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When working on projects, there is are many factors to consider as a project manager. Things such as how to complete the overall goal of the project in the most efficient way is one of these factors, as well as things to avoid overall in the project. These things that should be avoided when working on a project are usually classified as “risks.” Risks in project can be related to many things, whether it be a decision that may not be the smartest move overall but if done right could lead to a great reward or maybe a risk that will destroy the project’s ability to be done entirely. Whatever the risk may be, these are attempted to be avoided at all costs when projects are being worked on. Project managers know of course that there is never a full proof way to prevent any type of risk whatsoever and that risks can come at anytime during a project. That is why project managers should be aware of project risk analysis. This risk analysis can be broken down into two types: quantitative and qualitative. In this blog post, we will be discussing what qualitative risk analysis is, the techniques that come with preforming it, and how they can help the overall success of a projects completion in an agile project management style.
What Is Qualitative Risk Analysis?
So, what is qualitative risk analysis? Qualitative risk analysis is a process in which the project manager assesses the likelihood of a risk occurring during the project’s lifetime and the impact it would have on the project if it were to occur. Qualitative risk analysis focuses on three things: Prioritizing risks according to the probability of it occurring as well as its impact, identifying the main areas of risk exposure, and to improve the understanding of project risks for the current project and future projects. When it comes to the risk analysis and projects themselves, the projects are open to many different types of risks as stated before. With so many types and opportunities for risks to occur, it is impractical for project mangers to be able to deal with them all. In some cases, the resources used to undo a risk can outweigh the impact of the actual risk. This is why risk analysis is helpful as it keeps project teams aware of areas to stay clear from when working. To do this, techniques have been developed to help project teams preform risk analysis.
What Are These Techniques?
There are two techniques that are used when it comes to assessing qualitative risk analysis that will be talked about here in this post. The first technique is to use a probability/impact matrix. A probability/impact matrix is used by a project manager to determine the relative probability of a risk to occur during a project and the relative impact that the risk in question can have on the project’s completion. A project manager and their team could greatly benefit from this technique as it would help them identify the risks that need the most attention to maintain an efficient project environment. To use the technique, the project’s stakeholders would need to list the risks they think would most likely occur when working on their project and from there the project team can then label a risk as being of a certain level of probability of occurrence and a level of impact it could have if it does occur. This technique is strong in helping guide the decisions of project teams and its overall usefulness is unquestioned.
The second technique that can be used when assessing qualitative risk analysis is using the Top Ten Risk Item Tracking tool. This tool is not only used to identify risks in a project, but it also helps maintain an awareness of risks throughout the life of a project by helping to monitor those risks. What project managers need to understand about this tool is that it involves establishing a periodic review of the project’s most significant risk related items with management. The review will begin with a summary of the top ten sources of risk for the project, the include a ranking of each of these item’s, their previous rankings, their total number of times that risk appears on the list overall, and a summary of the progress that is being made by the project team to resolve the risk being on the previous review. By using this review, project managers and their teams can keep a track on what risks are more prominent at certain times so that they can provide more focus on those risks from occurring. They can also find more ways during the project to find alternative strategies to dealing with these risks with the review. A sound strategy through and through, this technique is also incredibly useful in the project management world.
How Does This Work with Agile?
How Does This Work with Agile?
We know the techniques now, so how do they benefit those who are in an agile project management environment? Well considering the fast-paced environment and the need to be as efficient as possible, these techniques are incredibly impactful in creating an even more successful project environment. Risks in this kind of environment are more dangerous since if a risk does occur and thus sets back the project, this can make or break the entire success of the project. With quality risk analysis, the possibilities of setbacks can be limited, and the overall completion of the project can be more ensured by the project manager and the project team.
Quality Risk Analysis…Sounds Pretty Good
Being able to identify where a project can go wrong is one thing, being able to plan for those moments and how to handle them is even greater. This strategy will help you as a project manager lead more efficiently and bring a success to your projects now and any future project you may have. By being aware of all aspects of the project that you are leading, you can devise the most efficient way of action for you and your team to complete the project to its standards. You are already on your way to being a more successful project manager!
Work Cited
Evrin, V. (2021, April 28). Risk Assessment and Analysis Methods: Qualitative and Quantitative. ISACA. https://www.isaca.org/resources/isaca-journal/issues/2021/volume-2/risk-assessment-and-analysis-methods
Leo. (2012, January 7). Chapter 11: Project Risk Management. SlideServe. https://www.slideserve.com/Leo/chapter-11-project-risk-management
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