Question

We mention that the differences between qualitative and quantitative analytics are not necessarily about differences in the analytics methods used as much as it is about the different stages of analysis. As we consider descriptive and predictive analytics techniques used to address business risks, how would you go about determining how these techniques might align with qualitative and quantitative methods used in addressing the initial stages of risk identification?

Answer 1

Both the Descriptive and predictive analyses are considered to be complementing the qualitative and quantitative methods while per fog the business risk analysis. Broadly one can see these methods to be overlapping and aligning with each other as there will be the requirement of some sort of data in order to have the logical evaluation of the risks. In order to understand the manner in which Descriptive and predictive analysis are related to the qualitative and quantitative methods, we can take in to account the following

The main focus of descriptive analytics remains on the data processing and thus it requires some sort of method for collecting the data that should be relied on come specific market forces or to a certain business. In this, there will be a requirement of suitable qualitative data collection methods in order to collect the data for the required processing.

On the other hand, predictive analytics is commonly used at the endpoint of risk evaluation. This is due to the fact that the data analysis is done in predictive analytics with different interpretations and estimation related to the future of the business

Therefore it is quite significant to estimate the nature of the result to be used. It can be descriptive methods for the conclusions or using the predictive conclusion for the determination of risks.

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