Where are the likelihood and consequence parameters documented?

Where are the likelihood and consequence parameters documented?

• A. Risk Register
• B. Program Risk Process (PRP) Document
• C. Program Risk Plan
• D. DoD RM Plan

Answer: (B)

The key idea is that the scales used to rate how likely something is and how severe its impact are defined in the formal risk process that governs a program. The Program Risk Process Document specifies the likelihood and consequence parameters, including the scales and how they’re applied to compute overall risk. This ensures everyone evaluates risks consistently across the program. The Risk Register is where individual risks are recorded with their assigned values, but it doesn’t define the scales themselves. The Program Risk Plan outlines overall risk management approach, whereas the DoD RM Plan is a broader, higher-level plan. Therefore, the parameters are documented in the Program Risk Process Document.

The key idea is that the scales used to rate how likely something is and how severe its impact are defined in the formal risk process that governs a program. The Program Risk Process Document specifies the likelihood and consequence parameters, including the scales and how they’re applied to compute overall risk. This ensures everyone evaluates risks consistently across the program. The Risk Register is where individual risks are recorded with their assigned values, but it doesn’t define the scales themselves. The Program Risk Plan outlines overall risk management approach, whereas the DoD RM Plan is a broader, higher-level plan. Therefore, the parameters are documented in the Program Risk Process Document.