Section: Volume D

Section: Volume B
Explanation:
While defining the risk management strategies, risk professional should first identify and analyze the objectives of the organization and the risk tolerance. Once the objectives of enterprise are known, risk professional can detect the possible risks which can occur in accomplishing those objectives. Analyzing the risk tolerance would help in identifying the priorities of risk which is the latter steps in risk management. Hence these two do the basic framework in risk management.
Incorrect Answers:
A: IT architecture complexity is related to the risk assessment and not the risk management, as it does much help in evaluating each significant risk identified.
D: Risk assessment is one of the various phases that occur while managing risks, which uses quantitative and qualitative approach to evaluate risks. Hence risk assessment criteria is only a part of this framework.

Section: Volume C
Explanation:
A common mistake when implementing KRIs other than selecting too many KRIs includes choosing KRIs that are:
* Not linked to specific risk
* Incomplete or inaccurate due to unclear specifications
* Too generic
* Difficult to aggregate, compare and interpret
* Difficult to measure
Incorrect Answers:
B: For ensuring high reliability of the KRI, The indicator must possess a high correlation with the risk and be a good predictor or outcome measure. Hence KRIs are chosen that has high correlation with the risk.

is incorrect. This is the output of plan risk management process. A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them. It also consists of the risk assessment matrix. Answer:A is incorrect. The activity duration estimates review is valuable in identifying risks associated to the time allowances for the activities or projects as a whole, with a width of the range indicating the degrees of risk. Answer:C is incorrect. The cost management plan sets how the costs on a project are managed during the project's lifecycle. It defines the format and principles by which the project costs are measured, reported, and controlled. The cost management plan identifies the person responsible for managing costs, those who have the authority to approve changes to the project or its budget, and how cost performance is quantitatively calculated and reported upon.