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Threats and vulnerabilities change over time and KRI maintenance ensures that KRIs continue to effectively capture these changes. The risk environment is highly dynamic as the enterprise's internal and external environments are constantly changing. Therefore, the set of KRIs needs to be changed over time, so that they can capture the changes in threat and vulnerability. Incorrect Answers:A: Risk avoidance is one possible risk response. Risk responses are based on KRI reporting, but is not the reason for maintenance of KRIs.B: While most key risk indicator (KRI) metrics need to be optimized in respect to their sensitivity, the most important objective of KRI maintenance is to ensure that KRIs continue to effectively capture the changes in threats and vulnerabilities over time. Hence the most important reason is that because of change of threat and vulnerability overtime.C: Risk reporting timeliness is a business requirement, but is not a reason for KRI maintenance.

The risk responses that do not exist up till then, should be included in the organization's lessons learned database so other project managers can use these responses in their project if relevant. Incorrect Answers:A: The responses are not in the project management plan, but in the risk response plan during the project and they'll be entered into the organization's lessons learned database.B: The risk responses are included in the risk response plan, but after completing the project, they should be entered into the organization's lessons learned database.D: If the new responses that were identified is only included in the project's risk register then it may not be shared with project managers working on some other project.

This risk event has the potential to save money on project costs, so it is an opportunity, and the appropriate strategy to use in this case is the exploit strategy. The exploit response is one of the strategies to negate risks or threats appear in a project. This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. Exploiting a risk event provides opportunities for positive impact on a project. Assigning more talented resources to the project to reduce the time to completion is an example of exploit response. Incorrect Answers:A, C: Mitigation and avoidance risk response is used in case of negative risk events, and not in positive risk events. Here in this scenario, as it is stated that the event could save $100,000, hence it is a positive risk event. Therefore should not be mitigated or avoided.B: To accept risk means that no action is taken relative to a particular risk; loss is accepted if it occurs. But as this risk event bring an opportunity, it should me exploited and not accepted.

Risk identification is an iterative process because new risks may evolve or become known as the project progresses through its life cycle. Incorrect Answers:A: Stakeholders are encouraged to participate in the risk identification process, but this is not the best choice.B: Risk identification focuses on discovering new risk events, not the events which did not happen.D: The primary reason for iterations of risk identification is to identify new risk events.

Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have. As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high risk is emerging to enable management to take proactive action before the risk actually becomes a loss. Incorrect Answers:A: This is one of the important functions of KRIs which can help management to improve but is not as important as giving early warning.C: KRIs provide an indication of the enterprise's risk appetite and tolerance through metric setting, but this is not as important as giving early warning.D: This is not as important as giving early warning.

Physical security is an example of non-technical control. It comes under the family of operational controls. Incorrect Answers:A, C, D: Intrusion detection system, access control, and encryption are the safeguards that are incorporated into computer hardware, software or firmware, hence they refer to as technical controls.

Decision tree diagrams are used during the Quantitative risk analysis process and not in risk identification. Incorrect Answers:A, B, C: All these options are diagrammatical techniques used in the Identify risks process.

Monitoring tools have to be able to keep up with the growth of an enterprise and meet anticipated growth in process, complexity or transaction volumes; this is ensured by the scalability criteria of the monitoring tool. Incorrect Answers:B: For software to be effective, it must be customizable to the specific needs of an enterprise. Hence customizability ensures that end users can adapt the software.C: It ensures that monitoring software is able to change at the same speed as technology applications and infrastructure to be effective over time.D: The impact on performance has nothing related to the ability of monitoring tool to keep up with the growth of enterprise.

Moderate risks are noticeable failure threatening the success of certain goals. Incorrect Answers:B: High risk is the significant failure impacting in certain goals not being met.C: Extremely high risk are the risks that has large impact on enterprise and are most likely results in failure with severe consequences.D: Low risks are the risk that results in certain unsuccessful goals.

Risk communication is the process of exchanging information and views about risks among stakeholders, such as groups, individuals, and institutions. Risk communication is mostly concerned with the nature of risk or expressing concerns, views, or reactions to risk managers or institutional bodies for risk management. The key plan to consider and communicate risk is to categorize and impose priorities, and acquire suitable measures to reduce risks. It is important throughout any crisis to put across multifaceted information in a simple and clear manner. Risk communication helps in switching or allocating the information concerning risk among the decision-maker and the stakeholders. Risk communication can be explained more clearly with the help of the following definitions:It defines the issue of what a group does, not just what it says. It must take into account the valuable element in user's perceptions of risk. It will be more valuable if it is thought of as conversation, not instruction. Risk communication is a fundamental and continuing element of the risk analysis exercise, and the involvement of the stakeholder group is from the beginning. It makes the stakeholders conscious of the process at each phase of the risk assessment. It helps to guarantee that the restrictions, outcomes, consequence, logic, and risk assessment are undoubtedly understood by all the stakeholders. Incorrect Answers:C: A risk response ensures that the residual risk is within the limits of the risk appetite and tolerance of the enterprise. Risk response is process of selecting the correct, prioritized response to risk, based on the level of risk, the enterprise's risk tolerance and the cost and benefit of the particular risk response option.Risk response ensures that management is providing accurate reports on:The level of risk faced by the enterprise The incidents' type that have occurred Any alteration in the enterprise's risk profile based on changes in the risk environment