Which risk analysis approach uses numeric values and monetary values for all parts of the analysis?

Which risk analysis approach uses numeric values and monetary values for all parts of the analysis?

• A. Qualitative Risk Analysis
• B. Quantitative Risk Analysis
• C. Delphi Technique
• D. Framework Analysis

Answer: (B)

Quantitative risk analysis uses numeric data for every part of the assessment, including probabilities and impacts, and often expresses those impacts in monetary terms. This approach enables calculations like expected monetary value (probability multiplied by monetary loss) and supports statistical methods or simulations to model risk more precisely. The emphasis is on turning risk into numbers so you can quantify exposure, compare scenarios, and make data-driven decisions. In contrast, qualitative risk analysis relies on descriptive judgments (high/medium/low) rather than numeric values; the Delphi Technique collects expert opinions but isn’t defined by assigning monetary values to all elements, and Framework Analysis focuses on organizing and interpreting qualitative information within a framework rather than monetizing risk components.