During a meeting with a project team, a project manager asks a risk manager to determine the risk events that could potentially have the most impact on a 2-year project with a budget of US$800 000. Wh

The correct answer is A. Sensitivity analysis. Sensitivity analysis is a quantitative risk analysis technique used to determine how variations in individual project risks affect project objectives, such as cost, schedule, or performance. By analyzing the sensitivity of these variables, the project team can identify which risk

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Question

During a meeting with a project team, a project manager asks a risk manager to determine the risk events that could potentially have the most impact on a 2-year project with a budget of US$800 000. Which approach should the risk manager suggest the project manager take?

Options

ASensitivity analysis
Bsimul-ation analysis
CMonte Carlo simul-ation
DQuantitative analysis

How the community answered

(48 responses)

A
73% (35)
B
4% (2)
C
15% (7)
D
8% (4)

Explanation

Sensitivity analysis is a quantitative risk analysis technique used to determine how variations in individual project risks affect project objectives, such as cost, schedule, or performance. By analyzing the sensitivity of these variables, the project team can identify which risks have the most significant potential impact on the project. This information is crucial for prioritizing risk responses and allocating resources effectively.

Topics

#Quantitative risk analysis#Sensitivity analysis#Risk impact assessment#Risk analysis techniques

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