Project Portfolio Management Risk management is one of the core project knowledge areas, an essential and ongoing process which can be described as the methodical process of identification, analysis and response to project risks involving several major phases which are similar to all projects. Regardless of the methodology or approach, risk management processes generally include risk identification, analysis, risk response planning, risk monitoring and control. This article focuses on one of these major risk management processes, exploring what the risk analysis process in project management is by exploring useful tools and techniques. The Risk Analysis Process in Project Management The risk analysis process is what follows the Identification of Risks procedure and is distinguished by two clear categories: Qualitative and Quantitative Risk Analysis. Qualitative Risk Analysis is the process during which one prioritizes risks for further action by assessing their probability of impacting project development.
Increase your business agility with Clarizen’s project management software Quantitative Risk Analysis Process aims to numerically analyze the possibility of every risk and its effect on project objectives, as well as the degree of overall project risk. This procedure uses several techniques and methods such as data collection and representational techniques to determine the probability of achieving project objectives, to quantify the exposure to risks and develop a size and cost assessment schedule.
Risks constitute a common reality on all projects. One of the biggest challenges a project manager has to face is to not become overwhelmed by the number or magnitude of possible identified risks. Instead, a good project manager should have the ability to focus on the important elements that could threaten the project’s smooth operation and subsequently develop a risk response plan. The risk analysis process in project management is one of the most important procedures in project management and it aims to minimize the liabilities of the project and ensure its path to successful completion.
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