What distinguishes qualitative risk analysis from quantitative risk analysis?

Qualitative risk analysis focuses on identifying and assessing risks based on their potential impact and the likelihood of occurrence, providing a high-level overview that helps prioritize risks without requiring complex calculations. This analysis utilizes descriptive assessments, such as categorizing risks as low, medium, or high in terms of severity.

On the other hand, quantitative risk analysis seeks to assign numerical values to the likelihood and impact of risks, often involving statistical methods and modeling to evaluate the probability and potential cost implications of identified risks. This approach provides precise numerical data that can help in making informed decisions about risk responses and overall project planning.

The other choices do not accurately capture the core distinction between qualitative and quantitative risk analysis. For example, focusing on cost versus time is not a primary differentiator between the two methods, and the suggestion that qualitative analysis uses surveys while quantitative utilizes interviews is misleading; both methods can use a variety of data collection techniques. Lastly, while qualitative analysis is often more subjective, the key distinguishing feature lies in the nature of the assessment—impact assessment versus numerical quantification.