A risk may be graded into different priorities by which process?

Question

Options

• ARisk monitoring and controlling
• BRisk response planning
• CQualitative risk analysis
• DQuantitative risk analysis

• A
  12% (4)
• B
  3% (1)
• C
  79% (27)
• D
  6% (2)

Explanation

Qualitative Risk Analysis (C) is the process that grades or prioritizes risks by assessing their probability and impact, typically using a probability-impact matrix to rank them as high, medium, or low priority. This prioritization helps project teams focus attention on the risks that matter most.

• A (Risk Monitoring and Controlling) is wrong because that process tracks identified risks and monitors residual risks - it occurs after risks have already been prioritized.
• B (Risk Response Planning) is wrong because it develops strategies to address risks that have already been prioritized, not the prioritization itself.
• D (Quantitative Risk Analysis) is wrong because it uses numerical methods (Monte Carlo simulations, decision trees) to quantify the numeric probability and impact of risks - it doesn't grade/prioritize them categorically.

Memory tip: Think of "Qualitative" as qualifying risks into buckets (high/medium/low), while "Quantitative" means quantity - actual numbers and probabilities. You must qualify (prioritize) before you can plan a response.

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