Program Risk Management Planning

Correct Answer: Develop a risk mitigation strategy that includes preventative measures to decrease the probability of occurrence and outline contingency plans in case the risk materializes.

While increasing testing frequency and re-evaluating program scope are prudent actions, they might not directly address the identified critical risk in a cohesive risk management strategy. The correct answer encapsulates both proactive and reactive measures—mitigation to lower risk occurrence probability and contingency planning for potential impact. Conducting a review and preparing a report are important but only initial steps towards addressing the risk. The correct approach includes definitive plans on both fronts.

Correct Answer: Evaluate the identified risks by assessing their likelihood and impact, then prioritize them to develop effective risk response strategies.

After identifying potential risks, the next step in the risk management process is to evaluate these risks by analyzing their likelihood and impact. This helps in prioritizing the risks and allows the program manager to develop appropriate response strategies for each. Initiating a broad consultation or allocating budget without assessing each risk's specifics, or relying solely on historical data without considering the present context, are not effective approaches at this stage. They can delay the risk evaluation process and result in inefficient use of resources or inadequate risk response planning.

Correct Answer: Organize a stakeholder meeting to review and approve the risk management strategy.

A key step in developing a risk management plan for a program is to organize a stakeholder meeting to review and approve the risk management strategy. This step is crucial because it ensures that all key stakeholders are involved in the process, understand the proposed risk management approach, and have an opportunity to provide input and approval. By gaining stakeholder buy-in, the program team can ensure that the risk management plan aligns with organizational objectives and has the necessary support for implementation. This meeting also allows for the discussion and refinement of risk management strategies, ensuring that they are comprehensive, practical, and tailored to the specific needs of the program. Stakeholder approval is essential for the successful execution of the risk management plan throughout the program's lifecycle.