Certified Information Systems Security Professional (CISSP) Practice Exam 2025 – All-in-One Guide to Mastering Your Certification!

Quantitative risk analysis is characterized by its reliance on statistical methods and numerical data to assess risks. This method quantifies the likelihood of specific threats and the impact they could have in terms of monetary value or other measurable factors. By using real numbers and statistical percentages, quantitative analysis provides a more definitive understanding of potential losses and is grounded in empirical data, which enables organizations to make informed decisions based on potential financial consequences.

This contrasts with qualitative risk analysis, which primarily involves non-numerical assessments based on subjective judgment and scenarios. While qualitative analysis can identify potential risks and their likelihood, it does not attach specific numerical values to potential impacts, making it less precise in terms of estimating damage.

In summary, the strength of quantitative risk analysis lies in its data-driven approach, providing tangible numbers and statistics that can be crucial for decision-making processes in risk management.