BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Multiplying the sum of each the risk times the amount at stake
|
|
|
Calculating the cumulative sum of the probability for each risk and multiplying this value times the consequence of occurrence of the risk events
|
|
|
Cannot be calculated since all risks are not known
|
|
|
The amount of project reserves available
|
Detailed explanation-1: -Typically, project risk scores are calculated by multiplying probability and impact though other factors, such as weighting may be also be part of calculation. For qualitative risk assessment, risk scores are normally calculated using factors based on ranges in probability and impact.
Detailed explanation-2: -Risk is the combination of the probability of an event and its consequence. In general, this can be explained as: Risk = Likelihood × Impact.
Detailed explanation-3: -Risk = Likelihood x Severity The more likely it is that harm will happen, and the more severe the harm, the higher the risk. And before you can control risk, you need to know what level of risk you are facing. To calculate risk, you simply need to multiply the likelihood by the severity.
Detailed explanation-4: -The risk score is the result of your analysis, calculated by multiplying the Risk Impact Rating by Risk Probability.