Your project has several risks that may cause serious financial impact should they happen. You have
studied the risk events and made some potential risk responses for the risk events but management
wants you to do more. They’d like for you to create some type of a chart that identified the risk
probability and impact with a financial amount for each risk event. What is the likely outcome of
creating this type of chart?
A.
Quantitative analysis
B.
Contingency reserve
C.
Risk response
D.
Risk response plan
Explanation:
This chart is a probability-impact matrix in a quantitative analysis process. The probability and
financial impact of each risk is learned through research, testing, and subject matter experts. The
probability of the event is multiplied by the financial impact to create a risk event value for
each risk. The sum of the risk event values will lead to the contingency reserve for the project.
Answer option C is incorrect. The risk responses are needed but this chart doesn’t help the project
manager to create them.
Answer option D is incorrect. The risk response plan is based on the risk responses, not the risk
probability-impact matrix.
Answer option A is incorrect. This chart is created as part of quantitative analysis.
Chapter 11. A Guide to the Project Management Body of Knowledge, (PMBOK Guide),
Fourth Edition, ISBN.9781933890517, Section 11.4.3.1.