Project management is the application of skills tools knowledge and techniques to project activities to meet its objectives. Project management is achieved through planning, initiating, executing, controlling, and closing. Project management risks describe the process involved in identifying, analyzing and responding to risks facing a project. There are two types of risk management, qualitative, and quantitative risk management.
Qualitative risk management is the process of assessing the impact and likes hood of identifying risks. The qualitative method of assessing risks in a project focuses on the potential effects that interfere with the project objectives. The management helps in identifying of addressing specific risks and guiding risk response. The qualitative risk assessment considers all the risks available and arranges them in terms of their likelihood of happening and their impact on the project. In qualitative first one comes up with the plan of managing the risk followed by identifying the risk. This is followed by determining the project status and them the project plan. After the risks are assessed qualitatively, it helps to come up with a list of risks with a high probability of affecting the project either negatively or positively.
The potential risks then are further analyzed using the quantitative risk management. The objective of further analyzing the risk using quantitative process is to determine the cost and the schedule required to manage the risk. The process analyzes numerically the probability of each risk occurring and its impact on the project objectives. In this process of management, quantitative follows the qualitative risk management process by first determining the risk. Both processes of risk management can be done together or conducted separately. To gather information for quantitative risk management, interviewing is used which helps in qualifying the probability and the consequences of the risk to the project. This is followed by the sensitive analysis that helps in determining which risk has the highest impact on the project. The risks may be managed through mitigation, accepting, or transferring the risk to another party.