What is Quantitative Risk Analysis?
Quantitative Risk Analysis is a rigorous and comprehensive method of assessing risk. It uses verifiable data to make a numerical prediction of an event’s likelihood and the severity of its impact. Compared to a Qualitative Risk Analysis, which ranks likelihood and consequence on a graduated scale (e.g. minor, major or critical consequence or an unlikely, likely, probable likelihood) to determine the risk ranking, a Quantitative Risk Analysis assigns a numeric value to probability and consequence to calculate a numeric risk value. Common quantitative risk analyses include Layer of Protection Analysis (LOPA), Probable Loss of Life (PLL) and Cost-Benefit Analysis.
