You are the project manager of GHT project. Your project utilizes a machine for production of
goods. This machine has the specification that if its temperature would rise above 450 degree
Fahrenheit then it may result in burning of windings. So, there is an alarm which blows when
machine’s temperature reaches 430 degree Fahrenheit and the machine is shut off for 1 hour.
What role does alarm contribute here?
A.
Of risk indicator
B.
Of risk identification
C.
Of risk trigger
D.
Of risk response
Explanation:
Here in this scenario alarm indicates the potential risk that the rising temperature of machine can
cause, hence it is enacting as a risk indicator.
Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level
is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to
ensure tracking and reporting mechanisms that alert staff about the potential risks.
Answer C is incorrect. The temperature 430 degree in scenario is the risk trigger. A risk trigger is a
warning sign or condition that a risk event is about to happen. As in this scenario the 430 degree
temperature is the indication of upcoming risks, hence 430 degree temperature is a risk trigger.
Answer D is incorrect. Risk response is the action taken to reduce the risk event occurrence.
Hence here risk response is shutting off of machine.
Answer B is incorrect. The first thing we must do in risk management is to identify the areas of the
project where the risks can occur. This is termed as risk identification. Listing all the possible risks
is proved to be very productive for the enterprise as we can cure them before it can occur. In risk
identification both threats and opportunities are considered, as both carry some level of risk with
them.