A Guide to Project Management

Team will measure the effectiveness of the risk

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Unformatted text preview: ng schedule delay. .3 Inputs to other processes. Risk identification may identify a need for further action in another area. For example, the WBS may not have sufficient detail to allow adequate identification of risks, or the schedule may not be complete or entirely logical. MP AM SA S 11.3 QUALITATIVE RISK ANALYSIS Qualitative risk analysis is the process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on project objectives. Qualitative risk analysis is one way to determine the importance of addressing specific risks and guiding risk responses. The time-criticality of risk-related actions may magnify the importance of a risk. An evaluation of the quality of the available information also helps modify the assessment of the risk. Qualitative risk analysis requires that the probability and consequences of the risks be evaluated using established qualitative-analysis methods and tools. A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST 133 ACROYMNS LIST Chapter 11--Project Risk Management 11.3.1 | 11.3.2.4 Trends in the results when qualitative analysis is repeated can indicate the need for more or less risk-management action. Use of these tools helps correct biases that are often present in a project plan. Qualitative risk analysis should be revisited during the project's life cycle to stay current with changes in the project risks. This process can lead to further analysis in quantitative risk analysis (11.4) or directly to risk response planning (11.5). Inputs Risk management plan Identified risks Project status Project type Data precision Scales of probability and impact .7 Assumptions .1 .2 .3 .4 .5 .6 Tools & Techniques .1 Risk probability and impact .2 Probability/impact risk rating matrix .3 Project assumptions testing .4 Data precision ranking Outputs .1 Overall risk ranking for the project .2 List of prioritized risks .3 List of risks for additional analysis and management .4 Trends in qualitative risk analysis results ment ment geE L geE PL P 11.3.1 Inputs to Qualitative Risk Analysis .1 Risk management plan. This plan is described in 11.1.3. .2 Identified risks. Risks discovered during the risk identification process are evaluated along with their potential impacts on the project. .3 Project status. The uncertainty of a risk often depends on the project's progress through its life cycle. Early in the project, many risks have not surfaced, the design for the project is immature, and changes can occur, making it likely that more risks will be discovered. .4 Project type. Projects of a common or recurrent type tend to have better understood probability of occurrence of risk events and their consequences. Projects using state-of-the-art or first-of-its-kind technology--or highly complex projects--...
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