PMI Risk Management Professional Practice Exam

What should be done with the information regarding SME compensation during the risk identification process?

1. Record the SME compensation expense in the project management plan as a progressive elaboration.

2. Record it in the stakeholder issue log and put in a change request to compensate SMEs.

3. Record it in the risk response plan and allocate potential SME compensation in the contingency reserve.

4. Record it in the risk register and consider SME compensation during risk response planning.

The correct answer is: Record it in the risk register and consider SME compensation during risk response planning.

During the risk identification process, it is essential to document all relevant information that could impact the project's success, including the compensation of subject matter experts (SMEs). Recording SME compensation in the risk register allows project managers and stakeholders to acknowledge and assess the financial implications of engaging SMEs. This step is crucial because SME involvement can be a significant cost factor that may influence project risks and decisions. By considering SME compensation as part of the risk register, the project team can effectively identify how such expenses might affect overall project risk—whether through potential delays, underestimating budget requirements, or impacting stakeholder satisfaction. Additionally, this documentation aids in the development of effective risk response strategies later in the project management process. This proactive approach ensures that all known factors impacting project risks are considered during planning and response phases, ultimately leading to more informed decision-making. The other options do not effectively address the broader context of risk management regarding SME compensation. For instance, recording compensation expenses solely in the project management plan or stakeholder issue log may overlook the necessity of integrating compensation considerations into overall risk management processes. Conversely, concentrating on the risk response plan without capturing information in the risk register would limit the team's ability to have a comprehensive view of risks and their related aspects. Thus, maintaining this information in