PMI Scheduling Professional Certification (PMI-SP) Practice Exam

How many risk impact levels are typically used for a detailed risk approach?

1. 2 levels

2. 3 levels

3. 5 levels

4. 7 levels

The correct answer is: 5 levels

In a detailed risk approach, the use of five risk impact levels is common because it provides a balanced framework for assessing risks effectively. Having five distinct levels allows for a nuanced evaluation of how risks can impact project objectives, costs, schedules, and quality. This level of granularity helps in categorizing risks from minimal to extreme impact, making it easier for project managers to prioritize and manage risks accordingly. The five levels typically represent a scale ranging from very low impact, where consequences are negligible, to very high impact, which could be detrimental to the project's success. This structured classification supports more informed decision-making, enabling project teams to implement appropriate risk response strategies. Using fewer levels, such as two or three, may overly simplify the risk landscape and might not capture the complexities of various risks. Conversely, using an excessive number of levels, like seven, could lead to confusion and diminish the practicality of applying the risk assessment in real-world scenarios. Thus, five levels strike the right balance for a detailed and actionable risk management approach.