Exam CGEIT topic 1 question 462 discussion

Quantitative risk analysis involves the use of numerical measures of risk such as probability and impact. It provides a more objective and precise assessment of risk, which can be particularly useful when dealing with economic loss associated with major IT investments.

A. Quantitative analysis. Quantitative analysis involves assigning numerical values to various aspects of the risk scenarios, such as the probability of occurrence, potential impact, and economic loss associated with each scenario. By quantifying these factors, the enterprise can calculate the overall level of risk and prioritize mitigation efforts based on a clear understanding of the potential impact on major IT investments.

a is correct. BIA can not assess the risk after identifiying a number of scenarios.

he best method to assess the risk of economic loss associated with major IT investments is A. Quantitative analysis. Quantitative analysis is a method of risk assessment that uses numerical data to measure the likelihood and impact of a risk. This type of analysis is often used to assess the risk of financial losses, such as the risk of a data breach or the risk of a system outage. In this case, the enterprise has identified a number of plausible risk scenarios that could result in economic loss. Quantitative analysis can be used to measure the likelihood and impact of each risk scenario. This information can then be used to prioritize the risks and to develop mitigation strategies.

C. Qualitative analysis. Qualitative analysis is the most suitable method for assessing risks in scenarios where precise quantitative data may be unavailable or difficult to obtain. It involves evaluating risks based on their likelihood, impact, and other qualitative factors. It often relies on expert judgment, subjective assessments, and qualitative scales to assess the severity of risks. In this case, where the enterprise has identified plausible risk scenarios, qualitative analysis allows for a systematic evaluation of the risks based on their qualitative attributes. It helps identify and prioritize risks based on their potential impact on the organization's objectives and economic loss.