The primary and often the only form of qualitative risk analysis is a “Risk Probability and Impact Assessment”, which is a process of estimating the likelihood an event (risk) might occur and its potential impact, then prioritising the risk, leading to further quantitative analysis and/or planning how to respond to the risk.

The score in the probability / impact matrix helps guide the risk response. For example: Threats that are in the dark grey zone are likely to be given high priority status and be accompanied with an aggressive response strategy.

Further information and terms related to Qualitative Risk Assessment in Projects

The following link takes you to a website that provides explanation of the these terms in detail: https://project-management-knowledge.com/definitions/r/risk-data-quality-assessment/

• Risk Data Quality Assessment (then scroll, the heading that follow open further information)
• Risk Urgency Assessment
• Data Gathering and Representation Techniques

Back to Basics

The following video runs for about 5, 1/2 minutes. It provides a clear introduction to risk and explains how a probability impact matrix works.

Quantitative Analysis will be covered next week.