Risk Velocity

Correct Answer: The project manager should prioritize addressing the risk with the highest risk velocity, which considers both the potential impact and the proximity of the risk event.

The project manager should prioritize addressing the risk with the highest risk velocity, which considers both the potential impact and the proximity of the risk event. Risk velocity is a concept that takes into account not only the potential impact of a risk but also how soon the risk event might occur. In this scenario, the security flaw has the highest potential impact, but the lowest probability, meaning it may not occur in the immediate future. The SSL certificate delay is more likely and has a moderate impact, making it a more pressing concern. The team member's resignation falls in between these two risks. Given the project's tight deadline, the project manager should focus on risks that have a higher likelihood of occurring soon and could significantly impact the project's progress. By prioritizing risks based on their velocity, the project manager can allocate resources efficiently to mitigate the most critical risks first. The other options are less effective because they either focus solely on potential impact, probability, or suggest an equal distribution of attention to all risks, which may not be the most efficient approach when working with limited time and resources.

Correct Answer: The project manager should prioritize risks based on their risk velocity, focusing on risks that may materialize quickly and significantly impact the project's objectives.

The project manager should prioritize risks based on their risk velocity. Risk velocity considers both the probability and impact of risks, focusing on risks that may materialize quickly and significantly affect the project's objectives. The potential security vulnerability has the highest impact but the lowest probability, while the client delay is more likely but has a lower impact. The team member's absence falls in between these two risks. Given the project's tight schedule, addressing risks with the highest risk velocity ensures that the project manager tackles the most critical risks that could derail the project within the limited timeframe. Prioritizing solely based on probability or impact alone would not effectively account for the project's time constraints and the need to manage risks that can quickly escalate and jeopardize the project's success.

Correct Answer: The project manager should prioritize addressing the risk of delay in receiving critical components from the supplier, as it has both a high impact and high likelihood of occurring, making it the risk with the highest velocity.

The project manager should prioritize addressing the risk of delay in receiving critical components from the supplier. This risk has both a high impact and high likelihood of occurring, making it the risk with the highest velocity. Unexpected changes in regulatory requirements, although potentially impactful, have a lower likelihood of occurrence compared to the supplier delay risk. While this risk should still be monitored and managed, it may not require immediate action. The key team member's upcoming parental leave, while potentially disruptive, has a lower likelihood of causing severe delays compared to the supplier delay risk. The project manager can plan for this risk by ensuring proper knowledge transfer and resource allocation in advance. Equally prioritizing all three risks is not the most effective approach, as risks should be prioritized based on their likelihood and potential impact. The project manager should focus their immediate attention on the highest velocity risk to minimize potential delays.