You are the project manager for your organization. You are preparing for the quantitative risk analysis. Mark, a project team member, wants to know why you need to do quantitative risk analysis when…

Question

Options

• AQuantitative risk analysis is the process of numerically analyzing the effect of identified risks on
• BQuantitative risk analysis is the planning and quantification of risk responses based on probability
• CQuantitative risk analysis is the review of the risk events with the high probability and the highest
• DQuantitative risk analysis is the process of prioritizing risks for further analysis or action by assessing

• A
  89% (17)
• C
  5% (1)
• D
  5% (1)

Explanation

Quantitative risk analysis numerically analyzes the probability and impact of identified risks on overall project objectives (typically cost and schedule). It uses techniques such as Monte Carlo simulation, decision tree analysis, and sensitivity analysis to assign numerical values to risk probability and impact. It differs from qualitative risk analysis, which prioritizes risks based on subjective assessments of probability and impact without assigning numeric values. Option B describes risk response planning. Option C partially describes qualitative analysis (reviewing high-probability/high-impact risks). Option D is the definition of qualitative risk analysis - prioritizing risks for further analysis by assessing their probability and impact.

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