CompTIA Project+ Practice Test

During which risk management process is a risk probability and impact assessment conducted?

1. Qualitative risk analysis

2. Quantitative risk analysis

3. Risk response planning

4. Risk identification

The correct answer is: Qualitative risk analysis

The correct choice emphasizes that qualitative risk analysis is the process where a risk probability and impact assessment is conducted. In qualitative risk analysis, risks are evaluated based on their likelihood of occurrence and the potential impact on project objectives. This assessment helps project managers prioritize risks, allowing them to focus on those that pose the greatest threat to the project's success. During this phase, often subjective judgments are used to assess risks using criteria such as low, medium, and high for both probability and impact. This method is generally faster and less resource-intensive than quantitative analysis and is especially useful in the early stages of risk management when a project team is working to identify and rank risks. The other processes mentioned do not focus primarily on assessing risk probabilities and impacts. Quantitative risk analysis involves a more detailed, numeric way of evaluating risks rather than initial assessments. Risk response planning is about determining the actions to mitigate risks that have already been assessed. Risk identification is simply about recognizing potential risks without delving into their probabilities or potential impacts.