Final answer:
Risk assessments should be based on the quantitative measurement of risk, examining likelihood, vulnerability, and asset value to evaluate potential financial losses.
Step-by-step explanation:
To show risk from a monetary standpoint, risk assessments should be based upon quantitative measurement of risk, impact, and asset value. This involves numerically evaluating the potential financial loss by taking into consideration the likelihood of a threat occurring, the vulnerability of the asset to the threat, and the value of the asset in question.
Risk assessments from a monetary standpoint should be based upon quantitative measurement of risk, impact, and asset value. This means that the assessments should involve analyzing the potential risks and their likelihood of occurrence, as well as the impact they would have on financial assets. By quantitatively measuring these factors, it becomes possible to assess the potential monetary risk involved.
Such assessments can help determine the appropriate level of investment in risk mitigation strategies, such as insurance or protective measures, even when the risk relates to low-probability, high-consequence events.