PMI Risk Management Professional Practice Exam

What chart is useful in prioritizing risk management efforts by illustrating risk causes ranked by their overall influence on the project?

1. A Pareto diagram

2. A risk register

3. A Gantt chart

4. A flowchart

The correct answer is: A Pareto diagram

The Pareto diagram is highly effective in prioritizing risk management efforts because it visually represents the most significant risk causes in relation to their overall impact on the project. This chart is based on the Pareto principle, often referred to as the 80/20 rule, which suggests that a small number of causes (approximately 20%) typically lead to a large percentage (around 80%) of the problems within a project. By using a Pareto diagram, project managers can quickly identify which risks require immediate attention and resources, allowing them to focus on the most critical issues that could derail project objectives. The diagram organizes risk factors, often in descending order, providing a clear visual of where the greatest influence lies. This targeted approach aids in resource allocation and ensures that the efforts put into mitigating risks are directed towards those that will offer the highest return on investment in terms of reducing project uncertainties. In contrast, while a risk register is essential for documenting identified risks, a Gantt chart primarily serves project scheduling and tracking progress over time, and a flowchart depicts processes rather than prioritizing risks. Each of these tools serves a different purpose within project management, but the Pareto diagram's emphasis on ranking risk causes by their influence makes it particularly valuable for effective risk priorit