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NEW QUESTION: 1
You work as a Project Manager for www.company.com Inc. You have to measure the probability, impact, and risk exposure. Then, you have to measure how the selected risk response can affect the probability and impact of the selected risk event. Which of the following tools will help you to accomplish the task?
A. Cause-and-effect diagrams
B. Decision tree analysis
Decision tree analysis is a risk analysis tool that can help the project manager in determining the best risk response. The tool can be used to measure probability, impact, and risk exposure and how the selected risk response can affect the probability and/or impact of the selected risk event. It helps to form a balanced image of the risks and oppourtunities connected with each possible course of action. This makes them mostly useful for choosing between different strategies, projects, or investment opportunities particularly when the resources are limited. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.
D. Delphi technique
E. Project network diagrams
is incorrect. Cause-and-effect diagrams are useful for identifying root causes and risk identification, but they are not the most effective ones for risk response planning. Answer: A is incorrect. Project network diagrams help the project manager and stakeholders visualize the flow of the project work, but they are not used as a part of risk response planning. Answer: B is incorrect. The Delphi technique can be used in risk identification, but generally is not used in risk response planning. The Delphi technique uses rounds of anonymous surveys to identify risks.
NEW QUESTION: 2
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