Perform Qualitative Risk Analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact (see Table 11-4 and Figure 11-5). Organizations can improve the project's performance effectively by focusing on high-priority risks. Perform Qualitative Risk Analysis assesses the priority of identified risks using their relative probability of occurrence, the corresponding impact on project objectives if the risks do occur, as well as other factors such as the time frame for response and the organization's risk tolerance associated with the projcct constraints of cost, schedule, scope, and quality. Such assessments rcflcct the attitude of the projcct team and other stakeholders to risk. Effective assessment therefore requires explicit identification and management of the risk attitudes of key participants in the Perform Qualitative Analysis process. Where these risk attitudes introduce bias into the assessment of identified risks, attention should be paid to evaluating bias and correcting for it.
Establishing definitions of the levels of probability and impact can rcducc the infiucncc of bias. The time criiicality of risk-rciatcd actions may magnify the importance of a risk. An evaluation of the quality of the available information on project risks also heips clarify the assessment of the risk's importance to the project.
Perform Qualitative Risk Analysis is usually a rapid and cost-effective means of establishing priorities for Plan Risk Responses, and lays the foundation for Perform Quantitative Risk Analysis, if required. Qualitative risk analysis should be revisited during the project's life cycle to stay current with changes in the projcct risks. This proccss can lead into Perform Quantitative Risk Analysis (Section 11.4) or directly into Plan Risk Responses (Section 11.5).
Table 11-4 Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs
1. Risk register
2. Risk management plan
3. Project scope statement
4. Organizational process assets
Tools &• Techniques
1. Risk probability and impact assessment
2 Probability and impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
1. Risk register updates
> Project scope statement
> Project scope statement
11.1 Plan Risk Management
' Risk management plan
> Risk register
• Organizational process assets
11.3 Perform Qualitative Risk Analysis
* Risk register updates
Figure 11-5. Perform Qualitative Risk Analysis Data Flow Diagram
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.