PMI Risk Management Professional Practice Exam

What is an effective way to mitigate high-impact risks?

1. Ignoring them and moving forward.

2. Creating a detailed action plan for response.

3. Reporting them to the stakeholders.

4. Assessing their probability only.

The correct answer is: Creating a detailed action plan for response.

Creating a detailed action plan for response is an effective way to mitigate high-impact risks because it involves a systematic approach to identifying, evaluating, and addressing these risks proactively. By developing a comprehensive action plan, an organization can outline specific strategies and measures to reduce the likelihood of the risk occurring or lessen its impact should it occur. This plan can include preventive measures, contingency plans, and clearly defined roles for team members to ensure readiness in the face of potential challenges. A detailed action plan enables organizations to prioritize risks based on their severity and potential consequences, thereby focusing resources and efforts where they are most needed. Such planning also fosters communication and coordination among team members and stakeholders, ensuring everyone is prepared to implement the response effectively. Overall, this approach transforms high-impact risks from potential threats into manageable challenges, enhancing the organization's resilience and ability to achieve its objectives.