You are the project manager for your organization.
You are preparing for the quantitative risk analysis.
Mark, a project team member, wants to know why you need to do quantitative risk analysis when you just completed qualitative risk analysis.
Which one of the following statements best defines what quantitative risk analysis is?
Click on the arrows to vote for the correct answer
A. B. C. D.have been prioritized through the qualitative risk analysis process.
Answer: A is incorrect.
This is actually the definition of qualitative risk analysis.
Answer: B is.
Quantitative risk analysis is the process of numerically analyzing the effect of identified risks on overall project objectives.
It is performed on risk that statement about the quantitative risk analysis process.
Risk response planning is a separate project management process.
Quantitative risk analysis is a process that involves numerically analyzing the potential effect of identified risks on overall project objectives. It is an important step in the risk management process that allows project managers to make informed decisions regarding risk response planning and budgeting. This process is typically done after qualitative risk analysis, which is a process that identifies and assesses project risks based on their likelihood of occurring and potential impact.
Quantitative risk analysis goes beyond the qualitative analysis by providing more detailed information about the risks, such as the likelihood of the risk occurring, the magnitude of the potential impact, and the overall level of risk to the project. This analysis is done using mathematical models and techniques to estimate the likelihood and impact of each risk event, as well as the overall project risk.
Quantitative risk analysis helps project managers to prioritize risks for further analysis or action by assessing and combining their probability of occurrence and impact. This prioritization allows project managers to focus on the risks that are most likely to occur and have the greatest potential impact on the project objectives. This helps to ensure that resources are allocated to address the most significant risks, while also avoiding wasting resources on risks that are less likely to occur or have a lower impact on the project.
In summary, quantitative risk analysis is a numerical process that helps project managers to better understand the potential impact of risks on their projects. It provides more detailed information about the risks than qualitative analysis, which enables project managers to make more informed decisions regarding risk response planning and budgeting.