By grouping the risks by categories the project team can develop effective risk responses. Related risk events often have common causal factors that can be addressed with a single risk response.

Explanation/Reference:
Explanation:
The COSO ERM (Enterprise Risk Management) frame work is a 3-dimensional model. The dimensions and their components include:
Strategic Objectives - includes strategic, operations, reporting, and compliance.

Risk Components - includes Internal Environment, Objectives settings, Event identification, Risk

assessment, Risk response, Control activities, Information and communication, and monitoring.
Organizational Levels - include subsidiary, business unit, division, and entity-level.

The COSO ERM framework contains eight risk components:
Internal Environment

Objective Settings

Event Identification

Risk Assessment

Risk Response

Control Activities

Information and Communication

Monitoring

Section 404 of the Sarbanes-Oley act specifies a three dimensional model- COSO ERM, comprised of Internal control components, Internal control objectives, and organization entities. All the items listed are components except Financial reporting which is an internal control objective.
Incorrect Answers:
A, C, D: They are the Internal control components, not the Internal control objectives.

The risk register does not examine the network diagram and the critical path. There may be risks associated with the activities on the network diagram, but it does not address the network diagram directly. The risk register is updated at the end of the plan risk response process with the information that was discovered during the process. The response plans are recorded in the risk register. In the risk register, risk is stated in order of priority, i.e., those with the highest potential for threat or opportunity first. Some risks might not require response plans at all, but then too they should be put on a watch list and monitored throughout the project. Following elements should appear in the risk register: List of identified risks, including their descriptions, root causes, and how the risks impact the project objectives Risk owners and their responsibility Outputs from the Perform Qualitative Analysis process Agreed-upon response strategies Risk triggers Cost and schedule activities needed to implement risk responses Contingency plans Fallback plans, which are risk response plans that are executed when the initial risk response plan proves to be ineffective Contingency reserves Residual risk, which is a leftover risk that remains after the risk response strategy has been implemented Secondary risks, which are risks that come about as a result of implementing a risk response