What is Quantitative?

Understanding Quantitative

Using numbers to measure something usually monetary values. Quantitative risk assessment employs precise numerical measurements and statistical analysis to evaluate risk in objective measurable terms typically expressing impact in monetary values and likelihood as frequencies or probabilities. This approach provides concrete data for cost-benefit analysis and investment decisions. Quantitative methods are described in standards like NIST SP 800-30 ISO 27005 FAIR and various financial frameworks. Organizations implement quantitative analysis through statistical modeling Monte Carlo simulations value-at-risk calculations and historical data analysis. For example a financial institution might perform a quantitative analysis of potential security incidents calculating the Annual Loss Expectancy ALE for different threats by multiplying the Single Loss Expectancy SLE by the Annual Rate of Occurrence ARO enabling precise comparison of different security control investments. Related terms Risk assessment ALE SLE ARO Value at Risk Monte Carlo simulation Expected value Statistical analysis Return on security investment ROSI.