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Qualitative and Quantitative Risk Analysis

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A common assumption following the completion of a project would be that the sun would rise the next day. Suppose for a moment the sun did not rise. The severity of this risk would threaten not only the completion of this project but most other projects. In other words, the risk posed by the sun not rising is extremely high; however, the likelihood of that happening is relatively small.

On the other hand, consider a different sort of risk. Consider that one of the billing system database servers has been destroyed. The likelihood of this happening is considerably higher than the likelihood of the sun not rising. Unless the database was not recently backed up, the severity of this risk is relatively low. In other words, neither of these risks rises to a level that would threaten the completion of the project.

What are the differences between qualitative and quantitative risk analysis? When is each type of analysis appropriate? What type of analysis will you use for the customer service system project?

Address the following in 750-900 words:
What are the differences between qualitative and quantitative risk analysis? Explain.
When is each type of analysis appropriate? Explain.
What type of analysis will you use for the IRTC customer service system project? Why?

Use correctly APA style formatted references of solid academic quality for your resources and use correctly formatted APA style in-text citations to your references to substantiate your information and positions as well as to give credit to other author's work.

Show the process for performing risk management and the steps and techniques for each element.
Manage project scope throughout the project life cycle.
Compose project plan and sub-plans that establish how various organizational elements will work and interface to include problem resolution processes.

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There are two types of risk analyses - qualitative and quantitative - which have to be conducted simultaneously or in gap (Qualitative and..., n.d).
Qualitative Risk Analysis Quantitative Risk Analysis
This risk analysis is used to identify issues which cause hindrance in projects and can become risk factors in the future. This risk analysis is focused on implementation of measures which have been established to protect against risks which have been defined already.
It is not important to quantify threat frequency. Results facilitate management of risk by return on security investment.
Risk analysis results are not necessarily expressed in monetary value. Risk analysis results can be expressed in specific quantifiable terms like monetary value for easier understanding.
It is easier to involve people; even those who are not experts in risk analysis can participate. The accuracy of risk analysis increases over time as an organization builds a historic record of data while gaining experience.
It is difficult to form a control implementation as there is no basis for cost-benefit analysis. The process to reach credible results and consensus is very time consuming.
Results are dependent on skills of teams conducting risk analysis. The process requires expertise and it can be difficult to train people in it.

Qualitative risk analysis is appropriate when just an estimate is enough for identifying and prioritizing risk events (Qualitative vs...., n.d).
Quantitative risk analysis is appropriate ...

Solution Summary

The expert examines qualitative and quantitative risk analysis.