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A new vice president in one of its divisions observed that the portfolio of projects...

A new vice president in one of its divisions observed that the portfolio of projects within their division experienced significant variations beyond the ±10% established threshold with the potential of not achieving its overall business goals. Hence, they directed all project leaders and sponsors to ensure that they set and work toward more stringent thresholds of ±5% and reports on the basis of any variance outside that range.

How should the risk manager respond?

A.

Assess the impacts of this change but do nothing as the project is still within the enterprise-wide threshold.

B.

Assess and modify the project risk management plan in response to the new directive.

C.

Accept project risks since it is already within the enterprise-wide threshold.

D.

Advise that the decision could increase the risk of their portfolio exponentially.

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