What does qualitative risk analysis involve?

Qualitative risk analysis involves a non-numerical evaluation of the likelihood and impact of identified risks. This process helps project managers and teams to assess the potential effects of risks on project objectives without assigning specific numerical values. Instead, it utilizes techniques such as expert judgment, risk probability assessment, and impact assessment to categorize risks into various levels of severity and urgency.

This method is particularly beneficial in the early stages of risk management, as it allows project teams to prioritize risks and address the most critical ones promptly without the immediate need for a detailed quantitative analysis. Qualitative risk analysis enables teams to create a framework for monitoring and re-evaluating risks as the project progresses, enhancing overall decision-making processes.

It is worth noting that while the other options involve aspects of risk assessment, they are primarily linked to quantitative analysis or other focused assessments, which do not align with the essence of qualitative risk analysis.