Risk Analysis is a process of quantifying the likelihood of each risks evolve and their impact on the projects. Risk analysis is done following the below process:
- Risk Probability Impact Assessment – For each risk identified, assess the risk in terms of likelihood of occurrence and its effect on project objectives if the risk event occurs.You can use different scoring system to express the likelihood that a risk will occur. One of them are probability of occurrence, where you express probability the risk to occur in percentage with 100 percent means the risk will always occur. You can use category ranking using Very Low, Low, Medium, High and Very High to represent the likelihood for the risk to happen.
- Prioritize Risks – Risks that meet the threshold criteria will be recorded in the Risk Response Plan.
