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NEW QUESTION: 1
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. Quantitative analysis
B. Risk response
C. Risk response plan
D. Contingency reserve
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.
A: The risk response plan is based on the risk responses, not the risk probability-impact matrix.
C: The risk responses are needed but this chart doesn't help the project manager to create them.
D: This chart is created as part of quantitative analysis.