Which Process Involves Prioritizing Risks Based on Their Probability of Occurrence

question 40

Multiple Choice

 Which process involves prioritizing risks based on their probability of occurrence and impact?

• A) performing qualitative risk analysis 
• B) planning risk management
• C) monitoring and controlling risks 
• D) project closing 

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Definitions:

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Loan Period

The duration of time from the initiation of a loan to its final due date, within which the borrower is expected to repay the borrowed amount along with interest.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Economic Resource

Assets, materials, or inputs used to produce goods and services and satisfy human wants, including land, labor, capital, and entrepreneurship.