Project risk is calculated by ______.
A)historical experience with projects succeeding or not succeeding
B)the subjective judgment of the project manager
C)multiplying the likelihood of event happening with consequences of event
D)dividing the likelihood of event happening with consequences of event

Question

Quizplus · Accepted Answer

Project risk is calculated by multiplying the likelihood of an event happening with the consequences of that event. This approach accounts for both the probability of the risk occurring and the potential impact it could have on the project. Historical experience and the subjective judgment of the project manager can also inform risk assessment, but they are not the primary method for calculating project risk. Option D is incorrect as dividing the likelihood of an event happening with consequences of an event would not provide a meaningful measure of risk.

Project Risk Is Calculated by ______