24.1 Perform qualitative risk analysis

	A qualitative risk analysis prioritizes the identified risks using a predefined rating scale.
	Risk will be based on their probability of occurrence and their impact on the project objectives.
	Probability is commonly ranked on a zero to one scale (for example 0.4 means 40% probability for the risk to occur).
	Whereas, the impact scale is typically, organizationally defined.
	Inputs

		Risk register
		Risk management plan
		Project scope statement
		Organizational process assets
		Scales of probability and impact (discussed in the section below)

24.1 Perform qualitative risk analysis

Tools and Techniques

The risk probability and impact assessment and probability and impact matrix:

			These two tools and techniques mainly aids in determining the highest priorities through the evaluation of the probability of each risk occurring, and its potential impact on the project.
			Probability and impact for each risk is multiplied together to give it an individual risk score which is then used to determine and set the risk priority within qualitative risk analysis.
			Both the probability and impact are given a ranking category such as low, low to medium, medium, medium to high, and high based on combining probability and impact scales.
			A risk´s probability scale naturally falls between 0.0 (no probability) and 1.0 (certainty).
			Assessing risk probability may be difficult because expert judgment is used, often without benefit of historical data.

Risk categorization: The risk breakdown structure (RBS) is the normal way to help structure and organize all identified risks into appropriate categories, and these will assist in determining which aspects of the project have the highest degree of uncertainty.

Another way of categorizing identified risks is in a matrix where they are placed from high occurrence and high consequences to low occurrence and low consequences.

24.1 Perform qualitative risk analysis

		The risk data quality assessment: this tool focuses on evaluating the risk data used for risk analysis in terms of its credibility to determine whether it is accurate and of acceptable quality. As conducting a risk analysis using poor quality data cam lead to useless results.
		Risk of urgency assessment: also known as proximity.

			Urgent risks are those that are more likely to occur in the immediate future and which require an immediate action.
			Typically, some form of agreed and recognized time scale should be used here.

Expert judgment

Outputs

		Risk register updates: Typically, the risk register contains a list of all of the risks.
		But after conducting the qualitative risk analysis extra information can be added to the risk register including the following:

			Priority of urgency of each risk.
			The categorization of each risk.

24.1 Perform qualitative risk analysis

			Any trends which have been observed while carrying out this process.
			List of risks requiring response in the near future .
			List of risks requiring additional analysis and response.
			Watch list of low-priority risks.

24.1 Perform qualitative risk analysis