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Introduction


- Perform Qualitative Risk Analysis is the process of identifying the high-priority risks by combining the probability and impact of the listed risks.
- This process can be followed by the quantitative risk analysis wherein the impact on the project objectives can be assessed.
- This process is iterative all through the project life cycle in order to identify and rank new risks as they are identified.
- This process also deals with factors like risk urgency assessment or risk data quality assessment so that the right project risks are handled at the right point as part of the risk management process.
- As part of this process, risk response planning is also kept in mind so, risks are categorized in this process.

Inputs


- Risk Register: List of identified risks needing analysis using probability and impact values.
- Risk Management Plan: Mainly PI Matrix definition and process to conduct qualitative risk analysis - roles and responsibilities.
- Scope baseline: Scope baseline helps to understand the complexity of the project and also to assign PI values.
- OPA: Lessons learnt from prior projects
- EEF: Industry study of similar projects, external factors can have an effect on the pi values of the identified risks.

Tools & Techniques


- Risk Probability and Impact assessment: The probability of risk occurrence and their impact on the project objectives is provided a value as per rating definitions decided in the risk management plan. This process might be through meetings or interviews and knowledgeable people in the form of project team or external consultants might be included in the process. Risks with low PI values are added to the watch list within the risk register and are used for future analysis.
- Probability and Impact matrix: After assigning a probability and impact values, the product of probability and impact values is calculated and this value is checked against a matrix that ranks risks as low, medium or high based on the range of the value. This lookup table is part of organizational process assets and it can be tailored based on the project risk acceptance criteria and is part of the risk management plan. Based on the risk ranking, response strategies will be planned.
- Risk Data Quality Assessment: As it is important to rank and find high-priority risks, it is also important to work with good quality of risk data that is reliable and anticipates the actual project scenario. So, while coming up with the PI matrix, a check of quality of data is also performed. Too many risks in the monitor list might mean the quality of data is not good.
- Risk Categorization: Categorizing risks based on project phase or WBS Components or resources can help in delivering effective responses as a one-shot solution.
- Risk Urgency Assessment: How urgently the risk needs to be dealt with is also a criteria to bring it on top of the list of high priority risks. So, the urgency is also factored in while coming up with the PI matrix.
- Expert Judgment: Useful in coming up with the PI values and also finally rate it according to the pi matrix decided for the project in the risk management plan.

Outputs


- Project Doc Updates:
-> Risk Register Updates: PI value updates, risk ranking, urgency information, risk categorization, watch list update
-> Assumptions log updates: Change in assumptions based on qualitative risk analysis

Match the Following


1. Watch List - a. Common Response
2. Risk Categorization - b. Low-Priority Risks
3. Perform Qualitative Risk Analysis - c. Numerical Value for Project Impact
4. Perform Quantitative Risk Analysis – d. Risk Ranking

Match the Following (Answers)


1. Watch List - b. Low-Priority Risks
2. Risk Categorization - a. Common Response
3. Perform Qualitative Risk Analysis - d. Risk Ranking
4. Perform Quantitative Risk Analysis – c. Numerical Value for Project Impact