You are the project manager of your enterprise. While performing risk management, you are given
a task to identify where your enterprise stand in certain practice and also to suggest the priorities
for improvements. Which of the following models would you use to accomplish this task?
A.
Capability maturity model
B.
Decision tree model
C.
Fishbone model
D.
Simulation tree model
Explanation:
Capability maturity models are the models that are used by the enterprise to rate itself in terms of
the least mature level (having nonexistent or unstructured processes) to the most mature (having
adopted and optimized the use of good practices).
The levels within a capability maturity model are designed to allow an enterprise to identify
descriptions of its current and possible future states. In general, the purpose is to:
Identify, where enterprises are in relation to certain activities or practices.
Suggest how to set priorities for improvements
Answer D is incorrect. There is no such model exists in risk management process.
Answer B is incorrect. 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
andopportunitiesconnected 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 C is incorrect. Fishbone diagrams or Ishikawa diagrams shows the relationships between
the causes and effects of problems.