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To evaluate the potential losses, the team should:

A team conducting a risk analysis is having difficulty projecting the financial losses that could
result from a risk. To evaluate the potential losses, the team should:

PrepAway - Latest Free Exam Questions & Answers

A.
compute the amortization of the related assets.

B.
calculate a return on investment (ROI).

C.
apply a qualitative approach.

D.
spend the time needed to define exactly the loss amount.

Explanation:

The common practice, when it is difficult to calculate the financial losses, is to take a qualitative
approach, in which the manager affected by the risk defines the financial loss in terms of a
weighted factor {e.g., one is a very low impact to thebusiness and five is a very high impact). An
ROI is computed when there is predictable savings or revenues that can be compared to the
investment needed to realize the revenues. Amortization is used in a profit and loss statement, not

in computing potential losses. Spending the time needed to define exactly the total amount is
normally a wrong approach. If it has been difficult to estimate potential losses (e.g., losses derived
from erosion of public image due to a hack attack), that situation is not likely to change, and at the
end of the day, the result will be a not well-supported evaluation.


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