Which statement accurately describes a characteristic of quantitative analysis in risk assessment?

Quantitative analysis in risk assessment is characterized by its reliance on numeric values to evaluate and measure risks. This approach involves calculating potential losses in monetary terms and estimating probabilities using statistical methods. By using numeric data, practitioners can create a more objective, measurable framework for assessing risks compared to qualitative analysis, which may rely on subjective judgment and descriptive categories. The use of numeric values allows for clearer comparisons and prioritization of risks based on their potential impact and likelihood, leading to more informed decision-making regarding risk management strategies.

This focus on numerical outcomes facilitates the development of models and simulations that can help predict future risk scenarios. In contrast, approaches based on qualitative measures typically lack this level of precision, making it difficult to make informed decisions based solely on subjective assessments.