Relying on Data Precision

Here's the truth about qualitative risk analysis: It's easy, fast, cheap, and not very reliable. One of the toughest parts of qualitative risk analysis is the biased, subjective nature of the process. A project manager and the project team must question the reliability and reality of the data that leads to the ranking of the risks. For example, Susan may have great confidence in herself when it comes to working with new, unproven technologies. Based on this opinion, she petitions the probability of the work to be a very low score.

However, because she has no experience with the technology due to its newness, the probability of the risk of failure is actually very high. The biased opinion that Susan can complete the work with zero defects and problems is slightly skewed because she has never worked with the technology before. Obviously, a low-ranked score on a risk that should be ranked high can have detrimental effects on the project's success.

Data precision ranking takes into consideration the biased nature of the ranking, the accuracy of the data submitted, and the reliability of the nature submitted to examine the risk scores. Data precision ranking is concerned with the following:

• The level of understanding of the project risk

• The available data and information about the identified risk

• The quality of the data and information of the identified risk

• The reliability of the data about the identified risk

Figure 11-5

The results of a probability-impact matrix create the risk score.

Risk Scores

Probability

0.9

0.05

0.09

0.18

0.36

0.72

0.7

0.04

0.07

0.14

0.28

0.56

0.5

0.03

0.05

0.10

0.20

0.40

0.3

0.02

0.03

0.06

0.12

0.24

0.1

0.01

0.01

0.02

0.04

0.08

0.05

0.10

0.20

0.40

0.80

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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Responses

  • jennifer
    What is data precision ranking?
    3 months ago

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