medium · Project Management Professional predictive

Hearthline Energy has calculated a net EMV of -$10,000 for its predictive project.

If the organization has a very low risk appetite and a strict risk threshold of $5,000 for any project variation, what is the project manager's best action?

  1. Report the $10,000 EMV and ask the sponsor to increase the risk threshold.
  2. Develop additional risk response strategies to mitigate or transfer the threats until the EMV is within the $5,000 threshold.
  3. Ignore the threshold and use the $10,000 reserve, as it is based on sound math, after reviewing the current risk register entries.
  4. Switch to an adaptive delivery model where risk thresholds are not measured.

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