Explanation/Reference:
Explanation:
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
Strategic risks can be broken down into external and internal risks:
External risks are those circumstances from outside the enterprise which will have a potentially

damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.
Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are

involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

Explanation/Reference:
Explanation:
Risk indicators are placed at control points within the enterprise and are used to collect data. These collected data are used to measure the risk levels at that point. They also track events or incidents that may indicate a potentially harmful situation.
Risk indicators can be in form of logs, alarms and reports. Risk indicators are selected depending on a number of parameters in the internal and external environment, such as:
Size and complexity of the enterprise

Type of market in which the enterprise operates

Strategy focus of the enterprise

Incorrect Answers:
C: Risk appetite and risk tolerance are considered when applying various risk responses.

Section: Volume D
Explanation:
Communication has been identified as one of the biggest reasons for why projects succeeds or fails. Effective communication is essential for good project management.
Communication is a process in which information is passed from one person to another. A manager asks his subordinates to accomplish the task assigned to them. He should successfully pass the information to his subordinates. It is a means of motivating and guiding the employees of an enterprise.
Incorrect Answers:
A: While motivation is one of the important interpersonal skill, but it is not the best answer.
B: Influencing the project stakeholders is a needed interpersonal skill, but it is not the best answer.
D: Political and cultural awareness is an important part of every project, but it is not the best answer for this question