What type of analysis assesses risks based on subjective judgments and the impact of potential threats?

Qualitative risk analysis focuses on assessing risks using subjective judgments rather than numerical values. This type of analysis evaluates the potential impact of threats by considering factors such as likelihood, severity, and the context of the risk, often incorporating expert opinions and experiences.

In qualitative risk analysis, risks are usually categorized as high, medium, or low based on their potential effects on the organization. This method is particularly useful in situations where quantitative data may be scarce or when the risks are not easily quantifiable. By focusing on the descriptive aspects of risk, decision-makers can prioritize and gauge the severity of threats effectively.

In contrast, quantitative risk analysis relies on numerical data and mathematical models to assess risks, making it less applicable in scenarios where subjective judgments are crucial for understanding potential impacts. The other types of analyses mentioned, such as statistical and dynamic risk analysis, also involve different methodologies that do not align with the subjective nature of qualitative assessments.