ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Quantitative Risks

Updated on August 2, 2014

Qualitative tools or methodology

The three main qualitative tools or methodology assessment are:

  • Interviewing/gathering data because it involves direct interaction with people or groups in which questions are asked and feedback is given immediately.
  • Expert Judgment because they are knowledgeable of the field therefore can give their best experience and judgment regarding the risk and its effect of its occurrence.
  • Using an information database from previous projects because they tell the actual stores of the risk and how they were addressed and managed.
  • Because risks are inherent throughout the life cycle of projects, Team B has selected a few techniques and tools for the identification and ranking of risks.

Some Tools, Pros and Cons

Tools
Pros
Cons
Gathering inforamtion
First Hand infomation
Information may be biased or inaccurate
Sensativity Analysis
Easy to do, structured, IDs most important inputs
One input entered at a time
Similuation
Displays probability, automation assumed
Difficult to understand, higher computations

Risk Datat Quality Assessment

Aside from the other tools of risk management open and useful to project managers, the most important component of any project is the quality of the data used in documenting the processes of the project. The data used in include information gathered from surveys, questionnaires, interviews, reports and meetings. In other to properly assess data quality, the following questions need to be asked:

  • Is the data and information accurate?
  • Is the identified risk understood?
  • How credible is the information collected?
  • Is the data/information free of bias and objective?

An overview of these questions will allow the project team to evaluate the reliability of the data gathered. According to the Virtual Training Company website, “the quality of the data used influences risk management because the information provided may increase the level of uncertainty and failure in the completion of the qualitative analysis of any project.” The use of unreliable data in the qualitative analysis creates a level of mistrust in the project manager or team among stakeholders. The quality of the data utilized determines the reliability of the other tools/techniques and methods i.e. hazard identification, impact and probability rating and risk likelihood.

Failure Mode and Effect Analysis (FMEA)


FMEA is primarily used in reliability engineering because it focuses on possible risks and each possible effects. FMEA produces a table displaying the risk, failure mode, cause of the failure, effect, and recommended action. Estimates to correct the failure or lessen the impact of the project are developed from the information in the table. This method is appropriate to analyze the failure risk of the new equipment installed into the system. The installation procedure has many areas failures can occur that could shorten the life of the equipment. The estimates produced will easily rank the failure mode severity level.

Risk Management

Risk management is a significant role in most organizations. Organizations embark on increasingly multifaceted and large-scale projects, and these projects are often times executed successfully but in a changeable and environment filled with risks. Risks should be prioritized. The probability and impact matrix allows the project manager to effectively manage the risk and focus the attention on the most important risks.
The Probability and Impact Matrix is constructed on the standard that a risk has two primary components (Learning to Prioritize Risks, 2013): Probability (risk may occur) and Impact (risk will have negative impact).
In the Software Implementation scenario for Direct Auto Insurance, schedule and priorities is classified as a risk in this project. The project implementation schedule is short. Consequently, team members may not do an effective job of managing their time to ensure all project activities are completed which may result in the project being delayed. On the matrix, this risk will be listed as a probable with a critical or high impact.

A matrix would have risks listed in the left bottom corner which would be low in probability and low in impact ; in the left top corner would be high in probability but low impact; in the right bottom corner would be high in impact but low probability; in the right top corner would be high in probability and the impact is high.

Synompsous

.Due to the fact that a qualitative risk analysis is the first stage of recognizing and ranking identified risks, it is necessary to ensure that the data/information gathered for the process is accurate and unbiased to prevent the unreliability of the data gathering process. Hence, this method of analysis assists both team members and stakeholders in the first stages of review and classifies them according to their impacts on ongoing projects.


Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)