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ACCA Strategic Professional · Strategic Business Leader · Leading and managing projects

Zenith Retail plc is implementing a new warehouse system. During planning, the project manager lists possible events such as supplier delay, key staff departure and data migration failure. For each she records the likelihood and the impact on cost and time, then ranks them. Which risk management step is being carried out?

The project manager is performing risk assessment. Having already listed the risks, she now estimates likelihood and impact and ranks them, which is analysis and evaluation. Identification only produces the list, while monitoring and transfer happen later as part of response and control.

  1. ARisk identification only
  2. BRisk assessment (analysis and evaluation)Correct
  3. CRisk monitoring and review
  4. DRisk transfer

Explanation

Listing events is identification, but recording likelihood and impact and ranking the risks is assessment, which is analysis and evaluation. Identification alone would stop at the list. Monitoring occurs later during execution, and transfer is a response such as insurance or contracting out.

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