Which of the following statements about risk assessment methods is most accurate?

• A. Quantitative methods are always superior to qualitative methods
• B. Qualitative methods require no data
• C. Qualitative methods produce precise monetary values
• D. Qualitative methods use subjective ranks and expert judgment when data is limited

Answer: (D)

In risk assessment, you balance numerical analysis with judgment. When data are scarce or uncertain, relying on expert input to gauge and compare risks is essential. Qualitative methods handle this by using subjective ranks and expert judgment to assess likelihood and impact, then prioritize which risks to address. This approach accepts that you can describe risks with categories (like high/medium/low) or ordered scales rather than forcing precise numbers, which is why it’s best when data is limited.

The other ideas don’t fit as well. Quantitative methods aren’t always superior—they depend on having reliable data and well-specified models, and in many situations data gaps or uncertainty make precise numbers misleading. Qualitative methods do rely on data of a sort—expert knowledge, past experience, and qualitative information—not nothing at all. And qualitative outputs are not precise monetary values; they yield ranked or categorized assessments rather than exact dollar estimates.