Residual Risk

Correct Answer: The level of risk that remains after risk responses have been implemented

The correct answer is 'The level of risk that remains after risk responses have been implemented'. When assessing residual risks, the project manager is trying to determine the remaining risk level after implementing risk response strategies. This helps understand the project's risk exposure after taking actions to mitigate or control identified risks. The other answers, while related to risk management, do not accurately describe the purpose of assessing residual risks: - 'The potential impact of risks on project objectives after applying risk management strategies' focuses on the impact of risks, not the remaining risk level. - 'The likelihood and consequence of risks that have been identified but not yet addressed' refers to risks that have not been responded to, rather than the remaining risk after responses have been implemented. - 'The overall risk exposure of the project considering the effectiveness of risk responses' is a broader concept that includes residual risks but does not specifically define the purpose of assessing residual risks.

Correct Answer: Escalate the residual risk to the project sponsor or appropriate stakeholders for further analysis and decision-making

The most appropriate action when the project team identifies a residual risk that exceeds the project's risk threshold is to escalate the residual risk to the project sponsor or appropriate stakeholders for further analysis and decision-making. The project team should not simply accept the residual risk and continue with the project as planned, as this could lead to significant issues if the risk materializes. Implementing additional risk responses to reduce the likelihood or impact of the residual risk may be a viable option, but it should not be done unilaterally by the project team if it would delay the project timeline. Such decisions should involve the project sponsor and stakeholders. Re-evaluating the project objectives and scope to eliminate the residual risk entirely may be an option, but it should not be the first course of action. Escalating the risk to the appropriate decision-makers allows them to weigh the costs and benefits of various options, including potential changes to the project objectives or scope.

Correct Answer: To identify potential issues and adjust risk responses as needed

The purpose of monitoring residual risks throughout the project life cycle is to identify potential issues and adjust risk responses as needed. This allows the project team to proactively manage risks that remain after initial risk response strategies have been implemented. By continuously monitoring these risks, the team can detect any changes or new developments that may impact the project and take appropriate actions to mitigate or control them. The other options are incorrect because: - Documenting risks in the project charter is done during the initial planning phase, not throughout the project life cycle. - It is not realistic to ensure that all risks have been eliminated, as some residual risks may always remain. - Communicating risks to stakeholders should be done regularly, not just at the end of the project.