Question 80 of 100Question ID:612424Early in project planning, your team identified increases in the cost of raw materials as a project risk. Due to a recent natural disaster, raw material costs are expected to quadruple. You had originally set aside a contingency reserve to account for some cost variance. However, after analyzing current prices, you are uncertain if that contingency reserve will be sufficient.What technique should you use to evaluate this uncertainty?

RISK MANAGEMENT

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	APlan risk management
B	BRisk reassessment
C	CReserve analysis
D	DRisk audit

Explanation:

Detailed explanation-1: -Project risk analysis is important because it helps project managers identify the weaknesses, strengths and possible opportunities during or after completing a project.

Detailed explanation-2: -Risk avoidance is changing the project plan to eliminate the risk or condition or to protect the project objectives from its impact. Although the project team can never eliminate all risk events, some specific risks may be avoided.

Detailed explanation-3: -How does risk affect project planning? Understanding risks allows you to plan more accurately, learn from your mistakes, and create smoother processes for future projects. It also helps you estimate time, money, and people resources better, which is good news for your team and your clients.

There is 1 question to complete.

SOFTWARE ENGINEERING

SOFTWARE PROJECT MANAGEMENT

RISK MANAGEMENT