A project manager is developing the risk register and works with the team to analyze risks and determine their probability and impact. There is valuable historical data available that may be used to simulate the overall risk outcome.
Which type of analysis should the project manager use in this instance?
When there is historical data available and the objective is to simulate the overall risk outcome, the appropriate type of analysis is quantitative analysis. Quantitative analysis involves using numerical data and statistical techniques to evaluate risks and assess their likelihood and impact objectively. Techniques like Monte Carlo simulation leverage historical data to model and predict possible risk outcomes, making this approach suitable for the scenario described.
I recommend using quantitative analysis in this instance. Quantitative analysis involves using numerical data and statistical techniques to evaluate risks and assess their likelihood and impact. This type of analysis can be particularly useful when there is historical data available that can be used to simulate the overall risk outcome. By using quantitative analysis, the project manager can take a more objective and data-driven approach to risk assessment, and can use the results of the analysis to inform risk management strategies. Some common techniques for quantitative risk analysis include decision tree analysis, Monte Carlo simulation, and expected value analysis.
he is still developing risk register and looking at historical data
B is the correct answer
Check list is more to identify risks rather than analyze them. There are certain words that assure that we are in Quantitative analysis: - Overall risks analysis - Determine Prob. & Impact - Simulate risk outcome
B - Key here is "Simulate"
Check list DERIVED FROM OPA
This is tricky. My first instinct is to go with option B, however CLA is a valid option owing to reference to historical data. The checklist analysis provides an avenue in determining the risks involved in a particular project management plan. The checklist is usually developed based on the knowledge obtained from previous projects that are similar to the current one as well as historical information.