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Qualitative Risk Analysis and Management

            Qualitative risk analysis includes methods for prioritizing the identified risks for further risk response planning. The methods of qualitative risk analysis are applied to the list of risks created or updated by the Identify Risks process to provide project management with the characteristics of the risks that have the most influence (positive or negative) on achieving the project's objectives. (Project Management Institute, 2009). Project risks are scale-able activity and should be analyzed according to the complexity. Projects are required to utilize qualitative analysis as well as quantitative. Different risks have different level of impact and probability of occurrence. The risk management system assesses each identified risk for its probability of occurrence and its impact on project objectives. The analysis enables project teams to address the project risks and uncertainties. .
             The project risks are rated according to their probability and impact. Risk probability is the likelihood that a risk event may happen, while risk impact is the consequence that the result of the event will have on the project objectives. Each risk is measured based on its likelihood and its impact. (Phillips, 2013). .
             Every risk management system requires risk response planning. Risk response planning is concerned with the designing of different kind of strategies to fight against future risks. It is necessary to be prepared before they exist. Risk Response Planning is a process of deciding what actions to take to reduce threats and take advantage of the opportunities discovered during the risk analysis processes. This process also includes assigning departments or individual staff members the responsibility of carrying out the risk response plans you'll outline in this process. (Heldman, 2007). This is the phase of planning how the project deals with the risks already identified. The response plan will depend on the nature of risk.

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