Produces quantitative risk information to support decision making in order to reduce project uncertainty.
Numerically analyzing the effect of identified risks on overall project objectives.
Perform Quantitative Risk Analysis is performed on risks that have been prioritized by the Perform Qualitative Risk Analysis process as potentially and substantially impacting the project’s competing demands. The Perform Quantitative Risk Analysis process analyzes the effect of those risks on project objectives. It is used mostly to evaluate the aggregate effect of all risks affecting the project. When the risks drive the quantitative analysis, the process may be used to assign a numerical priority rating to those risks individually.
Perform Quantitative Risk Analysis generally follows the Perform Qualitative Risk Analysis process. In some cases, it may not be possible to execute the Perform Quantitative Risk Analysis process due to lack of sufficient data to develop appropriate models. The project manager should exercise expert judgment to determine the need for and the viability of quantitative risk analysis. The availability of time and budget, and the need for qualitative or quantitative statements about risk and impacts, will determine which method(s) to use on any particular project. Perform Quantitative Risk Analysis should be repeated, as needed, as part of the Control Risks process to determine if the overall project risk has been satisfactorily decreased. Trends may indicate the need for more or less focus on appropriate risk management activities.