Question

Which of the following approaches to risk calculation typically assigns a numeric value (1–10) or label (High, Medium, or Low) to represent a risk? a. Quantitative risk calculation b. Rule-based risk calculation c. Policy-based risk calculation

Answer 1

The a. Quantitative risk calculation typically assigns a numeric value or label to represent a risk.

Step-by-step explanation:

Quantitative risk calculation involves assigning numerical values to potential risks to assess their impact and probability. This method uses data-driven models and statistical analysis to quantify uncertainties, aiding decision-making in areas such as finance, project management, and safety. It provides a more precise understanding of risks and informs risk mitigation strategies.

The approach to risk calculation that typically assigns a numeric value or label to represent a risk is Quantitative risk calculation. In this approach, risks are quantified using numerical values on a scale of 1-10 or labeled as High, Medium, or Low. This allows for a more precise and objective assessment of risks.