Which term describes the approach that uses numerical calculation to determine risk likelihood and impact?

Which term describes the approach that uses numerical calculation to determine risk likelihood and impact?

• A. Risk analysis
• B. Qualitative risk analysis
• C. Quantitative risk analysis
• D. Risk owner

Answer: (C)

Quantitative risk analysis uses numerical methods to estimate both how likely a risk is and how severe its consequences would be. By assigning probability values and impact figures, and then combining them—often through multiplication or more advanced models like Monte Carlo simulations—you get a numeric measure of risk exposure. This numeric approach sets it apart from qualitative risk analysis, which relies on descriptive categories (low/medium/high) rather than precise numbers. A general term like risk analysis is broader and doesn’t specify the use of numerical calculations. A risk owner, meanwhile, is the person responsible for managing a risk, not a analysis method.

Quantitative risk analysis uses numerical methods to estimate both how likely a risk is and how severe its consequences would be. By assigning probability values and impact figures, and then combining them—often through multiplication or more advanced models like Monte Carlo simulations—you get a numeric measure of risk exposure. This numeric approach sets it apart from qualitative risk analysis, which relies on descriptive categories (low/medium/high) rather than precise numbers. A general term like risk analysis is broader and doesn’t specify the use of numerical calculations. A risk owner, meanwhile, is the person responsible for managing a risk, not a analysis method.