The use of low quality risk data may lead to a

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The use of low-quality risk data may lead to a qualitative risk analysis of little use to the project. If dataquality isunacceptable, it may be necessary to gather better data. Often, the collection of information aboutrisks is difficult,and consumes more time and resources than originally planned. The values used in theexample in Figure 11-10are representative. The numbers of steps in the scale are usually established whendefining the risk attitude of theorganization.11.3.2.4risk categorizationRisks to the project can be categorized by sources of risk (e.g., using the RBS), the area of the projectaffected(e.g., using the WBS), or other useful categories (e.g., project phase) to determine the areas ofthe project mostexposed to the effects of uncertainty. Risks can also be categorized by common root causes.This technique helpsdetermine work packages, activities, project phases or even roles in the project, which canlead to the developmentof effective risk responses.
11.3.2.5risk urgency AssessmentRisks requiring near-term responses may be considered more urgent to address. Indicators of prioritymayinclude probability of detecting the risk, time to affect a risk response, symptoms and warning signs,and therisk rating. In some qualitative analyses, the assessment of risk urgency is combined with the riskranking that isdetermined from the probability and impact matrix to give a final risk severity rating.11.3.2.6Expert JudgmentExpert judgment is required to assess the probability and impact of each risk to determine its locationinthe matrix shown in Figure 11-10. Experts generally are those having experience with similar, recentprojects.Gathering expert judgment is often accomplished with the use of risk facilitation workshops orinterviews. Theexperts’ bias should be taken into account in this process.11.3.3Perform Qualitative risk Analysis: outputs11.3.3.1Project documents updatesProject documents that may be updated include, but are not limited to:risk register updates.As new information becomes available through the qualitative riskassessment, the risk register is updated. Updates to the risk register may includeassessmentsof probability and impacts for each risk, risk ranking or scores, risk urgencyinformation or riskcategorization, and a watch list for low probability risks or risks requiringfurther analysis.Assumptions log updates.As new information becomes available through the qualitative riskassessment, assumptions could change. The assumptions log needs to be revisited to accommodatethis new information. Assumptions may be incorporated into the project scope statement or in aseparate assumptions log.11.4Perform Quantitative risk AnalysisPerform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks onoverallproject objectives. The key benefit of this process is that it produces quantitative risk information tosupport decisionmaking in order to reduce project uncertainty. The inputs, tools and techniques, and

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Term
Spring
Professor
N/A
Tags
Project Management, Project Management Institute, Project Management Body of Knowledge

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