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CAS-004 Practice Question: A security analyst is performing a risk…

A security analyst is performing a risk assessment for a critical application. Which TWO of the following are characteristics of a quantitative risk assessment methodology?

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

Calculates Annualized Loss Expectancy (ALE)

Quantitative risk assessment uses numerical values and dollar amounts to calculate risk. Option A (Calculates Annualized Loss Expectancy (ALE)) is correct because ALE is a quantitative metric (ALE = SLE × ARO). Option E (Assigns dollar values to assets and potential losses) is also correct because quantitative assessment assigns monetary values. Option B is qualitative, relying on expert judgment. Option C is incorrect; Exposure Factor (EF) is part of quantitative assessment, but it is not a characteristic of the methodology itself—rather, it's an input. Option D uses qualitative ratings. Therefore, the correct choices are A and E.

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 Annualized Loss Expectancy (ALE)

    Why this is correct

    ALE is a key output of quantitative risk assessment.

  • Relies on expert judgment and scenarios

    Why it's wrong here

    This describes qualitative assessment, not quantitative.

  • Determines Exposure Factor (EF) for each asset

    Why it's wrong here

    Although EF is used in quantitative, it is a component, not a defining characteristic of the methodology itself.

  • Uses high/medium/low ratings for likelihood and impact

    Why it's wrong here

    This is a qualitative approach, not quantitative.

  • Assigns dollar values to assets and potential losses

    Why this is correct

    Quantitative risk assessment uses monetary values to quantify risk.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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