1. Project Risk Management
Everything is sweetened by risk.
─ Alexander Smith
But boundless risk must pay for boundless gain.
─ William Morris

2. Qualitative Risk Analysis
Assessing the likelihood & impact of identified risks, to determine their magnitude & priority (Schwalbe, 2006, p. 441)
Qualitative Tools:
Probability/Impact Matrix (p. 442)
Top Ten Risk Item Tracking (p. 446)
Expert Judgment (p. 446 – 447)

3. Quantitative Risk Analysis
Includes data gathering, quantitative risk analysis, & modeling techniques
Can follow Qualitative Risk Analysis, or both can be done together, or separately
Quantitative Tools:
Decision Trees (p. 448)
Simulation (p. 449)
Sensitivity Analysis (p. 452)

4. Risk Responses Avoidance – eliminate cause of risk
Acceptance – accept consequences
Transference – shift consequence to 3rd party
Mitigation – reduce impact of risk