PMI CAPM (Certified Associate in Project Management) Examination Content OutlineRisk Management and ComplianceMedium
A global software development project involves teams across multiple countries. The project manager is reviewing the risk register and notes a potential for misinterpretation of technical requirements due to language barriers and cultural differences. This could lead to significant rework and delays. Which of the following best describes this type of risk?
- AOperational Risk
- BExternal Risk
- CCompliance Risk
- DStrategic Risk
Show answer & explanationAnswer & explanation
Correct answer: A. Operational Risk
Operational risks are those associated with the day-to-day execution of the project, including processes, systems, people, or internal controls. Language barriers and cultural differences affecting communication and requirements fall under this category in a global project.
Why the other options are wrong
- B. External risks originate from outside the project's immediate control (e.g., market changes, natural disasters), whereas cultural differences within the team are internal operational factors.
- C. Compliance risks relate to adhering to laws, regulations, or standards, which is not the primary issue described.
- D. Strategic risks are associated with the organization's overall objectives, not specific project execution issues.
Operational Risk
Risks that arise from the execution of the project's day-to-day activities, including issues with processes, systems, people, or internal controls.
- Relates to internal project workings.
- Can impact efficiency and effectiveness.
- Often managed through process improvements and training.
Memory trick: SOEC: Strategic, Operational, External, Compliance.