Qualitative Risk Analysis can happen before initiating a project?

Submitted by happyinlove505 on Thu, 01/24/2013 - 11:51

Hello PMZilla friends,

I was reviewing Risk Mgt knowledge area in RMC book (7th ed). And while reading about qualitative risk analysis on page 385 I discovered that "Qualitative risk analysis can also be used to... determine whether the project should be selected, continued or terminated"

Based on that statement I understand that Qualitative risk analysis may happen even before the project selection and, eventually, initiation.
Moreover, Qualitative risk analysis may be part of project selection methods which I do not remember being mentioned in Integration Management knowledge area.
I think it also contradicts the Rita's Process Chart which says that Planning events all occur in the defined Order.
 

I understand that maybe there is no point to be too picky to details in finding controversies, but the main point that I just learned that Qualitative risk analysis can be used for project selection.

Am I correct in this judgement? Or maybe I got something wrong?

 

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projectation

Thu, 01/24/2013 - 21:56

One of the inputs to developing your project charter is the "business case".  Though it is not explicity stated in the PMBOK from that section, a preliminary risk assessment is typically done from both the quantitative and qualitative standpoint.  This helps the proposed project sponsors and stakeholders to make an informed judgement on whether or not to proceed with a project.

I don't have Rita's book on hand to validate whether your assertion that planning events all occur in defined order, but that would not be entirely correct since the PMBOK acknowledges "progressive elaboration" where some or many aspects are not known that must be progressively integrated as the scope becomes more relealed.  This allows you to move on in your planning and to circle back if necessary to fill in the rest of the details.  So it is more a prescribed order rather than defined one.

Also, don't just take what you read literally from the PMBOK as it is a "guide" to the BOK and not the ultimate word.  In addition, I think about 70-80% of the PMP exam is based on the PMBOK while the rest of the 20-30% comes from general management practices and knowledge areas.

Therefore, it is not out of alignment to say that qualitative risk analysis in the broad general business perspective is done as part of the project selection process before the project is even approved and initiated.

-Don Kim
Projectation.com

happyinlove505

Fri, 01/25/2013 - 06:19

 Hello Don Kim

thank you for an extensive answer :).

It is clearer now and I support your view