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ProPM Logo Perform Quantitative Risk Analysis    
   
   
   
   
   
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The Perform Quantitative Risk Analysis process numerically analyzes;

  • The effect of identified risks on overall project objectives.

Quantitative risk analysis should be repeated, as needed;

  • As part of the control risk process;
  • To determine if overall project risk has been satisfactorily decreased.
  • Trends may indicate the need/amount of focus on appropriate risk management activities.

The key benefit of Performing Quantitative Risk Analysis is that it;

  • Produces quantitative risk information;
    • To support decision making.
    • In order to reduce uncertainty.

Quantitative risk analysis is performed on risks;

  • Prioritized by qualitative risk analysis process;
  • As potentially & substantially, impacting the project's competing demands.
  • Quantitative risk analysis analyses the effect of those risks on project objectives;
    • Used most often to evaluate the aggregate effect of ALL risks affecting the project.
  • Risks may be numerically prioritized to the extent they drive the process

Quantitative risk analysis generally follows the same processes as qualitative risk analysis.

In some cases it may not be possible to perform quantitative risks analysis due to;

  • Lack of sufficient data to develop appropriate models.

A project manager should use expert judgment to determine;

  • Need for;
  • Viability;

Of quantitative risk analysis;

  • Availability of time & budget.
  • The need for qualitative or quantitative statements about risks & impacts;
    • Which method (s) to use on any particular project.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
           
   
   
   
   
   
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Risk Management          
Plan execution          
Perform Quantitative Risk Analysis          
           
           
Process Inputs          
Risk Mgmt Plan          
Cost Mgmt. Plan          
Schedule Mgmt. Plan          
Risk register          
enterprise environmental factors          
organizational process assets          
           
           
Tools and Techniques          
Data Gathering & Rep. Tech.          
Quant Risk Ana. & Mod. T.          
expert judgment          
           
           
Process Outputs          
Proj. doc. updates          
           
           
Process Benefits          
Quantitative risk analysis further analyzes high priority risks from qualitative analysis. Quantitative analysis further reduces total risk uncertainty by adding a firm numerical component to decision making.          
         
         
         
         
         
         
         
   
   
   
   
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