What does risk analysis involve?

Risk analysis involves identifying and assessing potential risks that could impact the project's success. Choosing to estimate the level of identified risks is essential because it enables the team to prioritize them based on their likelihood and potential impact. This process is critical for effective risk management, as it helps guide decisions on which risks need immediate attention and resources.

By focusing on the estimation aspect, teams can develop mitigation strategies and prioritize their efforts on the most significant risks, which is crucial in agile environments where adaptability is key. This understanding allows for proactive management of risks, leading to better project outcomes.

The other choices do not specifically pertain to the core activities involved in risk analysis. While monitoring project progress is important for overall project management, it doesn’t directly evaluate risks. Similarly, assessing positive impacts and conducting user satisfaction surveys focus on benefits and user perspectives rather than identifying or estimating risks.