PMP Practice Questions #156
As a project manager, you are reviewing risk statements to ensure they are clear and well-structured. Which of the following risk statements is NOT a good presentation of risk?
A. In the event of a delay from the supplier, the project may experience schedule overruns.
B. Our server is crashing every week, resulting in disruption of our development activities on a regular basis.
C. If the government decides to change the tax policy, the project scope needs to include the new tax regime.
D. The project’s ROI will increase by 10% if we have a favorable rainy season as projected in the weather forecast this year.
Analysis
In this question, the goal is to identify which risk statement is not a good presentation of risk. According to the risk definition, a good risk statement should clearly articulate a potential uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objective. The analysis reveals that one of the options is more of an issue statement rather than a risk statement.
Analysis of Options
Option A: In the event of a delay from the supplier, the project may experience schedule overruns. This is a well-structured risk statement. It identifies an uncertain event (delay from the supplier) and its potential impact (schedule overruns). This aligns with the definition of risk, as it describes an uncertain event that could negatively affect the project’s schedule objective. While it could be improved with quantification of the potential schedule overrun and a better understanding of the likelihood of the delay, these details are typically captured in separate columns in risk registers. Therefore, it is considered a decent option.
Option B: Our server is crashing every week, resulting in disruption of our development activities on a regular basis. This is identified as an issue rather than a risk. It describes a recurring problem (weekly server crashes) and its ongoing impact (disruption of development activities). There is no uncertainty or probability component, which are essential elements of a risk statement. A risk statement should involve an uncertain event or condition that could impact the project’s objectives. Hence, this is not a good representation of a risk.
Option C: If the government decides to change the tax policy, the project scope needs to include the new tax regime. It presents a good risk statement. It describes an uncertain event (government changing the tax policy) and its potential impact (the project scope needs to include the new tax regime). It clearly articulates both the probability and the impact of the event, aligning well with the definition of a risk affecting the project’s scope objective.
Option D: The project’s ROI will increase by 10% if we have a favorable rainy season as projected in the weather forecast this year. It is a valid risk statement, representing an opportunity rather than a threat. It discusses an uncertain event (favorable rainy season) and its positive impact (increase in ROI by 10%). This aligns with the definition of a risk, highlighting a potential positive effect on the project’s financial objective.
Conclusion: Option B is not a good presentation of risk because it describes an ongoing issue rather than an uncertain event or condition. A risk statement should involve an uncertain event or condition that, if it occurs, could impact the project’s objectives. Therefore, the correct answer is:
Option B: “Our server is crashing every week, resulting in disruption of our development activities on a regular basis.”
PMP Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Process | Task 3: Assess and manage risks |
Topics Covered
- Risk
- Issue
