Why Us

  • Expertize
  • Only Experts in Qualitative Analysis
  • Professionalism
  • NVivo, QDA, Atlas Professionals
  • Experience
  • Team of Dedicated Seasoned Researches

Special Approach

  • Goal Oriented Writing
  • Custom Data Collection
  • Thorough Analysis
  • Detailed Interpretation
  • Original Writing

Our Guarantees

Best Approaches To Qualitative Risk Analysis

What Is Qualitative Risk Analysis?

qualitative risk analysisQualitative risk analysis as well as qualitative analysis in marketing or chemistry qualitative analysis is the approach taken to analyze risks to a business, or project. The analysis evaluates the impact that the risk would have if it occurred and the probability of it happening. Rather than using data and statistics, it makes use of the judgment and evaluation of management and other responsible members. As a means of assessing risk, qualitative analysis provides the following benefits:

  • Speed – A risk assessment using qualitative analysis can be done quickly
  • Accuracy – Although it is based on the judgment of individuals as opposed to hard data, competent personnel from each department can make very accurate assessments based on their knowledge. Also the value of an asset may not be reflected when measured in dollars only. Value is also how important something is to accomplishing goals.
  • Be prepared – It is always a good idea to have a plan in place for all eventualities.
  • Easy to implement – Those who are constantly involved with the area they evaluate are in the best position to know what measures can be put in place.

Steps in Qualitative Risk Analysis

There are 6 basic steps that make up risk management analysis. Although several different qualitative risk analysis methods are used, the basics are essentially the same in each with some slight variations. The 6 steps are as follows:

1. Risk identification – This is identifying anything that can go wrong that would affect the business/project the assessment is being done for. It might include equipment failures, employee strikes, natural disasters or a multitude of other things. Any risk should be identified.

2. Impact analysis – When risks have been identified, then an estimate needs to be made of the impact that risk would have if it actually occurred. This is subjective and may not be 100 percent accurate but it doesn’t need to be. Somebody familiar with the area being estimated should be able to come up with some fairly good ballpark estimates. Impact is usually judged on a simple predefined scale such as low-medium-high-very high or something similar and as simple.

3. Risk probability – The estimate of how likely it is the risk will occur. Again a simple scale can be used such as unlikely-possible-very likely-near certain.

4. Risk Treatment – A decision should be made for each possible risk. Risk treatment will usually consist of :

  • Accept – Just accept the possibility it could happen and monitor with no further action.
  • Transfer -Transfer the risk to some other party such as an insurance company.
  • Mitigate – Put a plan in place to lessen impact should the risk occur.
  • Avoid – Completely avoid the risk. This may involve not taking a contract, changing an approach or a number of things depending on the situation.
  • Exploit – Risk with the chance of a possible beneficial outcome may be exploited

5. Develop a backup plan – Should a risk occur know what to do and who is responsible for what. Knowing a plan now and getting agreement on that plan could possibly save time and money later.

6. Review and monitor – Review your risk management analysis on a regular basis.

Tools for Qualitative Risk Analysis

There are some simple but effective tools that many are familiar with, that are useful in risk management analysis. Tools include:

  • Risk management log – A record of all that was done in the risk analysis in all steps.
  • Mind mapping – Effective for risk identification
  • Lensing – A means of examining risks from different perspectives

The American Statistical Association has a section on risk analysis at the following address, http://www.amstat.org/sections/srisk/ .

Check it out if you have an interest in statistics in risk analysis. Order if you need qualitative risk analysis paper today!