is incorrect. Risk response is only communicated to some of the stakeholders not all, as it is irrelevant for them. It is not communicated to the stakeholders of the project like project sponsors, etc.

Section: Volume D
Explanation/Reference:
Explanation:
Teaming agreements are often coming under sharing risk response, as they involves joint ventures to realize an opportunity that an organization would not be able to seize otherwise.
Sharing response is where two or more entities share a positive risk. Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.
Incorrect Answers:
A: Acceptance is a risk response that is appropriate for positive or negative risk events. It does not pursue the risk, but documents the event and allows the risk to happen. Often acceptance is used for low probability and low impact risk events.
B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully integrated together.
C: Transference is a negative risk response where the project manager hires a third party to own the risk event.

Explanation/Reference:
Explanation:
Creating a scenario requires determination of the value of an asset or a business process at risk and the potential threats and vulnerabilities that could cause loss. The risk scenario should be assessed for relevance and realism, and then entered into the risk register if found to be relevant.
In practice following steps are involved in risk scenario development:
First determine manageable set of scenarios, which include:

Frequently occurring scenarios in the industry or product area.

Scenarios representing threat sources that are increasing in count or severity level.

Scenarios involving legal and regulatory requirements applicable to the business.

After determining manageable risk scenarios, perform a validation against the business objectives of

the entity.
Based on this validation, refine the selected scenarios and then detail them to a level in line with the

criticality of the entity.
Lower down the number of scenarios to a manageable set. Manageable does not signify a fixed

number, but should be in line with the overall importance and criticality of the unit.
Risk factors kept in a register so that they can be reevaluated in the next iteration and included for

detailed analysis if they have become relevant at that time.
Risk factors kept in a register so that they can be reevaluated in the next iteration and included for

detailed analysis if they have become relevant at that time.
Include an unspecified event in the scenarios, that is, address an incident not covered by other

scenarios.
Incorrect Answers:
C, D: Determination of actors and threat type are not the primary requirements for developing risk scenarios, but are the components that are determined during risk scenario development.