11.4 Perform Quantitative Risk Management
Process Definition
Quantitative risk management is the analysis of the actual effects the identified risks have on the project. This is measured numerically and will produce metrics that can be evaluated in-order to make good risk decision making.
Figure 27. Project Management Body of Knowledge Figure 11-11. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 232. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
Process Assessment
Risks that you would want to perform this process on are those that have been identified through qualitative analysis to be high priority threats. The quantitative analysis, with enough empirical data, will allow project managers to see the risks effects on project objectives. Thus allowing a numerical priority rating to be established. The higher priorities will then receive the most attention and resources on determining how to mitigate those risks.
(Inputs) Schedule Management Plan
The schedule management plan encompasses the schedule model, level of accuracy, units of measure, organizational procedures, model maintenance, and control thresholds. It will provide guidelines for managing risk reserves. The example is a schedule created in Microsoft Project 2013 from a group project in PMGT 614 , Planning, Directing, and Controlling Projects.
(Tools & Techniques) Quantitative Risk Analysis and Modeling Techniques
Analysis and modeling techniques provide event and project oriented metrics. This example show how quantitative analysis of crashing the project can add extra risk. This example is from a group project in PMGT 613 Assessing and Managing Project Risk, written by Jeremy Curbey, Kevin Bundi, Benjamin Lundy, Sonya Slater, and Domingo Tuckler.
(Outputs) Project Documents Updates
Just like you would after performing qualitative analysis, It is important to update any effected project documents once a quantitative analysis has been completed. This example discusses how to update project documents. This example is from a group project in PMGT 613 Assessing and Managing Project Risk, written by Jeremy Curbey, Kevin Bundi, Benjamin Lundy, Sonya Slater, and Domingo Tuckler.