Final answer:
The third level of risk-based assessment is known as a theoretical, scientific approach, which applies quantitative risk analysis and scientific principles to understand and manage risks comprehensively.
Step-by-step explanation:
The third level of risk-based assessment is known as a theoretical, scientific approach seeking to understand why things are as they are. This level incorporates rigorous methodologies and scientific principles to analyze risks, going beyond practical experience and intuition. It employs quantitative risk analysis to assess the likelihood and impact of different risks, enabling organizations to make well-informed decisions about risk management strategies.
At this level, the aim is to develop a comprehensive understanding of the underlying factors contributing to risk and to apply this knowledge to predict and mitigate potential problems before they arise. By using sophisticated risk assessment tools and statistical models, organizations can identify patterns and causal relationships that might not be apparent through more anecdotal or empirical approaches. The insights gained from this level can be pivotal in constructing robust risk management frameworks and policies.
Understanding risk assessment levels allows one to better grasp the complexity and thoroughness required for different situations, reflective of a company's maturity and capability in risk management practices.