Task 1. Qualitative Risk Analysis. (10 points)

Modules 4.1 and 4.2 discuss two classes of risk analysis: Qualitative risk analysis and quantitative risk analysis.

• Describe primary differences between the two classes.
• Explain why, in general, qualitative risk analysis should be performed prior to carrying out quantitative risk analysis.

Task 2. Probability and Impact Analysis. (20 points)

Project risks commonly identified in general projects are outlined in Figure 1.

• Perform a probability and impact analysis for the Level 2 risks under '1. Technical Risk' and '4. External Risk.'
• Use the P-I matrix template

RBS LEVEL 0 RBS LEVEL 1 RBS LEVEL 2 1.1 Scope definition 1.2 Requirements definition 1.3 Estimates, assumptions, and constraints 1. TECHNICAL RISK 1.4 Technical processes 1.5 Technology 1.6 Technical interfaces Etc. 2.1 Project management 2.2 Program/portfolio management 2.3 Operations management 2. MANAGEMENT RISK 2.4 Organization 2.5 Resourcing 2.6 Communication 0. ALL SOURCES OF Etc. PROJECT RISK 3.1 Contractual terms and conditions 3.2 Internal procurement 3.3 Suppliers and vendors 3. COMMERCIAL RISK 3.4 Subcontracts 3.5 Client/customer stability 3.6 Partnerships and joint ventures Etc. 4.1 Legislation 4.2 Exchange rates 4.3 Site/facilities 4. EXTERNAL RISK 4.4 Environmental/weather 4.5 Competition 4.6 Regulatory Etc. Figure 11-4. Extract from Sample Risk Breakdown Structure (RBS)