The project team is performing risk analysis. They are evaluating a risk that has a very high probability of occurring, and if it does it could cause the company to go out of business. Which of the…

Insurable risk refers to a category of risk that can be transferred via insurance, not an analysis technique used to evaluate high-severity risks.

Qualitative Risk Analysis ranks risks using relative scales but does not provide the numerical financial analysis needed for a risk of this magnitude.

Pure risk is a risk category involving only the possibility of loss (no gain), not an analysis methodology used to evaluate risks.

Quantitative Risk Analysis is used to numerically analyze the effect of identified risks on overall project objectives, and is especially warranted when a risk has high probability and severe impact such as threatening company viability. It provides numerical estimates of overall project risk exposure and probability of achieving cost and schedule targets. Risks that could cause a company to go out of business justify the additional rigor of quantitative techniques such as Monte Carlo simulation or decision tree analysis.