Question 707 of 1,000
Security Policies and ProceduresmediumMultiple ChoiceObjective-mapped

200-201 Security Policies and Procedures Practice Question

This 200-201 practice question tests your understanding of security policies and procedures. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

An organization is conducting a risk assessment and assigns a monetary value to potential losses. Which risk assessment method is being used?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Quantitative risk assessment

Assigning a monetary value to potential losses is a hallmark of quantitative risk assessment. This method uses numerical data (e.g., dollar amounts, percentages) to calculate metrics such as Single Loss Expectancy (SLE) and Annualized Loss Expectancy (ALE), enabling objective comparison of risks. In contrast, qualitative methods rely on subjective ratings like high/medium/low.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Risk treatment

    Why it's wrong here

    Treatment comes after assessment.

  • Qualitative risk assessment

    Why it's wrong here

    Qualitative does not assign monetary values.

  • Risk identification

    Why it's wrong here

    This is the first step, not a method of assessment.

  • Quantitative risk assessment

    Why this is correct

    Quantitative uses numerical monetary values.

    Related concept

    Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

Cisco often tests the distinction between quantitative and qualitative risk assessment by describing a scenario with monetary values (quantitative) versus subjective ratings (qualitative), leading candidates to confuse risk treatment or identification with the assessment method itself.

Detailed technical explanation

How to think about this question

In quantitative risk assessment, the formula ALE = SLE × ARO (Annualized Rate of Occurrence) is used, where SLE = asset value × exposure factor. This approach requires hard data such as historical incident costs or replacement values, making it more objective but data-intensive. For example, if a server is valued at $50,000 and a ransomware attack is expected once every 5 years (ARO = 0.2), the ALE would be $10,000, directly informing budget decisions for security controls.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A practitioner preparing for the 200-201 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.

What to study next

Got this wrong? Here's your next step.

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FAQ

Questions learners often ask

What does this 200-201 question test?

Security Policies and Procedures — This question tests Security Policies and Procedures — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Quantitative risk assessment — Assigning a monetary value to potential losses is a hallmark of quantitative risk assessment. This method uses numerical data (e.g., dollar amounts, percentages) to calculate metrics such as Single Loss Expectancy (SLE) and Annualized Loss Expectancy (ALE), enabling objective comparison of risks. In contrast, qualitative methods rely on subjective ratings like high/medium/low.

What should I do if I get this 200-201 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jul 4, 2026

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