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1. None of the outputs of Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, and Risk Response Planning are inputs for the Control Risk process. Since they are not inputs, how do they influence the activities of the Control Risk process?
An output from the Plan Risk Response is to update the Project Management Plan which is an input to Control Risks. The other two processes provide their outputs to Plan Risk Response, not to Control Risks.
The results of each process are tracked on the Risk Register which is an input to Control Risks and an output of Risk Response Planning is an update to the Project Management Plan which is an input for Control Risks.
Because of the analysis and risk response planning conducted by the three processes, the risk has been eliminated and therefore does not need to be monitored with the Control Risks process.
2. What is the difference between Risk Tolerance and Risk Appetite?
Risk appetite represents the uncertainty a stakeholder will accept to gain a reward; while risk tolerance is the level of uncertainty they can withstand.
Risk appetite is the list of all risks in the Risk Register and the risk tolerance is the point on the Risk Register below which risks are accepted.
Risk appetite is the amount of total project risk or uncertainty that an organization is willing to take on; while risk tolerance is the amount of uncertainty on an individual risk that the project will withstand.
3. What is the implication about a risk if it falls below the project manager’s risk threshold?
Project managers manage high risk and project team members manage medium and low risks. If it is below the project manager’s risk threshold, it is a medium or low risk.
Because of the level of uncertainty and impact, the project manager is accepting that risk without taking any action.
A risk is below the threshold when the impact is so uncertain that the project manager cannot define it.
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