200-201 Security Policies and Procedures Practice Question
An organization is conducting a risk assessment and assigns a monetary value to potential losses. Which risk assessment method is being used?
⚠ Common exam trap
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.
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.
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.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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