PMI CAPM (Certified Associate in Project Management) Examination Content OutlineRisk Management and ComplianceHard
A project manager is reviewing the risk register and finds that a previously identified critical risk, which had a mitigation plan in place, has significantly increased in probability due to recent external market changes. The existing mitigation plan is no longer deemed sufficient. What is the MOST appropriate next action for the project manager?
- AExecute the original mitigation plan and hope it's enough.
- BImmediately escalate the risk to senior management without further analysis.
- CRe-evaluate the risk's probability and impact, and develop an updated or new response plan.
- DAccept the increased risk, as a plan was already in place.
Show answer & explanationAnswer & explanation
Correct answer: C. Re-evaluate the risk's probability and impact, and develop an updated or new response plan.
When a risk's characteristics change substantially (e.g., increased probability and insufficient existing plan), it requires re-analysis and development of a revised or new response plan as part of the Monitor Risks process.
Why the other options are wrong
- A. Executing an insufficient plan is irresponsible and likely to fail.
- B. Escalation may be necessary, but only after re-evaluation and considering new options, not as a first step.
- D. Accepting a significantly increased critical risk without re-evaluation or new action is poor risk management.
Risk Re-evaluation
A component of risk monitoring where identified risks are periodically reviewed to assess if their probability, impact, or status has changed, and if existing response plans remain adequate.
- Part of continuous risk monitoring.
- Triggers re-analysis and potential new responses.
- Ensures risk plans remain relevant and effective.
Memory trick: Risk changed? Re-evaluate, then respond anew!