In Project Risk Management, what is the main purpose of performing Qualitative Risk Analysis?

Introduction / Context:
Qualitative Risk Analysis is a process within Project Risk Management that focuses on evaluating the priority of risks using relative scales for probability and impact. It is performed after risks have been identified and before detailed quantitative analysis or response planning. This question asks you to recognize the primary purpose of qualitative analysis in the risk management life cycle.

Given Data / Assumptions:

• We are discussing the Qualitative Risk Analysis process.
• The question seeks its main purpose, not the tools or specific outputs.
• Options include prioritizing risks, eliminating risks, calculating exact monetary values, negotiating insurance, and preparing procurement documents.
• We assume PMI aligned descriptions of risk processes.

Concept / Approach:
Qualitative Risk Analysis uses tools such as probability and impact matrices, risk categorization, and expert judgment to quickly evaluate and rank risks. The key aim is to determine which risks deserve more detailed attention and resources. It does not normally assign exact numeric cost values to each risk or automatically remove all low priority risks from consideration. Activities such as negotiating insurance and preparing procurement documents belong to risk response planning or procurement management, not purely to Qualitative Risk Analysis.

Step-by-Step Solution:
Step 1: Recall that Qualitative Risk Analysis is a relative evaluation step rather than a detailed numeric calculation. Step 2: Understand that its goal is to prioritize risks for further analysis and response based on probability and impact ratings. Step 3: Scan the answer options and identify which one clearly captures this idea of prioritization and assessment. Step 4: Option a states that the purpose is to prioritize identified risks by assessing probability and impact, which matches the standard PMI definition. Step 5: Confirm that the other options overstate or misplace activities such as elimination, exact monetary calculation, insurance negotiation, and procurement documentation.

Verification / Alternative check:
Imagine you have a risk register with dozens of identified risks. You cannot treat all of them with the same level of detail. Through Qualitative Risk Analysis, you assign probability and impact ratings, perhaps using high, medium, and low categories. You then focus your limited time on the higher priority risks. This is exactly what option a describes and shows why qualitative analysis is essential.

Why Other Options Are Wrong:
Eliminating all low priority risks permanently is not recommended because low priority risks may change over time and should still be monitored. Calculating exact monetary values belongs more to Quantitative Risk Analysis, not qualitative. Negotiating insurance policies is part of risk response planning and sometimes procurement, not analysis. Preparing procurement documents is primarily a procurement planning activity and not the main purpose of Qualitative Risk Analysis.

Common Pitfalls:
Learners sometimes confuse qualitative and quantitative risk analysis. Qualitative focuses on relative ranking and uses descriptive scales, while quantitative focuses on numeric estimates and models. Remember that qualitative analysis comes first and is used to decide which risks deserve more detailed quantitative analysis or more robust responses.

Final Answer:
The main purpose of Qualitative Risk Analysis is to prioritize identified risks for further analysis or action by assessing their probability and impact.