Qualitative Quantitative Risk Analysis

2.2.2.1 Qualitative Risk Analysis

Risk management turns to describe the features of each risk in qualitative risk analysis (Luu et al, 2009). The qualitative assessment comprises the identification of: (1) Risks’ hierarchy which is grounded on the possibility of risk’s manifestation and its effect on the project and staffs, (2) Risks’ scope, and (3) Risk incidence influences (Luu et al, 2009). Qualitative risk analysis evaluates the risk affording to its likelihood of existence and its possibility of incidence and large effect on the project and comeback to them consequently. Some techniques of qualitative risk assessment include direct judgment, ranking options, comparing options, descriptive analysis (Chapman and Ward, 1997). Steps of risk

Quantitative risk analysis process comprises valuation of the influence of all recognized and calculated risks. The outcomes of quantitative risk analysis process are more unbiased than those from qualitative risk analysis if sufficient data are obtainable for the decision maker (Ahmed et al, 2007). Also, quantitative risk analysis recommended statistical methods that are utmost simply used with specific program (Office of Project Management Process Improvement, 2003). According to (Dikmen et al, 2008), the quantitative risk analysis covers tasking possibilities or prospect to dissimilar influences of risks and the effect of these influences so as to explain the brutality for each influence. Chapman and Ward (1997) remarked other quantitative risk assessment methods which include probability analysis, sensitivity analysis, scenario analysis and simulation

To add, risks and doubts included in construction projects lead to charge overrun, delay of intended plans and absence of value throughout the evolution of the projects and at their finish (Wysocki, 2009). Baloi and Price (2001) started that poor cost performance of construction projects appears to be the model rather than the exclusion, and both customers and workers grieve momentous monetary deficit as a result of charge overruns. Oyegoke et al. (2008) debates the difficulties of handling risk and doubt in construction project due to the owner disappointment in project results and energy within agile construction setting.

In the risk response phase, the activity is engaged to manage the risks evaluated in the first two phases. The response phase includes both the planned response and the supervising of the responses. Responses are usually classified in four levels, namely risk retention, risk reduction, risk transfer and risk avoidance (Flanagan & Norman,