Qualitative risk analysis is the use of a rating scale to evaluating the probability and impact of risks. It is an alternative to quantitative methods such as modeling risk probabilities as a probability distribution and impacts as dollar values. In many cases, qualitative risk analysis is close enough given that estimates of future probabilities are often educated guesses.
ExampleA project team identifies risks to a project and rate probabilities as likely, possible, unlikely. They rate impact as high, medium and low.
NotesRating scales are often color coded using color temperature with a scale such as red, orange and yellow.
This is the complete list of articles we have written about risk management.
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An overview of the risk management process.
An overview of cascading failure and resilience.
An overview of business as usual.
A list of techniques for reducing risk.
The difference between risk mitigation and risk reduction.
A list of common risk controls.
A definition of risk value with example calculation.
The common types of risk impact.
A definition of risk communication with examples.
Overview of the steps in a risk management process.
A list of common business risks.
The four things that can be done about risk.
A metric for measuring risk management.
The potential that you'll achieve too much of a good thing.
Any risk that people have a strong aversion too.
The definition of risk taking with examples.
A list of risk examples by type.
The two main factors in modeling a risk.
A definition of calculated risk with an example.
How to calculate relative risk with examples.
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