Quantitative and qualitative are the two chief methods of analyzing risk. Risk analysis tries to determine how likely a risk is to happen and how it might affect the budget, timeline, and quality of a project if it happens. It includes risk identification, assessment, response development, and response control. Risk analysis is an essential component of project risk management, which is the overall process employed by project managers to lessen the impacts and deal with risk. Risk analysis is about understanding what could go wrong with a project and then evaluating the probability of each risk occurring. Take a product tour What is project risk analysis? By doing a thorough risk analysis, project teams can go forward knowing what could derail their efforts. To ensure the best chances of success, project teams and planners need to conduct a risk analysis, considering the possible impediments to the project, the likelihood they will occur, the kind of impact they would have, and how to avoid them. Every project or enterprise contains an element of chance.