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200-201 Security Policies and Procedures Practice Question

An organization uses a qualitative risk assessment to evaluate a new vendor. Which characteristic is typical of qualitative risk assessments?

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

✓

Ranks risks using scales such as high, medium, low

Qualitative assessments use 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.

  • ✗

    Calculates annual loss expectancy (ALE)

    Why it's wrong here

    ALE is a quantitative metric derived from single loss expectancy multiplied by annualised rate of occurrence, so it cannot arise from qualitative ranking. It tempts because both approaches inform risk decisions, and ALE would be the right output when monetary loss figures and frequency data are available.

  • ✗

    Assigns numeric probabilities and impact

    Why it's wrong here

    Qualitative assessments rank risks using descriptive scales such as low, medium or high, so assigning numeric probabilities and impact values belongs to quantitative analysis. It is tempting because numeric scoring feels rigorous, and it would be correct where actuarial-style measurement of likelihood and impact is required.

  • ✗

    Uses monetary values to estimate loss

    Why it's wrong here

    Monetary loss estimation is the defining trait of quantitative risk assessment, whereas qualitative methods use ordinal categories. It is tempting because cost is a natural way to express impact, and monetary valuation would be correct when the organisation needs financially comparable risk figures for budgeting.

  • ✓

    Ranks risks using scales such as high, medium, low

    Why this is correct

    Qualitative assessments express likelihood and impact using descriptive ordinal scales, such as high, medium, and low, rather than monetary values. This ranking approach suits vendor evaluation where precise financial figures are unavailable, satisfying the stem's requirement for a typical qualitative characteristic.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This 200-201 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 200-201 exam.