Difference Between Qualitative and Quantitative Risk Analysis Methods, Essay Example

Risks analysis in the organization or business is usually conducted in two ways thus Qualitative and Quantitative. To ensure effective risk assessment for any given project plan it is always important for the project manager or director to understand the basic difference between various risks analysis (Aven, 2009).There exist big differences between the two risk analysis methods. First and foremost, Quantitative risk analysis is designed to ensure that effective security measures have been implemented including the cost. On other hand qualitative analysis indicates that safety measures have been already utilized as well as it indicates the safety measures which can be significant to the project or organization is implemented. Secondly, qualitative risk analysis is one the useful risks analysis techniques which allows an individual or an organization to quickly identify potential risks, assets as well as resources which maybe vulnerable to these risks (Aven, 2009).

Thirdly, in most cases the goal of qualitative risk analysis is usually to gain a particular level of risk protection from certain potential risks as well as the protection which is likely to increase risk awareness among the organizational members. Qualitative analysis therefore can be seen as an analysis which is based on calculations which in most cases are usually fairly basic. Since qualitative analysis is based on calculations, the value of all the assets in questions is often not considered in the analysis (Elliott, 2005). On other hand quantitative analysis is also based on calculations and does the same things as those one found in qualitative kind of analysis, though the quantitative kind of analysis is capable of identifying potential envelopes for which safeguards as well as losses can be detected.

Unlike, qualitative kind of risk analysis, quantitative risk analysis is based on highly subjective processes which require the use of metrics as well as high levels of efforts. In qualitative kind of data analysis, data is collected and analyzed for key decision making process without necessarily being presented in a friendly manner for management. On other hand , quantitative analysis allows the project managers to analyze the data and present it in a friendly manner for management decision to make the decisions . In this kind of data analysis, data can be expressed in percentages, values, probabilities as well as in figures which is not possible with qualitative kind of data analysis (Elliott, 2005).

 When each risk is used

Quantitative risk analysis puts an exact figure to a given identified risk hence in most cases quantitative risk has its focus on the implementation of safety measures as way of protecting the business, organization or the project against the defined or identified risk. This kind of risk analysis helps firms as well as organizations to create very precise analytical interpretation of risks hence putting in place risk-resolving measurers well suited to various project needs (Barbara, 2007). This kind of risk analysis method is most favored by many management teams because it provides an opportunity for data analyzed to be presented in graphs , percentages, charts as well as probability hence ensuring easier interpretation because it emphasizes using tools such as metrics (Barbara,2007).

Qualitative is usually used to acquire safety against recognized risks as well as increase the alertness of the management, team members as well as top level personnel regarding the potential effects of the risk and who in particular are vulnerable to the identified risks. Qualitative risk analysis therefore involves through examination of resources and identification of those resources which are susceptible to such risks. This kind of risk analysis helps firms to identify appropriate measures that can incorporated to restrict various risks in the organizations as well as implement various risk-related analytical protocol for future reference(Rubin, 2008). 

What type of analysis will you use for the IRTC customer service system project? Why?

Quantitative risk analysis because it puts an exact figure to a given identified risk hence in most cases quantitative risk has its focus on the implementation of safety measures as way of protecting the business, organization or the project against the defined or identified risk. This kind of risk analysis helps firms as well as organizations to create very precise analytical interpretation of risks hence putting in place risk-resolving measurers well suited to various project needs (Rubin, 2008). Since IRTC customer service system project has is associated with customers needs quantitative kind of risk analysis is important because it will analyze the specific risks associated with the project as well as ways of protecting it.

References

Aven, T. (2009). Foundations of risk analysis: a knowledge and decision-oriented perspective. London: Wiley and Sons.

Barbara, J. (2007). Using narrative in social research: qualitative and quantitative approaches. Chicago: Sage

Elliott, J (2005). Using Narrative in Social Research: Qualitative and Quantitative Approaches. Chicago: Sage Publications:

Rubin, A. (2008).Research methods for social work.6^th ed. New York: Cengage Learning.