According to the PMBOK® Guide (Project Management Body of Knowledge), specifically within the Project Risk Management knowledge area and the Perform Qualitative Risk Analysis process, risks are prioritized by calculating a risk score or rating.

The Calculation: The risk rating (also known as the risk score) is determined by multiplying the probability of the risk occurring by the impact it would have on project objectives if it does occur. The formula used is:

$$\text{Risk Rating} = \text{Probability} \times \text{Impact}$$

$$\text{Risk Rating} = 0.30 \times 0.20 = 0.06$$

Probability and Impact Matrix (Option B): This calculation is a standard component of the Probability and Impact Matrix, a tool used to rank risks as low, medium, or high. In this specific case, the mathematical result is 0.06.

PMI Context: The values for probability and impact are usually defined in the Risk Management Plan. By quantifying these qualitative descriptors (like " Moderate " ), the Project Manager can objectively compare different risks and focus the team ' s attention on the most critical threats or opportunities.

In the PMI framework, the Perform Qualitative Risk Analysis process allows for a quick and cost-effective way to prioritize risks, ensuring that the project team allocates resources to the most significant risks identified in the Risk Register.