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PMI-RMP · Question #608

A risk manager is preparing for the first meeting with their project sponsor on a potential project for a large client. The risk manager reviews their newly developed project risk register to identify

The correct answer is C. Qualitative risk analysis. Qualitative risk analysis uses subjective, descriptive scales to prioritize risks based on their probability and impact, without requiring precise numerical data or statistical modeling. Sorting the probability column using an ordinal scale of 1 (Very Low) to 5 (Very High) is a t

Perform Targeted Risk Analysis

Question

A risk manager is preparing for the first meeting with their project sponsor on a potential project for a large client. The risk manager reviews their newly developed project risk register to identify any risks that should be analyzed further and begins by prioritizing the probability column based on the following criteria:

1 = Very Low 2 = Low 3 = Medium 4 = High 5 = Very High What type of risk analysis is the risk manager performing?

Options

  • AScenario-based risk analysis
  • BQuantitative risk analysis
  • CQualitative risk analysis
  • DMonte Carlo analysis

How the community answered

(34 responses)
  • A
    3% (1)
  • B
    6% (2)
  • C
    91% (31)

Explanation

Qualitative risk analysis uses subjective, descriptive scales to prioritize risks based on their probability and impact, without requiring precise numerical data or statistical modeling. Sorting the probability column using an ordinal scale of 1 (Very Low) to 5 (Very High) is a textbook example of qualitative analysis - it ranks and prioritizes risks using relative categories. Quantitative risk analysis (B) uses numerical techniques like expected monetary value or simulations to assign definitive probabilities and cost estimates. Monte Carlo analysis (D) is a specific quantitative simulation technique. Scenario-based analysis (A) evaluates outcomes under different hypothetical conditions.

Topics

#Qualitative Risk Analysis#Risk Prioritization#Probability Assessment#Risk Register

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