Qualitative Risk Analysis

• Primary method in risk management
• Assesses risks based on potential impact and likelihood
• Categorizes risks as high, medium, or low
• Subjective and relies on expertise and experience
• Avoids quantitative complexity

Key Components

• Likelihood/Probability
  • Chance of risk occurrence
  • Qualitatively expressed as low, medium or, high
  • Based on past experience, statistical analysis, or expert judgement
• Impact
  • Potential consequences if risk occurs
  • Qualitatively rated as low, medium, or high
  • Assess damage to project or business objectives
  • Impact levels
    • Low Impact
      • Minor damage, essential functions operational
    • Medium Impact
      • Significant damage, loss to assets
    • High Impact
      • Major damage, essential functions impaired