PMI Risk Management Professional Practice Exam

Which of the following is a common tool for analyzing the probability and impact of risks?

1. SWOT analysis

2. Risk impact/probability chart

3. PERT analysis

4. Work breakdown structure

The correct answer is: Risk impact/probability chart

The risk impact/probability chart is a widely used tool for analyzing risks because it allows project managers to assess both the likelihood of risks occurring and the potential impact those risks may have on the project. This tool visually categorizes risks into different levels based on their probability and impact, enabling teams to prioritize which risks to address. By plotting risks on a matrix, stakeholders can easily identify high-risk areas that require immediate attention and management strategies. In contrast, SWOT analysis primarily focuses on identifying strengths, weaknesses, opportunities, and threats related to a project or organization. It doesn't specifically measure the probability and impact of individual risks. PERT (Program Evaluation and Review Technique) analysis is used to estimate project duration and is more concerned with scheduling rather than risk assessment. While it can contribute indirectly to understanding uncertainties in project timelines, it does not provide a structured approach for weighing risk probability and impact. The work breakdown structure (WBS) is a tool for decomposing a project into smaller, manageable components. Its primary purpose is to facilitate project planning and organization, rather than analyzing risk specifically. The WBS helps in identifying tasks and deliverables but does not assess the probability or impact of risks. Thus, the risk impact/probability chart stands out as a dedicated