A project manager wants to rank risks quickly using probability and impact before selecting risks for detailed quantitative analysis. Which process should be performed?
Correct Answer: C
Explanation:
Qualitative risk analysis prioritizes risks using probability, impact, urgency, and other ranking factors. It is normally performed before quantitative analysis because it helps determine which risks deserve more detailed modeling. The result may include risk rankings, risk owners, and risks requiring immediate response planning.
Question 2
A project has an Earned Value of $360,000 and an Actual Cost of $450,000. What is the Cost Performance Index?
Correct Answer: A
Explanation:
Cost Performance Index is calculated as CPI = EV ÷ AC. Here, CPI = $360,000 ÷ $450,000 = 0.80. A CPI below 1.0 means the project is over budget because the value earned is less than the cost spent. CPI is commonly used to identify cost performance risk.
Question 3
A project team performs risk reassessment during execution. What is the main purpose?
Correct Answer: D
Explanation:
Risk reassessment reviews existing risks, identifies new risks, updates probability and impact, checks
response effectiveness, and closes risks that are no longer relevant. Risk management is continuous
because project conditions change over time. Regular reassessment improves project control and
decision making.
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