A project manager is performing a qualitative risk analysis and has identified the following four risks. Using the risk score (Probability x Impact), which of these risks should be prioritized the highest?
To determine the highest priority risk, calculate the risk score for each option by multiplying its probability by its impact.
Risk A: 0.2 x 0.8 = 0.16
Risk B: 0.4 x 0.5 = 0.20
Risk C: 0.7 x 0.2 = 0.14
Risk D: 0.9 x 0.1 = 0.09
Risk B has the highest score (0.20), and therefore, it should be prioritized the highest. This process of calculating and comparing risk scores is a key part of qualitative risk analysis, allowing the project team to focus its attention and resources on the most significant threats and opportunities.
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