Subtitles of the Movie

In this movie we'll cover a brief review of the two risk analysis processes; perform qualitative risk analysis and perform quantitative risk analysis. Let's start with qualitative risk analysis. According to the Fourth Edition of the PMBOK Guide, there are four inputs to this process: the risk register, risk management plan, project scope statement and organizational process assets. And as you may recall, there were six tools and techniques used within this process. They included the risk probability and impact assessment, probability and impact matrix, risk data quality assessment, risk categorization, risk urgency assessment and expert judgment. As a whole, risks are assessed and prioritized in this process based on stakeholder risk tolerance levels using the risk probability and impact definitions that were defined within the risk management plan. Take a look at the list of tools and techniques and you'll already have a sense of what else results out of this process. For example, risk urgency assessment determines which risks require urgent or times response. Risk categorization categorizes risk to determine which areas of the project are most effective. And risk data quality assessment checks the quality of the data that's used for risk analysis purposes. We covered risk probability and impact assessment and the probability and impact matrix pretty thoroughly in Part 2 of this course series, which are key items to the prioritization of risk. The outputs include the following updates made to the risk register: prioritize list of risk, categorize risk, near-term response risk, watch list, which is a list of low-priority risk, risks that require further analysis using quantitative methods and trends that emerge as a result of carrying out the process repeatedly. Next, the perform quantitative risk analysis process is concerned with assigning a numerical rating to risk that potentially and substantially impact the project competing demands. This allows the risk management team to focus on the risks that's have a higher potential for greater impact. There are five inputs: the risk register, risk management plan, cost management plan, schedule management plan and the organization process assets. And as you'll recall from Part 2 of this course series, there were two groups of tools and techniques and an additional technique included. They are data gathering and representation techniques, which include interviewing and probability distributions, quantitative risk analysis and modeling techniques, which include sensitivity analysis, expected monetary value analysis and modeling and simulation and remember expert judgment is also a technique that's used in the Fourth Edition of the PMBOK Guide. We spent a lot of time reviewing these individual techniques, including decision tree analysis, which is grouped under monetary value analysis in the Fourth Edition. Together these inputs and tools and techniques used lead to updates within the risk register including probabilistic analysis of the project, probability of achieving cost and time objectives, prioritized list of quantified risk and trends that emerge as a result of carrying out the process multiple times. There are certainly a lot covered on the four processes within this section review, including risk communication. If you feel that you need a more in-depth coverage or review, I recommend going back through the movies from Parts 1 and 2 of the course series where you aren't as confident yet. And that concludes this review of the two risk analysis processes and a closure of the section.