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Quantitative Risk Analysis Definition and Explanation PDF | Download eBooks

Learn Quantitative Risk Analysis definition in project management with explanation to study “What is Quantitative Risk Analysis”. Study quantitative risk analysis explanation with project management terms to review project management course for online MBA programs.

Quantitative Risk Analysis Definition:

  • Quantitative Risk Analysis is the process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.

    A Guide to the Project Management Body of Knowledge by Project Management Institute

Quantitative Risk Analysis Explanation:

There are two ways of analyzing risks; qualitative risk analysis and quantitative risk analysis. Quantitative risk analysis deals with the analysis of individual potential risks and overall project risks in a numerical way. Quantitative risk analysis quantifies the impact of potential project risks on the project objectives. It determines the aggregated impact of all the individual project risks on the overall project goals and objectives. It can also provide some additional numerical information regarding risks. Quantitative risk analysis is performed throughout the project life cycle, however, not all projects require quantitative risk analysis. In quantitative risk analysis, different risk models are to be developed for which specialized softwares are required.

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