CAPM (Certified Associate in Project Management) Practice Exam

What does residual risk refer to?

1. The risk that remains after all responses have been implemented

2. The degree of uncertainty an entity is willing to take

3. A risk event that is favorable to the project

4. The process of defining how to conduct risk management activities

The correct answer is: The risk that remains after all responses have been implemented

Residual risk refers to the risk that remains after all responses have been implemented. This means that despite taking actions to mitigate risk, there is still a level of risk that exists. Option B is incorrect because it refers to the concept of risk appetite, which is the level of uncertainty that an entity is willing to take on. Option C is incorrect because a risk event that is favorable to the project is known as a positive risk, not residual risk. Option D is incorrect because it refers to the process of conducting risk management activities, not the definition of residual risk.