During the planning phase of a project, the project manager assesses risks by categorizing them based on general terms such as "unlikely," "possible," and "likely" for their chance of occurring, and "minor," "moderate," and "significant" for their potential consequences, without assigning specific numbers. Which risk analysis technique is the project manager using?
The project manager is using qualitative risk analysis. This method involves evaluating risks using descriptive categories for both the likelihood of occurrence and the potential impact, without relying on numerical data. It helps prioritize risks for further action or analysis. Quantitative risk analysis, in contrast, uses numerical values and statistical methods to analyze risks, which is not being done here. Risk mitigation planning and risk avoidance strategy are approaches to manage risks after they have been identified and analyzed.
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What is qualitative risk analysis?
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What is the difference between qualitative and quantitative risk analysis?
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Why might a project manager choose qualitative over quantitative risk analysis?