What is a pure risk?

Diana is the project manager of the QPS project for her company. In this project Diana and the project team have identified a pure risk. Diana and the project team decided, along with the key stakeholders, to remove the pure risk from the project by changing the project plan altogether. What is a pure risk?

A.
It is a risk event that cannot be avoided because of the order of the work.

B.
It is a risk event that is created by a risk response.

C.
It is a risk event that only has a negative side, such as loss of life or limb.

D.
It is a risk event that is generated due to errors or omission in the project work.

Explanation:

A pure risk has only a negative effect on the project. Pure risks are activities that are dangerous to complete and manage such as construction, electrical work, or manuuring. It is a class of risk in which loss is the only probable result and there is no positive result. Pure risk is associated to the events that are outside the risk- taker’s control. The nature of the work includes some pure risks. Pure risks can also include things like acts of god (force majeure), fire, and theft.

Answer option A is incorrect. This is not a valid definition of a pure risk.

Answer option B is incorrect. A risk that is generated by another risk response is a secondary risk.

Answer option D is incorrect. Risks that are generated by errors or omissions are not necessarily pure risks.

Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"