Fred is the project manager of the CPS project. He is working with his project team to prioritize the identified risks within the CPS project. He and the team are prioritizing risks for further…

Risk identification is the process of finding and documenting risks; it does not involve assessing or combining probability and impact to prioritize them.

Perform Qualitative Risk Analysis uses tools such as the probability and impact matrix to evaluate each risk's likelihood and its effect on project objectives. The purpose is to prioritize risks so that the project team knows which ones require further analysis or immediate response. This process is fast, cost-effective, and produces a ranked list of risks without requiring numerical simulation.

Perform Quantitative Risk Analysis numerically models the combined effect of risks using techniques such as Monte Carlo simulation, which goes beyond simple probability-impact prioritization.

A Risk Breakdown Structure is a hierarchical chart used to categorize and organize identified risks, not to prioritize them by probability and impact.