Qualitative risk analysis evaluates risk using descriptive categories such aslow,medium, andhighinstead of numerical values. This approach relies on expert judgment, experience, and contextual understanding rather than precise financial or statistical calculations. According to NIST SP 800-30, qualitative analysis is especially useful when numerical data is unavailable or when rapid risk prioritization is required.

Unlike quantitative risk analysis, which assigns monetary values and probabilities, qualitative analysis focuses on relative severity and likelihood. It is commonly used during early stages of risk management, policy development, and executive decision-making. While less precise, qualitative risk analysis is easier to communicate to stakeholders and helps organizations focus resources on the most critical risks.