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Probability of the risk event occuring

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1. Risk Quantification, i.e. determining the probability of the risk event occuring. Step 4, (Determine the numeric affect of the risks on the project), means we have to attach a numeric probability to each risk. Ratings such as High, Medium, and Low don't work for this process. Class, two questions arise:

1. Why does an identified risk event have to have a quantified ($) value attached?

2. How do you determine the probability of a risk event occurring?

2.  A work package is the lowest level of the WBS, but it may also be a task or sub-task, depending on how many levels you have. The general rule is that a work package should not be more than 80 hours of work. Class, what other "rules" are there for creating the WBS?

3. What is the difference between an "actively managed fund" and a "passive fund"?

4. How does diversification affect those two risk exposures?

Reference no: EM131586574

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