Project Risk Management Qualitative Risk Analysis 5 — Questions and Answers
Question 1: Which of the following best explains why qualitative risk analysis is performed before quantitative risk analysis?
- Qualitative analysis is required by PMI but quantitative is optional
- Qualitative analysis filters and prioritizes risks so quantitative analysis focuses on the most critical ones (Correct answer)
- Quantitative analysis requires budget approval that comes after qualitative analysis
- They are always performed simultaneously with no dependency
Correct answer: Qualitative analysis filters and prioritizes risks so quantitative analysis focuses on the most critical ones
Qualitative analysis narrows the risk list to the most significant risks, making the more resource-intensive quantitative analysis more focused and efficient.
Question 2: A project manager is analyzing a risk that could either save or cost the project $500,000. What type of risk is this?
- Pure risk with only negative outcomes
- Business risk with both threat and opportunity dimensions (Correct answer)
- Residual risk from a prior response
- Secondary risk from a mitigation action
Correct answer: Business risk with both threat and opportunity dimensions
A risk with both upside and downside potential is a business risk, which qualitative analysis should assess for both its threat and opportunity aspects.
Question 3: How does qualitative risk analysis handle 'overall project risk' as distinct from individual risks?
- Overall project risk is calculated only through quantitative methods
- Qualitative analysis considers how the combined effect of all risks affects project objectives (Correct answer)
- Individual risks are averaged to produce the overall risk score
- Overall project risk is assessed only after project completion
Correct answer: Qualitative analysis considers how the combined effect of all risks affects project objectives
Beyond individual risk ratings, qualitative analysis considers the cumulative effect of all identified risks on the project's overall exposure.
Question 4: Which statement accurately describes the relationship between risk tolerance and qualitative risk rating scales?
- Risk tolerance has no effect on how rating scales are designed
- An organization with low risk tolerance will set tighter thresholds, making more risks 'High' (Correct answer)
- Higher risk tolerance always results in more risks being rated 'Critical'
- Rating scales are standardized and cannot be adjusted for organizational context
Correct answer: An organization with low risk tolerance will set tighter thresholds, making more risks 'High'
Organizations with low risk tolerance apply stricter thresholds so that more risks cross into high-priority zones, driving more active responses.
Question 5: A project manager is reassessing risks mid-project after a major scope change. What does this represent?
- A violation of the project management plan
- An iterative application of qualitative risk analysis (Correct answer)
- Quantitative risk re-baselining
- A formal change to the risk breakdown structure
Correct answer: An iterative application of qualitative risk analysis
Qualitative risk analysis is iterative and should be repeated whenever significant project changes occur that could alter risk probability or impact.
Question 6: Which of the following is NOT a typical input to the Perform Qualitative Risk Analysis process?
- Risk register
- Risk management plan
- Project schedule network diagram (Correct answer)
- Stakeholder register
Correct answer: Project schedule network diagram
The project schedule network diagram is an input to schedule development processes, not directly to qualitative risk analysis.
Question 7: A risk assessment shows that a risk has high impact but the team lacks enough data to accurately estimate its probability. What is the best course of action?
- Assume the probability is low since it is uncertain
- Flag the risk for further information gathering before finalizing its priority (Correct answer)
- Remove the risk from the register until better data is available
- Escalate immediately to senior management without further analysis
Correct answer: Flag the risk for further information gathering before finalizing its priority
When probability data is insufficient, the risk should be flagged for additional research so the priority rating reflects the most accurate information available.
Project Risk Management Qualitative Risk Analysis 5
Which of the following best explains why qualitative risk analysis is performed before quantitative risk analysis?