A risk manager has decided to use like lihood and consequence to determine the risk of an event occurring to a company asset. Which of the following is a limitation of this approach to risk…

Qualitative risk analysis assigns descriptive labels such as high, medium, or low based on individual or team judgment rather than measured data, meaning two analysts with different backgrounds or risk appetites can produce conflicting results for the same asset. This subjectivity makes it difficult to achieve consistent, repeatable, or auditable risk assessments across an organization.

Requiring a high degree of upfront work to gather environment details is a characteristic limitation of quantitative risk analysis, which demands detailed data collection such as asset values and historical loss rates - not of the lightweight qualitative approach.

Qualitative methods using likelihood-consequence matrices are specifically designed to differentiate between risk levels, so difficulty distinguishing between high, medium, and low risks is not a recognized limitation of this approach.

The ability to perform cost-benefit analysis is actually a strength of quantitative risk analysis, not a limitation of the qualitative likelihood-consequence approach, and therefore is not a drawback.

Extremely complex calculations are a limitation associated with quantitative risk analysis involving statistical modeling or Monte Carlo simulations, not with the comparatively simple qualitative matrix approach.