Understanding Risk Assessment: Types, Benefits and Drawbacks

Risk assessment is the joint effort of identification and analyzing potential events that may ultimately have negative impact on any individuals ,assets and also involved environment and also framing judgement to it .It is a basic term which is also used to describe the whole process to it or also method were one person stand .It also assess the appropriate form to eliminate the hazard ,or risk control when the excess hazard cannot be eliminated or at the same time the risk cannot be controlled . There is various type of risk assessment involved, listed below are: 1. Qualitative risk assessment 2. Quantitative risk assessment 3. Generic risk assessment Benefits involved of Qualitative risk analysis: 1. Qualitative risk analysis can be shown in a very short form. The same can be shown graphically using risk assessment matrix. The higher -level management can use such matrix to properly communicate eh involved strategy to team employees of company or also to higher level staff employees 2. No proper conduction of training i s required to be imparted for a qualitative risk analysis. No dependency on software is required or any other form of tool which is required to be undertaken. 3. Qualitative risk analysis requirement is risk classification as per the likelihood involved and l ass impact of it, at times it becomes very much easy to ascertain the risk involved that a particular organization need to properly focus on. 4. The analysis result do not require any dependency on the occurrence of risk level so the members who are conducti ng the analysis can properly save time by not ascertaining the frequency involved and also the accurate time involved to it but also the risk to it. 5. Mo quantification is as such required. Impact and the involved cost to the project and schedule. Much time is also saved during the proper analysis of the same. Drawbacks involved of Qualitative risk analysis 1. Any evaluation to it always subjective based 2. No combination to it of risk evaluation or cost analysis 3. Lack of differentiation within the risk -based categ ories 4. There is very much high dependency on the experience of team members 5. The outcomes vague, at some it become very much difficult to execute the same Benefits involved of Quantitative risk analysis: 1. It is very much helpful to assess the likelihood of meeting the target 2. Helpful to properly assess the hazard that you phase in every phase of project creation 3. It identifies the damage which is caused to the functionality of the system Difference between quantitative and qualitative risk assessment are: 1. Basic difference is their approach : This risk analysis tends to be more subjective .It identify the risk which will occur over a project life span .While the other uses a proper verifiable data in order to ascertain the risk effect in terms cost revenue ,r esource consumption and also delay in schedule . 2. Risk management approach: The quantitative approach is for better management of risk of modern projects. It provides a better form of understanding how risk will affect the outcome. Qualitative risk is very much helpful in gauging probability and and involved risk prioritizing in a form which is very much convenient.