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A business owner asks the security team to compare the cost of two controls for a legacy application in dollar terms. The team estimates the annual chance of a breach, the potential loss per event, and the expected yearly loss after each control is applied. Which risk analysis approach is being used?

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A business owner asks the security team to compare the cost of two controls for a legacy application in dollar terms. The team estimates the annual chance of a breach, the potential loss per event, and the expected yearly loss after each control is applied. Which risk analysis approach is being used?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Distractor review

Qualitative risk analysis

Qualitative analysis ranks risk using labels such as low, medium, or high rather than dollar-based calculations.

B

Best answer

Quantitative risk analysis

Quantitative analysis uses numeric values such as probability, impact, and annualized loss to compare controls financially.

C

Distractor review

Business impact analysis

A business impact analysis identifies critical processes and recovery needs. It does not calculate control value.

D

Distractor review

Risk acceptance

Risk acceptance is a treatment decision. It is not the analysis method used to estimate expected losses.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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.

Related practice questions

Related SY0-701 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

FAQ

Questions learners often ask

What does this SY0-701 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: Quantitative risk analysis — Quantitative risk analysis is used when leadership wants to compare security options in financial terms. The team is assigning numeric values to likelihood and impact, then estimating expected loss after each control. That allows decision-makers to compare costs against reduced losses and choose the most economically sensible option. This is different from qualitative ranking, which uses categories rather than dollar values. Why others are wrong: Qualitative analysis would classify risk instead of calculating it. A business impact analysis helps determine recovery priorities, not the financial benefit of controls. Risk acceptance is a possible outcome of the analysis, but it is not the analysis itself. Because the question centers on dollar-based comparison and expected loss, quantitative analysis is the correct method.

What should I do if I get this SY0-701 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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