preview

Quantitative And Quantitative Risk Analysis

Decent Essays

Quantitative Risk Analysis - Ebony The quantitative risk analysis is a method for further evaluating the effect of proposed risks identified by project stakeholders and teams on the ability to achieve project objectives (Heldman, 2013, p. 274). Project teams use methods including sensitivity analyses or predictive modeling and simulation techniques to determine how the risk will affect project progress (Heldman, 2013, pp. 276,278). During the quantitative analysis processes, each risk is rated based on its characteristics using an impact scale (Project Management Institute, 2013, p. 318). The analysis ratings are divided into two categories, probability and impact, whose product indicates the risk’s severity. Moreover, project teams use an impact scale to organize and prioritize risks in a probability and impact matrix by project objective and impact categories (e.g. low, medium, high) (Project Management Institute, 2013, p. 318). If the risk severity exceeds the stakeholder or project team’s risk tolerances, then the project teams can proactively monitor and mitigate risks based on their priority (Project Management Institute, 2013, p. 318).
Private Financing. The Chunnel Tunnel project team and stakeholders failed to implement risk management practices to mitigate the potential adverse impacts of its complex project financing. Additionally, project sponsors, the British and France governments, solicited requests for proposals (RFPs) although they were not financially

Get Access