Qualitative Risk Analysis Flashcards

A project team has identified 75 risks and is using a 5x5 probability and impact matrix to prioritize them. A specific risk is assessed as having a 'Very High' impact but a 'Very Low' probability. Where would this risk typically be placed for future monitoring?

Answer: On a watchlist within the risk register

Risks with low probability but potentially high impact are often placed on a watchlist. This allows the team to monitor them periodically without developing a full response plan unless their probability increases. Escalation is for risks exceeding defined thresholds, quantitative analysis is optional, and a contingency fund is a response, not a monitoring location.

Which of the following is a primary objective of the Perform Qualitative Risk Analysis process?

Answer: To prioritize identified individual project risks for subsequent analysis or action

The core purpose of qualitative risk analysis is to prioritize individual project risks. This is done by assessing their probability of occurrence and impact, which helps the team focus on the most critical risks. Determining numerical exposure is quantitative analysis, identifying risks is the 'Identify Risks' process, and developing strategies is the 'Plan Risk Responses' process.

During a risk assessment workshop, the team has widely different interpretations of what constitutes a 'High' impact on the project's schedule. To resolve this and ensure consistency, the facilitator should refer to which document?

Answer: The Risk Management Plan

The Risk Management Plan is the document that establishes the framework for risk management activities. It includes definitions of risk probability and impact scales, the probability and impact matrix, and risk thresholds. This ensures that all stakeholders have a common understanding when assessing risks.

A risk manager is concerned about the reliability of the information used to assess several key risks. The manager decides to formally evaluate the extent to which the data is accurate, objective, and well-understood by the team. What tool or technique is being applied?

Answer: Risk Data Quality Assessment

Risk Data Quality Assessment is a technique specifically used to evaluate the degree to which the data about risks is useful for risk management. It assesses factors like data accuracy, reliability, objectivity, and completeness to ensure the qualitative analysis is based on sound information. Probability and Impact Assessment is the act of scoring the risk, Monte Carlo is a quantitative technique, and Risk Categorization is about grouping risks.

In addition to probability and impact, qualitative risk analysis can assess other risk parameters to enhance prioritization. Which parameter is most concerned with the amount of time available to implement an effective response before the risk occurs?

Answer: Urgency

Urgency refers to the period of time within which a response to the risk must be implemented to be effective. A risk with high urgency requires a quick response. Proximity is how soon the risk might occur, Dormancy is the time after a risk occurs before it is discovered, and Detectability is how easily the risk can be noticed.

After the project team completes the Perform Qualitative Risk Analysis process, which of the following represents the MOST significant update made to the project documents?

Answer: The Risk Register is updated with risk rankings, owners, and a watchlist.

The primary output of the Perform Qualitative Risk Analysis process is updates to the project documents, most notably the Risk Register. The Risk Register is updated to include the results of the analysis, such as a prioritized list or ranking of risks, risk owners, risks requiring near-term responses, and a watchlist of low-priority risks.