PMI Risk Management Professional Practice Exam

What is the risk rated high enough to require a proactive response based on a project's risk tolerance threshold of 17 percent?

1. Probability—20 percent, impact—80 percent

2. Probability—30 percent, impact—60 percent

3. Probability—40 percent, impact—40 percent

4. Probability—90 percent, impact—15 percent

The correct answer is: Probability—30 percent, impact—60 percent

To determine which risk requires a proactive response based on the specified project risk tolerance threshold of 17 percent, we can calculate the overall risk level using the formula: Overall Risk = Probability × Impact The risk levels for each option can be examined as follows: 1. For the first choice, if the probability is 20 percent and the impact is 80 percent, the overall risk is calculated as: 0.20 (Probability) × 0.80 (Impact) = 0.16 or 16 percent. 2. In the second choice, with a probability of 30 percent and impact of 60 percent: 0.30 × 0.60 = 0.18 or 18 percent. 3. The third choice, with a probability of 40 percent and an impact of 40 percent, gives: 0.40 × 0.40 = 0.16 or 16 percent. 4. Finally, for the fourth choice, with a probability of 90 percent and impact of 15 percent: 0.90 × 0.15 = 0.135 or 13.5 percent. Among these calculations, the second choice yields an overall risk level of 18