A project manager is assessing risks for a new software development project. One identified risk has a probability of 0.6 and an impact rating of 0.8 on a scale from 0 to 1. What is the risk score for this particular risk?
0.48
0.68
0.14
1.4
The correct answer is 0.48. The risk score is calculated by multiplying the probability of the risk occurring by its impact. In this case, the probability is 0.6 and the impact is 0.8. Therefore, the risk score is 0.6 x 0.8 = 0.48.
This calculation helps project managers prioritize risks based on their overall significance to the project. A higher risk score indicates a more critical risk that may require immediate attention or more robust mitigation strategies. Understanding how to calculate risk scores is essential for effective risk management and decision-making throughout the project lifecycle.
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