Introducing Project Risk Management - Using Qualitative Risk Analysis

9 important questions on Introducing Project Risk Management - Using Qualitative Risk Analysis

What is the core of qualitative risk analysis?

  • It examines and prioritizes the risks based on their probability of their occurrence and the impact on the project if they did occur.
  • The ranking of the risks by priority guides the consecutive risk reaction process.

In preparing qualitative risk analysis, what are important things to keep in mind for the project manager?

  • To evaluate the risk management plan
  • To use the risks from the risk register
  • Look at the status of the project and the project type
  • Check the data behind the risks
  • Use the risk management model of the organization
  • Check the assumptions

What are the four things are determined as a results of risk ranking?

  • Risks that require additional analysis
  • Which risks may be proceeded directly in risk response planning
  • The non-critical risks
  • It prioritizes risks
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What are the approaches that exist for ranking risks?

  • Cardinal scales (0.01 - 1.0)
  • Ordinal scales - common terms like very likely or RAG

What is risk score? What categories are used for risk scoring?

When the risk probability is multiplied with the risk impact. The categories that are commonly used are:
  • Red condition - high impact , high probability
  • Amber condition - higher in impact and probability
  • Green condition - low in impact and / or probability

What is the purpose of data precision ranking?

It takes into consideration
  • the biased nature of the ranking
  • the accuracy of the data submitted
  • and the reliability of the biased ranking submitted

to examine risk scores

Data precision ranking - what is it concerned with

  • level of understanding of project risk
  • available data and information
  • quality of the data and information
  • reliability of the data about the identified risk

What do we mean with imminent vs distant risks?

Imminent risks are usually considered of higher urgency than distant risks. In this perspective the risk ranking, the time needed for risk response and the risk conditions should be considered.

Which end results of risk ranking should be fed back into the risk register?

  • The overall risk ranking of the project
  • Risk categories
  • Near-term risks
  • Risks requiring additional analysis
  • Low priority watch list
  • Trends in qualitative analysis - allowing the project manager to respond to root causes, predict trends to eliminate, or respond to the risks within the project.

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