Quantitative risk assessment
Definition
A methodology that assigns monetary values to threat scenarios using metrics such as asset value, exposure factor, SLE, ARO, and ALE. Outputs are in currency, making them directly comparable to control costs and enabling cost-benefit analysis.
Related terms
- ALE (Annualised Loss Expectancy)
- The expected monetary loss from a specific threat over a one-year period. Calculated as: ALE = SLE x ARO (Annualised Rate of...
- FAIR (Factor Analysis of Information Risk)
- A quantitative risk framework standardised by The Open Group (Open FAIR) that decomposes risk into Loss Event Frequency and Loss Magnitude, each...
- Qualitative risk assessment
- A methodology that rates likelihood and impact on descriptive or ordinal scales (such as 1-5 or low/medium/high) and combines them in a...
- Risk appetite
- The amount and type of risk an organisation is willing to accept in pursuit of its objectives, as defined by its governing...
- SLE (Single Loss Expectancy)
- The expected monetary loss from a single occurrence of a specific threat event against a specific asset. Calculated as: SLE = Asset...
Explained in
- Risk Assessment MethodologiesA methodology that assigns monetary values to threat scenarios using metrics such as asset value, exposure factor, SLE, ARO, and ALE. Outputs are in currency,...