You work as a project manager for BlueWell Inc. You are working on a project and the management wants a rapid and cost-effective means for establishing priorities for planning risk responses in your project. Which risk management process can satisfy management’s objective for your project?

A.
Rolling wave planning

B.
Quantitative analysis

C.
Qualitative risk analysis

D.
Historical information

Explanation:

Qualitative risk analysis is the best answer as it is a fast and low-cost approach to analyze the risk impact and its effect. It can promote certain risks onto risk response planning. Qualitative Risk Analysis uses the likelihood and impact of the identified risks in a fast and cost-effective manner. Qualitative Risk Analysis establishes a basis for a focused quantitative analysis or Risk Response Plan by evaluating the precedence of risks with a concern to impact on the project’s scope, cost, schedule, and quality objectives. The qualitative risk analysis is conducted at any point in a project life cycle. The primary goal of qualitative risk analysis is to determine proportion of effect and theoretical response. The inputs to the Qualitative Risk Analysis process are:
Organizational process assets
Project Scope Statement
Risk Management Plan
Risk Register
Answer option D is incorrect. Historical information can be helpful in the qualitative risk analysis, but it is not the best answer for the question as historical information is not always available (consider new projects).

Answer option B is incorrect. Quantitative risk analysis is in-depth and often requires a schedule and budget for the analysis.

Answer option A is incorrect. Rolling wave planning is not a valid answer for risk analysis processes.

Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"