You are the project manager for your organization. You are preparing for the quantitative risk
analysis. Mark, a project team member, wants to know why you need to do quantitative risk
analysis when you just completed qualitative risk analysis. Which one of the following statements
best defines what quantitative risk analysis is?
A.
Quantitative risk analysis is the review of the risk events with the high probability and the
highest impact on the project objectives.
B.
Quantitative risk analysis is the process of prioritizing risks for further analysis or action by
assessing and combining their probability of occurrence and impact.
C.
Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on
overall project objectives.
D.
Quantitative risk analysis is the planning and quantification of risk responses based on
probability and impact of each risk event.
Explanation:
Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on
overall project objectives. It is performed on risk that have been prioritized through the qualitative
risk analysis process.
Answer B is incorrect. This is actually the definition of qualitative risk analysis.
Answer A is incorrect. While somewhat true, this statement does not completely define the
quantitative risk analysis process.
Answer D is incorrect. This is not a valid statement about the quantitative risk analysis process.
Risk response planning is a separate project management process.