K9N21-Project Management

A qualitative risk prioritizes the project which are identified on the basis of pre -defined rating scale. The risk score will be based on likelihood or probability of occurrence of same and also the behaviour impact on objectives of project whether they should occur. This type of risk is very much easy and quick to perform also no special software or tools are required for the same. The risk level ranking is preferred on a zero to one scale. The scale of a project will define the risk level of a project. Quantitative risk analysis uses the data which is verified in order to ascertain the risk effect in terms of cost overruns, scope creep, consumption of resources and also schedule delays. Key advantages of quantitative risk assessment are as under: (a) It is v ery much helpful to identify potential hazard that can be faced in each and every phase of completion; (b) QRA helps in identification to economic loss; (c) It helps in identification of accidental scenarios and also their consequences involved; (d) It damages the bas ic functionality of the system; (e) It identifies the strategies which needs to be controlled; (f) It identifies the measures that needs to be adopted in order to reduce the risk level; (g) QRA helps to reduce any negative impact involved and thus is very much helpful to increase outcome; Key advantage of qualitative risk assessment are as under: (a) Easy Presentation: The outcome of the same risk can be presented very easily and graphically on the basis of risk assessment matrix. A higher level manager can use risk asses sment matrix in order to communicate the risk management strategy to team member or senior level management. (b) Simple assessment method : The team members of a project do not require any training in order to conduct the qualitative risk analysis, the same do es not depend or rely or any complex tool or involved software; (c) Very much easy prioritisation; (d) Not required to ascertain any frequency : this type of risk analysis results are not dependent on the frequency of occurrence and accordingly the team performing the analysis can also properly save time by not ascertaining interval and also the exact time of each risk; (e) Time saving in terms of cost and schedule Difference between qualitative risk and quantitative risk Risk assessment approach Qualitative risk ass essment: The above risk is basically a subjective approach that primarily focus on identification of risk for measuring the occurrence possibility of the risk event during the whole life of a project. Identification of severity is the principal goal here. Quantitative Risk assessment: This type of risk is basically an objective approach wherein the involved data are verified are also used to analyse the effect of risk involved; Level of complexity Qualitative risk assessment : This type of risk analysis is very much complex in form as it does not involve any maths and hence it is very much important that one must be aware how to rank the risk and expertise is required. Quantitative risk assessment : In the quantitative risk assessment, direct calculation an d tools may be applied Speed: Quantitative risk assessment is fast and quick as compared to qualitative.