The project manager wants to use an objective method to evaluate the key project risks and develop response plans. What action should the risk manager propose?

Question

Options

• AAsk the team to perform an earned value analysis.
• BReview the lessons learned from other projects.
• CAsk the team to prepare a Monte Carlo analysis.
• DAsk the risk expert to perform a PESTLE evaluation.

• A
  7% (3)
• B
  2% (1)
• C
  78% (32)
• D
  12% (5)

Explanation

Monte Carlo analysis is a quantitative risk analysis technique that uses computer simulation to model thousands of possible scenarios by randomly sampling input probability distributions. It produces an objective, statistically grounded probability distribution of project outcomes (cost, schedule), making it ideal for objectively evaluating key risks and informing response planning. Earned value analysis (A) measures project performance, not risk probability. Lessons learned (B) is a qualitative, historical input technique. PESTLE (D) is an environmental scanning tool used during risk identification, not quantitative risk evaluation.

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