What does a comprehensive risk assessment typically include?

A comprehensive risk assessment includes a mix of qualitative and quantitative data because this approach provides a more well-rounded understanding of risks. Qualitative data allows for the exploration of subjective factors, such as the potential impact of threats on personnel and reputation, while quantitative data offers numerical insights into the likelihood of events and the potential financial impact of risks. By combining both data types, organizations can develop a thorough and balanced analysis, enabling better decision-making and more effective risk management strategies.

Reliance solely on a single point of view may lead to biased outcomes as it does not consider diverse perspectives that could affect the risk landscape. Focusing only on qualitative data could result in a lack of measurable evidence to support decision-making, while relying exclusively on quantitative data might overlook important contextual insights that qualitative factors provide. Thus, using a mix of both data types ensures a comprehensive evaluation of risks.