Exam PMI-RMP topic 1 question 235 discussion

The current project risk exposure is C, US$48,000. Risk exposure refers to the potential impact or cost of a risk on a project, and is typically calculated by multiplying the probability of the risk occurring by the potential impact or cost if it does occur. In this situation, the IT project is 40% complete, and two risks (A and B) have been identified. Risk A has a probability of 0.6 and an impact of US$50,000, while risk B has a probability of 0.7 and an impact of US$60,000. After implementing the planned risk response for risk B, the probability of risk B has been reduced to 0.3. To calculate the current risk exposure for the project, the risk manager would need to multiply the probability of each risk occurring by the potential impact or cost if it does occur. For risk A, this would be 0.6 * $50,000 = $30,000, and for risk B it would be 0.3 * $60,000 = $18,000. The total risk exposure for the project would then be $30,000 + $18,000 = $48,000. Other potential answers, such as US$30,000, US$72,000, or US$18,000, are not correct because