Which description aligns with qualitative risk assessment?

• A. It uses numerical probabilities and financial values
• B. It uses subjective ranks such as high/medium/low
• C. It requires statistical sampling
• D. It guarantees precise monetary estimates

Answer: (B)

Qualitative risk assessment relies on descriptive judgments rather than numbers. It describes risk levels using terms like high, medium, or low, often through a risk matrix that blends perceived likelihood with impact. This approach is handy when data are scarce or when you need quick, practical prioritization of risks. It contrasts with quantitative risk assessment, which assigns numerical probabilities and financial values, uses statistical sampling to estimate quantities, and aims for precise monetary estimates. So describing risk with subjective ranks such as high/medium/low best captures the essence of qualitative assessment.