What does quantitative risk analysis primarily rely on?

Quantitative risk analysis primarily relies on numerical values and statistical methods to assess the likelihood and impact of risks. This approach allows project managers to evaluate risks in a more objective and measurable manner. By employing mathematical techniques, such as probability distributions, decision trees, and modeling software, quantitative analysis provides a clearer picture of potential project outcomes and helps in making informed decisions.

Numerical values provide a foundation for calculating risk exposure and financial implications, enabling project teams to prioritize risks based on data rather than personal perceptions or opinions. This data-driven approach is crucial for effective risk management, as it allows teams to develop strategies that are grounded in evidence and statistical reasoning, leading to more reliable forecasts of project performance.