Perform Quantitative Risk Analysis Process

Posted on April 6, 2009 by


Perform Quantitative Risk Analysis is one of the 42 project management processes described in the fourth edition PMBOK®. It’s one of the six Risk knowledge area processes, and one of the twenty Planning processes. The purpose of this process is to numerically analyze the effects of project risks. This can be time-consuming, so it typically is only performed on the risks that have been considered high-priority based on the qualitative risk analysis that was done during the Perform Qualitative Risk Analysis process. The list of project risks, including the results of any qualitative analysis that may have been done, can be found in the Risk Register. The Risk Management Plan provides overall guidance on how the risks processes, including this one, are to be performed. In order to model the potential impacts of risks, data is needed. This can be obtained through interviewing people and using probability distributions that statistically indicate the likelihood of events. To perform the analysis, one may use a variety of techniques including a sensitivity analysis (the tornado diagram is a common example), expected monetary value analysis, or a modeling/simulation technique such as a Monte Carlo analysis. The only output to this process is Risk Register Updates which represents adding the results of the quantitative analysis to the Risk Register. Also see the earlier postings of Perform Qualitative Risk Analysis Process (posted April 3, 2009) and Risk Register (posted March 27, 2009).