The Need of Qualitative and Quantitative Assessments for Management

Question: Discuss About the Need to Balance the Qualitative and Quantitative Assessments in Risk Management. Answer: Introduction The field of risk assessment as well as risk management is becoming increasingly complex with respect to various facts and concepts involved within the system architecture of research work (McNeil, Frey and Embrechts 2015). In contrast with all of these facts, this essay is critically reviewing the need for qualitative and quantitative assessments in evaluating the risk involved within any project. Background of Qualitative and Quantitative risk assessment: The study of project risk management contexts, this is identified that the battle of justifying the task is too tough with respect to managing the risk management and assessment facts involved within any concerned project (Pastorok et al. 2016). In accordance with various researches done under the risks assessment and management practices, the organizations as well projects are demanding mainly data driven results but the only analysis based on qualitative assessment is not enough to ensure a secured system architecture or project development facts. The need for quantitative assessment is also important for managing the impactful situation within project development phases. Qualitative Risk Assessment: In contrast with the introductory measures to the qualitative risk assessment processes, the qualitative risk assessment is nothing but the process of calculating and measuring the probability of risks involved within any project. The probability of risk is identified with the help of checking the likelihood of concerned risks introduced within any project. The probabilities of risks involved within the project development are considered for managing and mitigating the risks. All of these consequences involved within project states the likelihood of the impacts that are incorporated within the project development phases (Punch 2013). In accordance with the study about project risk management concepts, there are certain factors and facts that analyzes the likelihood of the impacts of risks: budget, schedules, resources and other important aspects incorporated within the project development phases. Quantitative Risk Assessment: Apart from different definitions of qualitative risk assessments and management process, the quantitative risk assessment is also needed to be studied. The quantitative risk assessment is defined as the process of estimating the impactful areas of significant risks involved within the project development. The quantitative risk assessment involves various tools and process in order to manage as well as measure the impacts of the risks within the project (Taibon et al. 2014). All of these tools and processes provide effective support in estimating the impact of quantitative risks assessment. The qualitative risk assessment is related to the prioritized scale of risks and the quantitative risk analysis is concerned with the highest priority of risk. Figure 1: Risk Assessment (Source: Vinnem 2014) Differences between Qualitative and Quantitative risk analysis: In contrast with these facts, the benefits and impacts need to be managed and monitored with respect to various concepts of risk management. Therefore, the benefits of both the risk assessment techniques involved within the project development phases are being elaborated within this part. The qualitative risk analysis is needed for managing the risks involved within the project development phases. In accordance with various researches, it is clear that the qualitative risk assessment is required for making probability of distribution related to risks involved. The numeric ranking done within this risks analysis technique helps the project manager in understanding the standards of the risks and their impacts in the project. The importance of quantitative risk analysis technique identifies that this risk analysis technique is needed for identifying the impactful risks that needs to be recognized for further assessments need for further development of project. This risk analysis process also incorporates risk analysis models that are incorporated within the system architecture of project development for considering the growth of the project by reducing the impacts of risks within that project (Vinnem 2014). The quantitative risk assessment process also ensures the performance analysis of project. Therefore, from critical evaluation of these two risk analysis techniques it is identified that growth of the project is main concern while mitigating the risks. In contrast with all of these description provided within this essay is highlighting that our concepts about risk analysis as mitigation needs the support of quantitative as well as qualitative method of risk management processes. These concepts and contexts are helpful in solving issues involved within a project that supplies the chances of project success within the project. The Quantitative analysis of risks introduces exact figures and impactful areas that can make the risk assessment easier in comparison with qualitative risk assessment as it only states the probability of risks. In case of qualitative risks the proper cause of risks are not clear. Conclusion This can be concluded that the risk assessment is very important for managing the project development effectiveness within any project. 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