Question

Support your answer with a proper explanation.

Problem 1:

The following figure shows a probability-impact (or risk mapping) matrix that is frequently used as part of the risk analysis prioritization process. Here, ordinal probability-of-occurrence and consequence-of-occurrence risk scales are used (5, 4, 3, 2, 1 correspond to E, D, C, B, A since the actual scale coefficients are unknown). In this figure, L represents a low risk, which would generally be a risk acceptable to the project manager. The letter M represents a low risk, which would generally be a risk response. The letter H represents a higher risk, which need one or more risk responses. What are the advantages of using a high-moderate-low (or red-yellow-green) risk designation as opposed to assigning quantitative numbers to each cell and risk level (e.g., 5 x 5 = 25 to 1 x 1 = 1)?

Level Likelihood of Occurrence Near certainty D Highly Likely C Likely B Unlikely Remote Level Lkelhood of Occurrence 5 Unacceptable Acceptable with no remaining margin Acceptable with significant reduction in margin 2Acceptable with some reduction in margin

Answer 1

These re the helle win e the a that nambers are iredi are achrally urre