medium · Project Management Professional Hybrid Approaches
Thornfield Labs is conducting a risk analysis for a new clinical trial. The probability of a data breach is 5%, and the impact would be a $2,000,000 fine. The cost to implement a secure encryption protocol is $80,000.
Based on Expected Monetary Value (EMV), what should the PM do?
- Accept the risk because the probability is very low (5%).
- Transfer the risk by purchasing insurance with an annual premium of $110,000.
- Update the risk register and monitor the situation since 95% of the time there is no breach.
- Implement the encryption protocol because its cost is less than the EMV of the risk.
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