Risk Monitoring and Control

Correct Answer: Reassess the risk and adjust the risk response plan accordingly.

The best course of action for a project manager when a previously identified low impact risk increases in probability and severity is to reassess the risk and adjust the risk response plan accordingly. Such a change in risk level cannot be ignored as it could severely impact the project. Ignoring the change and continuing with the original risk response plan isn't a considered action to mitigate risk. Escalating the issue to senior management would be unnecessary at this point because it is the project manager's responsibility to manage project risks. Similarly, holding a team-wide training session may broaden perspectives, but it isn't directly related to adjusting the risk management plan or reassessing the risk.

Correct Answer: Regular assessments that lead to timely updates of risk response strategies based on changing conditions

Regular assessments leading to timely updates of risk response strategies is the best implementation of risk monitoring and control because it emphasizes:

1. Active monitoring of risks
2. Adaptability to changing conditions
3. Proactive response to emerging threats and opportunities
4. Practical application of risk management

The other options are incorrect because:

Creating extensive documentation and maintaining detailed records focuses too much on documentation rather than active management and response.

Performing monthly reviews and sending reports regardless of status changes is inefficient and may overwhelm stakeholders with unnecessary information.

Following the original risk management plan exactly throughout the project lifecycle is too rigid and fails to account for the dynamic nature of risks and changing project conditions.

Correct Answer: Rate of risks reaching planned mitigation thresholds

The rate of risks reaching planned mitigation thresholds is the most valuable metric for monitoring and controlling risks because: 1. It measures the actual effectiveness of risk response strategies 2. It provides quantifiable data on whether risk responses are working as intended 3. It helps determine if adjustments to risk responses are needed 4. It focuses on the outcome of risk management efforts The other options are less effective because: Lessons learned documentation, while valuable for future projects, is retrospective and does not help with current risk monitoring. Team member participation in risk identification, while important, measures process engagement rather than risk response effectiveness. Stakeholder communication frequency is a process metric that does not measure the actual effectiveness of risk responses. The key differentiator is that tracking risks against mitigation thresholds provides actionable data about the current state of risk management effectiveness, enabling real-time adjustments to risk responses when needed.