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Question 48/132

A risk manager is conducting a qualitative risk analysis for a renewable energy project that faces tight deadlines. The team identifies risks such as weather unpredictability, material cost fluctuations, and potential regulatory delays. While some members advocate prioritizing high-likelihood risks, others emphasize addressing unlikely but high-impact risks.
What should the risk manager do?

A. Focus on high-probability concerns first to proactively address the most immediate threats.

B. Delegate the assessment of lower-priority concerns to team leads while addressing critical ones.

C. Evaluate all identified concerns and consider likelihood and impact to prioritize the concerns effectively.

D. Prioritize uncertainties that align closely with the project's primary deliverables.

Correct Answer: C

Qualitative risk analysis requires consideration of both the likelihood and the impact of each risk to properly prioritize them, rather than focusing only on probability or only on impact. The PMBOK Guide states:
"During qualitative risk analysis, risks are prioritized for further analysis or action by assessing and combining their probability of occurrence and impact on project objectives."
- PMBOK Guide, 6th Edition, Section 11.3
Therefore, the risk manager should evaluate all identified risks, considering both likelihood and impact.
References:
PMBOK Guide, 6th Edition, Section 11.3
Practice Standard for Project Risk Management, PMI, Section 5.4

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