Which term describes a risk analysis that uses numerical values to predict likelihood and severity?

Which term describes a risk analysis that uses numerical values to predict likelihood and severity?

• A. Quantitative risk analysis
• B. Qualitative risk analysis
• C. Risk Analysis
• D. Prevention

Answer: (A)

Quantitative risk analysis uses numerical values to estimate likelihood and potential impact. By assigning probabilities to events and measuring consequences in numeric terms (such as dollars or downtime hours), it allows you to compute a risk score or expected value and compare risks objectively. This contrasts with qualitative risk analysis, which describes risks using categories like low, medium, or high without hard numbers. The broader term “risk analysis” is too general, and “prevention” refers to actions to reduce risk rather than the analysis itself.

Quantitative risk analysis uses numerical values to estimate likelihood and potential impact. By assigning probabilities to events and measuring consequences in numeric terms (such as dollars or downtime hours), it allows you to compute a risk score or expected value and compare risks objectively. This contrasts with qualitative risk analysis, which describes risks using categories like low, medium, or high without hard numbers. The broader term “risk analysis” is too general, and “prevention” refers to actions to reduce risk rather than the analysis itself.