The correct answer is False. To determine the risk score, we multiply the probability by the impact for each risk:
Risk 1: 0.3 x 0.5 = 0.15 Risk 2: 0.6 x 0.2 = 0.12
The first risk has a score of 0.15, which is higher than the second risk's score of 0.12. This demonstrates that a risk with lower probability can still have a higher overall risk score if its impact is significantly higher. Understanding how to calculate and compare risk scores is crucial for prioritizing risks and developing appropriate response strategies in project management.
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How do you calculate a risk score in project management?
What does it mean when a risk has a higher impact but lower probability?
Why is it important to understand risk scores when managing projects?
This question's topic:
PMI Project Management Professional (PMP) /
Process
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