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Learn about Qualitative and Quantitative Risk Analysis, Risk Responses, and essential tools like Probability/Impact Matrix, Decision Trees, and expert judgment for effective risk management in projects. Gain insights into assessing risks, data gathering, and modeling techniques to mitigate potential threats and enhance project success.
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Project Risk Management Everything is sweetened by risk. ─ Alexander Smith But boundless risk must pay for boundless gain. ─ William Morris
Qualitative Risk Analysis • Assessing the likelihood & impact of identified risks, to determine their magnitude & priority (Schwalbe, 2006, p. 441) • Qualitative Tools: • Probability/Impact Matrix (p. 442) • Top Ten Risk Item Tracking (p. 446) • Expert Judgment (p. 446 – 447)
Quantitative Risk Analysis • Includes data gathering, quantitative risk analysis, & modeling techniques • Can follow Qualitative Risk Analysis, or both can be done together, or separately • Quantitative Tools: • Decision Trees (p. 448) • Simulation (p. 449) • Sensitivity Analysis (p. 452)
Risk Responses • Avoidance – eliminate cause of risk • Acceptance – accept consequences • Transference – shift consequence to 3rd party • Mitigation – reduce impact of risk