In accordance with the PMBOKGuide (Project Risk Management), the process of Perform Quantitative Risk Analysis is specifically defined as the process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.
This process quantifies overall project risk exposure and provides quantitative risk information to support decision-making in order to reduce project uncertainty. It typically follows the Perform Qualitative Risk Analysis process.
* Key Inputs: Risk Register, Risk Report, and Schedule/Cost Baselines.
* Key Tools and Techniques:
* Representations of Uncertainty: Probability distributions (Beta, Triangular, etc.).
* Data Analysis: Simulations (Monte Carlo analysis), Sensitivity Analysis (Tornado diagrams), Decision Tree Analysis, and Influence Diagrams.
* Key Outputs: Project Documents Updates (specifically the Risk Report), which includes an assessment of overall project risk exposure and detailed probabilistic analysis of the project.
Analysis of Distractors:
* A. Plan Risk Management: This is the process of defining how to conduct risk management activities for a project. It creates the Risk Management Plan but does not analyze specific risks.
* B. Plan Risk Responses: This process involves developing options, selecting strategies, and agreeing on actions to address overall project risk exposure and treat individual project risks. It happens after analysis.
* D. Perform Qualitative Risk Analysis: This process prioritizes individual project risks for further analysis or action by assessing their probability and impact. While it involves a " Probability and Impact Matrix, " it is a subjective assessment rather than a numerical/statistical calculation of overall project impact.