Which method of Risk Assessment evaluates severity and likelihood?

The method of Risk Assessment that evaluates severity and likelihood is qualitative risk assessment. This approach emphasizes the subjective judgment of risks based on experience, intuition, and expertise rather than relying solely on numerical values. In qualitative risk assessments, risks are often categorized into levels such as high, medium, or low, based on the severity of potential impacts and the likelihood of those impacts occurring.

By assessing both severity and likelihood, qualitative risk assessment allows organizations to prioritize risks and focus on those that represent the greatest potential threat. It is particularly useful when quantitative data is sparse or when risks are difficult to measure numerically. This method fosters discussions among team members and external experts, enabling a more nuanced understanding of risk.

Other methods, such as quantitative, utilize numerical data to calculate risks more precisely but may not always provide the context necessary for prioritization based on severity and likelihood, which qualitative assessments inherently offer. Statistical and algorithmic methods might involve mathematical models but do not primarily focus on the subjective assessments of severity and likelihood in the same holistic manner that qualitative approaches do.