CSSLP Question #146: Real Exam Question with Answer & Explanation

Question

You are the project manager for your organization. You are preparing for the quantitative risk analysis. Mark, a project team member, wants to know why you need to do quantitative risk analysis when you just completed qualitative risk analysis. Which one of the following statements best defines what quantitative risk analysis is?

Options

• AQuantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing
• BQuantitative risk analysis is the review of the risk events with the high probability and the highest
• CQuantitative risk analysis is the planning and quantification of risk responses based on probability
• DQuantitative risk analysis is the process of numerically analyzing the effect of identified risks on

Explanation

Quantitative risk analysis is the process of numerically evaluating the financial or measurable impact of identified risks on project objectives.

Common mistakes.

• A. Prioritizing risks by assessing their probability and impact (often qualitatively) is the definition of qualitative risk analysis, not quantitative.
• B. Reviewing risk events with high probability and impact is part of qualitative risk analysis's output, helping to prioritize, but it's not the definition of the quantitative analysis process itself.
• C. Planning and quantification of risk responses is a subsequent step after analyzing the risks, not the definition of quantitative risk analysis itself.

Concept tested. Quantitative Risk Analysis definition

Reference. https://www.pmi.org/glossary/a-z?keyword=quantitative%20risk%20analysis

No community discussion yet for this question.