Qualitative Risk Analysis - Purpose and Objectives
PERFORM QUALITATIVE RISK ANALYSIS
Welcome to “Perform Qualitative Risk Analysis”, lesson 7 of this course. After the “risk management plan and identify risk” we need to carry out the analysis part for each risk. There are two types of analysis namely qualitative analysis and quantitative analysis. This lesson is about “perform qualitative risk analysis.” In the next slide we will look into the agenda of this lesson.
In this lesson, we will understand the purpose and objectives of perform qualitative risk analysis process. We will also understand the critical success factors for perform qualitative risk analysis process, tools and techniques for perform qualitative risk analysis process, and how to document the results of perform qualitative risk analysis process. Next let’s look at these agendas one by one from the next slide.
In the previous lesson, we looked into the process of identifying risks on the project. It is practically impossible to deal with all the risks on the project at the same time with same weightage and therefore the need to prioritize the risks on the project is important. The “perform qualitative risk analysis process” enables the project manager and the team to prioritize the risks on the project by assigning a probability and impact number and arriving at the risk exposures of the risks. The risks are prioritized by risk exposures. So, the purpose and objective of qualitative risk analysis is to assess and evaluate characteristics of individually identified risk and prioritize them based on the agreed-upon characteristics. Assessing individual risk evaluates the probability that each risk will occur and effect on the project objectives. Categorizing risks according to their sources or causes will help in filtering them out. Qualitative risk analysis is used to determine the risk exposure of the project by multiplying the probability and impact.
In the next slide we will discuss about the critical success factors or CSF for “The perform qualitative risk analysis process.”
Agreement of the stakeholders is a fundamental criterion and a common theme. Now let’s look into the critical success factors for qualitative risk analysis.