What term refers to the process of assessing the potential impact exposures may have on an organization?

What term refers to the process of assessing the potential impact exposures may have on an organization?

• A. Qualitative risk analysis
• B. Risk Analysis
• C. Risk Administration
• D. Pure risk

Answer: (B)

The process of evaluating what could happen to an organization and how serious those outcomes would be is risk analysis. This covers identifying potential exposures, judging their likelihood and impact, and prioritizing which risks to address. It’s the broad process that can include qualitative or quantitative methods. The option describing qualitative risk analysis refers to a specific method within risk analysis, not the entire process. Risk administration isn’t a standard term for this, and pure risk is a type of risk, not the process of assessment. So risk analysis best fits as the overall process of assessing potential impact exposures for the organization.

The process of evaluating what could happen to an organization and how serious those outcomes would be is risk analysis. This covers identifying potential exposures, judging their likelihood and impact, and prioritizing which risks to address. It’s the broad process that can include qualitative or quantitative methods. The option describing qualitative risk analysis refers to a specific method within risk analysis, not the entire process. Risk administration isn’t a standard term for this, and pure risk is a type of risk, not the process of assessment. So risk analysis best fits as the overall process of assessing potential impact exposures for the organization.