PMI Risk Management Professional Practice Exam

Which analysis focuses on identifying potential positive and negative risks in a project?

1. Impact analysis

2. SWOT analysis

3. Qualitative risk analysis

4. Cost-benefit analysis

The correct answer is: Qualitative risk analysis

Qualitative risk analysis is a systematic approach to identifying potential risks in a project and assessing their impact and likelihood. This method allows project managers to categorize risks as either positive, which are opportunities that could enhance project performance, or negative, which are threats that could hinder success. The focus on qualitative assessment helps prioritize risks based on their significance, facilitating effective decision-making and resource allocation for managing those risks. In contrast, impact analysis tends to assess the consequences of identified risks rather than purely focusing on identification. SWOT analysis, while useful for understanding strengths, weaknesses, opportunities, and threats within a project or organization, is broader and not solely concentrated on risk identification. Cost-benefit analysis evaluates the financial implications of decisions and options but does not specifically address potential project risks. Therefore, qualitative risk analysis is the most appropriate approach for identifying both positive and negative risks.