When prioritizing risks based on probability and impact, which process are you engaging in?

Prioritizing risks based on probability and impact is a key aspect of the risk management process in project management. When engaging in this activity, you are essentially assessing risks in a qualitative manner, which involves evaluating the likelihood of each risk occurring and its potential impact on the project objectives if it does occur.

The process you are involved in is known as Perform Qualitative Risk Analysis. This process helps project managers categorize risks and prioritize them to focus on the most significant ones that require proactive management. Through qualitative analysis, risks are often analyzed using tools like probability and impact matrices that facilitate visualizing the severity of risks, allowing project teams to concentrate their resources effectively.

This contrasts with Perform Quantitative Risk Analysis, which involves numerical methods and models to analyze the likelihood of different outcomes and their financial impacts on the project. While the Identify Risks process is about determining what risks might affect the project, it does not involve analyzing them based on their probability or impact. The Plan Risk Management process is focused on defining how to conduct risk management activities for the project rather than prioritizing individual risks. Therefore, the correct identification of the process when prioritizing risks based on their probability and impact leads to the conclusion that you are engaged in Perform Qualitative Risk Analysis.