A fundamental component of risk management is the process of risk assessment. During this stage of the risk management process, before an organization may implement a risk management plan, they must determine the core quantitative and qualitative values of risk related to a project.
Quantitative: Broken into two parts:
- The likelihood of occurrence
- The calculation of an assets expected capital loss; i.e. loss of raw materials
Qualitative: Broken into two parts:
- The likelihood of occurrence
- The calculation of an assets expected intangible loss; i.e. goodwill
