What should the risk manager do next?

An organization performs an annual strategies and initiatives workshop during which a strengths, weaknesses, opportunities, and threats (SWOT) analysis is being conducted. As part of this process the functional managers identify the opportunities and threats .

What should the risk manager do next?
A . Add only the threats to the risk register
B . Utilize different tools to identify the risks
C . Plan risk responses to the threats
D . Update the risk register with the identified risks

View Answer

Answer: D

Explanation:

The risk manager should update the risk register with both the opportunities and threats identified during the SWOT analysis. This will help in tracking and managing all potential risks throughout the project lifecycle.

Update the risk register with the identified risks Comprehensive and Detailed Explanation

According to the PMI Risk Management Professional (PMI-RMP) ® Examination Content Outline1, one of the tasks in the domain of Risk Identification is to update the risk register with identified risks, causes, categories, and potential responses 1. A risk register is a document used to track and report on project risks and opportunities throughout the project’s life cycle2. In this scenario, the risk manager should update the risk register with the identified risks, both opportunities and threats, that result from the SWOT analysis. The risk manager should also include the causes, categories, and potential responses for each risk, as well as other relevant information such as probability, impact, priority, owner, etc. The risk manager should not add only the threats to the risk register, because opportunities are also a type of risk that can have a positive effect on the project objectives and should be recorded and managed accordingly3. The risk manager should not utilize different tools to identify the risks, because the SWOT analysis is a valid and useful tool for risk identification and there is no indication that it was insufficient or inappropriate for the project context4. The risk manager should not plan risk responses to the threats, because that is a separate process that comes after risk identification and requires further analysis and evaluation of the risks5.

Reference: 1: PMI Risk

Management Professional (PMI-RMP) ® Examination Content Outline, page 82: Risk Register in Project Management – Project Management Academy63: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 3974: How to Perform a SWOT Analysis C Project Risk Coach25: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, page 440.