Risk Assessment

Correct Answer: Analyze the probability and impact of risk then develop a risk mitigation plan.

The most effective action when discovering a risk that could jeopardize a project is to first analyze the probability and impact of the risk, and then develop an appropriate risk mitigation plan. Ignoring the risk could lead to disastrous consequences if it actually occurs. Informing all stakeholders immediately over a potential risk might cause unnecessary panic before the risk is properly analyzed and understood. Stopping work on the project to avoid the risk is not a viable option unless under extreme conditions, as it could lead to the project's failure. Instead, understanding the risk and developing an effective mitigation strategy ensures any potential harm to the project can be minimized, decided based on its likelihood and impact.

Correct Answer: prioritizing

The correct answer is 'prioritizing'. Risk assessment involves identifying potential risks, analyzing their probability and impact, and then prioritizing them based on their severity and likelihood. Prioritization helps focus resources and efforts on the most critical risks first. 'Eliminating' is not the best answer because while risk elimination is ideal, it may not always be feasible. Some risks can only be mitigated or accepted. 'Documenting' risks is important for tracking and communication purposes, but it is not the main goal of risk assessment. Prioritization should come after documentation. 'Monitoring' risks is a crucial risk management activity, but it typically follows after risks have been identified, analyzed, and prioritized during the assessment phase.

Correct Answer: Mitigation

Mitigation involves taking proactive steps to reduce the probability or impact of a risk to acceptable levels. By implementing additional quality checks to reduce the likelihood of the potential risk without eliminating it entirely, the project manager is employing a mitigation strategy. This approach aims to lessen the risk's occurrence or effect, distinguishing it from avoidance, which seeks to eliminate the risk completely.