Preparing for Quantitative Risk Analysis Pmbok Section

Quantitative risk analysis attempts to numerically assess the probability and impact of the identified risks. It also creates an overall risk score for the project. This method is more in-depth than qualitative risk analysis and relies on several different tools to accomplish its goal.

Qualitative risk analysis typically precedes quantitative risk analysis. All or a portion of the identified risks in qualitative risk analysis can be examined in the quantitative analysis. The performing organization may have policies on the risk scores in qualitative analysis, which require the risks to advance to the quantitative analysis. The availability of time and budget may also be a factor in determining which risks should pass through quantitative analysis. Quantitative analysis is a more time-consuming process, and is, therefore, also more expensive. The goals of quantitative risk analysis are to:

• Quantify the cost and impact of the risk exposure

• Ascertain the likelihood of reaching project success

• Ascertain the likelihood of reaching a particular project objective

• Determine the risk exposure for the project

• Determine the likely amount of the contingency reserve needed for the project

• Determine the risks with the largest impact on the project

• Determine realistic time, cost, and scope targets

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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