Studying the identify risks process should ideally lead to a question – How long should I keep identifying risks?
After all, aliens attacking the company HQ is also a risk! That’s where it is important to draw the line and think about how likely the risk is to occur. What do you really think is the possibility of an alien invasion anyway? So it is best to plan only for those risks that have better odds of materializing (than alien invasion!)
But the one thing this whole ‘alien invasion’ example isn’t considering is the damage that it will cause if it were to happen. The impact of this risk is huge. This is why you need to study the Perform Qualitative Risk Analysis process. Below is the PG KA mapping,
Perform Qualitative Risk Analysis is all about analyzing the risks to figure out two things,
- How likely is it to occur?
- What would its impact be?
All the risks can be categorized into 4 divisions,
- High Probability – High Impact
- Low Probability – High Impact
- Low Probability – Low Impact
- High Probability – Low Impact
At the end of the day, Perform Qualitative Risk Analysis process helps you prioritize or rank risks for further analysis and action
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