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Risk Communication

The practice of presenting the results from the first four risk management steps to the relevant business stakeholders and gathering their views on the potential uncertainties.

Key Points

  • Shares outcomes from early risk activities (identify, analyze, prioritize, and plan responses) with the right stakeholders.
  • Tailors messages so stakeholders understand key risks, their drivers, impacts, and proposed responses.
  • Seeks stakeholder perceptions, concerns, and thresholds to validate assumptions and refine analysis.
  • Creates a feedback loop that can adjust risk priorities and response strategies.

Example

In an agile program integrating a new payment gateway, the product manager presents a brief risk summary: top fraud, compliance, and performance risks; their likelihood and impact; and draft mitigation actions. She then asks compliance, security, and marketing leads for their views and thresholds, capturing their feedback to update the risk register and response plans.

PMP Example Question

During release planning, the project manager reviews identified risks, the results of qualitative analysis, and proposed responses, then asks business leaders for their views on likelihood and impact. What process is being performed?

  1. Risk Communication
  2. Identify Risks
  3. Monitor Risks
  4. Plan Risk Responses

Correct Answer: A — Risk Communication

Explanation: The scenario describes sharing risk findings with stakeholders and soliciting their perceptions, which is the essence of risk communication.

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