Exam CRISC topic 1 question 241 discussion

Actual exam question from Isaca's CRISC

Question #: 241
Topic #: 1

Tom works as a project manager for BlueWell Inc. He is determining which risks can affect the project. Which of the following inputs of the identify risks process is useful in identifying risks, and provides a quantitative assessment of the likely cost to complete the scheduled activities?

A. Activity duration estimates
B. Risk management plan
C. Cost management plan
D. Activity cost estimates

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Suggested Answer: D 🗳️
The activity cost estimates review is valuable in identifying risks as it provides a quantitative assessment of the expected cost to complete the scheduled activities and is expressed as a range, with a width of the range indicating the degrees of risk.
Incorrect Answers:
A: The activity duration estimates review is valuable in identifying risks associated to the time allowances for the activities or projects as a whole, with a width of the range indicating the degrees of risk.
B: This is the output of plan risk management process. A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them. It also consists of the risk assessment matrix.
C: The cost management plan sets how the costs on a project are managed during the project's lifecycle. It defines the format and principles by which the project costs are measured, reported, and controlled. The cost management plan identifies the person responsible for managing costs, those who have the authority to approve changes to the project or its budget, and how cost performance is quantitatively calculated and reported upon.

by SuperMax at Oct. 13, 2023, 5:18 a.m.

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SuperMax

9 months, 1 week ago

Selected Answer: D

D. Activity cost estimates Activity cost estimates provide a quantitative assessment of the likely cost to complete the scheduled activities, making them a useful input for identifying risks in the project. These estimates can help project managers understand the potential financial impacts of various risks on the project's budget and help in risk identification and assessment

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