Jeff, a key stakeholder in your project, wants to know how the risk exposure for the risk events is calculated during quantitative risk analysis. He is worried about the risk exposure which is too low for the events surrounding his project requirements. How is the risk exposure calculated?

A.
The risk exposure of a risk event is determined by historical information.

B.
The probability of a risk event times the impact of a risk event determines the true risk exposure.

C.
The probability and impact of a risk event are gauged based on research and in-depth analysis.

D.
The probability of a risk event plus the impact of a risk event determines the true risk exposure.

Explanation:

The risk impact is multiplied by the risk probability to determine the risk exposure, also called the expected monetary value, for a risk event.
Risk Exposure is a straightforward estimate that gives a numeric value to a risk, enabling different risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event Answer option D is incorrect. The probability and the impact are not added together. Answer option C is incorrect. While it is true that quantitative analysis determines the most likely probability and impact this answer does not define how the risk exposure is determined. Answer option A is incorrect. Not all projects and risks will have historical information so this is not the best choice for the Question
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"