Conquer the ARE Project Management Challenge 2025 – Master PjM with Style and Confidence!

Question: 1 / 400

In risk management, what does the "probability and impact matrix" assist in determining?

Quality metrics for the project

The severity of project completion

The likelihood and potential impact of risks

The probability and impact matrix is a critical tool in risk management used to evaluate and prioritize potential risks associated with a project. It helps project managers assess the likelihood of risks occurring (probability) and the potential consequences or effects of those risks should they materialize (impact). By placing risks on this matrix, project teams can visualize how severe each risk is and determine which risks require immediate attention or mitigation strategies. This strategic approach enables informed decision-making and prioritization, ensuring that resources and efforts are focused where they are most needed to minimize negative outcomes.

Quality metrics, the severity of project completion, or resource allocation are not the primary functions of the probability and impact matrix; therefore, they do not address the core purpose of this tool in risk management.

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Resource allocation for various tasks

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