solution because it does not involve a comprehensive risk assessment or management process that might be needed for the potential risk. Instead, risks should be assessed and managed by the project team as part of their ongoing project responsibilities.

Correct Answer: It might lead to conflicts and disagreements in risk-related decisions.

The best answer is that the disparity in risk appetite among team members might lead to conflicts and disagreements in risk-related decisions. Having a higher risk appetite doesn't automatically infer that the project will have more risks or will be delayed or exceed the budget. This situation mainly creates complexity in making collective decisions. Also, the possibility of a stakeholder being excluded from future meetings due to their higher risk appetite is an extreme measure, not a common practice, so it's not a definite outcome either.