How would a qualitative risk assessment typically be described?

A qualitative risk assessment focuses on identifying and prioritizing potential risks based on their characteristics and implications rather than attempting to quantify them with numerical values. This method typically involves gathering insights from various stakeholders to understand the possible impact of risks on project objectives and organizational goals. The result is a prioritized list of risk scenarios, allowing organizations to focus their resources and efforts on the most critical risks first.

In a qualitative risk assessment, risks might be categorized based on their likelihood and impact using descriptive scales (such as high, medium, or low), rather than relying on numerical calculations or financial metrics. This approach helps organizations quickly identify which risks warrant immediate attention and to strategize accordingly without getting bogged down by complex numerical analysis. Therefore, the focus is on effective risk management through prioritization, which is a foundational element of qualitative assessments.