Which of the following is the BEST key performance indicator (KPI) to measure how effectively risk management practices are embedded in the project management office (PMO)?
A.
Reduction in audits involving external risk consultants
B.
Percentage of projects with key risk accepted by the project steering committee
C.
Percentage of projects with developed controls on scope creep
D.
Reduction in risk policy noncompliance findings
C. Percentage of projects with developed controls on scope creep
This KPI is directly related to the effectiveness of risk management practices within projects, as scope creep is a common risk in project management. By monitoring the percentage of projects that have developed controls to manage scope creep, the organization can gauge how well risk management practices are integrated into the PMO's processes. This is a more direct and specific measure compared to the other options, which are either too broad or not directly related to the risk management practices within projects.
B. Percentage of projects with key risk accepted by the project steering committee
Measuring the percentage of projects with key risks accepted by the project steering committee is the best key performance indicator (KPI) to determine how effectively risk management practices are embedded in the project management office (PMO). This KPI demonstrates that the PMO has identified and assessed risks, and the steering committee is actively involved in the decision-making process, providing a clear indication that risk management practices are integrated into the project lifecycle.
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