Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis is the process of prioritizing individual project risks by assessing their probability of occurrence and impact on project objectives.
Explanation
Qualitative risk analysis is a rapid, subjective assessment that prioritizes risks for further analysis or direct response planning. It uses predefined scales (e.g., Very Low to Very High) for probability and impact, which are combined in a probability and impact matrix to produce a risk score for each identified risk.
Key techniques include risk probability and impact assessment, the probability and impact matrix, risk data quality assessment, risk categorization, and risk urgency assessment. The process also considers proximity (when the risk might occur), manageability, and the degree of stakeholder concern.
This process is typically fast and cost-effective compared to quantitative analysis. It is performed on all identified risks to separate high-priority risks that warrant detailed analysis or immediate response from lower-priority risks that can be placed on a watch list. The results update the risk register with priority rankings and may update the risk report with revised overall risk assessments.
Key Points
- •Prioritizes risks using probability and impact assessments
- •Uses the probability and impact matrix to calculate risk scores
- •Subjective assessment based on expert judgment and predefined scales
- •Separates high-priority risks from those placed on a watch list
Exam Tip
Qualitative analysis is always performed before quantitative analysis. It is faster and less costly, and it determines which risks merit the more rigorous quantitative approach.
Frequently Asked Questions
Related Topics
Probability and Impact Matrix
The probability and impact matrix is a grid that maps the probability of a risk occurring against its potential impact on project objectives, producing a risk score used to prioritize risks.
Risk Categorization
Risk categorization is the grouping of risks by their source, affected area, or other useful criteria to identify concentrations of risk exposure and common root causes.
Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis is the process of numerically analyzing the combined effect of identified individual risks and other sources of uncertainty on overall project objectives.
Risk Register
The risk register is a project document that records the details of individual project risks, including their identification, analysis results, response plans, and current status.
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