A risk with a probability of 0.3 and an impact of 0.5 has a higher risk score than a risk with a probability of 0.6 and an impact of 0.2.
True
False
To determine the risk score, we multiply the probability by the impact for each risk:
Risk 1: 0.3 x 0.5 = 0.15 Risk 2: 0.6 x 0.2 = 0.12
The first risk has a score of 0.15, which is higher than the second risk's score of 0.12. This demonstrates that a risk with lower probability can still have a higher overall risk score if its impact is significantly higher. Understanding how to calculate and compare risk scores is crucial for prioritizing risks and developing appropriate response strategies in project management.
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