What is the focus of qualitative risk analysis?

The focus of qualitative risk analysis is on prioritizing risks based on their probability and impact. This approach allows organizations to assess risks in a more broad and subjective manner rather than attempting to quantify them with exact metrics. By evaluating the likelihood of risks occurring and the potential effects they could have on the organization, qualitative analysis helps stakeholders identify which risks need immediate attention and which can be monitored over time.

This prioritization is crucial for effective risk management, as it directs resources and attention toward the most significant threats to the organization's objectives. Engaging stakeholders for risk identification plays a complementary role within the overall risk management process, but qualitative risk analysis specifically emphasizes the prioritization aspect, enabling informed decision-making regarding risk responses.

In contrast, quantifying risks exactly might involve using numerical values, which is not the focus of qualitative analysis. A comprehensive risk management plan incorporates various elements beyond just prioritization, including strategies for risk mitigation and response. Engaging stakeholders is important but is more aligned with the initial steps of risk management rather than the core focus of qualitative risk analysis.