Quantitative risk analysis is the one which follows the Qualitative analysis, and gives a numerical priority rating to project risks (PMI, 2009). Based on the PMBOK (PMI, 2013) quantitative risk analysis “… is the process of numerically analyzing the effect of identified risks on overall project objectives (p. 333).” This is also a process for the PM and project team to get risk data to support making decisions, which can help to reduce project uncertainties (PMI, 2013, p. 333). Based on the prior researchers’ statement, the Quantitative Risk Analysis is more complicate and even the most difficult part within risk management since it requires statistical and mathematical methods to be operated (Purnus & Bodea, 2013, p. 145).
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10).” As we can figure out that EMV analysis can translate risks into measureable versions- values. It gives the PM a directly explanation of potential opportunities and disadvantages at the same time. As Pritchard (2015) suggested in his book, the first step for applying EMV method is to identify the alternations which the decision maker can take into consideration, both in the predictable and unpredictable ways (pp. 207-208).
I would prefer to use this type of quantitative risk analysis method, because it provides measurable and interchangeable description of the potential risks; also, it provides alternative options for stakeholders to compare. If my project team have to deal with a project which puts the cost at the top priority of the triple constrains, I would definitely use the EMV analysis to give my sponsors and other stakeholders a clear and valid risk analysis report.
Finally, the third type of quantitative analysis and modeling techniques is the modeling and simulation, which means that one can translate the specified detailed uncertainties into future impact on project object (PMI, p.
Inputs of this …show more content…
10).” As we can figure out that EMV analysis can translate risks into measureable versions- values. It gives the PM a directly explanation of potential opportunities and disadvantages at the same time. As Pritchard (2015) suggested in his book, the first step for applying EMV method is to identify the alternations which the decision maker can take into consideration, both in the predictable and unpredictable ways (pp. 207-208).
I would prefer to use this type of quantitative risk analysis method, because it provides measurable and interchangeable description of the potential risks; also, it provides alternative options for stakeholders to compare. If my project team have to deal with a project which puts the cost at the top priority of the triple constrains, I would definitely use the EMV analysis to give my sponsors and other stakeholders a clear and valid risk analysis report.
Finally, the third type of quantitative analysis and modeling techniques is the modeling and simulation, which means that one can translate the specified detailed uncertainties into future impact on project object (PMI, p.