Qualitative Risk Analysis Steps

How can you perform risk analysis steps in a project?

Photo by Lubo Minar on Unsplash

Qualitative risk analysis steps are continuous and repeated processes.

Step 1: Gather Data

Whether you’re using predictive or agile approaches, your risk management plan should define how and when to conduct the analysis. The first step is Gathering Data. Here we collect background materials that will assist in the analysis, which includes the following:

• The risk management plan
• Project documents such as: Assumption log, risk register, stakeholder register
• In addition, you may benefit from industry studies of similar projects, published material, including commercial risk databases or checklists.
• And Information from similar past projects at your organization

Step 2: Assessing the Risks.

Probability of occurrence and impact are the key factors used to assess risk. But other risk characteristics should be of concern: These are;

• Urgency: The period of time within which a response to the risk must be implemented in order to be effective.
• Proximity: The period of time before the risk might have an impact on project objectives.
• Dormancy: The period of time that may elapse after a risk has occurred before its impact is discovered.
• Controllability: The degree to which the risk owner is able to control the risk’s outcome.
• Detectability: The ease with which the results of the risk occurring or about to occur can be detected.
• Connectivity: The extent to which the risk is related to other individual project risks.
• Strategic impact: The potential for the risk to have a positive or negative effect on the organization’s strategic goals.

Then prioritize the risks using descriptive terms (e.g., low, medium, high) or numeric values, depending on the specifications of the risk management plan. More than three categories may be used.

Consider visualizing data for example:

• A probability and impact matrix lets you map two factors
• A bubble chart lets you map three factors (such as detectability, along with probability and impact)

Ref: PMBOK 6th Edition — PMI.org

Step 3: Update Project Documents

Updating your project documents to reflect what you’ve learned. For example; Risk register. This document shows which risks are present currently and their relative priority.