You work as a project manager for BlueWell Inc. Management has asked you to work with the key project stakeholder to analyze the risk events you have identified in the project. They would like you to analyze the project risks with a goal of improving the project’s performance as a whole.
What approach can you use to achieve this goal of improving the project’s performance through risk analysis with your project stakeholders?
A . Involve subject matter experts in the risk analysis activities
B . Involve the stakeholders for risk identification only in the phases where the project directly affects them
C . Use qualitative risk analysis to quickly assess the probability and impact of risk events
D . Focus on the high-priority risks through qualitative risk analysis
Answer: D
Explanation:
By focusing on the high-priority of risk events through qualitative risk analysis you can improve the project’s performance.
Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10).
Hence it determines the nature of risk on a relative scale.
Some of the qualitative methods of risk analysis are:
– Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time.
– Risk Control Self -assessment (RCSA) – RCSA is used by enterprises (like banks) for the identification and evaluation of operational risk exposure. It is a logical first step and assumes that business owners and managers are closest to the issues and have the most expertise as to the source of the risk. RCSA is a constructive process in compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of increasing their accountability.
Incorrect Answers:
A: Subject matter experts can help the qualitative risk assessment, but by focusing on high-priority risks the project’s performance can improve by addressing these risk events.
B: Stakeholders should be involved throughout the project as situations within the project demand their input to risk identification and analysis.
C: Qualitative analysis does use a fast approach of analyzing project risks, but it’s not the best answer for this