A couple of years ago you started your company which has now grown from 1 to 20 employees. Your companys information is worth more and more and gone are the days when you could keep it all in hand…

Question

Options

• AThis analysis follows a precise statistical probability calculation in order to calculate exact loss caused by
• BThis analysis is based on scenarios and situations and produces a subjective view of the possible threats.

• A
  21% (8)
• B
  79% (31)

Explanation

Qualitative risk analysis relies on expert judgment, scenarios, and subjective assessment rather than hard numbers - making option B correct. It categorizes risks using descriptive scales (like "high/medium/low") based on how likely a threat might occur and how severe the impact could be, without requiring precise statistical data.

Option A describes quantitative risk analysis, which uses mathematical models, historical data, and statistical probability to calculate exact monetary losses (e.g., "this threat has a 15% chance of costing €50,000"). That requires far more data and effort than a starting company typically has available.

Memory tip: Think of the prefix quali- as in quality/qualitative - it's about the character of a risk (how bad could it be?), not the exact number. Quanti- means quantity - exact numbers and calculations. A consultant recommending "start with qualitative" makes sense for a small, growing company that lacks the data history needed for statistical precision.

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