What is the difference between qualitative and quantitative risk analysis?

The answer highlights a key distinction between qualitative and quantitative risk analysis. Qualitative risk analysis primarily relies on expert opinions, judgment, and descriptive categorization to identify and prioritize risks based on their potential impact and likelihood. This method is generally focused on understanding the nature and characteristics of risks rather than measuring them numerically.

On the other hand, quantitative risk analysis uses historical data, statistical tools, and models to assign numerical values to risks. By doing so, it assesses the measurable impacts of risks on project objectives and can provide a quantitative probability of risks and their potential effects in concrete terms.

This distinction is important for project managers because it informs the choice of analysis technique based on the specific needs of the project and the level of available data. Using expert opinions in qualitative analysis allows for a more nuanced understanding, while quantitative analysis adds a layer of precision that is valuable for risk evaluation and decision-making.