quantitative risk assessment


A process for assigning a numeric value to the probability of loss based on known risks and available, objective data. Used to determine potential direct and indirect costs to the company based on values assigned to company assets and their exposure to risk. For example, the cost of replacing an asset, the cost of lost productivity, or the cost of diminished brand reputation.

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You should try and do a quantitative risk assessment before you ever decide to take on any big project or investment.

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Our company CEO believed that we were facing serious financial difficulties after he asked a consultant to prepare a quantitative risk assessment for him on our financial position.

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In order to better predict how the company will perform in the coming years, it is imperative that a quantitative risk assessment be performed that is based upon the most up-to-date information available, as well as the most recent long-term forecasts for the economic market.

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