11.3 Perform Qualitative Risk Analysis
Process Definition
Qualitative Risk Management is the process of prioritizing risks based on their probability of occurrence and their impact on project objectives should they occur. This prioritization identifies the risks that need immediate attention vs. those that can wait to be acted on later.Process Assessment
Qualitative risk analysis is a very easy-to-use process that provides a great visual tool for managing and reporting risk. I've used this often in my professional career and it is an excellent tool for managing stakeholder expectations.
Figure 23. Perform Qualitative Risk Analysis: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 328. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
- Probability/Impact Matrix: Example probability and impact assessment scales for qualitative risk analysis. These scales are subjective and should not replace customer requirements or organizational process assets. Assessment scales are a tool for risk analysis.
- Risk Probability and Impact Assessment: Marine Corps Order 3500.27B is the "Operational Risk Management" document providing policy guidance and assigning responsibility for standardized operational risk management in the Marine Corps. On page 5 (PDF page 9) it has an impact assessment scale broken down into 4 categories ranging from "minimal threat" to "death." This is an interesting expansion from the typical impact assessment scales for scope, schedule, budget and quality. That table is provided here. Assessment scales are a tool for risk analysis.
- Risk Register Example: This is an example of an updated risk register with the results of qualitative risk analysis included. This is the primary output of the Qualitative Risk analysis process.