PM610-1501B-02 Project Planning, Execution and Closure
The quantitative risk assessment is used when the amount is linked to the risk. According to Sims it’s, “The ability to map the dollar amount to a specific risk.” (Sims, n.d.) It is as it says in quantitative risk, it is the quality that is defined. The management team uses the method to figure out if the project would be finish on time without any cost restrictions. It is the “process of numbers analyzing the effects of identified risks.” The quantitative process is used as a benefit because it supports the decision to reduce any project hesitation. (PMBOK, n.d.)
This risk is a little different from the quantitative risk. It is the process in which the risk is prioritized further by assessing the probability of occurrence. The most useful benefit to this risk assessment is that it reduces the level of uncertainty with the team managers. This gives them the opportunity to be focused on the higher risks in the project. The qualitative risk is the probable occurrence that has an impact on the project objectives. (PMBOK, n.d.)
This assessment has become increasingly complex foe the management team. They are faced with the operations, compliance, audits, and budgets of the business. Looking at the projects with risk assessments introduces complexity when risk are assessed. This is where the quantitative and qualitative comes into play. (Sims, n.d.) We have to make sure that our customers, project, data, and employees are fully protected. The IRTC project should have a flexibility of risk levels. Risk levels are usually measured by low, medium and high. However, project managers have the ability to create as many levels as they prefer. (PMBOK, n.d.)
In order to figure out which risk method to use, the risk analyzer should first get all of the information of the business’s weaknesses and liabilities. They will have to figure out what is the best way to relate it to the risk. They will have to consider that the qualitative risk prioritizes and identifies the impact and quantitative risk calculates the schedule and budget. (Sims, n.d.)
I believe that the IRTC project would benefit from using the qualitative risk assessment in the beginning to be able to get all of the information of the risk involved. This approach comes in handy when there is of lot of risks involved. Once this method is used, I believe that the quantitative risk method should also be used. This method takes on a higher probability during this stage of the IRTC project. The reason I chose to use both methods is because I think that using two methods versus one reduces the risk even more.
IRTC seems to have a low risk factor overall. The upgrades have been done in the past and is well known to almost everyone on the team. The new billing system and be introduced with mentors, trainers and guides. Even though IRTC has a low risk factor I still think using both analysis would be a greater benefit.
Reference:
PMBOK (n.d.) A Guide to the Project Management Body of Knowledge (PMBOK® Guide) Fifth Edition
Sims, Stephen (n.d.) Qualitative vs. Quantitative Risk Assessment retrieved from website at
http://www.sans.edu/research/leadership-laboratory/article/risk-assessment
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