(ISC)2 Certified in Cybersecurity Practice Exam

What distinguishes quantitative risk analysis from qualitative risk analysis?

1. It uses descriptive labels for analysis

2. It assigns numerical values for impact and likelihood

3. It is less comprehensive in its evaluation

4. It focuses solely on subjective assessments

The correct answer is: It assigns numerical values for impact and likelihood

Quantitative risk analysis is characterized by its reliance on numerical values to assess both the impact and likelihood of risks. This approach allows organizations to create a more precise and objective evaluation of the potential risks they face. By assigning specific numerical values to various factors, it becomes possible to perform mathematical calculations that can quantify the potential financial impact or loss associated with a risk, thus aiding in clearer decision-making and prioritization of risk management efforts. In contrast, qualitative risk analysis tends to use descriptive labels or categories to evaluate risks based on their severity and likelihood, which can provide useful insights but lacks the rigor and specificity of numerical data. This distinction is fundamental, as quantitative methods facilitate in-depth analysis and provide a framework for statistical and financial modeling, making it especially valuable for organizations that need to make informed decisions about risk mitigation strategies and resource allocation.