Project Risk Analysis Report for Project Management - University

This report provides a detailed analysis of project risk, focusing on the risk management process and qualitative risk analysis. It defines risk and its components, including probability and impact, and explains their relationship. The report outlines the risk analysis process, distinguishing between qualitative and quantitative approaches, and highlights the inputs and outputs of qualitative risk analysis. It also describes tools and techniques used in qualitative analysis, such as brainstorming, SWOT analysis, and expert judgment, with a particular emphasis on the risk matrix as a tool for clear risk assessment. The report explains the components of a risk matrix, including performance, likelihood, and schedule scores, and how probability and impact scores correlate directly with the level of risk. Finally, the report provides references to support the analysis and concepts discussed.

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Project
Risk Analysis | Risk Qualification
Student
ID
University

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Risk is defined as any untoward occurrence which has negative results in the process and has
negative impact on overall functioning of an organization.
Risk Analysis is assessment of risks and prioritizing the risks through set of tools and techniques
in order to assess the damage to be done due to particular Risk.
Risks has two Primary components,
These are, 1. Risk Probability or in other terms Probability of occurrence of any risk
And the other component is 2. Impact of particular risk.
Risk Analysis is part of overall Risk Management Process.
The Figure below is highlight of complete Risk Management Process.
Figure 1

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As mentioned in figure 1, Risk Analysis is to find out answers for, what are the likelihood and
consequences of the risk?
Risk Analysis is done in two ways,
1. Qualitative Risk Analysis, &
2. Quantitative Risk Analysis
Qualitative Risk Analysis is defined as analyzing the risk qualitatively. In other words
detailed description analysis of risk is carried out in Qualitative Risk Analysis. Qualitative
Risk analysis doesn’t counts the numerical values of probability or impact values; it depends
on describing the probability and impact of the risks (Bansal, S., 2014).
Qualitative Risk Analysis inputs are Risk register, Risk Management Plan, Scope Baseline &
historical evidences helpful to find out accurate analysis reports.
Qualitative Risk Analysis outputs are Probability matrix description, Impact scores
description and conclusion or comment section (Stackpole, C.S., 2017).
Relationship between Risk Analysis, Probability and Impact (Consequences) is,
Risk = f (probability, consequences)

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Figure below gives appropriate overall relationship
Tools and Techniques used for Qualitative Risk Analysis are,
 Brainstorming
 SWOT Analysis
 Cost Analysis
 Decision drivers
 Expert Judgment
 Root cause investigations (DoD Guide, 2015)
Figure 2

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Figure below describes the Risk Matrix,
Risk Matrix is set of tool which helps in describing the risk analysis in crystal clear manner.
The components of Risk matrix are
Red (High Risk), Yellow (Moderate Risk), Green (Low Risk).
Accordingly the scores are set in the matrix and yield the results of overall risk analysis.
Risk Matrix components include performance scores, Likelihood scores, Schedule scores.
Its time effective analysis hence yields Analysis in crystal clear manner.
Figure 3

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A clearly defined Probability and Impact scores makes all the difference in overall risk
analysis assessments. As defined in the formula above, i.e.
Risk = f (probability, consequences)
Probability and Impact have direct correlation with the Risks. Higher the probability and
consequences score higher will be the Risk. Lower the Probability and Consequences scores
lower will be the Risk. Milder or Moderate the Probability and consequences score milder
will be the risk (Kerzner, H., 2009).
References
1. Bansal, S. (2014). Differences between Quantitative and Qualitative Risk Analysis.
iZenBridge (Accessed from: https://www.izenbridge.com/blog/differentiating-
quantitative-risk-analysis-and-qualitative-risk-analysis/ (Accessed on: 20.03.2017).
2. Stackpole, C.S.Qualitative risk analysis inputs and outputs you should know for
PMP exam (Accessed from: http://www.dummies.com/careers/project-
management/pmp-certification/qualitative-risk-analysis-inputs-and-outputs-you-
should-know-for-the-pmp-certification-exam/ (Accessed on: 20.03.2017).
3. DoD Guide. (2015). Risk, Issue, and, Opportunity Management Guide for defense
acquisition programs,Pg. 5.
4. Kerzener, H.(2009). Project Management: A systems approach to Planning,
Scheduling, and Controlling. Tenth Edition, John Wiley & Sons, Inc.