Example of identify risks, perform qualitative risk analysis and perform

Qualitative risk identification prioritizes perceived project risks using a predefined ranking scale. Risks may be measured on the basis of their possibility or likelihood of occurrence and the effect on the goals of the project may arise.
The size of the effect is organizationally established (for example, a one to five scale, with five being the highest impact on project objectives - such as budget, schedule, or quality).
Qualitative risk analysis will also provide sufficient risk categorization, either source-based or effect-based.
For example, a qualitative analysis would use the "Low, Medium, High" scale to show the probability of a risk occurrence happening. The probability of each risk occurrence happening can be determined by a mathematical analysis. Risk #1, for example, has an 80 percent chance of occurring, Risk #2 has a 27 percent chance of occurring, and so on.
A quantitative risk analysis is a further analysis of the highest-priority risks during which a numerical or quantitative ranking is made in order to create a probabilistic overview of the project.
Quantitative analysis:
- Quantifies the future results for the project and assesses the chances of meeting particular goals for the project.
- Provides a quantitative approach to decision making where there is confusion
- Creates practical and practicable expectations for prices, timeframes or scope
In order to perform a comprehensive risk analysis, you would require high-quality results, a well-developed project model and priority lists of project risks (usually from performing a qualitative risk analysis).
Quantitative risk analysis relies on numerically measuring the effect of project threats on project components. Performed to consider the possibility and effect of threats on the goals of the project. For example, in a construction project, quantitative risk analysis helps one measure the effect of a delay in the project, such as getting a late permit, which creates a delay of 20 days at a cost of $80,000.