CompTIA Project+ (PK0-005)Project Management ConceptsHard
A project manager is conducting a qualitative risk analysis for a new software development project. During a brainstorming session, the team identifies a potential risk: 'New API integration might have unforeseen compatibility issues'. The team assesses the probability as 'Medium' and the impact as 'High'. Which of the following best describes the purpose of this qualitative risk analysis?
- ATo develop specific risk response strategies.
- BTo calculate the Expected Monetary Value (EMV) of the risk.
- CTo prioritize risks for further analysis or action.
- DTo determine the overall project risk exposure quantitatively.
Show answer & explanationAnswer & explanation
Correct answer: C. To prioritize risks for further analysis or action.
The primary purpose of qualitative risk analysis is to prioritize individual project risks for further analysis or action by assessing their probability of occurrence and impact, often using a probability and impact matrix.
Why the other options are wrong
- A. Developing risk response strategies comes after risks have been prioritized and often further analyzed.
- B. Calculating EMV is part of quantitative risk analysis, not qualitative.
- D. Determining overall project risk exposure quantitatively is part of quantitative risk analysis.
Qualitative Risk Analysis Purpose
The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact.
- Uses subjective judgment and data to assess risks.
- Helps focus attention on high-priority risks.
- Often involves probability and impact matrix for rating.
Memory trick: Qualitative is for sorting, Quantitative is for counting.