CAPM (Certified Associate in Project Management) Practice Exam

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What does perform qualitative risk analysis prioritize risks based on?

Risk management plan and enterprise env factors
Probability and impact of each occurring
Industry studies of similar projects and risk databases
Scope baseline and org process assets

The correct answer is: Probability and impact of each occurring

Perform qualitative risk analysis prioritizes risks based on the probability and impact of each risk occurring. By assessing the probability of a risk event happening and the potential impact it could have on the project objectives, project managers can focus their attention on high-priority risks that require further analysis and response planning. This process helps project teams understand which risks are most critical and should be addressed first to ensure project success. Options A, C, and D are not correct because while they may provide valuable information for risk analysis, they do not directly determine the prioritization of risks based on probability and impact, which is the primary focus of qualitative risk analysis.