When presenting their work to management, on what areas should the risk manager focus?

A risk manager is confident that they have identified and quantified the risks and opportunities for a project.

When presenting their work to management, on what areas should the risk manager focus? (Choose two.)
A . Risks that are tied to the success of the organization
B . Risks as they apply to the organization’s overall risk management philosophy and strategic ambition
C . Huge opportunities that possibly bring an additional 30% return for 10 projects in the next year
D . Risks related to cost that will impact the major projects that are currently in the execution phase
E . Risk mitigation actions that will require work from stakeholders

View Answer

Answer: AB

Explanation:

According to the PMBOK Guide, 6th edition, Section 1 1.1. 3.1, Enterprise Environmental Factors, one of the factors that can influence the Plan Risk Management process is the organization’s risk attitude, appetite, tolerance, and thresholds. These terms describe the degree of uncertainty that an organization is willing to accept in pursuit of its goals, and how it approaches, operates, and responds to risk. Therefore, when presenting their work to management, the risk manager should focus on the risks that are tied to the success of the organization, and the risks as they apply to the organization’s overall risk management philosophy and strategic ambition. These aspects can help the management to understand the alignment of the project risks with the organizational objectives and values, and to make informed decisions about risk responses. The other options are less relevant or too specific for a management presentation, and may not reflect the organization’s risk attitude or priorities.

Reference: PMBOK Guide, 6th edition, Section 1 1.1. 3.1, Enterprise Environmental Factors1 The risk manager should focus on risks that are directly tied to the success of the organization and those that align with the organization’s risk management philosophy and strategic ambition. This will ensure that management is informed about the most relevant risks and opportunities for the project.