PMI Risk Management Professional (PMI-RMP) — Question 184

A large infrastructure project to build a regional transportation hub is underway. The project team identifies several potential risks, including delays in material delivery, budget overruns due to inflation, and labor shortages during peak construction phases. The risk manager requests that the risk owners calculate the financial impact of each respective risk on the project.

What should the risk owners do?

Answer options

• A. Perform a risk assessment workshop.
• B. Measure inflation with respect to time.
• C. Perform a quantitative risk analysis.
• D. Calculate the return on investment.

Correct answer: C

Explanation

The correct answer, C, is appropriate because a quantitative risk analysis involves numerically estimating the potential financial impacts of identified risks on the project. Option A, while useful, does not specifically focus on financial impact calculations. Option B is too narrow as it only addresses inflation without considering other risks, and option D is irrelevant because calculating the return on investment does not directly relate to assessing risk impacts.