Systematic sensitivity analysis of smoothed particle hydrodynamics method (SPH), a gridless Lagrangian particle method, was carried out in this study. Unlike traditional grid-based numerical schemes, systematic sensitivity study for computational parameters is very limited for SPH. In this study, the effect of computational parameters in SPH simulation is explored through two-dimensional dam-breaking and sloshing problem. The parameters to be considered are the speed of sound, the type of kernel function, the frequency of density re-initialization, particle number, smoothing length and pressure extraction method. Through a series of numerical test, detailed information was obtained about how SPH solution can be more stabilized and improved by adjusting computational parameters.