NAME: SIFAT ULLAH

Risk Assessment
and Management
Table of Contents
1. Approaches of Managing Risk..............................................................................................2
1.1. Qualitative Risk Calculation...........................................................................................2
1.2. Quantitative Risk Calculation........................................................................................2
2. Comparison of Risks Assessment (Qualitative and Quantitative.................................2
3. Key Pros and Cons...................................................................................................................2
3.1. Risk analysis (Qualitative)..............................................................................................2
3.1.1. Pros..............................................................................................................................2
3.1.2. Cons.............................................................................................................................2
3.2. Risk analysis (Quantitative)...........................................................................................2
3.2.1. Pros..............................................................................................................................2
3.2.2. Cons.............................................................................................................................2
4. Application in Chosen Discipline..........................................................................................3
5. Conclusion.................................................................................................................................3
References.........................................................................................................................................4
 1. Approaches of Managing Risk
Methodology of project management must include risk assessment and management in
order to reduce unexpected events that may arise during project execution. While it is
impossible to foretell the future with absolute certainty, simple and effective risk
management techniques are utilized to foresee risks in the project and decrease their effect
(Aven, 2016). Two distinct categories of risk analysis are presented here.

1.1. Qualitative Risk Calculation

The procedure of creating a risk registry relied on probability, impact, and, when pertinent,
other attributes. It is comparatively simple and quick. It also functions without the use of any
particular tools (Aven, 2016) .

1.2. Quantitative Risk Calculation

To determine how calculated risks would affect the overall project's goals, on the other hand,
a statistical analysis of the risks is used. Because there are so many different instruments
utilized to deliver the results, quantitative analysis takes time. In addition, it needs a variety
of software and specialized equipment to get outcomes (Aven, 2016).

2. Comparison of Risks Assessment (Qualitative and

Quantitative
It is important to note that both approaches have certain similarities but differ in terms of
approaches, tools used, and procedures. Quantitative and qualitative data are comparable in
that they both have a scale or order and are employed in statistical and research analysis.
On contrary, differences are divided into several aspects designed on results. This also
pertains to how procedures, functionalities, and equipment are approached (Simosa, 2019).

3. Key Pros and Cons

3.1. Risk analysis (Qualitative)
3.1.1. Pros
 Setting priorities of risk management are simple.
 Low-cost & extremely easy to use.

3.1.2. Cons
 There is not enough distinction within the risk group
 There is no fixed measuring value (Lee, 2014).

3.2. Risk analysis (Quantitative)

3.2.1. Pros
 Identification of potential hazards at each step of project development
 Identification of potential financial losses

3.2.2. Cons
 May be deceptive
 Conducting the analysis necessitates the knowledge of the supervisor, which raises
the cost (Lee, 2014)
 4. Application in Chosen Discipline
Using a hybrid strategy will yield the most accurate findings for risk assessments. For your
project, this greatly expands the range of options. Hybrid techniques are significant in my
field of study (business informatics), because the core of project management is risk
assessment. This reduces the likelihood that the project will perform poorly. Being aware of
issues that may have an influence on your firm, such as cyberattacks, is crucial if you are a
project manager in an IT company. It is vital to be ready for cybersecurity attacks that could
destroy your business (Bridges, 2019).

5. Conclusion
To sum up, the main distinction between qualitative and quantitative analysis is how they are
built. Comparative risk is based on both the possibility for loss from cyber incidents and the
objective worth of assets, whereas qualitative risk analysis is primarily subjective in nature.
While both have advantages, it is a good way to undertake assessment of risk in a
quantitative manner to determine the financial dangers you may be highlighted to when
setting up your organization's cyber risk management methods.
References
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on
their foundation. European Journal of Operational Research, [online] 253(1), pp.1–13. doi:
10.1016/j.ejor.2015.12.023.

Bridges, J. (2019). IT Risk Management Strategies and Best Practices -

ProjectManager.com. [online] ProjectManager.com. Available at:
https://www.projectmanager.com/training/it-risk-management-strategies.

Lee, M.-C. (2014). Information Security Risk Analysis Methods and Research Trends:
AHP and Fuzzy Comprehensive Method. International Journal of Computer Science and
Information Technology, 6(1), pp.29–45. doi:10.5121/ijcsit.2014.6103.

Simosa, F. (2019). Difference Between Quantitative and Qualitative Risk Analysis. [online]
projectcubicle. Available at: https://www.projectcubicle.com/difference-between-
quantitative-and-qualitative-risk-analysis/.