Anita is working with her team and SMEs to prioritize identified risks for further analysis. They decide to use a five-point scale of very low (VL), low (L), medium (M), high (H), and very high (VH) to assess the likelihood and impact of risk events. This process may be best described as

Question

BlackTom AI · Accepted Answer

The scenario describes using descriptive categories (very low, low, medium, high, very high) to rate both likelihood and impact of risk events, rather than assigning exact numerical values or performing math-based calculations. This aligns with qualitative risk analysis, which uses subjective scales to assess risk levels.
Option 1: 'Quantitative risk analysis' would involve numerical data, probabilistic estimates, and possibly formulas to quantify risk in monetary terms or probabilities; the described five-point scale is inherently non-numerical, so this option is incorrect.
Option 2: 'Probability scaling technique' would imply a specific method that converts probabilities to a scale, but the prompt describes a general five-point scale for both likelihood and impact rather than a defined probabilistic scaling method, making this option not a precise fit.
Option 3: 'Qualitative risk analysis' is correct because it matches the use of subjective judgments and ordinal scales (VL to VH) to categorize risk exposure without numerical calculations.
Option 4: 'Five-point quantitative assessment' is inconsistent because, although there are five points, the assessment described is not quantitative in nature; it uses qualitative judgments rather than numeric risk values, so this option is misleading.

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Jenny is working with her team and SMEs to prioritize identified risks for further analysis. They decide to use a five-point scale of very low (VL), low (L), medium (M), high (H), and very high (VH) to assess the likelihood and impact of risk events. This process may be best described as

Perform Qualitative Risk Analysis is usually a rapid and cost-effective means of establishing priorities for Plan Risk Responses and lays the foundation for Perform Quantitative Risk Analysis, if required.

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