PMI-RMP · Question #597
During project development, a risk manager notices that a major update in the country's regulations might be happening in the upcoming months. These changes will affect the materials used in…
The correct answer is A. Sensitivity analysis. Sensitivity analysis is used to determine how changes in specific variables affect project outcomes, showing both the direction (positive or negative) and magnitude of potential impacts. Tools like tornado diagrams visually represent how each uncertain variable can swing…
Question
During project development, a risk manager notices that a major update in the country's regulations might be happening in the upcoming months. These changes will affect the materials used in building some of the components of the final product. The project team is unsure if this risk will affect the project negatively or positively. Which tool should the project team use to determine this?
Options
- ASensitivity analysis
- BThreshold analysis
- CReserve analysis
- DStrengths, weaknesses, opportunities, and threats (SWOT) analysis
How the community answered
(32 responses)- A78% (25)
- B6% (2)
- C13% (4)
- D3% (1)
Explanation
Sensitivity analysis is used to determine how changes in specific variables affect project outcomes, showing both the direction (positive or negative) and magnitude of potential impacts. Tools like tornado diagrams visually represent how each uncertain variable can swing outcomes favorably or unfavorably, helping the team understand whether the regulatory change is a threat or an opportunity. SWOT analysis (D) identifies categories of risks qualitatively but does not quantify the directional impact on objectives. Reserve analysis (C) focuses on budget contingency, and threshold analysis (B) determines when a risk exceeds acceptable limits - neither addresses the uncertainty about positive versus negative impact that the team faces here.
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