Answer:We start each project to get some business benefits. We design it to achieve users and other stakeholder’s satisfaction. And we build it to improve organization KPIs. But, we live in a world where the project faces many uncertainties. These uncertainties or risks can prevent from achieving our project goals or objectives. So, it is critical that we identify them in time to take care of their effective responses.
The more we know our risks, the more we can evaluate and prioritize them timely for:
Reducing their probable negative impacts, or
Increase their likely positive impacts
We can use Qualitative Risk Analysis and Quantitative Risk Analysis techniques to evaluate and prioritize risks. I see there are a lot of confusions around how these two techniques are different from each other. In this blog, I will address these confusions and differences between these two techniques.
Before we get into the difference between qualitative and quantitative risk analysis/assessment, it is mandatory to understand how we perform risk analysis in projects. Below is the summarized demonstration of the risk analysis:
Step-by-step explanation: