This document discusses qualitative risk analysis, which involves assessing risks based on their probability of occurrence and potential impact. It describes various techniques for qualitative risk analysis, including probability/impact matrixes, which classify risks as high, medium, or low based on likelihood and consequences. It also covers top ten risk item tracking to identify and monitor key risks over time, and using expert judgment to categorize risks. The document outlines benefits like easy prioritization of risks, as well as limitations such as subjective evaluations that could misdefine realities.

1. QUALITATIVE
RISK ANALYSIS
SONALI TALKAR

2. Risk Management Process
Identifying potential
project risks
Selecting appropriate risk
responses
Analysing these
risks
Monitoring the
project

3. RiskAnalysis
Quantitative
Qualitative
3
RISK ANALYSIS

4. • Qualitative risk analysis is the process
of assessing individual project risk
characteristics - the probability of
occurrence and the impact they would
have on a project if happening - against a
scale.
• The main purpose of the qualitative risk
analysis is prioritizing risks according to
their probability and impact
4
WHAT IS QUALITATIVE RISK
ANALYSIS?

5. 5
TECHNIQUES
Probability/impact
matrixes
The Top Ten Risk Item
Tracking
Expert judgment

6. 6
PROBABILITY/IMPACT MATRIXES
• A probability/impact matrix or chart lists the
relative probability of a risk occurring on one
side of a matrix or axis on a chart and the
relative impact of the risk occurring on the
other
• List the risks and then label each one as high,
medium, or low in terms of its probability of
occurrence and its impact if it did occur
• Probability of a risk occurring can be estimated
based on several factors as determined by the
unique nature of each project

7. • Low: The consequences of the risk are minor, and it is unlikely to occur.
These types of risks are generally ignored
• Medium: Somewhat likely to occur, these risks come with slightly more
serious consequences. If possible, take steps to prevent medium risks
from occurring, but remember that they are not high-priority and should
not significantly affect organization or project success.
• High: These are serious risks that both have significant consequences,
and are likely to occur. Prioritize and respond to these risks in the near
term.
7
CLASSIFYING AND PRIORITIZING RISK

8. SOFTWARE RISK ANALYSIS
1. Complexity of the technology
2. Technical knowledge
possessed by the testing team
3. Conflicts within the team
4. Teams being distributed over
a large geographical area
5. Usage of poor quality testing
tools
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• Monetary losses
• Loss of reputation or harm
to society
• Legal actions against the
company
• What will be the loss to the
customer
RISK IMPACT

9. THE TOP TEN RISK ITEM TRACKING
• Top Ten Risk Item Tracking is a qualitative
risk analysis tool that helps to identify risks
and maintain an awareness of risks
throughout the life of a project
• The review begins with a summary of the
status of top ten sources of risk on the
project.
• The summary includes each item’s current
ranking previous ranking, number of times it
appears on the list over a period of time
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10. EXAMPLE OF TOP TEN RISK ITEM TRACKING
10

11. EXPERT JUDGMENT
• Expert Judgment is one of the best
accepted approaches and most useful
too during the planning phases of
many activities.
• the intuitive feelings and past
experience of experts to help identify
potential project risks.
• Experts can categorize risks as high,
medium, or low with or without more
sophisticated techniques
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12. BENEFITS & LIMITATIONS
 Easy presentation - The results of the qualitative risk
analysis can be presented graphically using a risk
assessment matrix
 Simple assessment methods - The project team doesn't
require a training to conduct the qualitative risk analysis,
as it doesn't rely on any complicated tools or software.
 Easy prioritization - Since the qualitative risk analysis
already classifies risks according to their likelihood and
impact, it becomes easy to determine risks that an
organization should focus on - the ones falling into the
highest likelihood and impact categories.
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BENEFITS
 The evaluation of risk and its result
are subjective
 It is possible that the reality is not
defined correctly because of the
subjective perspective of the author
 Insufficient differentiation between
major risks Results depend on the
quality of risk management team
LIMITATIONS

13. SONALI TALKAR
THANK YOU