Certified in the Governance of Enterprise IT (CGEIT) — Question 103

An enterprise has identified a number of plausible risk scenarios that could result in economic loss associated with major IT investments. Which of the following is the BEST method to assess the risk?

Answer options

• A. Quantitative analysis
• B. Cost-benefit analysis
• C. Qualitative analysis
• D. Business impact analysis (BIA)

Correct answer: A

Explanation

Quantitative analysis is the most effective method for assessing risk in this scenario as it provides measurable data that can quantify potential losses. Cost-benefit analysis, while useful, focuses on comparing costs to benefits rather than assessing risk directly. Qualitative analysis offers subjective insights but lacks the numerical precision needed for economic evaluation. Business impact analysis (BIA) helps understand the effects of disruptions but is not primarily focused on risk assessment.