QuestionQ115

VerifiedRisk Assessment

Seth wants an approximate view of how likely the risks identified by his organization are to occur. After gaining a high-level understanding of their probability, he could allocate his limited, understaffed resources to risk mitigation according to priority. He was told that, among the identified risks, an earthquake was highly unlikely because of the geography of their location. He also learned that a fire in his building was highly likely, while the facility faced a physical-intrusion risk that was partly controlled by physical guards. What type of risk assessment is Seth essentially performing?

Explanation

A qualitative risk assessment rates likelihood using descriptive categories, such as high or highly unlikely, rather than numerical probabilities or calculated financial impact. These relative ratings support prioritizing risk-mitigation resources.

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