Question #4

Submitted by texas 44 on Fri, 08/14/2015 - 15:13

 

After performing risk analysis, you fin that close to 50% of the risks are technology risks.  What will you do next?

 

A. Develop a risk response strategy for all the risks that require a response according to plan

B.Develop a risk response strategy for all the technologoy risks that require a reponse accoring to plan

C. Acquire subject matter experts and highly qualified resources

D. Develop a risk response strategy for all the techology risks

 

If a risk even has a 80 percent chance of occuring and if it does occur the consequences will be a $10k cost of the project.  What does -8k repfresent to the project?

A. Expected monetary value

B. Probabilistic risk assessment

C. What if analysis reults

D. Quanitified risk

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admin

Mon, 08/17/2015 - 04:43

You will develop risk response strategy for all risks not only technology risks. 

PXI = Risk exposure - 8K is the risk exposure  , so if risk materializes we will be -8K in project. This is EMV

To calculate the Expected Monetary Value in project risk management, you need to:

  1. Assign a probability of occurrence for the risk.
  2. Assign monetary value of the impact of the risk when it occurs.
  3. Multiply Step 1 and Step 2.

The value you get after performing Step 3 is the Expected Monetary Value. This value is positive for opportunities (positive risks) and negative for threats (negative risks). Project risk management requires you to address both types of project risks.