C
Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks. Incorrect Answers: A: A risk register is an inventory of risks and exposure associated with those risks. Risks are commonly found in project management practices, and provide information to identify, analyze, and manage risks. Typically a risk register contains: ✑ A description of the risk ✑ The impact should this event actually occur ✑ The probability of its occurrence ✑ Risk Score (the multiplication of Probability and Impact) ✑ A summary of the planned response should the event occur ✑ A summary of the mitigation (the actions taken in advance to reduce the probability and/or impact of the event) ✑ Ranking of risks by Risk Score so as to highlight the highest priority risks to all involved. D: Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula: ROI= (Gain from investment - Cost of investment) / Cost of investment In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest.