Your Project Has Several Risks That May Cause Serious Financial

question 127

Multiple Choice

Your project has several risks that may cause serious financial impact should they happen. 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 for 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) Quantitative analysis
• B) Risk response plan
• C) Contingency reserve
• D) Risk response

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Definitions:

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity.

Child's Toy

Any item designed for use in play by children, often to provide entertainment while also encouraging learning and development.

Break-Even Sales Increase

The amount of additional sales needed to cover the costs of a new investment or project, without incurring any loss.

Effective Annual Rate

The interest rate on an investment or loan, which takes compounding into account and is expressed as an annual rate.