Section: Volume B
Explanation:
Risk responses require a formal approach to issues, opportunities and events to ensure that solutions are cost- effective and are aligned with business objectives. The following should be considered:
* While preparing the risk response, identify the risk in business terms like loss of productivity, disclosure of confidential information, lost opportunity costs, etc.
* Recognize the business risk appetite.
* Follow an integrated approach in business.
Risk responses requiring an investment should be supported by a carefully planned business case that justifies the expenditure outlines alternatives and describes the justification for the alternative selected.
Incorrect Answers:
C: There is no such requirement to follow the pre-defined risk responses. If some new risk responses are discovered during the risk management of a particular project, they should be noted down in lesson leaned document so that project manager working on some other project could also utilize them.

Explanation/Reference:
Explanation:
Mitigation is the strategy that provides for the definition and implementation of controls to address the risk described. Here in this scenario, you are trying to reduce the risk of operation failure by guiding administrator to take daily backup, hence it is risk mitigation.
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. The main control types are:
Managerial(e.g.,policies)

Technical (e.g., tools such as firewalls and intrusion detection systems)

Operational (e.g., procedures, separation of duties)

Preparedness activities

Incorrect Answers:
A: The scenario does not describe risk avoidance. Avoidance is a strategy that provides for not implementing certain activities or processes that would incur risk.
B: The scenario does not describe the sharing of risk. Transference is the strategy that provides for sharing risk with partners or taking insurance coverage.
C: The scenario does not describe risk acceptance, Acceptance is a strategy that provides for formal acknowledgment of the existence of a risk and the monitoring of that risk.

Explanation/Reference:
Explanation:
Approval of a project initiation document (PID) or a project request document (PRD) is the authorization for a project to begin.
Incorrect Answers:
A: Project management plan is being made after the project is being authorized.
B: Risk response document comes under risk management process, hence the latter phase in project development process.
C: Risk management document is being prepared later after the project initiation, during the risk management plan. It has no scope during project initialization.

Section: Volume D