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Please describe eight tool or methods for qualitative risk analysis in the risk management industry and a description of each tool or method

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Qualitative risk assessment is the use of methods for ranking identified risks according to their potential effect on project objectives by determining the importance of addressing specific risks and guiding risk response measures. Eight methods for qualitative risk analysis in the risk management industry include:

1. Risk probability and impact assessment - Risk probability and risk impact can be explained in qualitative terms such as very high, high, moderate, low and very low. Risk probability is the likelihood that a risk will occur. Risk impact is the effect on project objectives if the risk occurs, which may be a negative effect (threat) or a positive effect (opportunity). These two measurements of risk are applied to specific risks, not to the overall project. The levels of probability and impact are assessed in meetings or by interviews with the participants including subject matter (area of risk) experts and project team members. Details justifying the assessment should be documented with the risks being rated according to the definitions given in the risk management plan. This method involves investigating the likelihood that each specific risk will occur and the potential effect on a project's objective such as schedule, cost and quality or performance, defining it in levels through interviews or meetings with relevant stakeholders and documenting the results.

2. Probability and impact matrix - Probability and impact matrix involves rating risks for further quantitative analysis using a probability and impact matrix with the rating rules should be specified by the organization in advance. A matrix may be constructed that assigns risk ratings (low, moderate or high) to risks based on combining probability and impact scales of a risk on a project objective. The organization must determine which combinations of probability and impact result in a risk's being classified as high risk (red condition), moderate risk (yellow condition), and low risk (green condition). The risk score helps put the risk into a category that will guide risk response actions. Risks with high probability and high impact are likely to require further analysis, including quantification, and aggressive risk management (both threats & opportunities). Lower Risks would require less emphasis and it may be enough to include them in a watch list for monitoring.

3. Assessment of the risk data quality - Qualitative risk analysis is performed to ...

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The solution assists with describing methods for qualitative risk analysis in the risk management industry and a description of each tool or method.

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Qualitative and Quantitative Risk Analysis

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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