Importance Of Qualitative Risk Analysis

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The purpose of performing the qualitative risk analysis is to take the risks and rank them from low to high depending on the chances of the risk occurring. The higher the chance of the risk occurring, the higher the risk is. “Perform Qualitative Risk Analysis is the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.”(Project Management Institute, 2013, p. 328) Throughout a project life cycle, a Perform Qualitative Risk Analysis is usually performed. By performing this analysis it can aide in creating a Plan Risk Responses Analysis for a low cost. In our “Project risk management guidelines: Managing risk in large projects and complex procurements” textbook, Cooper …show more content…
If 50 risks were found and some of those risks were costs risks, and no further action were taken for those risks such as creating a contingency plan. The project sponsor could possibly pull all funding from the project or refuse to move forward with the project until further research is done on the risks. Another possible problem that could happen if you have so many risks without them being in any particular order is not being able to take the risks and rank them from low to high depending on the chances of the risk occurring and the possible consequences. When you are unable to rank your risks, you might end up working on a low risk instead of a high risk and the consequences can affect other aspects of the projects causing more problem with in …show more content…
Stakeholders could be biased in regarding risks because, of their own personally needs and feelings. This can undermined the projects outcome. For example if a stakeholder wants the project done faster, so he can leave for his vacation. He might say some of the risks are not that high and try to persuade the team to skip preventable steps for that risk. “We all have biases; many are helpful. In projects, we have biases towards successful projects and motivated teams. If a project sponsor says that schedule is the top priority, the project team has a bias towards meeting the schedule.”(Hall, H. 2014) You can avoid letting bias skew business decisions by taking a few preventive steps. The first one is to watch and listen for any type of bias going on within the project. The second step if there is any bias going on, is to bring the bias up to the person having it or bring it up in team meetings. The third step would be to try and decrease the prejudice. It is very important for Project managers to watch, listen and intervene when bias appears in the team. By catching any type of bias in the beginning stages can prevent the project from delays, overruns and possibly failing. Some types of bias from individuals can be prevented easy enough by sitting the team down and discussing what is going on within the team. The bias could be as simple as culture differences.

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