PMI Risk Management Professional Practice Exam

For consistency, what should the risk management plan include regarding probability and impact?

1. Project-specific estimation guidelines.

2. The PMI glossary terms only.

3. Amount of contingency reserve to allocate to each level of probability or impact.

4. Published reports on external risk factors.

The correct answer is: Project-specific estimation guidelines.

The correct answer highlights the importance of including project-specific estimation guidelines in the risk management plan regarding probability and impact. This is essential because every project has unique characteristics, contexts, and risks that can affect how risks are perceived and managed. Having tailored guidelines allows project managers and teams to assess the probability of risks accurately based on the specific circumstances of the project, as well as determine the potential impact of those risks on project objectives. By establishing clear, project-specific estimation guidelines, the team can ensure that their evaluations of probability and impact are relevant and applicable to their particular project environment. This tailored approach enhances the accuracy of risk assessments and facilitates better decision-making throughout the project's lifecycle. In contrast, relying solely on a generic set of terms from the PMI glossary would not provide the necessary context for a specific project. Similarly, while contingency reserves and external risk factors are important aspects of risk management, they do not directly address the need for customized estimation guidelines that reflect the unique risks of the project at hand.