Your project has several risks that may cause serious financial impact if they occur. 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 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.
Risk response plan
B.
Contingency reserve
C.
Risk response
D.
Quantitative analysis
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 C is incorrect. The risk responses are needed but this chart doesn’t help the project
manager to create them.
Answer A is incorrect. The risk response plan is based on the risk responses, not the risk
probability-impact matrix.
Answer D is incorrect. This chart is created as part of quantitative analysis.