Which term describes a risk analysis that uses qualitative methods to assess risks?

Which term describes a risk analysis that uses qualitative methods to assess risks?

• A. Qualitative risk analysis
• B. Quantitative risk analysis
• C. Risk Analysis
• D. Risk Administration

Answer: (A)

Qualitative risk analysis describes the process of assessing risks using descriptive terms and categories rather than precise numbers. It ranks risks by factors like likelihood and impact using scales such as high/medium/low and often employs a risk matrix to visualize priorities. This approach relies on judgment and expert input rather than numerical data, which is exactly what is meant by a qualitative method. In contrast, quantitative risk analysis would involve numeric probabilities, data, and mathematical models to estimate potential losses or schedule delays. The broader term “risk analysis” is too general, and “risk administration” is not a standard term for risk assessment.

Qualitative risk analysis describes the process of assessing risks using descriptive terms and categories rather than precise numbers. It ranks risks by factors like likelihood and impact using scales such as high/medium/low and often employs a risk matrix to visualize priorities. This approach relies on judgment and expert input rather than numerical data, which is exactly what is meant by a qualitative method. In contrast, quantitative risk analysis would involve numeric probabilities, data, and mathematical models to estimate potential losses or schedule delays. The broader term “risk analysis” is too general, and “risk administration” is not a standard term for risk assessment.