Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

Which of the following is NOT a source of risk in the Risk Breakdown Structure?

1. Technical

2. Insurance

3. External

4. Project Management

The correct answer is: Insurance

The identification of risks in a Risk Breakdown Structure (RBS) is crucial for effective project management. Each of the listed categories represents a domain where risks can arise. However, one of them stands out as not fitting into the categories typically included in an RBS. When examining the categories, technical risks generally relate to the technology involved in the project, including the limitations and uncertainties associated with if the technology meets requirements. External risks may stem from factors outside the project’s control, such as regulatory changes or market fluctuations. Project management risks pertain to risks that arise from the management process itself, including issues like resource allocation and scheduling. In contrast, insurance does not represent an inherent risk type linked to the project’s environment or processes in its planning and management. Rather, insurance is a financial mechanism used to mitigate or transfer risk. While purchasing insurance can be a strategy to protect against identified risks, it does not directly contribute to the overall risk events that would be outlined in a Risk Breakdown Structure. Therefore, it is the option that does not belong with the sources of risk typically categorized in an RBS.