Process: Perform Qualitative Risk Analysis
Process Group: Planning
Knowledge Area: Project Risk Management
Purpose
The Perform Qualitative Risk Analysis process involves prioritizing identified risks for further analysis or action based on their probability of occurrence, impact on project objectives, urgency, and other factors. It is a fast, cost-effective method for narrowing focus to the most significant threats and opportunities.
Inputs
- Project Management Plan – Especially the risk management plan and risk categories.
- Project Documents – Includes the risk register, stakeholder register, assumptions log, and lessons learned register.
- Enterprise Environmental Factors (EEFs) – Industry benchmarks, organizational risk tolerance, and expert availability.
- Organizational Process Assets (OPAs) – Risk probability-impact matrices, scoring models, and historical data.
Tools and Techniques
-
Expert Judgment – Drawn from those with knowledge of the project’s context, environment, or industry.
-
Data Gathering – Interviews, workshops, and questionnaires used to assess probability and impact.
-
Data Analysis
- Risk probability and impact assessment
- Probability and impact matrix
- Assessment of other risk parameters such as urgency, manageability, proximity, and detectability
-
Interpersonal and Team Skills – Facilitation, conflict resolution, and group decision-making techniques.
-
Risk Categorization – Grouping risks by sources (e.g., technical, external, organizational) or project area.
-
Data Representation
- Hierarchical charts
- Risk matrix visualizations
Outputs
-
Updated Risk Register – Now includes:
- Assessed probability and impact levels
- Priority rankings
- Qualitative descriptions of risk response urgency
- Categorization tags
-
Updated Risk Report – Enhanced with prioritized risk profiles and potential strategic implications.
-
Project Document Updates – Refinement of assumptions, stakeholder expectations, and issue logs based on risk analysis results.
Role in the Process Group and Knowledge Area
- In the Planning Process Group, Perform Qualitative Risk Analysis quickly filters risks to determine where attention and resources should be focused.
- As part of Project Risk Management, it provides subjective but structured insight into the threat landscape.
Why It Matters
- Optimizes Resource Allocation – Helps prioritize which risks deserve detailed attention.
- Enables Faster Response – Surfaces high-priority risks earlier in the planning cycle.
- Supports Decision Making – Provides visibility into which risks could derail or enhance project objectives.
- Builds Risk Awareness – Promotes discussion and team understanding of potential project vulnerabilities.