What is Quantitative Risk Analysis?

In project management, quantitative risk analysis is akin to assigning numbers to hazards in order to understand how probable they are to occur and how much they might damage your project, similar to using arithmetic to determine the odds of winning a game. It entails measuring and prioritizing risks using data, computations, and statistical methodologies. Instead of just declaring a risk is “high” or “low,” you provide numerical numbers to the likelihood of occurrence and the possible impact on your project. By measuring uncertainty, project managers may focus on the most significant risks and prepare suitable strategies to address them. Essentially, it is about assigning numerical values to hazards in order to better understand and manage them.