You work as a Project Manager for www.company.com Inc. You have to measure the probability,
impact, and risk exposure. Then, you have to measure how the selected risk response can affect
the probability and impact of the selected risk event. Which of the following tools will help you to
accomplish the task?
A.
Project network diagrams
B.
Delphi technique
C.
Decision tree analysis
D.
Cause-and-effect diagrams
Explanation:
Decision tree analysis is a risk analysis tool that can help the project manager in determining the
best risk response. The tool can be used to measure probability, impact, and risk exposure and
how the selected risk response can affect the probability and/or impact of the selected risk event.
It helps to form a balanced image of the risks and oppourtunities connected with each possible
course of action. This makes them mostly useful for choosing between different strategies,
projects, or investment opportunities particularly when the resources are limited. A decision tree is
a decision support tool that uses a tree-like graph or model of decisions and their possible
consequences, including chance event outcomes, resource costs, and utility.
Answer D is incorrect. Cause-and-effect diagrams are useful for identifying root causes and risk
identification, but they are not the most effective ones for risk response planning.
Answer A is incorrect. Project network diagrams help the project manager and stakeholders
visualize the flow of the project work, but they are not used as a part of risk response planning.
Answer B is incorrect. The Delphi technique can be used in risk identification, but generally is not
used in risk response planning. The Delphi technique uses rounds of anonymous surveys to
identify risks.