Which approach uses numerical and statistical techniques to calculate a risk's likelihood and impact?

Which approach uses numerical and statistical techniques to calculate a risk's likelihood and impact?

• A. Qualitative risk analysis
• B. Risk analysis
• C. IT risk register
• D. Quantitative risk analysis

Answer: (D)

Quantitative risk analysis uses numerical and statistical techniques to quantify how likely a risk is to occur and how severe its consequences could be. By assigning probability values to events and measuring impact in numeric terms (such as monetary loss or a defined scale), it enables calculations like expected value and risk exposure, and supports objective prioritization and decision making. This is different from qualitative risk analysis, which describes likelihood and impact in subjective terms (high/medium/low) without precise numbers. The IT risk register is a repository of identified risks, not a method for analyzing them, and a general risk analysis could refer to either qualitative or quantitative approaches, but it’s the quantitative methods that specifically rely on numerical data and statistical modeling.

Quantitative risk analysis uses numerical and statistical techniques to quantify how likely a risk is to occur and how severe its consequences could be. By assigning probability values to events and measuring impact in numeric terms (such as monetary loss or a defined scale), it enables calculations like expected value and risk exposure, and supports objective prioritization and decision making. This is different from qualitative risk analysis, which describes likelihood and impact in subjective terms (high/medium/low) without precise numbers. The IT risk register is a repository of identified risks, not a method for analyzing them, and a general risk analysis could refer to either qualitative or quantitative approaches, but it’s the quantitative methods that specifically rely on numerical data and statistical modeling.