Probability and Impact Matrix

Submitted by amitd on Wed, 03/11/2015 - 21:02

The Risk Management plan will usually contain the definitions of risk probability and impact. Which of the following has the highest impact (negative) on a project?

  1. A rating of 1.1 on the impact scale

  2. A rating of 0.8 on the impact scale

  3. A rating of 0 on the impact scale

  4. A rating of 0.1 on the impact scale

 

 

What is the right answer?

This is from Scordo. The correct answer with the explaination is -

B - The impact scale will contain the probabilities of certain risks occurring, and will contain values from 0 to 1. A value of 0 indicates non-occurrence of the risk while 1 is a certainty. Hence, a risk impact of 0.8 represents the highest impact among the choices presented. [PMBOK 5th edition, Page 317] [Project Risk Management]

I could not locate this infomation in PMBOK page 317 or any other page where the range is 0 to 1. I also tried searching in Rita's Exam Prep.

If anyone could explain it, will be great... Thanks !

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harsh.athalye

Thu, 03/12/2015 - 05:32

Hi Amit,

 

Probability is ALWAYS measured between 0 and 1. It's a statistical concept, so the rule applies universally no matter what. So obviously option A is wrong. So out of the rest of the three options only option B has highest value.

amitd

Thu, 03/12/2015 - 13:03

Thanks Harsh !