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Qualitative Risk Assessment

5 minutes 5 Questions

Qualitative risk assessment is an approach to evaluating risk based on its probability of occurrence and the impact on project objectives. In this approach, risks are prioritized based on their potential effect on the project, helping the team to focus risk management efforts appropriately. This do…

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CAPM - Qualitative Risk Assessment Example Questions

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Question 1

Which of the following best describes Qualitative Risk Analysis in project management?

Correct Answer: Assessing risks based on their probability and impact to prioritize them

Qualitative Risk Analysis involves evaluating identified risks based on their likelihood of occurrence and the potential impact on project objectives. This process prioritizes risks by categorizing them according to their severity, allowing project managers to focus on the most significant risks that could affect the project's success. It is a subjective analysis that uses tools like probability and impact matrices to assess and rank risks.

Question 2

You're handling a software development project. There's a risk that key personnel could leave. Where should you record this information?

Correct Answer: Risk Register

The best place to record the risk of key personnel leaving during a software development project is in the Risk Register. The Risk Register is a document where all aspects of the risk management process are recorded, from the risk identification stage to the final resolution. It is also where project managers record potential risks and the strategies for mitigating them. On the other hand, the Quality Management Plan is not the best place because it deals primarily with ensuring the quality of the project output, not personnel risks. The Stakeholder Register records details about project stakeholders, and while it may include key personnel, it isn't specifically designed for risk recording. The Activity Resource Requirements is a document outlining the resources required to complete project tasks and does not directly involve risk management.

Question 3

As a project manager for web development, you recognized that web server failure risk could cause a major delay. What Qualitative Risk Assessment technique would suit the best?

Correct Answer: Probability and Impact Matrix

The best Qualitative Risk Assessment technique to be used for assessing the risk of web server failure in this context would be the 'Probability and Impact Matrix'. This approach helps in determining the severity of a risk by combining the extent of potential losses (impact) and the probability that the loss will occur. This makes it a suitable technique because it effectively evaluates both the impact and likelihood of a server failure. Other options like 'Monte Carlo Simulation' and 'Fault Tree Analysis' are more related to Quantitative Risk Assessment where mathematical evaluations are done. 'Decision Tree Analysis', on the other hand, is more about making decisions within the project (given multiple scenarios), rather than directly assessing risks associated with the aspects of the project, such as a web server failure.

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