A good qualitative risk analysis would qualify risks based on what factors?

Qualitative risk analysis is a method used to evaluate the likelihood and impact of identified risks on a project. By focusing on factors such as impact on cost, time, and quality, this approach helps project managers prioritize risks according to their potential influence on project objectives.

Understanding the impact on cost allows project managers to assess how risks could affect budget allocations and financial outcomes. Evaluating potential time impacts helps in understanding how risks may delay project timelines, while assessing quality impacts ensures that the project meets the required standards and specifications. Each of these factors is critical for effective project management; therefore, they form the basis for determining which risks should be addressed first in order to minimize negative consequences.

Although the other options mention important considerations, they do not directly address the central concerns of a qualitative risk analysis. For example, employee satisfaction and stakeholder engagement, market conditions and trends, and data privacy and cybersecurity are all relevant to project success but they do not specifically pertain to the core factors of cost, time, and quality in the context of risk analysis in a project management framework.