CompTIA Project+ (PK0-005)Project Management ConceptsHard
A project manager is conducting a qualitative risk analysis for a new software development project. One identified risk is 'Key developer leaves the project unexpectedly.' The team assesses this risk as having a 'High' probability and a 'High' impact. What is the MOST appropriate immediate action for the project manager based on this qualitative assessment?
- ATransfer the risk by purchasing specialized project insurance.
- BDevelop a detailed contingency plan and identify potential backup resources.
- CReduce the project scope to eliminate the need for the key developer.
- DIgnore the risk, as it is only a qualitative assessment and not quantitative.
Show answer & explanationAnswer & explanation
Correct answer: B. Develop a detailed contingency plan and identify potential backup resources.
For a risk with high probability and high impact, developing a contingency plan and identifying backup resources (a form of risk mitigation/contingency planning) is a proactive and appropriate response to reduce the potential negative consequences.
Why the other options are wrong
- A. Transferring risk via insurance is a valid strategy, but for 'key developer leaving,' a contingency plan (like cross-training or identifying backups) is often more direct and effective than insurance, which might only cover financial loss, not project continuity.
- C. Reducing scope might be an option, but it's an extreme measure that could negate project objectives and isn't the *most* appropriate immediate action for a personnel risk.
- D. Ignoring a high-probability, high-impact risk is irresponsible and can lead to project failure.
Qualitative Risk Analysis
The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. It uses descriptive terms (e.g., High, Medium, Low).
- Uses subjective judgment and descriptive scales.
- Helps prioritize risks without detailed numerical calculation.
- Often a precursor to quantitative risk analysis.
Memory trick: High risk, high response: Plan for the worst, hope for the best.