There are five inputs to the quantitative risk analysis process.
Which one of the following is NOT an input to the perform quantitative risk analysis process?
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A. B. C. D.D.
Performing quantitative risk analysis is a crucial step in the risk management process, where the likelihood and impact of identified risks are numerically analyzed. The process involves evaluating the potential consequences of risks based on their probability of occurrence, assessing the overall risk exposure, and identifying suitable risk response strategies.
The five inputs to the quantitative risk analysis process are as follows:
Risk management plan: It outlines the approach, roles, responsibilities, and methodologies for managing risks within the project or organization.
Scope baseline: It defines the project scope, including the project objectives, deliverables, and milestones.
Risk register: It contains a comprehensive list of identified risks, including their descriptions, likelihood of occurrence, and potential impact on the project or organization.
Cost management plan: It provides details on the budget and cost estimation for the project or program.
Schedule management plan: It defines the approach for scheduling and sequencing project activities.
Based on the inputs, the quantitative risk analysis process involves a numerical analysis of the likelihood and impact of identified risks. The analysis helps in assessing the overall risk exposure and prioritizing the risks based on their criticality to the project or organization. This information can be used to determine the best course of action for responding to the risks, such as accepting, transferring, mitigating, or avoiding the risks.
Therefore, the answer to the question is option D, Enterprise environmental factors. Enterprise environmental factors refer to the internal and external factors that can influence the project or organization's performance, but it is not an input to the quantitative risk analysis process. Instead, it is an input to the risk management planning process, where the factors are analyzed to develop a suitable risk management plan.