What characterizes a quantitative risk assessment?

A quantitative risk assessment is characterized by the use of numerical values to evaluate and assign levels of risk. This approach relies on measurable data and statistical methods to quantify the likelihood of potential risks and their impacts, allowing for a more systematic and objective analysis. By employing numerical values, organizations can prioritize risks based on defined thresholds and use calculations to guide decision-making and resource allocation.

The strength of this method lies in its ability to produce clear, data-driven insights that support more rigorous risk management practices. In contrast to qualitative assessments, which may rely heavily on subjective opinions or rankings, a quantitative assessment provides concrete metrics that can be consistently applied across different scenarios. This facilitates better communication about risks among stakeholders and aids in aligning risk strategies with organizational goals.