Question 534 - CGEIT discussion

The primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method is:

The level of detail and accuracy required for the risk assessment. Qualitative risk assessment is a method that uses scenarios, subjectivity, and knowledge to evaluate risks.It does not provide specific objective measurements of exposure, but rather a relative ranking or rating of risks based on their likelihood and impact1.Qualitative risk assessment is suitable for situations where the data is scarce, uncertain, or incomplete, or where the risk assessment needs to be done quickly and easily1.However, qualitative risk assessment may also be biased, inconsistent, or inaccurate, as it depends on the judgment and experience of the risk assessors1. Therefore, an enterprise should consider the level of detail and accuracy required for the risk assessment before choosing a qualitative method.If the enterprise needs more precise and reliable estimates of risk exposure, it may opt for a quantitative method instead1.

The other options are not the primary consideration for an enterprise when deciding whether to adopt a qualitative risk assessment method. The method identifies areas to immediately address vulnerabilities, enables an analysis of recommended controls, and provides a platform for all departments to contribute to the risk assessment are all possible benefits or outcomes of using a qualitative risk assessment method, but they are not the main factor that influences the decision to use it.They may also apply to other methods of risk assessment, such as quantitative or hybrid methods2.