Question

When assessing expected annual monetary loss due to risks, you found that the expected loss from your customer database was twice as high as the expected loss from your product database. You used these figures to justify allocating more resources to protect the customer database. Which risk assessment was used here?

a. Risk control self-assessment
b. Qualitative risk assessment
c. Quantitative risk assessment
d. Risk likelihood assessment

Answer 1

The type of risk assessment used when assigning monetary values to potential losses is called quantitative risk assessment. It provides a numerical basis for comparing risks and allocating resources effectively based on expected annual monetary loss. Therefore correct option is C

Step-by-step explanation:

When assessing expected annual monetary loss due to risks and finding that the expected loss from the customer database was twice as high as the expected loss from the product database, the type of risk assessment used here is c. Quantitative risk assessment. This type of assessment involves a numerical approach to determine the potential impact of risk events in terms of monetary value, which assists in the allocation of resources to areas that require the most protection. By assigning monetary values to potential losses, a quantitative analysis provides a clear basis for comparing the risks and determining where to focus risk management efforts.