Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks describes which of the following processes?
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A. B. C. D.A.
The purpose of qualitative risk analysis is to determine what impact the identified risk events will have on the project and the probability they'll occur.
It also puts risks in priority order according to their effects on the project objectives and assigns a risk score for the project.
Incorrect Answers: B: Risk Management is used to identify, assess, and control risks.
It includes analyzing the value of assets to the business, identifying threats to those assets, and evaluating how vulnerable each asset is to those threats.
Assessing the probability and consequences of identified risks is only the part of risk management.
C: It involves listing of all the possible risks so as to cure them before it can occur.
In risk identification both threats and opportunities are considered, as both carry some level of risk with them.
D: This process does not involve assessing the probability and consequences of identified risks.
Quantitative analysis is the use of numerical and statistical techniques rather than the analysis of verbal material for analyzing risks.
Some of the quantitative methods of risk analysis are: -> Internal loss method -> External data analysis -> Business process modeling (BPM) and simulation -> Statistical process control (SPC)
The process described in the question is Qualitative Risk Analysis, which is a process in project risk management.
Qualitative Risk Analysis is the process of assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks.
The main objective of this process is to evaluate the overall risk to the project and determine which risks require further analysis or action. It is done by gathering information about each identified risk, such as its likelihood of occurrence, potential impact on the project, and its proximity to the project's objectives.
The risk assessment is typically conducted using a risk matrix, which is a tool that helps to assign a score to each identified risk based on its likelihood and impact. The resulting risk score is used to prioritize risks, and those with high scores are given more attention in subsequent risk management activities.
Qualitative Risk Analysis is typically done after the Identify Risks process and before the Quantitative Risk Analysis process in project risk management. It is an essential step in the risk management process as it helps project managers to focus on the most significant risks and take appropriate measures to mitigate or manage them.
In summary, Qualitative Risk Analysis is the process of evaluating the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks. It is a crucial step in the risk management process that helps project managers to prioritize risks and take appropriate measures to mitigate or manage them.