PFMP · Question #41
Which is the most critical risk based on probability and impact?
The correct answer is A. A. Risk prioritization uses a probability-impact matrix where the risk with the highest combined score of likelihood and consequence is considered most critical.
Question
Which is the most critical risk based on probability and impact?
Exhibit
Options
- AA
- BD
- CC
- DB
How the community answered
(30 responses)- A70% (21)
- B17% (5)
- C10% (3)
- D3% (1)
Why each option
Risk prioritization uses a probability-impact matrix where the risk with the highest combined score of likelihood and consequence is considered most critical.
Risk A sits at the highest intersection of probability and impact on the risk matrix, yielding the greatest overall risk exposure score. Portfolio managers use this combined score to prioritize which risks require immediate governance action and resource allocation.
Choice B represents Risk D, which does not have the highest combined probability and impact score on the matrix.
Choice C represents Risk C, which has a lower combined probability-impact score than Risk A and is therefore less critical.
Choice D represents Risk B, which ranks lower on the probability-impact matrix than Risk A and is not the most critical risk.
Concept tested: Risk probability-impact matrix prioritization
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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