Examining the Results of Quantitative Risk Analysis

Quantitative risk analysis is completed throughout the project as risks are identified and passed through qualitative analysis, as project conditions change, or on a preset schedule. The end result of quantitative risk analysis should be reflected in the risk register and includes the following:

• Probabilistic analysis The risks within the project allow the project manager or other experts to predict the likelihood of the project's success. The project may be altered by the response to certain risks; this response can increase cost and push back the project's completion date.

• Probability of costs and schedule objectives Based on the identified risks, their impact, and the probability of occurrence, forecasts for the project schedule and the project costs are created. The more negative the risks that occur within a project, the greater the chance of delays and increased costs.

• A prioritized list of risks This list of quantified risks demonstrates those with the highest potential for endangering the project's success. This list includes the risks that have the greatest opportunity to affect the project. Each risk is identified with its probability and impact.

• Trends As the project moves towards completion, quantitative risk analysis may be repeated over and over. In each round of analysis, trends in the identified risks may become visible. These trends can help the project team eliminate the root cause of the risk, reduce their probability, or control their impact.

Project Management Made Easy

Project Management Made Easy

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.

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