Explanation/Reference:
Explanation:
Steps involving in calculating risk priority number are as follows:
Identify potential failure effects

Identify potential causes

Establish links between each identified potential cause

Identify potential failure modes

Assess severity, occurrence and detection

Perform score assessments by using a scale of 1 -10 (low to high rating) to score these assessments.

Compute the RPN for a particular failure mode as Severity multiplied by occurrence and detection.

RPN = Severity * Occurrence * Detection
Hence,
RPN = 4 * 5 * 6
= 120
Incorrect Answers:
B, C, D: These are not RPN for given values of severity, occurrence, and detection.

Section: Volume C
Explanation:
Risk utility function is assigned to the low-level of stakeholder tolerance in this project.
The risk utility function describes a person's or organization's willingness to accept risk. It is synonymous with stakeholder tolerance to risk.
Risk utility function facilitates the selection and acceptance of risk and provides opportunity to merge the approach with setting thresholds of risk acceptability and using utility-risk ratios if necessary.
Incorrect Answers:
A: This is not a valid project management and risk management term.
B: Risk avoidance is a risk response to avoid negative risk events.
D: Risk-reward describes the balance between accepting risks and the expected reward for the risk event.
Risk-reward mentality is not a valid project management term.

Explanation/Reference:
Explanation:
Threat is an act of coercion wherein an act is proposed to elicit a negative response. Threats are real, while the vulnerabilities are a possibility. They can result in risks from external sources, and can become imminent by time or can diminish.
Incorrect Answers:
C, E: These two are true for vulnerability, but not threat. Unlike the threat, vulnerabilities are possibility and can result in risks from internal sources. They will arise and stay in place until they are properly dealt.

Section: Volume D
Explanation:
As preventive control and prevention is preferred over detection and recovery, therefore, private and key-based encryption should be adopted for managing risks.
Incorrect Answers:
A, C, D: As explained in above section preventive control and prevention is preferred over detection and recovery, hence these are less preferred way.