In risk management, which type is often associated with subjective judgments?

Qualitative risk is commonly associated with subjective judgments because it relies on the insights, observations, and experiences of individuals to assess risks. Unlike quantitative risk, which utilizes numerical data, statistical analysis, and measurable factors to evaluate the likelihood and impact of risks, qualitative risk involves interpretation and opinion, making use of expert assessments, surveys, interviews, and other non-numerical methods.

This approach is particularly useful in situations where quantifiable data may not be readily available, such as the potential impact of a new threat or an emerging technology. In such cases, qualitative measures help to understand the nature of risks and prioritize them based on their perceived significance. Therefore, qualitative risk assessment allows for a more nuanced understanding of risks that may not be easily expressed in numerical terms but can significantly affect decision-making processes.