Certified Incident Handler (ECIH v3) — Question 81

Quantitative risk is the numerical determination of the probability of an adverse event and the extent of the losses due to the event. Quantitative risk is calculated as:

Answer options

• A. (Probability of Loss) X (Loss)
• B. (Loss) / (Probability of Loss)
• C. (Probability of Loss) / (Loss)
• D. Significant Risks X Probability of Loss X Loss

Correct answer: A

Explanation

The correct calculation for quantitative risk is represented by option A, which multiplies the probability of loss by the loss amount to determine risk. Option B incorrectly divides loss by probability, while option C does the opposite. Option D adds unnecessary complexity by multiplying by significant risks, which is not part of the basic calculation for quantitative risk.