Project risks should be closed when the stakeholders agree a risk is no longer applicable. This ensures that risks are actively managed and only relevant risks are considered throughout the project lifecycle.
According to the PMI Risk Management Professional (PMI-RMP) Reference Materials, project risks are uncertain events or conditions that may have a positive or negative effect on one or more project objectives1.
Project risks can be closed when they are no longer applicable to the project or its activities. The process of closing project risks involves verifying that the risk responses have been completed, documenting the outcomes, and evaluating the effectiveness of the risk management process2. The decision to close a project risk should be made by the stakeholders who are responsible for or affected by the risk, as they are the ones who can determine whether the risk is still relevant or not. Therefore, the correct answer is B. When the stakeholders agree a risk is no longer applicable.
References: 1: PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, 2017, p. 397 2: PMI, Practice Standard for Project Risk Management, 2009, p. 111

After verifying the effectiveness of the risk responses, the next step is to close out the risk response actions and communicate the results to relevant stakeholders. This ensures that the project team and stakeholders are aware of how risks have been managed and that any lessons learned can be applied to future projects. This aligns with PMI's emphasis on communication and documentation in risk management to ensure transparency and continuous improvement.

In risk management, it is common that not all risks can be completely eliminated. Residual risk is the remaining risk after all possible mitigation efforts have been applied. If the residual risk iswithin the organization's risk appetite-meaning the organization is willing to accept this level of risk-it is appropriate to proceed with the plan. The PMI framework supports this approach, as risk management is about balancing effort and benefit, ensuring that mitigation efforts are commensurate with the risk involved.

The risk manager should update the risk register with both the opportunities and threats identified during the SWOT analysis. This will help in tracking and managing all potential risks throughout the project lifecycle.
Update the risk register with the identified risks Comprehensive and Detailed Explanation: According to the PMI Risk Management Professional (PMI-RMP)®Examination Content Outline1, one of the tasks in the domain of Risk Identification is to update the risk register with identified risks, causes, categories, and potential responses1. A risk register is a document used to track and report on project risks and opportunities throughout the project's life cycle2. In this scenario, the risk manager should update the risk register with the identified risks, both opportunities and threats, that result from the SWOT analysis. The risk manager should also include the causes, categories, and potential responses for each risk, as well as other relevant information such as probability, impact, priority, owner, etc. The risk manager should not add only the threats to the risk register, because opportunities are also a type of risk that can have a positive effect on the project objectives and should be recorded and managed accordingly3. The risk manager should not utilize different tools to identify the risks, because the SWOT analysis is a valid and useful tool for risk identification and there is no indication that it was insufficient or inappropriate for the project context4. The risk manager should not plan risk responses to the threats, because that is a separate process that comes after risk identification and requires further analysis and evaluation of the risks5. References: 1: PMI Risk Management Professional (PMI-RMP)
® Examination Content Outline, page 82: Risk Register in Project Management - Project Management Academy63: A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, page 3974: How to Perform a SWOT Analysis - Project Risk Coach25: A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, page 440.

To mitigate the chance of the same issues reoccurring, the risk manager should document the known risk triggers as identified cost and schedule risks in the risk register. By doing so, these risks are formally recognized, and appropriate responses can be planned and monitored. This approach ensures that the lessons learned from the previous project are incorporated into the risk management plan for the upcoming project, reducing the likelihood of similar issues occurring.