What is quantitative Risk Analysis? And what are the different parameters involved in qualitative risk analysis ? what is the difference between quantitative Risk Analysis and qualitative risk analysis?
Risk analysis can be categorized as quantitative, qualitative or a hybrid of the two. Quantitative risk analysis assigns numeric values or dollar figures to the loss of organizational asset and is based on mathematical calculations. Qualitative risk analysis, on the other hand, assigns subjective and intangible values to the loss of an asset takes into account perspectives, preferences, feelings, ideas, and intuition of individual experts or groups. Furthermore, the purpose of risk assessment in general is to identify possible risks and rank them in order of severity.
The quantitative risk analysis results in concrete likelihood indications or a numeric indication of relative risk potential in an organization. The result of quantitative risk analysis is a report that has dollar figures for levels of risk, potential loss due to the risk, cost of countermeasures, and value of safeguards organizations employ to protect their assets. Quantitative risk analysis is the act of assigning a quantitative value to risk such as placing a dollar figure on each asset and threat consequence.