Which two components apply to the Qualitative method in classic risk assessment?

The qualitative method in classic risk assessment primarily focuses on the subjective evaluation of risk rather than quantifying risks in numerical terms. This method emphasizes the potential impact of risks and the likelihood of their occurrence based on expert judgment, historical data, and scenario analysis.

In this context, impact refers to the potential severity of a risk event should it occur, which is a core aspect of qualitative risk assessment. Understanding impact allows organizations to prioritize risks based on their potential consequences rather than relying solely on numerical calculations. This helps in making informed decisions about which risks require more immediate attention or resources for mitigation.

Likelihood is also relevant to qualitative risk assessments as it assesses how probable it is that a risk event will occur. However, since the question specifically asked for two components, and impact is often a primary focus in qualitative assessments, it highlights the subjective elements more distinctly than likelihood alone.

In contrast, Single Loss Expectancy (SLE) and Annualized Rate of Occurrence (ARO) are more aligned with quantitative risk assessment methodologies. These concepts involve numerical calculations that are less applicable in a qualitative framework. Thus, focusing on impact and likelihood aligns with the qualitative method's emphasis on understanding risks in a more descriptive and judgment-based manner.