All projects must go through rigorous and detailed quantitative risk analysis. T
ID: 395350 • Letter: A
Question
All projects must go through rigorous and detailed quantitative risk analysis. True or False. ____
Quantitative risks mainly deal with Project-Level Risks. True or False
A potential risk event has always negative consequences. True or False
Identify Risks” step of the risk management process identifies both knowable and unknowable risks. True or False
It may take great deal of time, staff, and money to do risk management plan for a project. Hence, management must decide its cost and benefits and scope (scale) up front. True or False
Explanation / Answer
1. False
Quantitative risk analysis is for project management risk level 3. It is done for projects that have an organization-wide impact and also possibly affect the external customers. Therefore, it is not necessary that all projects must go through rigoroous and detailed quantitative risk analysis.
2. False
Quantitative risks deal with organization-wide and even customer level risks.
3. True
A potential risk event always has negative consequences. Although the degree of impact and probability of occurrence may vary.
4. False
"Risk identification" step involves identifying knowable risks, threats and opportunities. It is not possible to identify all risks. There will be some unknowable risks, which cannot be identified at this stage.