Categorizing risks by their impact on project objectives ensures that risk response plans are aligned

with project priorities. This helps in focusing on the most critical risks and their potential impact on

the project's success.

Categorizing risks by their impact to the project objectives is a way of aligning the risk management

process with the project goals and stakeholder expectations. By doing so, the risk management

professional can ensure that the risk response plans are focused on the most critical aspects of the

project and that the project priorities are being considered in the decision making. This approach can

also help to communicate the value of risk management to the project team and the stakeholders, as

they can see how the risk management activities are contributing to the project success.

Categorizing risks by their impact to the project objectives does not necessarily help to identify the

specific causes of risks, determine the level of project leadership and organizational involvement, or

assign risks and risk severities to functional disciplines and departments. These are other possible

ways of categorizing risks, but they are not the main purpose of using the impact to the project

objectives approach. Reference: PMI-RMP® Certification Handbook1, page 9; PMBOK® Guide, page

415.