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what term?

A high-profile, high-priority project within your organization is being created. Management wants you to pay special attention to the project risks and do all that you can to ensure that all of the risks are identified early in the project. Management has to ensure that this project succeeds. Management’s risk aversion in this project is associated with what term?

PrepAway - Latest Free Exam Questions & Answers

A.
Utility function

B.
Quantitative risk analysis

C.
Risk mitigation

D.
Risk conscience

Explanation:

The utility function describes a person’s or organization’s willingness to accept risk. In this example, the organization is risk adverse, so they have a low tolerance for risk. The risk utility function describes a person’s or organization’s willingness to accept risk. It is synonymous with stakeholder tolerance to risk. Risk utility function facilitates the selection and acceptance of risk and provides opportunity to merge the approach with setting thresholds of risk acceptability and using utility-risk ratios if necessary. Answer option D is incorrect. This is not a valid answer for the

Answer
option C is incorrect. Risk mitigation describes the risk responses for the risk events to lower the probability and/or impact of the defined risks.
Answer option B is incorrect. Quantitative risk analysis is the process of identifying the reasons why a risk event may occur, its impact on the project, and the likelihood of the event to happen. Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"

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