Subtitles of the Movie

In this movie we'll touch on the model of risk analysis. You will come across all kinds of concepts, visuals and representations of risk analysis during your research and study of this subject. Most likely, all of them will provide you with some measure of value since there are several interpretations of risk analysis. Our concern is the interpretation presented by the PMBOK Guide so we'll stay as close to that model as possible. Let's start off by looking at a basic diagram. In this diagram that you see on your screen, you can see how the identified risks are fed into the risk analysis process and this is actually made up of two processes lumped here into one: qualitative risk analysis and quantitative risk analysis. One is responsible for assessing and prioritizing risk while the other, quantitative, is responsible for numerically analyzing the risk. Both focus on risk impact and probability and whether they are combined or not, these are two ingredients to analyzing risk. Once risks are analyzed, the information is fed into the process of developing a risk response. Notice how risk analysis is iterative, as is every risk process. But you can see how this is relevant to risk analysis based on this diagram. Risks are not just assessed once. Just keep in mind as well that not all risks require a risk response plan. Let's zoom in more closely into the two risk analysis processes. Typically risks are identified and taken into the process of qualitative risk analysis. From here, a further analysis is needed on risks with high impact or risks that require additional analysis. They are analyzed on a quantitative level. From there, the information is submitted into the process that follows, which is the process of developing a risk response. The PMBOK Guide notes that when feasible or needed, risk should be taken back through quantitative risk analysis after developing the risk responses. And during risk monitoring and controlling, which is something we saw in the previous diagram. And the risks that belong on a watch list are set aside to be reassessed and monitored throughout the project. We can even break it down further by looking at it in the following steps. First you assess the risk, you prioritize them, determine which risks are urgent, determine which risks are to be placed on the watch list, analyze certain risks on a numerical level and for the risks that we're performing further analysis, determine the probably outcome. The final two notes may not be necessary, which are part of quantitative risk analysis. It really just depends on the project. As you can see, we're looking at risk analysis on a broad level. It's always beneficial to understand and absorb a high level of review first and then begin to pick it apart layer by layer. That covers a look at the risk analysis model. A final note is that we're covering the information on a surface level. I'll mention several times throughout the course the risk analysis is a very in-depth subject and can get quite complex. Our goal is not to understand it to this level of detail. We're covering the information as you need to know it for the exam. And for those not taking the exam, this will provide you with a conceptual look at risk analysis and guidance as to what you need to look further into as a next step.