Which of the following processes includes prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact?

Question

Options

• AQualitative risk analysis
• BQuantitative risk analysis
• CRisk management planning
• DRisk response planning

• A
  73% (32)
• B
  7% (3)
• C
  16% (7)
• D
  5% (2)

Explanation

Qualitative risk analysis is the process of prioritizing individual risks by assessing and combining two factors: their probability of occurrence and their potential impact - making option A correct. This is typically done using a probability-impact matrix to rank which risks need further attention, without assigning numerical values.

Why the distractors are wrong:

• B (Quantitative risk analysis) goes deeper, using numerical methods (like Monte Carlo simulations) to analyze the combined effect of risks on project objectives - it comes after qualitative analysis, not before.
• C (Risk management planning) is about defining how to approach and execute risk activities - it's the planning framework, not the evaluation itself.
• D (Risk response planning) is where you decide what to do about risks - developing strategies like mitigation or avoidance - which happens after you've already assessed and prioritized them.

Memory tip: Think "Qualify before Quantify." Qualitative = quick, subjective ranking (High/Medium/Low). Quantitative = deeper, numerical analysis. The question's key phrase - "assessing and combining probability and impact" - is the textbook definition of qualitative risk analysis from the PMBOK Guide.

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