Practice Quiz

Risk Management Professional Exam Prep

Category - Risk Management

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Hector the Projector is in the quantitative risk assessment portion of the process. Which is a productive example of this phase of the process?
  1. Identifying all 10,000 project risks
  2. Estimating possible costs of unforeseeable circumstances
  3. Determining the probability that the project will meet its goals successfully
  4. Ball-parking costs for each project task
Explanation
Answer: c - The best answer would be determining the probability that the project will meet its goals successfully.

Other good examples of quantitative risk assessment would be identifying risks that have the most (not least) impact, determining costs for predictable (not unforeseeable) events, as well as costs for each project task.

Key Take Away: It’s always good to think quantitatively, especially in dollar terms. Multiply probability by the cost of a risk occurring and you have the best insight into how much you should be worried about it.
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