API 580 Risk Based Inspection Practice Test

Qualitative risk analysis is a technique that primarily relies on the insights and judgments of subject matter experts to assess risk. In this approach, experts evaluate risks based on their experience and knowledge rather than relying heavily on statistical data or numerical calculations. This method allows for a more nuanced understanding of potential risks, especially when data may be limited or uncertain.

Qualitative assessments often involve identifying potential hazards, evaluating the likelihood of occurrence, and determining the impact of those risks on operations. The input from experienced professionals is crucial as it helps to frame the context of the risks, prioritize them, and develop appropriate risk management strategies. This technique is particularly useful in complex environments where expert opinion can provide valuable insights that may not be captured through purely quantitative methods.

In contrast, quantitative risk analysis generally focuses on numerical data and mathematical models to measure risk, which does not prioritize subjective expert insights in the same way. Probabilistic risk assessment involves advanced statistical methods that assess risks based on probabilities, often relying on historical data. Risk transfer analysis concentrates on strategies to transfer risk exposure to other parties, like insurance, which isn't primarily focused on assessing risk itself.