QuestionQ4

Risk Assessment and Analysis

A risk practitioner has been assigned to analyze newly added risk events in the risk register. Which of the following analysis methods would BEST allow the practitioner to minimize ambiguity and subjectivity?

Explanation

Annual loss expectancy (ALE) applies quantitative monetary values to expected loss frequency and impact, providing an objective, consistently interpretable basis for risk analysis. Delphi and brainstorming rely on expert judgment, so they retain greater subjectivity.

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