Quantitative Risk Assessment
A quantitative risk assessment is a type of risk assessment that involves the use of mathematical and statistical methods to estimate the likelihood and impact of potential risks. This type of assessment typically involves collecting data on past events, using statistical models to estimate the probability of future events, and calculating potential losses based on the estimated likelihood and potential impact of the risks.
Quantitative risk assessments are commonly used in finance, insurance, and engineering industries, where the potential losses associated with risks can be quantified in terms of money or other units of measurement. The results of a quantitative risk assessment can be used to inform decision-making and prioritize risk management activities.