A project manager wants to prioritize risks but lacks sufficient numerical data for statistical analysis. Instead, the team categorizes risks based on their expert judgment of likelihood and impact using descriptive scales like high, medium, or low. Which type of risk analysis are they performing?
The team is performing qualitative risk analysis, which involves assessing and prioritizing risks using subjective measures of probability and impact, such as descriptive scales. This approach relies on expert judgment and is useful when numerical data is unavailable. Quantitative risk analysis requires numerical data to quantify risks using statistical methods, which isn't possible in this scenario. Sensitivity analysis and Monte Carlo simulation are techniques used within quantitative risk analysis to model and analyze risk impacts numerically.
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