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You are the project manager of your enterprise. While performing risk management, you are given a task to identify where your enterprise stand in certain practice and also to suggest the priorities for improvements. Which of the following models would you use to accomplish this task?
A. Decision tree model
B. Fishbone model
C. Explanation:
Capability maturity models are the models that are used by the enterprise to rate itself in terms of the least mature level (having nonexistent or unstructured processes) to the most mature (having adopted and optimized the use of good practices). The levels within a capability maturity model are designed to allow an enterprise to identify descriptions of its current and possible future states. In general, the purpose is to: Identify, where enterprises are in relation to certain activities or practices. Suggest how to set priorities for improvements
D. Capability maturity model
E. Simulation tree model
Answer: D
is incorrect. There is no such model exists in risk management process. Answer:B is incorrect. Decision tree analysis is a risk analysis tool that can help the project manager in determining the best risk response. The tool can be used to measure probability, impact, and risk exposure and how the selected risk response can affect the probability and/or impact of the selected risk event. It helps to form a balanced image of the risks andopportunitiesconnected with each possible course of action. This makes them mostly useful for choosing between different strategies, projects, or investment opportunities particularly when the resources are limited. A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. Answer:C is incorrect. Fishbone diagrams or Ishikawa diagrams shows the relationships between the causes and effects of problems.

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