PMI Risk Management Professional Practice Exam

What type of chart displays variables ranked by their impact, with the most significant at the top?

1. Pie chart

2. Flowchart

3. Tornado diagram

4. Histogram

The correct answer is: Tornado diagram

The tornado diagram is particularly effective for displaying variables ranked by their impact, especially in the context of risk management. This type of chart visually represents the magnitude of different variables, allowing stakeholders to quickly identify which factors have the most significant effect on an outcome. The arrangement, with the most impactful variables positioned at the top and tapering down, resembles a tornado, hence the name. In risk management, tornado diagrams are useful for sensitivity analysis, helping teams understand how changes in input variables can affect outcomes. By clearly illustrating which variables are most critical, decision-makers can prioritize their focus on areas that have the highest potential for impact, thus optimizing their risk response strategies. Other chart types, such as pie charts, flowcharts, and histograms, serve different purposes. For example, pie charts are commonly used to show proportions of a whole, flowcharts illustrate processes and workflows, and histograms display frequency distributions of data. While these charts are valuable in their own contexts, they do not provide the same clear ranking of impact that a tornado diagram does.