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NEW QUESTION: 1
You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of $350,000. When it comes to creating a risk response for this event what is the risk exposure of the
event that must be considered for the cost of the risk response?
A. is incorrect. $500,000 is the project's budget.
B. is incorrect. $350,000 is the impact of the risk event.
C. The risk exposure of the event is $350,000.
D. The risk exposure of the event is $850,000.
The risk exposure for this event is found by multiplying the risk impact by the risk probability.
Risk Exposure is a straightforward estimate that gives a numeric value to a risk, enabling different
risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event
= 0.70 * 350,000
F. The risk exposure of the event is $500,000.
G. The risk exposure of the event is $245,000.
is incorrect. $850,000 is the project's budget and the risk's impact.
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