Pareto analysis

Vilfredo Pareto ,an Italian sociologist and economist ,who invented pareto analysis
in the end of 19 th century.

Pareto analysis is a statistical technique in decision making that is used for
selection of a limited number of tasks that produce significant overall effect.

ItS principle:

A small number of causes is responsible for a large percentage of the effect-
-usually a 20-percent to 80-percent ratio.
it is common to refer to pareto as "20/80", under the assumption that, in all
situations, 20% of causes determine 80% of problems.

You can apply this ratio to almost anything, from the science of management
to the physical world .

Pareto analysis is a creative way of looking at causes of problems
because it helps stimulate thinking and organize thoughts.

finally we can say that, The application of the Pareto analysis in risk
management allows management to focus on those risks that have the
most impact on the project.