6-2 Activity Qualitative and Quantitative Risk Assessment

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Southern New Hampshire University *

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313

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Information Systems

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Dec 6, 2023

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DaTonian Zollicoffer IT-313 6-2 Activity Qualitative and Quantitative Risk Assessment
Risk Analyses Relating to Project Completion Examining a complex project like fulfilling a contract with a federal agency for expanding existing computer networks involves considering numerous factors. Some of these factors can be quantified and assessed with hard numbers, while others require a more subjective analysis. In such situations, a combination of quantitative and qualitative risk analyses is employed to accurately gauge overall risk in various scenarios. In qualitative risk analysis, risks are prioritized using a predefined scale. This scale considers the probability of a risk occurring, typically ranked between 0 and 1, and the impact scale, which defines how much the risk will affect project objectives such as scheduling or budgetary goals. By combining these factors, a numerical value is obtained, indicating the prioritization of risks. From this, an assessment of whether a risk is acceptable or not can be derived (Goodrich, 2019). On the flip side, quantitative risk analysis demands extensive data gathering and resource investment. As a result, this type of analysis is typically reserved for situations where a risk has been identified as high priority through qualitative analysis, and additional information is required for effective risk mitigation. The aim of quantitative analysis is to assign numerical values to the probability of achieving project objectives, aiding in the formulation of precise budgetary and timeline-related goals (Goodrich). In this report, we will conduct risk assessments centered around hypothetical scenarios encompassing timelines, security, budgetary considerations, and quality controls.
Qualitative Risks Initially, it is essential to compile a list of potential risks associated with the project. In this context, seven scenarios are outlined, each differing in terms of the timing and quality of project completion. Considering these variables, an estimation is made regarding the probability of the risks occurring and the potential impact they may have. The multiplication of these values results in a priority level assigned to each risk. This prioritization guides the allocation of resources and attention devoted to implementing mitigatory measures for these identified risks. The chart depicted above outlines the seven given scenarios along with the associated impact, if any, for each risk presented. In instances where the project is completed on time, one month early, or one month early with the required security, there is no risk or negative impact. In these scenarios, all the terms of the Service Level Agreement (SLA) are fulfilled, leading to the company receiving the profits from successfully completing the contract (approximately $30 million annually). Additionally, although not explicitly mentioned in the contract, there might be potential rewards for early product deployment or staying under-budget.
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