Subtitles of the Movie

This section will focus on performing qualitative risk analysis. If you're following along in the PMBOK Guide, this is the third process within the project risk management knowledge area called Performing Qualitative Risk Analysis within the Fourth Edition of the PMBOK Guide and then simply Qualitative Risk Analysis in the Third Edition. In this movie we'll go through an introduction of qualitative risk analysis. In Part 1 of the course series, we covered the creation of the risk management plan and conducting risk identification activities. At this point, we've also created the risk register, which as you recall is the document that records all of the information about the risk. Up to this point the risk register contains the list of identified risks and the list of potential responses for those risks that determining a potential response is an available option. This now leads us to qualitative risk analysis. The purpose of this process is to prioritize risk in order to determine which risks require additional analysis. We'll accomplish this by assessing and combining the probability of occurrence of the risk and the impact and this will allow the risk management team to focus on high-priority risks. This process asks the following questions. What is the probability of risk occurring? If the risk occurs, what's the impact to the project objectives? How much time is there to respond to the risk? And the big questions, where should we spend our efforts? During qualitative risk analysis, we utilize the definitions of probability and impact that were developed during the creation of the risk management plan and then documented within the plan itself. This helps to reduce the bias of how risks are assessed as well make the process very consistent. In the image shown on your screen, you can see how the process moves through the qualitative risk analysis. First, risk was defined within the risk management plan. This refers to the definition of probability and impact. Every organization and group of stakeholders will define risks differently and if this is not documented properly, all of your risk management efforts will have been wasted. Next, we asses risk, which includes answering the questions that I reviewed earlier in this movie. And then once that's done, risk can be prioritized based on where the project or risk management team should devote the majority of their efforts. And then finally, based on the assessments made in this process and the prioritized risk, we'll be able to determine which risks require further analysis. These are the risks that'll move into the perform quantitative risk analysis process where they can be numerically analyzed. As we proceeded in the first course of this series, we'll cover the inputs, the tools and techniques and the outputs of the qualitative risk analysis process. We'll close out this movie here and mov into a review of the process' inputs.