The two main types of risk assessment are qualitative and quantitative. Qualitative risk
assessment is used as a quick and easy tool, and it can allow for determining which risks may need to be
further analyzed with quantitative risk assessment methods. Coletti et al. (2020) state, “Qualitative risk
assessment allows to figure out the possible risk situations and to prioritize them, whereas quantitative
risk assessment is devoted to measuring risks from data, in order to improve preparedness in case of
crisis situations.”
Qualitative risk assessments are general and simple both in their approach and with the display
of data. Qualitative risk assessments aim to assess the probability of occurrence and the impact a risk
may have. By utilizing qualitative risk assessments first, the higher effort needed for quantitative risk
assessments is not wasted on low-priority risks. Ma & Wong (2018) describe the approach by reporting,
“qualitative technique aims at identifying, describing, analyzing and understanding risks.” A guide to the
project management body of knowledge (PMBOK) (2017) describes these assessments as “subjective as
they are based on perceptions of risk by the project team and other stakeholders.”
Qualitative risk assessments are useful during the planning phase and throughout the project life
cycle. While there are many diagrammatic methods for relaying the elements of this risk assessment
process, a qualitative risk assessment matrix, also known as a probability and impact matrix, may be
used. See Table 1 below for an example of such a matrix.
Table 1
Risk Assessment Matrix
Risk Impact Likelihood Sum of Weight
Weather delays High High 6
Slab Floor High High 6
Septic System location High Med 5
Obtaining Permits High Med 5
Fee per day beyond
deadline
Low Low 2
Low = 1 Med = 2 High = 3
Note. This table demonstrates the use of a Risk Assessment Matrix for qualitative analysis of Case 1.8
(Wilson, 2015).
Once high-priority risks have been identified using qualitative risk assessment methods, a more
detailed analysis needs to be performed. Quantitative risk assessments are used for critical tasks within a
project. Afzal et al. (2019) state, “Because of the high uncertainty or the qualitative nature of risk
information, it is difficult for experts to make the right decisions with absolute crisp numbers.” For critical
and high-priority items, numerical and measurable data should be used to support risk response
planning. Ma & Wong (2018) claim the aim of the quantitative risks is “modeling risk to quantify the
corresponding effects.”
Quantitative risk assessments are costly and time-consuming and, as such should not be
required for every project. Quantitative risk assessments, however, are considered to be more reliable
and are sometimes requested by key stakeholders. Quantitative risk assessments may also appear in
matrix format; see Table 2 below for such an example.
Table 2
Risk Priority by Weights
Priority by Probability of Occurrence
Quality of
Deliverable Budget Schedule
Impact
Priority
High Weather
delays 5 1 3 5 9
Slab Floor 5 10 4 9 23
Med Septic
System
location
3 9 6 3 18
Obtaining
Permits 3 3 2 7 12
Low Fee per day
beyond
deadline
1 1 3 3 7
Impact = High - 10 Med - 5 Low - 1
Probability = High - 5 Med - 3 Low - 1
Note. This table demonstrates the use of a Weighted Risk Assessment Matrix for quantitative analysis of
Case 1.8 (Wilson, 2015).
Regarding assessments, I am reminded of a verse in Leviticus 12 where unclean animals are
presented to the priest to assess their value as they pertain to a vow, “The priest shall set its value,
whether high or low; as the priest values it, the price will be set.” (Berean Study Bible, 2020, Leviticus
12:27). While we may not be involved in such formalities as this, 1 Peter tells us, “But you are a chosen
people, a royal priesthood, a holy nation, a people for God’s own possession, to proclaim the virtues of
Him who called you out of darkness into His marvelous light.” (Berean Study Bible, 2020, 1 Peter 2:9). No
matter what capacity we may be serving in, if we are called upon to perform or assist with any risk
assessment, we ought to remember that we are a royal priesthood, proclaiming the virtues of God, as
we set risk probability and impact levels by means of qualitative and quantitative methods.
References
1 Peter 2. (2020). In Berean Study Bible. BSB Publishing, LLC.
A guide to the project management body of knowledge (PMBOK guide). (2017). (pp. 419-436).
Project Management Institute
Afzal, A., Yunfei, S., Nazir, M., & Bhatti, S. M. (2019). A review of artificial intelligence based
risk assessment methods for capturing complexity-risk interdependencies: Cost overrun
in construction projects. International Journal of Managing Projects in Business, 114(2).
https://www-emerald-com.ezproxy.liberty.edu/insight/content/doi/10.1108/IJMPB-02-
2019-0047/full/html
Coletti, A., De Nicola, A., Pietro, A. D., Porta, L. L., Pollino, M., Rosato, V., Vicoli, G., &
Villani, M. L. (2020). A comprehensive system for semantic spatiotemporal assessment
of risk in urban areas. Journal of Contingencies and Crisis Management, 28(3), 178-193.
https://doi-org.ezproxy.liberty.edu/10.1111/1468-5973.12309
Leviticus 12. (2020). In Berean Study Bible. BSB Publishing, LLC.
