There are two different approaches to risk management and they are qualitative and quantitive risk assessments. Let us look at both of them:
- Qualitative risk analysis: Qualitative risk analysis is when the risk is evaluated as a high, medium, or low risk.
- Quantitative risk analysis: Quantitative risk analysis is where you look at the high qualitative risks and give them a number value so that you can associate them with a cost for the risk.
In this example, we are going to grade a risk and its probability from 1—9, with 1 being low and 9 being high. If we look at the impact of losing a mail server, the qualitive risk analysis would say that it is high but the probability of losing it would be low: ...