CGEIT · Question #366
Which of the following methods is MOST likely to be used to assess plausible risk scenarios that could result in reputational risk to the enterprise?
The correct answer is B. Qualitative analysis. Qualitative analysis is the most appropriate method for assessing plausible risk scenarios related to reputational risk due to the subjective nature of reputation and the difficulty in assigning precise monetary values.
Question
Which of the following methods is MOST likely to be used to assess plausible risk scenarios that could result in reputational risk to the enterprise?
Options
- AControls gap analysis
- BQualitative analysis
- CQuantitative analysis
- DSWOT analysis
How the community answered
(63 responses)- A5% (3)
- B83% (52)
- C10% (6)
- D3% (2)
Why each option
Qualitative analysis is the most appropriate method for assessing plausible risk scenarios related to reputational risk due to the subjective nature of reputation and the difficulty in assigning precise monetary values.
A controls gap analysis identifies missing or inadequate controls within existing systems but doesn't primarily assess plausible risk *scenarios* or their potential reputational *impact*.
Qualitative analysis, which uses descriptive terms like "high," "medium," or "low" and often involves expert judgment and workshops, is well-suited for reputational risk. It focuses on the likelihood and impact of scenarios without requiring exact monetary figures, which are often difficult or impossible to assign to reputational damage.
Quantitative analysis focuses on assigning numerical values and probabilities to risks, which is challenging for intangible assets like reputation where direct monetary impact is difficult to precisely calculate.
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a strategic planning tool for internal and external factors, not primarily a method for detailed risk scenario assessment.
Concept tested: Qualitative risk assessment for reputational risk
Source: https://learn.microsoft.com/en-us/azure/architecture/framework/security/design-threat-model
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