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11 - PROJECT RISK MANAGEMENT

Perform Qualitative Risk Analysis assesses the priority of identified risks using their relative probability or
likelihood of occurrence, the corresponding impact on project objectives if the risks occur, as well as other
factors such as the time frame for response and the organization’s risk tolerance associated with the project
constraints of cost, schedule, scope, and quality. Such assessments reflect the risk attitude of the project
team and other stakeholders. Effective assessment therefore requires explicit identification and management
of the risk approaches of key participants in the Perform Qualitative Risk Analysis process. Where these risk
approaches introduce bias into the assessment of identified risks, attention should be paid to identifying bias
and correcting for it.

Establishing definitions of the levels of probability and impact can reduce the influence of bias. 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 to clarify the assessment of the risk’s importance to the project.

Perform Qualitative Risk Analysis is usually a rapid and cost-effective means of establishing priorities for Plan
Risk Responses and lays the foundation for Perform Quantitative Risk Analysis, if required. The Perform Qualitative
Risk Analysis process is performed regularly throughout the project life cycle, as defined in the project’s risk
management plan. This process can lead into Perform Quantitative Risk Analysis (Section 11.4) or directly into Plan
Risk Responses (Section 11.5). 11

11.3.1 Perform Qualitative risk Analysis: Inputs

11.3.1.1 risk Management Plan

Described in Section 11.1.3.1. Key elements of the risk management plan used in the Perform Qualitative Risk
Analysis process include roles and responsibilities for conducting risk management, budgets, schedule activities
for risk management, risk categories, definitions of probability and impact, the probability and impact matrix,
and revised stakeholders’ risk tolerances. These inputs are usually tailored to the project during the Plan Risk
Management process. If they are not available, they may be developed during the Perform Qualitative Risk Analysis
process.

11.3.1.2 Scope Baseline

Described in Section 5.4.3.1. Projects of a common or recurrent type tend to have more well-understood risks.
Projects using state-of-the-art or first-of-its-kind technology, and highly complex projects, tend to have more
uncertainty. This can be evaluated by examining the scope baseline.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 329

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