During which of the following processes, probability and impact matrix are prepared?
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A. B. C. D.D.
The probability and impact matrix is a technique to prioritize identified risks of the project on their risk rating, and are being prepared while performing qualitative risk analysis.
Evaluation of each risk's importance and, hence, priority for attention, is typically conducted using a look-up table or a probability and impact matrix.
This matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high priority.
Incorrect Answers: A, B: These processes are part of Risk Management.
The probability and impact matrix is prepared during the qualitative risk analysis for further quantitative analysis and response based on their risk rating.
C: SLE, ARO and ALE are used in quantitative risk assessment.
The probability and impact matrix is typically used in risk management to assess the likelihood and potential impact of different risks. The matrix is usually prepared as part of the risk assessment process, which is an important component of any comprehensive risk management program.
The two primary types of risk assessments are qualitative and quantitative. Qualitative risk assessment is typically used to identify and evaluate risks based on their probability and potential impact, but without assigning numerical values to those factors. Quantitative risk assessment, on the other hand, involves assigning numerical values to the probability and potential impact of different risks in order to calculate an overall risk score.
The preparation of a probability and impact matrix is typically associated with qualitative risk assessment, as it involves ranking risks based on their probability and potential impact, without assigning numerical values to those factors. The matrix is usually organized into a grid, with probability on one axis and impact on the other. The grid is then populated with different risks, with each risk assigned a rating based on its probability and potential impact.
Therefore, the correct answer to the question is D. Qualitative risk assessment, since the probability and impact matrix is typically prepared as part of this process.