Discover the meaning of risk probability in the PRINCE2 methodology. Learn how it measures the likelihood of a risk occurring and its impact on project objectives.
Table of Contents
Question
Which describes risk probability?
A. Level of risks which the project can tolerate before escalating to the Project Board
B. Probable effect on the project delivering its objectives
C. Timeframe within which the risk may occur
D. A measure of the likelihood of the risk occurring
Answer
D. A measure of the likelihood of the risk occurring
Explanation
In the context of PRINCE2, risk probability refers to the likelihood that a particular risk will materialize during the course of a project. It is a key component in assessing and managing risks effectively.
Risk probability is determined by analyzing various factors such as historical data, expert judgment, and the current project environment. By assigning a probability value to each identified risk, project managers can prioritize their risk management efforts and allocate resources accordingly.
It is important to note that risk probability does not address the impact or timeframe of the risk, but rather focuses solely on the chances of it happening. The other aspects mentioned in the options, such as risk tolerance levels, impact on project objectives, and timeframe, are separate considerations in the risk management process.
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