How is quantitative risk analysis primarily defined?

Quantitative risk analysis is primarily defined as a method that measures the probability and consequences of identified risks in a project. This approach involves the use of statistical methods and numerical techniques to estimate the likelihood of risks occurring and the potential impact they could have on project objectives, such as cost, schedule, and performance.

By quantifying risks, project managers can prioritize them based on their potential effect and develop strategies to mitigate or manage them effectively. This analysis contributes to informed decision-making, allowing teams to allocate resources and formulate contingency plans based on reliable data rather than subjective opinions.

Other options, while relevant to project management in different contexts, do not encapsulate the essence of quantitative risk analysis. Team dynamics, historical data usage alone, and stakeholder communication are important facets of project management, but they do not specifically address the quantitative measurement and evaluation of risks that is central to this analysis.