What is the key difference between qualitative and quantitative risk assessment?

The key difference between qualitative and quantitative risk assessment lies in the nature of the data they utilize. Qualitative risk assessment employs descriptive language to evaluate risks based on subjective opinions, experiences, and perspectives. It focuses on the characteristics of potential risks, such as severity, likelihood, and impact, using terms like "high," "medium," or "low" to convey the results. This type of assessment relies more on the judgment and expertise of the assessors rather than numeric values.

In contrast, quantitative risk assessment uses measurable metrics and numerical values to evaluate risk. It often involves calculating the probability of events occurring and the potential financial impact associated with those risks. This method provides a more objective and precise approach, allowing for statistical analyses and comparison of risks using numerical data.

The other choices discuss various aspects of risk assessment but do not capture the fundamental difference between qualitative and quantitative methods as clearly as the correct choice does.