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Risk Audit

An audit that evaluates how well the project's risk management approach and actions are working.

Key Points

  • Assesses the effectiveness and efficiency of risk identification, analysis, response planning, and monitoring.
  • Reviews the risk register, owners, response status, triggers, and use of reserves to find gaps and improvements.
  • Leads to recommendations, corrective actions, and updates to the risk management plan and lessons learned.
  • Can be performed by the project team, PMO, or independent reviewers at planned intervals or major milestones.

Example

Midway through a construction project, the PM organizes a risk audit with the PMO. They discover that response plans for supplier delays lack clear triggers and owners. The team assigns owners, defines early warning indicators, updates the risk register, and adjusts contingency reserves.

PMP Example Question

Midway through a project, the PM wants to determine whether current risk responses are working and improve the overall risk process. What should the PM conduct?

  1. Risk audit
  2. Risk reassessment
  3. Variance analysis
  4. Root cause analysis

Correct Answer: A — Risk audit

Explanation: A risk audit specifically evaluates the effectiveness of the risk management process and responses. Reassessment updates risks, variance analysis compares performance to plan, and root cause analysis investigates underlying causes of issues.

How To Land the Job and Interview for Project Managers Course

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