You are the project manager of your project. You have to analyze various project risks. You have
opted for quantitative analysis instead of qualitative risk analysis. What is the MOST significant
drawback of using quantitative analysis over qualitative risk analysis?
A.
lower objectivity
B.
higher cost
C.
higher reliance on skilled personnel
D.
lower management buy-in
Explanation:
Quantitative risk analysis is generally more complex and thus is costlier than qualitative risk
analysis.
Answer A is incorrect. Neither of the two risk analysis methods is fully objective. Qualitative
method subjectively assigns high, medium and low frequency and impact categories to a specific
risk, whereas quantitative method subjectivity expressed in mathematical “weights”.
Answer C is incorrect. To be effective, both processes require personnel who have a good
understanding of the business. So there is equal requirement of skilled personnel in both.
Answer D is incorrect. Quantitative analysis generally has a better buy-in than qualitative analysis
to the point where it can cause over-reliance on the results. Hence this option is not correct.