So, lets get started!!!
Once the risks have been identified, you need to answer two main questions for each identified risk:
1. What are the odds that the risk will occur,
2. If it does occur, what will its impact be on the project objectives?
You get the answers by performing risk analysis.
There are two main forms of Risk Analysis:
1. Qualitative Risk Analysis &
2. Quantitative Risk Analysis
Qualitative Risk Analysis
This is used to prioritize risks by estimating the probability of the occurrence of a risk and its impact on the project.
Quantitative Risk Analysis
This is used to perform numerical analysis to estimate the effect of each identified risk on the overall project objectives and deliverables.
Usually, you prioritize risks by performing qualitative analysis on them before you perform quantitative analysis. We will learn both one by one in the subsequent chapters.
Prev: Identifying Risks
Next: Performing Qualitative Analysis