What is the purpose of quantitative risk analysis?

The purpose of quantitative risk analysis is primarily to understand the actual impact of risks. This type of analysis involves using numerical methods and statistical techniques to estimate the probability and consequence of identified risks. By quantifying the risks, analysts can assess their potential effects on project objectives and make informed decisions regarding risk management strategies. This process often leads to a more accurate understanding of the potential financial implications of risks and helps in prioritizing them based on their quantitative evaluation.

In contrast, evaluating system hardware, estimating time for project completion, and assessing stakeholder impact do not directly focus on understanding the implications of risks. These tasks may be part of a broader project management framework, but they are not the central aim of quantitative risk analysis, which is specifically designed to assess risks in a numeric context.