4 Qualitative Risk Assessment and Prioritization Free Online FlashCards

What is the purpose of qualitative risk assessment?

It compares identified risks using agreed descriptive scales, helping a team decide what needs attention when precise numerical estimates are unavailable, unnecessary, or too costly.

What structure makes a risk description clear?

Describe the cause, the uncertain event, and its effect. This helps the team assess the same risk rather than different interpretations.

What should a likelihood rating specify?

Likelihood is how likely the uncertain event is to occur. Judge it over a stated time horizon and assuming the current situation or planned controls.

What does impact measure in a risk assessment?

Impact is how serious the consequences would be for relevant objectives if the event occurs. Consider objectives such as schedule, cost, quality, safety, and business benefits.

How do urgency and proximity differ?

Urgency is how soon a response must begin to remain effective; proximity estimates how soon the event may occur. A distant event can still be urgent if preparations take a long time.

What does qualitative risk exposure represent?

Exposure is a qualitative indication of the combined significance of likelihood and impact, often classified with a probability–impact matrix.

What does a product of ordinal likelihood and impact scores mean?

Multiplying ordinal likelihood and impact scores produces a relative index for ranking, not a precise probability, monetary expected value, or exact comparison between risks.

In the illustrative matrix, what exposure is medium likelihood plus high impact?

A risk rated medium likelihood and high impact falls into the high exposure category in the illustrative matrix.

When should rating bands and thresholds be defined?

Define rating bands before scoring. Thresholds, such as what counts as high impact, should fit the project rather than be treated as universal.

Should a probability–impact matrix decide priorities automatically?

Use the matrix to organize discussion, not as an automatic decision rule. The project’s risk approach should define category thresholds and the actions they normally trigger.

Why can a low-likelihood risk still deserve escalation?

Escalate potentially catastrophic or business-threatening consequences even when likelihood is low; a simple score may conceal their severity.

Which project-context factors can affect risk priority?

Consider effects on critical-path work, dependencies, common causes, and whether one event could trigger others.