Which term is defined as the approach that uses a calculation of risk's likelihood and impact using numerical techniques?

Which term is defined as the approach that uses a calculation of risk's likelihood and impact using numerical techniques?

• A. Risk analysis
• B. Risk map
• C. Quantitative risk analysis
• D. Preventive control

Answer: (C)

Calculating risk with numeric methods is what quantitative risk analysis is all about. This approach assigns numerical values to both how likely a risk event is and how severe its impact would be, then combines those numbers to produce a quantified risk picture. Using probability distributions, expected values, and techniques like Monte Carlo simulations or sensitivity analysis lets you compare risks objectively, prioritize them, and justify resource allocation based on measurable figures rather than subjective judgments.

The other concepts don’t fit because they describe different ways of handling risk. Risk analysis can be a broad term that includes qualitative assessments, not necessarily numbers. A risk map is a visual representation that plots likelihood against impact but doesn’t imply the calculation method itself. A preventive control is an action or safeguard implemented to reduce risk, not a method for calculating risk.