What does qualitative risk analysis focus on?

Qualitative risk analysis primarily focuses on identifying and evaluating risks based on their characteristics rather than quantitative metrics. This methodology involves assessing the nature, severity, and impact of risks in a more subjective manner. By examining the various qualities that define each risk, such as likelihood of occurrence and potential impact on objectives, qualitative risk analysis provides a framework for understanding risks in context and prioritizing them based on their significance.

This approach is invaluable in situations where numerical data may be scarce or when immediate perceptions about risks are necessary for decision-making. The qualitative assessment is often complemented by discussions and expert judgments to derive insights that can guide strategic planning and resource allocation. Consequently, it allows organizations to effectively anticipate and address potential challenges without relying solely on numerical evaluations.