PMI Project Management Professional Practice Question

The correct answer is Risk A. To prioritize risks, we calculate the risk score using the formula: Risk Score = Probability x Impact. For Risk A, the score is 0.4 x 0.5 = 0.2. For Risk B, the score is 0.6 x 0.3 = 0.18. Since Risk A has a higher risk score (0.2 > 0.18), it should be prioritized. This demonstrates that a risk with lower probability can still be more critical if its potential impact is significant enough. It's important to consider both factors when assessing risks, not just probability or impact in isolation.