Scrum Master Certified (SMC) — Question 16

While performing a cost-benefit analysis, the Product Owner of a project determined that the project has 45% probability of incurring a loss of $800,000 due to the latest Land Reform Bill. Which of the following techniques is being used by the Product Owner to perform cost-benefit analysis?

Answer options

• A. Expected Monetary Value.
• B. Probability Impact Grid.
• C. Pareto Analysis.
• D. Risk Breakdown Structure.

Correct answer: D

Explanation

The correct answer is D, as the Risk Breakdown Structure helps identify and analyze risks associated with a project, such as potential losses from legislative changes. The other options do not directly relate to assessing risk in the manner described in the scenario.