Question

What are the strengths and weaknesses of Qualitative risk assessment?

Answer 1

Strengths of qualitative risk assessment:

Easier to present: the risk assessment matrix is the best tool based on likelihood and impact of matrix for the communication of risk management strategies with team members.

No training costs: As this technique of risk assessment does make use of complicated tools for analyzing risk, there is no need to provide special training to members for this purpose.

Risk prioritization becomes easy – the risk falling in the category of highest likelihood and highest impact in the risk assessment matrix should be given high priority and focus.

Time saving – as this technique does not emphasize on the frequency of risk, the time employed on estimating risk frequency is saved.

No costs estimations and scheduling – the qualitative risk assessment has no impact on project costs and schedule.

Weakness of qualitative risk assessment:

Lower accuracy- The qualitative risk assessment is based on past data and experience, there is lack of accuracy and reliability of derived results.

High manipulation- It applies human behavior approach and it is highly possible the date may be manipulated in to get favorable results and the results may be biased.

Lack of transparency and universality – the factors used for analyzing risk in qualitative risk analysis varies from person to person, organisation to organisation and industry to industry.

Lack of proper order – one factor that is highly important from the view point of one member may not be that important from the view point of another member. In this way, there is lack of standard order.

Costs control become difficult – As no attention is paid on cost controlling in qualitative risk analysis, it becomes difficult to keep check on costs.