Project Risk Analysis

Correct Answer: To record and track risks throughout the project and monitor progress on risk responses.

A risk register in project risk management serves the purpose of recording and tracking risks throughout the project. It helps in monitoring the progress on risk responses. This allows the project team to foresee, analyze, and address the risks for better project planning and execution. The other answers are incorrect. Ignoring all project risks would put the project in jeopardy as it might lead to unattended issues. Elimination of all risks is impractical as no project can be completely risk-free, and it's important to have proper risk management measures in place. Creation of new risks to the project would only add unnecessary complexity and issues.

Correct Answer: A threat is a potential problem that hasn't occurred yet, while an issue is a problem that has occurred.

The best answer to the question 'What is the difference between a threat and an issue in project risk management?' is 'A threat is a potential problem that hasn't occurred yet, while an issue is a problem that has occurred'. This is because in project risk management, a threat refers to a possible negative event that could occur in the future. It's theoretical at this point and something teams attempt to plan for. An issue, on the other hand, is a problem that has already occurred and requires management to resolve. The other answers are incorrect as they mix up these definitions. An issue being both negative and positive is inaccurate because issues, being problems that have already occurred, are typically negative. A threat being a positive condition is also incorrect as threats are potentially negative events. Lastly, a threat is not a problem that has already occurred because that would be the definition for an issue.

Correct Answer: A risk threshold is the point at which a risk becomes unacceptable and requires a response.

The correct definition of a risk threshold in project risk management is that it serves as the point at which a risk becomes unacceptable and necessitates a response. This means that it is a certain level of risk that, when reached, triggers some kind of measures to be taken. The other answers are incorrect for the following reasons: 'A risk threshold is the likelihood of a risk occurring' is wrong because this statement describes the probability of a risk, not the tolerance for it. 'A risk threshold is the impact of a risk if it occurs' is also incorrect as this refers to risk impact, which is the potential damage a risk can cause if it occurs, not the risk threshold. The statement 'A risk threshold is a predefined set of actions that will be taken if a risk occurs' incorrectly describes it as a risk response or mitigation strategy, which is what you do when the risk threshold has been exceeded, but it's not the threshold itself.