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Your project can easily conceal countless potential risks.
Of course, they differ in severity and probability of occurrence.
Consequently, after you identify project risks, quantifying the potential damage and the probability that a risk will occur enables your project management team to prioritize the risks, focusing your attention on the ones important enough to manage.
This is exactly what you aim at with qualitative risk analysis: assessing each risk enlisted in the risk register in terms of its possible damage and likelihood of occurrence.
Having made that point, here are the main steps to follow whenever you need to goal-prioritize risks for further assessment.
Qualitative Risk Analysis – Activity Checklist
Examine Each Risk in the Risk Register
- Make sure that the information you are using in your risk assessment is accurate, via validity check out executed by outside experts or yourself (sample of data against other data sources).
- Assign a probability to the likelihood of a risk occurring, and then assess the actual cost (or impact) if it does happen.
- Plot out all of your risks in a probability and impact matrix, according to the values you assign.
- Group your risks, so that you can come up with a better strategy for dealing with them.
- Rank the risks, according to probability and impact.
- Identify causes of risks requiring particular attention.
- Monitor risks that require near-term responses and additional analysis and responses.
- Complete a separate watch list of low priority risks.
- Update the project risk register with the priority of the risks, the urgency of the risks, the categorization of the risks, and any trands noticed while performing the qualitative risk analysis.