Final answer:
The matrix that is used to help determine which risks require detailed risk response plans by analyzing the probability of occurrence and impact of the risks is the Risk Probability-Impact Matrix. The correct option is c.
Step-by-step explanation:
The matrix that defines a combination of risk probability and risk impact to determine which risks need detailed risk response plans is known as the Risk Probability-Impact Matrix. This matrix provides a framework for evaluating risks based on their likelihood of occurrence and the severity of their consequences.
It is used in risk management to prioritize risks and devise appropriate mitigation strategies. By placing risks within this matrix, project managers and stakeholders can visually understand which risks pose the greatest threat to the project and should, therefore, receive the most attention and resources.
In risk management, it's essential to weigh potential risks against the planned responses. The plan should strive for a balance between over-preparation for unlikely events and under-preparation for potential high-impact risks.
For instance, asymmetric risk situations involve decisions where the consequences of underestimating risks are much greater than those of overestimating them. Therefore, in some cases, a more conservative approach might be warranted, even if the probability of the event is not high, as the impact of that event could be catastrophic. The correct option is c.