What is qualitative risk assessment?

Qualitative risk assessment is focused on evaluating risks based on characteristics, descriptions, or potential impacts rather than relying on numerical data or statistical methods. This approach emphasizes the subjective evaluation of risks, allowing stakeholders to assess potential threats and vulnerabilities through discussions, expert opinions, and structured frameworks.

In qualitative assessments, the goal is to identify the nature of the risks, their likelihood, and their consequences, which can be described in terms of severity and potential impact on the organization or project. This method is particularly useful when data is scarce or when the risks are complex and multifaceted, enabling decision-makers to prioritize risks based on their significance to the overall objectives.

This contrasts with other methods that may rely heavily on quantitative measures, such as calculating probabilities or costs, which are not features of qualitative risk assessments. Thus, option C accurately captures the essence of qualitative risk assessment by highlighting its reliance on description and evaluation of risk characteristics.