What is essential for the success of quantitative risk analysis?

Accurate numerical data is crucial for the success of quantitative risk analysis because it allows project managers to assess risks in measurable terms. Quantitative risk analysis relies on statistical methods and numerical models to evaluate the likelihood of different risks and their potential impacts on the project's objectives. Without accurate and reliable numerical data, the analysis would be flawed, leading to poor decision-making regarding risk mitigation and management.

High-quality numerical data enable better estimates of probabilities and potential impacts, facilitating more effective strategies for addressing risks. This is essential for producing meaningful results that can guide project planning and execution. Accurate data helps in forecasting outcomes and understanding the potential range of consequences associated with risks, ultimately contributing to informed decision-making and successful project delivery.