Ma, H., & Wong, W. C. (2018). A fuzzy-based House of Risk assessment method for
manufacturers in global supply chains. Industrial Management & Data Systems, 11(7).
https://www-emerald-com.ezproxy.liberty.edu/insight/content/doi/10.1108/IMDS-10-
2017-0467/full/html
Wilson, R. (2015). Mastering Risk and Procurement in Project Management A Guide to
Planning, Controlling, and Resolving Unexpected Problems. Pearson Education LTD.
Reply 1
Jason,
I appreciate your discussion post and the detail you went into concerning a review of the
case. You appear to have researched the effects of concrete due to weather, or perhaps you have
experience there. Either way, I found this information valuable. I agree with your description of
qualitative risk assessments. I found them to be simple, quick, and easy, as well as a necessary
tool for determining if further data needs to be collected for high impact/severity risks. Burkov et
al. (2018) state, “In practice, as a rule, in addition to quantitative risk assessment, qualitative risk
assessment in construction is also always utilized.”
Comparing our risk assessment matrices, I find that our assessments are nearly identical.
Though, I also included the fee for delays as a risk to the construction company. A likewise
comparison of our risk priority by weights proves to be similarly scored in impact priority. One
exception to that is your Risk A (Weather) scored much higher than my assessment. While the
probability of said risk were similar in our two assessments, I gave lower scores to the impact.
My reasoning behind this is due to the fact that I would expect the construction company to be
familiar with the Vancouver weather for the given season and have already taken this into
account in agreeing to the deadline. I may have put the cart before the horse here. Perhaps I
should’ve tried to assess these risks without regard to the information we have pertaining to the
deadline?
In considering risks, let us be reminded of a few obscure verses in Ecclesiastes 10, “He
who digs a pit may fall into it, and he who breaches a wall may be bitten by a snake. The one
who quarries stone may be injured by them, and he who splits logs endangers himself.” (Berean
Study Bible, 2020, Ecclesiastes 10:8-9). Solomon isn’t necessarily saying these things shouldn’t
be done, but simply they come with an inherent risk.
References
Burkov, V., Burkova, I., Barkhi, R., & Berlinov, M. (2018). Qualitative Risk Assessments in
Project Management in Construction Industry. MATEC Web Conf., 251.
https://doi.org/10.1051/matecconf/201825106027
Ecclesiastes 10. In Berean Study Bible. BSB Publishing, LLC.
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Reply 2
Kalish,
I appreciate your discussion post and I agree we should try to minimize risks. Thank you
for your included discussion regarding risk and opportunity management plans. Though, I
wonder, is the goal to separate risks from non-risks, or rather to assess the severity and impact of
all risks? I think what you’re saying here is to not let our imaginations run wild when we are
gathering information on the risks that may be present in the project at hand. And to that point I
agree. Nassar (2021) summarizes risk management “as a management work aimed at controlling
and decreasing risks to acceptable levels.”
In a comparison of our risk assessment matrices, I found that I scored each element
higher than you. I see no immediate concern here as we have learned that qualitative risk
assessments are subjective by nature. I also included the risk due to delays caused by weather,
though I scored it relatively low because of the construction company presumably being familiar
with the weather patterns of the area for the given season.
Comparing our risk priority by weights, I also scored each element higher than you
overall, with the exception of acquiring permits (you scored this higher than me). It seems the
main cause for this is you valued the impact on budget for the permit risk to be much higher than
I did. I agree there would be some impact on budget, but feel the impact on schedule would be
the highest here. Perhaps I should have gathered more data on this risk.
I don’t disagree with your statement about it being good to trust your intuition. I like that
you followed it up with not being too confident. This reminds me of Proverbs 28, “He who trusts
in himself is a fool, but one who walks in wisdom will be safe.” (Berean Study Bible, 2020,
Proverbs 28:26). I know we’re also instructed to not lean on our own understanding, but to trust
God. And we also know that fear of the Lord is the beginning of all wisdom. Intuition, wisdom,
or divine intervention; it’s true that apart from God we can do nothing, but with Hom we can do
all things.
References
Nassar, Y. S. (2021). Explore ad Assess the Risks of the Project Parties Involved in the
Construction Projects. Journal of Global Scientific Research, 6(12), 1906-1919.
https://www.gsjpublications.com/jgsr15920038.pdf
Proverbs 28. In Berean Study Bible. BSB Publishing, LLC.
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