Organizations typically use both quantitative and qualitative risk analysis techniques when analyzin

Dania Mueller

Dania Mueller

Answered question

2022-06-27

Organizations typically use both quantitative and qualitative risk analysis techniques when analyzing the risk to the organization and determining the appropriate counter-measures. Compare and contrast quantitative and qualitative risk analysis. Describe a situation when a qualitative risk analysis method is most appropriate, and describe a situation when a quantitative risk analysis method is most appropriate.

Answer & Explanation

Abigail Palmer

Abigail Palmer

Beginner2022-06-28Added 30 answers

Difference between quantitative and qualitative risk analysis
Qualitative risk analysis Quantitative risk analysis risk-level project-level subjective evaluation of probability and impact probabilistic estimates of time and cost quick and easy to perform time consuming no special software or tools required may require specialized tools consider all the risks identified in the identify risk process. considers the risks which are marked for further analysis. It does not analyze the risks mathematically to identify the probability and distribution It use project model, mathematical and simulation tools to calculate the probability and impact.
Qualitative risk analysis is useful in situations where theory, data, time or expertise are limited. Qualitative risk analysis process is usually applied in most of the projects.
Example : Software projects
Quantitative risk analysis may not be applied to many simple or moderately complex projects. We may not find its use in software projects. It has a more limited use, we need the availability of data to use to conduct the quantitative analysis.
Example : nuclear, aerospace, oil, rail and military industries

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