What is the difference between the qualitative risk analysis and the quantitative risk analysis?

When Quantitative and Qualitative Risk Analysis are combined, an accurate understanding of our threat impact cost and weight level is enhanced at a multi-dimensional view.
Quantitative Risk Analysis maps a cost, a monetary loss, to a particular risk exposure.
But this is not enough to tell us of the threat level, for example reputation risk.
Often Managers will want to know how low, medium or high a threat is, this brings in Qualitative Risk Analysis.
Besides mapping a monetary loss (quantitative) to reputational risk, the Legal Department is required to give understanding to the weight (qualitative) of a particular compromise to the reputation of a business.

Qualitative risk is a rank for risks during any project where it tasks a number or letter as per the category approved by risk team and project management.
For example, the first risk rate is "A" which means it is very costly.
In case the qualitative risk has given us the required expectation and required reaction towards risks, we stop here.
In case some risks still not clear and need more analysis, we do the Quantitative Risk Analysis which is a numerical grading for each risk with more specific details.
For example, the probability of this risk is86.5% on a scale from0 to100%.
Quantitative risk analysis is more costly than qualitative one and needs more time and resources, therefore we use it only when required.
Whereas, qualitative risk analysis has to be prepared at all times.

Hi Harin

According to Patton (2001) Qualitative Research is "putting your self into the shoe of the respondent"

Qualitative Research and Evaluation Methods.

In qualitative Research we use

Interview techniques based on open ended questions, observations, through various other participatory techniques ie PRAs. Then reports are generated through the collected information casestudies, themes and than data entry/coding.

However in Quantitative Techniques we normally use Description, Estimation and regression and apply various tests.

One has to be clear and aware of the cost of the survey we are planning to organize.

The Human Resource

Cost of the Survey

and data collected from the survey.

The Researchers in most cases also applies qualitative and quantitative techniques to gather accurate data and reduce the chances of any further errors.

More Simple: The quantitive data collection tells us how many girls are not attending the school but it is the qualitative techniques which cleary elaborate the reasons why girls dont attend schools ie cultural reasons, economic, lack of washrooms through observation, informal meetings, transit walks, word of mouth.

In basic terms, quantitative analysis is simply a way of measuring things.
Examples of quantitative analysis include everything from simple financial ratios such as earnings per share, to something as complicated as discounted cash flow, financial risk analysis, cash flow forecasting and modeling.
Qualitative Analysis---While some analysts rely largely on quantitative measures, metrics such as those indicated above, supplementing the analysis with qualitative analysis increases the insight into the company.
Using qualitative factors will often give analysts an edge since key factors, such as management, does not show up in quantitative analysis.
Other areas of analysis include sovereign, country risk, business risk and company specific risk.

Qualitative Risk Analysis assesses the priority of identified risks using their probability of occurring, the corresponding impact, as well as other factors such as the time frame and risk tolerance.
On the base of the results of the Qualitative Risk Analysis, the Quantitative Risk Analysis is, as2nd phase, the process for numerically analyzing the effect of the identified risks on the overall project objectivities.

The best one can deal with the Quantitative Risk Analysis is the Actuary.
Qualitative Risk Analysis on the other hand can deal by any experience manager with less mathematical skills.

To put it in the most simple terms:Qualitative risk analysis will provide you with the nature of risk and uncertainty you are dealing with, you can label them in a way that in a graph you'll see the treaths such as construction accidents or the absentiesm of workers... while quantitative risk analysis deals with a lot of probabilities and more mathematical tools, such as Monte Carlo simulation and such, in order to have answer like we have a30% chance for a delay in a shipment, or a loss of a supplier..

Qualitative Analysis - is the study of date that can be observed But not measured

Quantitative Analysis - is the study of data that can be measured