Explain how qualitative and quantitative risk assessments differ, including one strength and one limitation of each.

### Why this is right The two methods differ in the form of evidence they use. Descriptive categories support fast communication, while numerical estimates can support financial decisions when sufficiently reliable data exists. ### The concept Qualitative analysis relies on categories and informed judgment, so two reviewers may rate the same event differently. Quantitative analysis estimates values such as probability or financial loss, which can make comparison more measurable. However, a numerical result is only as dependable as its data and assumptions. The choice depends on the decision, available information, and audience. ### What a good answer covers - Identify the descriptive basis of qualitative assessment. - Identify numerical estimates as the basis of quantitative assessment. - Give a strength and limitation for each method. - Explain why data quality matters to quantitative estimates. ### Terms - **Cost-benefit analysis**: comparing the expected costs of an action with the benefits it may provide. ### Remember Use qualitative ratings to communicate judgments and quantitative estimates when the data can support them.