You are the project manager of the QPS project. You and your project team have identified a pure risk. You along with the key stakeholders, decided to remove the pure risk from the project by changing the project plan altogether. What is a pure risk? 

Answer options:

A. It is a risk event that only has a negative side and not any positive result.
B. It is a risk event that is created by the application of risk response.
C. It is a risk event that is generated due to errors or omission in the project work.
D. It is a risk event that cannot be avoided because of the order of the work.

A

A pure risk has only a negative effect on the project. Pure risks are activities that are dangerous to complete and manage such as construction, electrical work, or manufacturing. It is a class of risk in which loss is the only probable result and there is no positive result. Pure risk is associated to the events that are outside the risk-taker`s control. Incorrect Answers: B: The risk event created by the application of risk response is called secondary risk. C: A risk event that is generated due to errors or omission in the project work is not necessarily pure risk. D: This in not valid definition of pure risk.