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8.3.2 It's More Than Just Numbers: How to Implement a Qualitative Risk Analysis Approach
Author(s) -
Lane Courtney E.
Publication year - 2008
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.2008.tb00856.x
Subject(s) - risk analysis (engineering) , risk management , quantitative analysis (chemistry) , qualitative analysis , computer science , qualitative property , risk assessment , qualitative research , it risk management , management science , engineering , business , computer security , sociology , machine learning , social science , chemistry , finance , chromatography
Engineers often feel more comfortable using quantitative methods to solve problems; their approach to risk management is no exception. Quantitative methods are not always the best solution for effective risk management, though. For example, countless hours have been spent by risk management teams trying to determine which risk is more important. Is a risk scored 9.0 any more important than a risk scored 8.5? Maybe so, but the factors that make it more important such are often difficult, if not impossible, to quantify. By applying quantitative techniques to qualitative data, or by using unproven data in complicated risk analysis models, managers may not receive an accurate representation of their ‘top’ risks and may base critical decisions on poor information. This paper will discuss when qualitative risk analysis techniques are most appropriate, examine common challenges associated with qualitative analysis, and discuss solutions for overcoming them.