Qualitative risk analysis is simply the process of prioritising the risk based on probability of occurrence and impact, as well as some other characteristics if they are relevant. It is what most of us would recognise as an important step in project risk management.

The results are typically shown using a Probability/Impact ranking matrix. This type of analysis will also categorize risks, either by source or effect.

The key benefit of qualitative risk analysis process is that it enables project managers to reduce the level of uncertainty and to focus on high-priority risks.

3 functions of qualitative risk analysis are as follows:

• It pioritise risks according to probability & impact
• It identifies the main areas of risk exposure
• It improve understanding of project risks

Qualitative risk analysis process:

• Step 1: Identify Risks: Identifying risks is the most important part of qualitative risk analysis process. Project managers can make the risk identification process faster by holding brainstorming sessions with their teams and even some workers to get a clearer idea of what’s happening in the field.

• Step 2: Classify Risks: Once the risk is identified it needs to be classified. Popular technique to classify risk is the risk matrix, which combines the consequences and likelihood of a risk occurring.

• Step 3: Risk Control/Treatment: The next step is risk treatment or risk control. Risk control is generally divided into two categories:

  First category of risk control is focused on targeting the root causes of risks such as hazards or inefficient management processes.

  Second category of risk control is geared towards lessening the negative impact of the risk through corrective actions such as providing workers with PPE.

• Step 4: Review & Monitor Risk: As the project progresses, it’s important to keep risk logs up to date. At each stage of the project, risk probability will fluctuate. Some risks will disappear, while others might increase in likelihood. Reviewing your risks regularly will help keep you on top of these changes.