1. Right Answer: A
Explanation: Risk transfer is the practice of passing risk from one entity to another entity. In other words, if a company is covered under a liability insurance policy providing various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc., it means it has transferred its security risks to the insurance company.Incorrect Answers:B: Risk acceptance is the practice of accepting certain risk(s), typically based on a business decision that may also weigh the cost versus the benefit of dealing with the risk in another way.C: Risk avoidance is the practice of not performing an activity that could carry risk. Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed.D: Risk mitigation is the practice of reducing the severity of the loss or the likelihood of the loss from occurring.

2. Right Answer: D
Explanation: By focusing on the high-priority of risk events through qualitative risk analysis you can improve the project's performance.Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10). Hence it determines the nature of risk on a relative scale.Some of the qualitative methods of risk analysis are: Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time. Risk Control Self -assessment (RCSA) - RCSA is used by enterprises (like banks) for the identification and evaluation of operational risk exposure. It is a logical first step and assumes that business owners and managers are closest to the issues and have the most expertise as to the source of the risk. RCSA is a constructive process in compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of increasing their accountability.Incorrect Answers:A: Subject matter experts can help the qualitative risk assessment, but by focusing on high-priority risks the project's performance can improve by addressing these risk events.B: Stakeholders should be involved throughout the project as situations within the project demand their input to risk identification and analysis.C: Qualitative analysis does use a fast approach of analyzing project risks, but it's not the best answer for this

3. Right Answer: C
Explanation: According to the PMBOK, a project risk is always in the future. If the risk event has already happened, then it is an issue, not a risk.Incorrect Answers:A: You can identify risks before they occur and not after their occurrence.B: Risks can only happen in the future.D: Triggers are warning signs and conditions of risk events, but this answer isn't the best choice for this question.

4. Right Answer: C
Explanation: Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.Incorrect Answers:A: A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains: A description of the risk The impact should this event actually occur The probability of its occurrence Risk Score (the multiplication of Probability and Impact) A summary of the planned response should the event occur A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event) Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved.D: Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.The return on investment formula:ROI= (Gain from investment - Cost of investment) / Cost of investmentIn the above formula 'gains from investment', refers to the proceeds obtained from selling the investment of interest.

5. Right Answer: C
Explanation: The Communications Management Plan defines, in regard to risk management, who will be available to share information on risks and responses throughout the project.The Communications Management Plan aims to define the communication necessities for the project and how the information will be circulated. TheCommunications Management Plan sets the communication structure for the project. This structure provides guidance for communication throughout the project's life and is updated as communication needs change. The Communication Managements Plan identifies and defines the roles of persons concerned with the project. It includes a matrix known as the communication matrix to map the communication requirements of the project.Incorrect Answers:A: The Risk Management Plan defines risk identification, analysis, response, and monitoring.B: The stakeholder management strategy does not address risk communications.D: The Resource Management Plan does not define risk communications.