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A risk manager is preparing for the first meeting with their project sponsor on a potential project for a large client. The risk manager reviews their newly developed project risk register to identify any risks that should be analyzed further and begins by prioritizing the probability column based on the following criteria:
1 = Very Low
2 = Low
3 = Medium
4 = High
5 = Very High
What type of risk analysis is the risk manager performing?
The risk manager is performing a qualitative risk analysis by prioritizing risks based on their probability of occurrence. Qualitative risk analysis involves evaluating and prioritizing risks based on their likelihood and impact using a predefined scale. This approach helps in determining which risks require more attention and should be subjected to further analysis or immediate action.
PMI defines qualitative risk analysis as a process that uses a relative scale to assess the probability and impact of risks, which is what is being done in this scenario.