Table of Contents
Why Use a Probability and Impact Matrix for Prioritizing Project Risks?
Learn why the probability and impact matrix is the most commonly used tool for qualitative risk analysis in project management. See how it helps assess, visualize, and prioritize risks to protect project objectives.
Question
Which tool is commonly used for qualitative risk analysis in projects?
A. Gantt chart
B. Balance sheet
C. Probability and impact matrix
Answer
C. Probability and impact matrix
Explanation
A probability and impact matrix is a key tool in qualitative risk analysis because it helps the team assess and prioritize identified risks based on how likely they are to occur and how much they could affect project objectives if they do. By plotting risks on this matrix (e.g., low to high probability vs. low to high impact), the team can quickly see which risks deserve the most attention and resources, enabling focused planning of responses rather than treating all risks as equally important.