Final Answer:
Risk rating can incorporate both qualitative and quantitative criteria is True.
Step-by-step explanation:
Risk Rating Inclusion: The statement affirms that risk rating can involve both qualitative and quantitative rules. This means that the process of assessing and categorizing risks may consider both subjective (qualitative) and objective (quantitative) measures.
Qualitative Rules: Qualitative rules in risk rating involve subjective assessments, often based on the nature of the risk, expert opinions, or qualitative characteristics. For instance, considering the potential impact on reputation or the regulatory environment.
Quantitative Rules: Quantitative rules, on the other hand, involve measurable and numerical data. This may include financial metrics, statistical models, or other quantifiable aspects that contribute to the overall risk evaluation is True.
Integration of Qualitative and Quantitative: Successful risk management often integrates both qualitative and quantitative approaches to provide a comprehensive understanding of risks. This allows organizations to make informed decisions considering both the inherent nature and measurable aspects of risks.