Risk management Plan

Submitted by feezino on Sun, 08/21/2011 - 14:26

Need help on the below qst:

Q: What is the purpose of Risk Management Plan?

1) To avoid Risks. 2) To find Risks. 3) To mitigate Risks. 4) To transfer Risks.

 

Got this definition for "The Risk Management Plan:" is a standard deliverable document on a technical project that is used to describe the methods and procedures to be used to identify, evaluate and eliminate or minimize project risks.

Which is the answer???

Thanks

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admin's picture

admin

Sun, 08/21/2011 - 15:16

First you should be aware of risks ( find risks) before you can do anything with it

RP's picture

RP

Mon, 08/22/2011 - 07:14

Options 1,3 and 4 are relative to risk strategies. Option 2 is the best choice - find then act.

projmanpro

Tue, 04/10/2012 - 08:02

To understand the question well, we can rewrite it as "Risk management plan is used to : "

then let as analyze the answers:

1. Choice 1 - to avoid risks. Does risk management plan avoids risks? the answer obviously is No, as risk management plan sets only the "how to" and does not directly avoid the risk.

2. Choice 2 - to find risks. does risk management plan finds risks? answer is yes it does, as the risks are identified in this plan.

3. Choice 3 - to mitigate risks. Does risk management plan mitigite risks? same as in choice 1, it only sets the "how tos" and not directly mitigating the risk.

4. Choice 4 - to transfer risk. Does risk management plan transfers risks? answer is no. same as choices 1 and 3, this only sets the how to.

Remember that the subject of the question is Risk Management Plan which is a noun, so it doesnt have the ability to avoid, to mitigate, and to transfer risks in a deeper sense. Whereas, since it shows the identified risks to be managed and how these risks are to be managed, thus the closest and best choice is Choice C.

 

This is my technique of answering pmp exam questions so that the question's context, and the principle and knowledge behind will be understood well and at the end, you will really come up with the best choice. In this way, it is possible to get perfect score in the actual PMP exam hi hi cheers..