Certification Insider

The probability and impact matrix sounds very complicated, but the concept is actually something that most people use in their everyday life quite frequently, although in a simpler form.

The probability and impact matrix comes into play when the project manager or team members determine that a particular phase or activity within the project contains a certain amount of risk.  That risk needs to be quantified.

Each risk is given two sets of criteria which are then viewed on the probability and impact matrix. Each potential event is rated based on the likelihood that it will occur. It is also separately rated regarding how much of a problem would be created if it were to occur. The probability and impact matrix is used because it allows you to merge both of these components onto the same scale.

The matrix is used to review both sets of criteria at the same time. The result is that each potential risk can be designated as a low risk, a medium level risk or a high risk and then handled accordingly.

Now go ahead and open up your PMBOK Guide on page 292 and look at figure 11-10, which is an example of a probability impact matrix.  The probability that a particular even will happen is shown along the left side of the chart and the degree of impact is shown along the bottom.  

For example:  
If the probability level was very low (.10) and the potential impact was also low (.10), the score on the matrix would be a .01.  
If the probability level was medium (.50) and the potential impact was medium (.20), the score on the matrix would be .10.
If the probability level was higher (.70) and the potential impact was higher (.40), the score on the matrix would be .28.

The higher the matrix score, the higher the risk level associated with the item that is being analyzed.

The following PMP Exam Sample Question is taken from http://www.free-pm-exam-questions.com - The answer is at the very bottom:
 

What is the need for doing a qualitative risk analysis?

A) To develop options and actions to enhance opportunities and to reduce threats to project objectives.         

B) To determine which risk might affect the project.

C) To prioritize risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact.

D) To decide how to approach, plan and execute the risk management activities    

All our questions are updated to the latest PMBOK® Guide standard. Stop by at http://free.pm-exam-simulator.com and try it for 3 days. We are a PMI Registered Education Provider.

The correct answer is A.

Publisher's Note:
The correct answer is C. Our apologies for the typo error.

The preparation for your PMP Exam must include a thorough understanding of the concept of a schedule network diagram. This must include all of it’s subcomponents as well. Here are some important definitions:

Project Schedule Network Diagram:

This is a broad term used to encompass elements of the project from the planning stages through the completion of the project. Chronology is important so this diagram is always completed in a left to right manner.

Network Logic:

This is a collection of the logic that is related to building the various diagrams for the project.

Network Path:

This path is set to show the various series of activities that make up the project schedule network diagram. The series of scheduled activities are connected in a logical and flowing manner.

Subnetwork:

This is a subdivision of the main project diagram and it typically represents either a work package or a subproject. A subnetwork is frequently used to show possible or proposed conditions that may alter the schedule. An example is changes to the scope of the project.

Time Scaled Schedule Network Diagram:

This is a diagram tool that is typically used when you are scheduling a type of activity. An example is a bar graph that is drawn to show the positioning and length of the activity.

The following PMP® exam sample question is taken from http://www.free-pm-exam-questions.com - The answer is at the very bottom:

Who determines which processes from the process group will be employed to achieve

the desired objective?

A) The CEO

B) The most senior project team member.

C) Project manager & the project team

D) A project initiator external to the project organization

All our questions are updated to the latest PMBOK® Guide standard. Stop by at http://free.pm-exam-simulator.com and try it for 3 days. We are a PMI Registered Education Provider.

The correct answer is C.

New educational tool for PMP candidates launches today, providing unparalleled exam simulation.

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The PMP Exam Simulator™ was developed to provide an outstanding way for project managers worldwide to prepare for their PMP Exam.  Using PMP Exam Simulator™ enables students to prepare in a realistic environment.  Students also receive real-time practice exam results so they can track their progress and improve their confidence.

“We’re really excited about the PMP Exam Simulator,” Fichtner adds.  “You can access the questions over the internet from anywhere in the world, whenever it fits your schedule.  The questions are all based on the most recent version of the PMBOK Guide, so you can be sure that they are up-to-date and that there is good coverage of all the PMBOK Guide concepts.”

 
About OSP International

OSP International LLC is a project management training company headquartered in Silverado, California, specializing in exceptional products to help candidates prepare for the PMP® exam.  OSP International has been reviewed and approved as a provider of project management training by the Project Management Institute (PMI). As a PMI Registered Education Provider (R.E.P.), the company has agreed to abide by PMI established quality assurance criteria.

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For further information please contact:

Gwenn Doria
[email protected]
PO Box 863
Silverado, CA 92676 USA
Website:  www.pm-exam-simulator.com