You work as a project manager for BlueWell Inc. You are working with Nancy, the COO of your company, on several risks within the project. Nancy understands that through qualitative analysis you have identified 80 risks that have a low probability and low impact as the project is currently planned. Nancy’s concern, however, is that the impact and probability of these risk events may change as conditions within the project may change. She would like to know where will you document and record these 80 risks that have low probability and low impact for future Reference: What should you tell Nancy?

A.
Risk identification is an iterative process so any changes to the low probability and low impact risks will be reassessed throughout the project life cycle.

B.
Risks with low probability and low impact are recorded in a watchlist for future monitoring.

C.
All risks, regardless of their assessed impact and probability, are recorded in the risk log.

D.
All risks are recorded in the risk management plan.

Explanation:

Low probability and low impact risks are recorded in a watchlist as part of qualitative risk analysis. The watchlist of low priority risks is prepared for monitoring the risks that are not assessed as important in the Perform Qualitative Risk Analysis process. The output of Perform Qualitative Risk Analysis process is an updated Risk Register, which contains the relative ranking of risks and watchlists of low priority risks. Answer option C is incorrect. Risks are recorded in the risk register, not the risk log. Answer option A is incorrect. While risks assessment and identification happens throughout the project, this answer does not give information about where the risks will be documented. Answer option D is incorrect. Risks are recorded in the risk register and the watchlist, not the risk management plan.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"