What does Quantitative Risk involve in terms of assessment?

Quantitative Risk assessment is focused on measuring and expressing potential risks in numerical terms, often translating these risks into monetary values. This approach allows organizations to understand the financial implications of risks and make informed decisions based on cost-benefit analysis. By providing risks in dollar amounts, businesses can prioritize resource allocation, evaluate risk management strategies, and justify investments in security measures based on potential losses or gains.

The other options, while they refer to important aspects of risk assessment, do not fully capture the essence of Quantitative Risk. Evaluating the likelihood of occurrence is typically associated with qualitative methods, as it describes the probability without necessarily assigning a monetary figure. Describing risks in qualitative terms often lacks the specific numerical detail that quantitative analysis provides, which can simplify complex risk scenarios into more subjective interpretations. Finally, ranking risks by severity is related to qualitative risk assessment, focusing on the potential impact of risks rather than quantifying them in numerical terms. Thus, the correct answer emphasizes the unique and critical role of expressing risk in financial terms within Quantitative Risk analysis.