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

Quantitative risk analysis is completed throughout the project as risks are identified and passed through qualitative analysis, as project conditions change, or on a preset schedule. The end result of quantitative risk analysis include:

• A prioritized list of risks This list of quantified risks demonstrates those risks with the highest potential for endangering the project’s success. This list includes the risks that have the greatest opportunity for the project. Each risk is identified with its probability and impact.

• Probabilistic analysis The risks within the project allow the project manager or other experts to predict the likelihood of the project success. The project may be altered by the response to certain risks; this response can increase cost and delay the project completion date.

• Probability of costs and schedule objectives Based on the identified risks, their impact, and probability of occurring, forecasts for the project schedule and the project costs are created. The more negative risks that occur within a project, the greater the chance of delays and increased costs.

• Trends As the project moves towards completion, quantitative risk analysis may be repeated over and over. In each round of analysis, trends in the identified risks may become visible. The trends in the risk can help the project team eliminate the root cause of the risk, reduce their probability, or control their impact.