Risk Management

Correct Answer: Analyze the identified risks to assess the probability and impact on the project objectives.

The best answer is to analyze the identified risks to assess the probability and impact on the project objectives. After identifying potential risks, the next logical step is to perform a thorough analysis of each risk. This involves assessing the likelihood of the risk occurring and the potential impact it could have on the project's objectives, including the schedule. By analyzing the risks, the project team can prioritize them based on their probability and impact, allowing them to focus on the most critical risks first. This step is essential for developing an effective risk management plan. The other answers are not as suitable because: - Assessing risks considering their impact on the project schedule is crucial, as schedule delays can have significant consequences for the project's success. - Prioritizing risks solely based on potential schedule delays may overlook other important factors, such as cost or quality impact. - Inviting external stakeholders to review the list of potential risks may be useful for gaining additional perspectives, but it is not the immediate next step after risk identification.

Correct Answer: Implement a contingency plan to accommodate potential delays.

In a project with fixed deadlines and high potential for unforeseen technical issues, the best risk response strategy is to 'Implement a contingency plan to accommodate potential delays'. This allows the team to handle unexpected situations without significantly impacting the project's delivery. The alternative - 'Ignore the risk as it cannot be completely avoided' - is not a sound strategy, hampering the team's ability to respond effectively to issues. 'Reduce the project scope to ensure on-time delivery' may not be acceptable as it could result in major functionality being cut from the project, thereby not fulfilling the client's exact needs. 'Request the client to extend the deadline', while it may seem like a possible solution, is not feasible in this scenario due to the client's hard delivery date due to regulatory requirements. Therefore, taking preventative measures through a comprehensive contingency plan is the most effective approach.

Correct Answer: Perform a quantitative risk analysis.

The best action for a project manager to take when trying to quantify the impact of a risk is to perform a quantitative risk analysis. This type of analysis involves numerically estimating the probability and impact of risks on project objectives. By doing so, the project manager can understand the potential severity of the risk and plan accordingly. Consulting the risk management plan may provide predefined mitigation actions, but it does not quantify the impact. Benchmarking may be helpful for understanding how the integration service compares to other services and for long-term improvements, but it does not directly quantify the risk for the current project. Notifying stakeholders is an important step in communication plans, especially when the risk materializes, but it is not a method for quantification of the risk's impact.