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Qualitative and Quantitative Risk Analysis Techniques

Qualitative and Quantitative Risk Analysis TechniquesThe oxford dictionary defines a risk as a situation involving exposure to danger. In business, an occurrence is said to be risky if it has the probability of an adverse outcome. Others words typically used in association with risks are words such as hazards and threats.In most cases, were mitigation controls are not implemented, a risk could result in the loss of financial or material assets, or more critically, it could lead to loss of life. Organisations therefore need a technique to assist in the identification and classification of risks; hence the relevance of Risk analysis.Risk analysis assists in defining preventive measures to reduce the probability of identified threats occurring. Information Technology (IT) managers are able to add value to organisations by using the principles of risk analysis to ensure that businesses remain existent in the face of a risk.The risk analysis process involves three processes: Hazard identification, Risk assessment and Risk evaluation.