What does risk analysis involve?

Risk analysis primarily focuses on identifying potential risks that could negatively impact a project and estimating their levels of significance. This process allows teams to prioritize which risks require attention and to develop strategies to mitigate those risks, enhancing the overall probability of a successful project outcome.

Estimating the level of identified risks is crucial because it informs stakeholders about the likelihood of each risk occurring and the potential impact it could have. By understanding the risks in terms of severity and likelihood, teams can make informed decisions about where to allocate resources and how to plan risk mitigation strategies effectively.

The other options, while relevant to different aspects of project management, do not directly pertain to the essence of risk analysis. For example, assessing positive impacts on the project relates more to benefits realization rather than risk. Monitoring project progress is a broader activity that tracks overall performance and does not specifically focus on risks. Conducting user satisfaction surveys pertains to gathering feedback from users, which is vital but not related to the identification and analysis of risks.