PMP Project Management Professional Study Guide, Third Edition (Certification Press)

Qualitative risk analysis happens throughout the project. As new risks become evident and identified, the project manager should route the risks through the qualitative risk analysis process. The end results of qualitative risk analysis are:

• Overall risk ranking of the project The overall risk ranking of the project allows the project manager, management, customers, and other interested stakeholders to comprehend the risk, the nature of the risks, and the condition between the risk score and the likelihood of success for a project. The risk score can be compared to other projects to determine project selection, placement of talent to a project, prioritization, the creation of a benefit-cost ratio, or even the cancellation of a project because it is deemed too risky.

• Prioritized risks The risks in the project can be prioritized by their score, their rank of high, medium, or low, or by their WBS components. Risks can also be categorized by their urgency for an immediate response versus those risks that can wait for a response.

• Identification of risks requiring additional analysis The risks categorized as high will likely need additional analysis, such as quantitative analysis. Some risks may demand immediate risk management based on the nature of the risks and the status of the project.

• Trends in qualitative analysis As the project progresses and risk analysis is repeated, trends in the ranking and analysis of the risk may become apparent. These trends can allow the project manager and other risk experts to respond to the root cause and predicted trends to eliminate or respond to the risks within the project.