Which of the following processes is described in the statement below? "This is the process of numerically analyzing the effect of identified risks on overall project objectives."

Identify Risks is the process of finding, recognizing, and documenting potential risks - it does not numerically analyze their effect on project objectives.

Perform Quantitative Risk Analysis uses numerical techniques such as Monte Carlo simulation, decision tree analysis, and sensitivity analysis to quantify the probability and impact of risks on cost, schedule, and other project objectives. The keyword 'numerically analyzing' directly maps to this process as defined in the PMBOK Guide, distinguishing it from qualitative methods. It produces probabilistic outcome ranges rather than descriptive priority ratings.

Monitor and Control Risks focuses on tracking known risks, identifying new risks, and evaluating risk response effectiveness during execution - not numerical impact analysis.

Perform Qualitative Risk Analysis prioritizes risks using subjective descriptive scales (high/medium/low probability and impact) rather than numerical or statistical quantification.