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Exam CRISC topic 1 question 305 discussion

Actual exam question from Isaca's CRISC
Question #: 305
Topic #: 1
[All CRISC Questions]

Your project has several risks that may cause serious financial impact if they occur. You have studied the risk events and made some potential risk responses for the risk events but management wants you to do more. They'd like you to create some type of a chart that identified the risk probability and impact with a financial amount for each risk event. What is the likely outcome of creating this type of chart?

  • A. Risk response plan
  • B. Contingency reserve
  • C. Risk response
  • D. Quantitative analysis
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Suggested Answer: B 🗳️
This chart is a probability-impact matrix in a quantitative analysis process. The probability and financial impact of each risk is learned through research, testing, and subject matter experts. The probability of the event is multiplied by the financial impact to create a risk event value for each risk. The sum of the risk event values will lead to the contingency reserve for the project.
Incorrect Answers:
A: The risk response plan is based on the risk responses, not the risk probability-impact matrix.
C: The risk responses are needed but this chart doesn't help the project manager to create them.
D: This chart is created as part of quantitative analysis.
by Joloms at June 4, 2024, 11:11 p.m.

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Joloms
1 month, 1 week ago
The likely outcome of creating a chart that identifies risk probability and impact with a financial amount for each risk event would be: D. Quantitative analysis. This type of chart allows for a quantitative assessment of the risks by assigning numerical values to both the probability of occurrence and the potential impact, often in financial terms. Quantitative analysis helps in prioritizing risks based on their potential impact on the project's objectives and allows for better decision-making regarding risk response strategies. It provides a clear understanding of the potential financial consequences associated with each risk event, aiding in the allocation of resources and the establishment of contingency reserves if needed.
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