Definition
Qualitative Risk Analysis is a subjective risk assessment method used to evaluate probability and impact without relying on numerical data. Instead of using complex calculations, it categorizes risks based on expert judgment, experience, and predefined scales (e.g., low, medium, high).
Key Steps in Qualitative Risk Analysis
- Identify Risks – Gather potential risks through brainstorming, checklists, and past project data.
- Assess Probability & Impact – Determine how likely a risk is and how much it could affect the project.
- Use a Risk Matrix – Place risks on a matrix to prioritize them visually.
- Develop Risk Responses – Focus on high-priority risks first.
Example in Practice
A construction project identifies a risk: “Supply chain disruptions.”
- Probability: High
- Impact: High
- Priority: Critical (Requires immediate mitigation planning)
Why It’s Useful?
✔ Helps quickly prioritize risks without complex modeling.
✔ Provides a clear roadmap for addressing high-risk items.
✔ Works well in projects with limited data or when rapid decisions are needed.
