Quick Definition:
Sensitivity Analysis is a quantitative risk analysis technique used to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes.
Tornado Diagrams
Sensitivity analysis often uses a Tornado diagram to visually display the results. The diagram ranks risks by their potential impact, with the most critical risks at the top (creating a tornado-like shape).
Why Use It?
By identifying the “vital few” risks that have the biggest impact, PMs can prioritize their risk response efforts and focus their limited resources where they will do the most good.
