Qualitative vs Quantitative Risk Analysis

Submitted by elthox on Sun, 07/07/2013 - 13:18

 Hi,

I notice something "strange" in the inputs of both Qualitative and quantitative analysis processes.

 

How come the schedule/cost management plan is not an input of Qualitative analysis? On the other hand they both feed the quantitative analysis process. It seems more logical to me that while categorising the priorities, urgencies, impact during qualtitative analysis, to use those subsidiary plans. 

I wouldnt prefer to memorize these stuff thats why Im focused to understand deep logically.

 

Any comment appreciated.

 

Thanks

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humanbeing2001

Sun, 07/07/2013 - 15:19

Nice and Genuine Intellectual Perspective. Thanks!!!

Eagerly awaiting a justification in this regard.

Alpha_romeo0

Sun, 07/07/2013 - 16:31

 In my understanding of the matter:

 

Qualitative Analysis is meant to analyse risks seperate from the triple constraint. An analysis based purely on the type of risk (quality), how realistic it is and its likelihood of occurance, hence the triple constraints are not inputs. It is meant to guide risk analysis and response, gather as much background data about the risk as possible and how to deal with it in case it does occur and rate it on its impact to the triple constraint.

 

When you get in to the number and figures, then you need Quantity and therefore the triple constraint comes in as input

humanbeing2001

Mon, 07/08/2013 - 08:10

Good point Alpharomeo.


I agree with You that Qualitative Analysis basically defines the Quality of Risk and is based on its probability of happening & impact.


But when it comes to PROBABILITY & IMPACT in this Qualitative Risk Analysis, triple constraint inputs become a must if at all you are analyzing ballpark figure for PROBABILITY & IMPACT.


The best example can be an risk in form of an external event. If You are working in a building nearby a river/ocean, then work getting affected due to this Risk can be as Natural Disaster type of Risk and Probability of happening can be 0.01% (here also you are putting a number) or saying Low with an assumption that any probability below 5% would be in Less (/Low) probable category.


How can one simply neglect Time Schedule (in other examples it can be Cost & scope as well) which says Project Work is scheduled in Rainy season and chances of Flood happen in RAINY season ONLY. Similarly Impact can be said as High/ Medium/ Low until and unless somebody comes up with a ballpark figure of effect on Time in form of "Time Lost"/ Cost in form of "Monetary Loss"/ Scope in form of "Rework" even if this calcualtion and assumptions are totally hypothetiCAL.


Kindly explain how is Triple Constarints not an Input to Qualitative Risk Analysis.


 

elthox

Mon, 07/08/2013 - 08:35

 While reading Rita`s Risk chapter, qualitative analysis process is based on subjective evaluation whereas quantitative one is dealing with objective numbers/figures. Perhaps this objective analysis might require the involvment of triple constraints as input.

humanbeing2001

Mon, 07/08/2013 - 09:28

Dear elethox, How can You do Subjective evaluation without the knowledge of triple constraints (as an input).

If somebody here says that I know more than You and that being a Subjective Analysis, Can that happen without getting to know the most important characterstics of the two people.

Subjective evaluation of Risks in form of Probability & IMPACT can't happen without giving due consideration to "effect on Triple constraints due to Risk". 

Each element of Our Project revolves around these triple constraints.