CRISC · Question #602
Which of the following is MOST useful when performing a quantitative risk assessment?
The correct answer is B. Financial models. Financial models are crucial for quantitative risk assessment as they provide methods to assign monetary values to risks and their potential impacts.
Question
Which of the following is MOST useful when performing a quantitative risk assessment?
Options
- ARACI matrix
- BFinancial models
- CManagement support
- DIndustry benchmarking
How the community answered
(33 responses)- B91% (30)
- C3% (1)
- D6% (2)
Why each option
Financial models are crucial for quantitative risk assessment as they provide methods to assign monetary values to risks and their potential impacts.
A RACI matrix defines roles and responsibilities, which is useful for risk governance but not directly for quantifying risk.
Quantitative risk assessment involves assigning numerical values, typically monetary, to risks and their impacts to allow for cost-benefit analysis of mitigation strategies. Financial models, such as Expected Monetary Value (EMV) or Monte Carlo simulations, are directly used to calculate these financial impacts and likelihoods.
Management support is essential for any risk management activity but is not a tool or technique for performing the quantitative assessment itself.
Industry benchmarking provides comparative data, which can inform qualitative assessments or the assumptions in quantitative models, but it is not a direct quantitative assessment tool itself.
Concept tested: Quantitative risk assessment tools
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