PMI-RMP Certification Training - Risk Budgeting and Triggers

The video tutorial discusses asset allocation and risk budgeting, emphasizing the importance of understanding risk triggers. It explains how triggers serve as early warning signs for risks, allowing organizations to enact contingency plans effectively. The tutorial highlights the significance of identifying both external and internal factors that can act as triggers, such as changes in legislation or staffing. By recognizing these triggers, organizations can better manage risks and reduce their impact, particularly for threat risks.

What is the first step in the asset allocation approach discussed in the video?

• Evaluating past performance

• Optimizing the portfolio

• Conducting a market analysis

• Deciding on the risk budget for each asset class

Why are triggers important in risk management?

• They determine the success of a project

• They are used to allocate resources

• They help in predicting market trends

• They serve as early warning signs for risks

When should a contingency plan be enacted according to the video?

• When the risk is resolved

• When the risk trigger occurs

• When the project starts

• When the risk is identified

Which of the following is an example of an external factor that can be a trigger?

• Changes in legislation

• Changes in funding

• Changes in staffing

• Changes in governance

What is a risk trigger in the context of a hurricane?

• The evacuation process

• The hurricane itself

• The damage caused by the hurricane

• A hurricane warning

What is the benefit of having time between a trigger and the actual risk event?

• It ensures the risk will not occur

• It increases the risk's impact

• It provides time to reduce the impact of the risk

• It allows for better resource allocation

What should be identified in a risk register according to the video?

• Budget allocations

• Risk triggers

• Project milestones

• Team members