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NEW QUESTION: 1
You are the project manager of the KJH Project and are working with your project team to plan the risk responses. Consider that your project has a budget of $500,000 and is expected to last six months. Within the KJH Project you have identified a risk event that has a probability of .70 and has a cost impact of
$350,000. When it comes to creating a risk response for this event what is the risk exposure of the event that must be considered for the cost of the risk response?
A. The risk exposure of the event is $500,000.
B. The risk exposure of the event is $245,000.
C. The risk exposure of the event is $350,000.
D. The risk exposure of the event is $850,000.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The risk exposure for this event is found by multiplying the risk impact by the risk probability.
Risk Exposure is a straightforward estimate that gives a numeric value to a risk, enabling different risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event
= 0.70 * 350,000
= 245,000
Incorrect Answers:
A: $350,000 is the impact of the risk event.
B: $500,000 is the project's budget.
C: $850,000 is the project's budget and the risk's impact.

NEW QUESTION: 2
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
I. Identify business applications that require access.
II. Implement steps to continuously assess risks and controls.
III. Define objectives of continuous auditing.
IV.
Manage and report results.
A. III, I, IV, II.
B. II, III, I, IV.
C. III, I, II, IV.
D. II, I, III, IV.
Answer: C

NEW QUESTION: 3
A customer is very interested in the dispute resolution functionality of IBM's Business Analytics SPM solution. Which of the following challenges is the prospect most likely facing currently?
A. Compensation managers cannot evaluate plan effectiveness.
B. Sales executives have no visibility into company performance.
C. Sales managers have difficulty in identifying areas of improvement.
D. Limited end-of-period reporting to end users
Answer: A