You are the project manager of your project. You have to analyze various project risks. You have opted for quantitative analysis instead of qualitative risk analysis. What is the MOST significant drawback of using quantitative analysis over qualitative risk analysis?

• A.lower objectivity
• B.higher cost
• C.higher reliance on skilled personnel
• D.lower management buy-in

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What are the requirements of effectively communicating risk analysis results to the relevant stakeholders?
Each correct answer represents a part of the solution. Choose three.

• A.The results should be reported in terms and formats that are useful to support business decisions
• B.Communicate only the negative risk impacts of events in order to drive response decisions
• C.Communicate the risk-return context clearly
• D.Provide decision makers with an understanding of worst-case and most probable scenarios

Correct Answer: A,C,D

Explanation/Reference:
Explanation:
The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved in communication are:
The results should be reported in terms and formats that are useful to support business decisions.

Coordinate additional risk analysis activity as required by decision makers, like report rejection and

scope adjustment.
Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and

confidence levels (if possible) that enable management to balance risk-return.
Identify the negative impacts of events that drive response decisions as well as positive impacts of

events that represent opportunities which should channel back into the strategy and objective setting process.
Provide decision makers with an understanding of worst-case and most probable scenarios, due

diligence exposures and significant reputation, legal or regulatory considerations.
Incorrect Answers:
B: Both the negative and positive risk impacts are being communicated to relevant stakeholders. Identify the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process.

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Which of the following is the MOST effective way to mitigate identified risk scenarios?

• A.Document the risk tolerance of the organization.
• B.Assign ownership of the risk response plan.
• C.Provide awareness in early detection of risk.
• D.Perform periodic audits on identified risk areas.

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You are the project manager of the GHT project. You are accessing data for further analysis. You have chosen such a data extraction method in which management monitors its own controls. Which of the following data extraction methods you are using here?

• A.Extracting data directly from the source systems after system owner approval
• B.Extracting data from the system custodian (IT) after system owner approval
• C.Extracting data from risk register
• D.Extracting data from lesson learned register

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Which of the following should be the MOST important consideration when performing a vendor risk assessment?

• A.Inherent risk of the business process supported by the vendor
• B.Length of time since the last risk assessment of the vendor
• C.Results of the last risk assessment of the vendor
• D.Risk tolerance of the vendor

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