Qualitative Risk Analysis

Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such as Quantitative Risk Analysis (Section 11.4) or Risk Response Planning (Section 11.5). Organizations can improve the project's performance effectively by focusing on high-priority risks. Qualitative Risk Analysis assesses the priority of identified risks using their probability of occurring, the corresponding impact on project objectives if the risks do occur, as well as other factors such as the time frame and risk tolerance of the project constraints of cost, schedule, scope, and quality.

Definitions of the levels of probability and impact, and expert interviewing, can help to correct biases that are often present in the data used in this process. The time criticality of risk-related actions may magnify the importance of a risk. An evaluation of the quality of the available information on project risks also helps understand the assessment of the risk's importance to the project.

Qualitative Risk Analysis is usually a rapid and cost-effective means of establishing priorities for Risk Response Planning, and lays the foundation for Quantitative Risk Analysis, if this is required. Qualitative Risk Analysis should be revisited during the project's life cycle to stay current with changes in the project risks. Qualitative Risk Analysis requires outputs of the Risk Management Planning (Section 11.1) and Risk Identification (Section 11.2) processes. This process can lead into Quantitative Risk Analysis (Section 11.4) or directly into Risk Response Planning (Section 11.5).