Assignment:Performing Risk Analysis
How to determine if quantitative or qualitative risk analysis needs to be done on a project can take some time to research and decide.
Risk in general is a major part of any project and needs to be included in all projects, as depending on the risk, is depending on how to manage the project. In this scenario, Team D will discuss a real-world project and what techniques of risk should be used.
Qualitative Risk Analysis Techniques
Specific Risk Analysis Technique
Alternative Risk Analysis Techniques
Conditional impacts on risk assessment techniques may affect qualitative and quantitative methods differently. The objective of the risk analysis is comprehension of a probability of occurrence, the impact to activities, prioritization, and response design. A decision to follow quantitative risk assessment techniques requires modification if end-users do not maintain knowledge for an effective interface.
An example is a quantitative sensitivity analysis that reveals the new database cost for hardware and installation. Financial data is a finite expression of the cost impact on the organization. The risks in a tornado diagram may show cost parameters for different database systems from various vendors. A change in end-user abilities to operate the system may limit the database choices. The inability of employees and students to efficiently maneuver in individual databases results in an adverse impact on the organization. The expenditures for the new database do not meet the strategic objective of enhancing administrator and student capabilities to process billing, tuition, and dorm payment activities. This change necessitates a qualitative analysis to determine the status of end-user capabilities through examination of surveys or risk assessment matrix tools.
Conversely, a decision to initially employ a qualitative risk analysis is subject to modification. An example is a change of scope for database capabilities. An additional requirement to process student employee wages impacts the cost and availability of a database system. The initial qualitative analysis requires additional risk identification efforts. The change in scope negates survey, risk assessment matrix, or diagramming methods under a qualitative risk assessment. A qualitative assessment method under a decision tree analysis identifies the emerging cost impacts on the organization. Both examples of risk assessment modification result from scope changes or a failure to identify risks. The project manager should develop contingencies for changes that affect his or her ability to respond effectively.