A project manager is developing a Risk Management Plan for a new project. Which of the following BEST describes the primary purpose of the Risk Management Plan?
To ensure that the degree, type, and visibility of risk management are proportionate to both the risks and the importance of the project to the organization and stakeholders
To assign risk owners to all identified risks and create a risk mitigation plan
To document the risk threshold and risk appetite of all project stakeholders
To outline the specific risk responses for identified threats and opportunities
The Risk Management Plan is designed to ensure that the level, type, and visibility of risk management are appropriate to the risks and the significance of the project to the organization and stakeholders. It sets out how risk management activities will be structured and performed, providing a consistent methodology for identifying and managing risks throughout the project lifecycle .
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What is risk appetite and risk threshold in project management?
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