What is the difference between qualitative and quantitative risk assessment?

The distinction between qualitative and quantitative risk assessment lies primarily in how risks are evaluated and measured. Qualitative risk assessment focuses on subjective criteria, which can include expert judgment, experiences, and perceptions related to potential risks. This method is often used to prioritize risks based on their likelihood and potential impact in a more narrative or descriptive manner. It addresses risk levels in terms of categories such as high, medium, or low, taking into account factors that are difficult to quantify statistically.

In contrast, quantitative risk assessment relies on numerical data and statistical methods to provide a more objective analysis of risk. This often involves calculating potential losses in monetary terms, using historical data and probability theories to quantify risks and make decisions based on measurable criteria.

Understanding these fundamental differences helps security professionals choose the appropriate method for assessing risks depending on the context and requirements of their specific situation. The statement regarding qualitative assessment effectively captures its essence, focusing on how it is shaped by subjective criteria, making it the correct choice.